Required Report - public distribution

**Date:** 7/24/2007

**GAIN Report Number:** TH7096

TH7096

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2007**

**Approved by:**

![](media/image1.wmf)Gary Meyer, Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Export prices declined by \$2-5/MT due to the weakening Thai baht. Iran
concluded deals last week for 130,000 tons of white rice under the
Government-to-Government contract and around 60,000 tons with private
exporters. Iran will reportedly send their own vessels to acquire the
rice and avoid the ongoing issue of tight vessel schedules. Overall
container costs remain high and are expected to increase in the coming
months.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jul. 23):**

  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------
  Thailand:                                                                       
  Export (FOB)                                                                    
  Prices for                                                                      
  various                                                                         
  grades of                                                                       
  rice                                                                            
  (USD/M.T.)                                                                      

                Exporter                                                 Period   
                Observations                                             Avg.     

                #1             #2     #3     #4     #5     #6     #7     CUR.     PRV.

  F WR 100 B    570            570    \-     544    580    550    550    561      560

  WR 100 B      336            343    \-     336    335    336    335    337      339

  PB 5%         327            350    \-     332    328    336    330    334      335

  WR 5%         330            335    \-     331    330    324    330    330      332

  WR 10%        324            332    \-     328    325    320    325    326      328

  WR 15%        318            323    \-     325    320    313    320    320      322

  WR 25%        303            307    \-     319    305    301    315    308      310

  WR 35%        300            \-     \-     \-     \-     296    \-     298      301

  A 1 SUP       264            \-     \-     258    263    266    260    262      262

  A 1 SPEC      261            \-     \-     255    260    \-     257    258      258

  Source:                                                                         
  Average                                                                         
  actual prices                                                                   
  received from                                                                   
  exporters,                                                                      
  Exchange                                                                        
  rate: 33.5                                                                      
  baht/U.S.\$                                                                     
  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------

###### Market Tone

Export prices were offered \$2-5/MT lower as the Thai baht weakened to
around 33.5 baht/\$U.S., down from last week's record of nearly 33.0
baht/\$U.S. Most exporters are currently comfortable with the weakening
Thai baht. However, some are reportedly reluctant to lower quotations
due to exchange rate uncertainties. Meanwhile, exporters are securing
white rice supplies for Iran and Iraq keeping domestic prices high
despite increasing supplies of second crops. Iran concluded the
Government-to-Government deals with the Thai Government last week for
130,000 tons of 100% B grade white rice at around \$340/MT, FOB, for
July -- September shipments. The Government will soon conduct a tender
to deliver white rice from the government stocks to Iran. Also, Iranian
buyers made a private deal with Thai exporters for around 60,000 tons
for the same period of shipments. Iran has already arranged the vessels
for these deliveries, which will allow them to avoid the current
situation of tight vessel schedules. Seasonal high freight costs remain
a major concern, particularly for container shipments to Europe, Middle
East, and Africa where shipping costs are expected to increase over the
next couple of months.

**The following are the reported rice exports (as is basis):**

  ---------- ----------- ----------- ----------- ------------ ------------
  WEEK       QUANTITY    4-WK AVG    YEAR TO     YEAR AGO     YEAR TO DATE
  ENDING                             DATE                     AS % OF LAST
                                                              YEAR

             (MT)        (MT)        (TMT)       (TMT)        \%

  JUN 3      108,036     113,500     2,156       2,063        4.5

  JUN 10     128,888     117,886     2,285       2,176        5.0

  JUN 17     115,381     119,835     2,401       2,279        5.3

  JUN 24     108,536     115,210     2,509       2,379        5.5

  JUL 1      92,127      111,233     2,601       2,448        6.2

  JUL 8      91,843      101,972     2,693       2,534        6.3

  JUL 15     110,982     100,872     2,804       2,613        7.3

  JUL 22     97,823      98,194      2,902       2,713        7.0
  ---------- ----------- ----------- ----------- ------------ ------------

Note on data: Export figures since March 22, 2002, do not include
fragrant rice. The authority to report fragrant rice exports was moved
from the Thai Board of Trade to the Ministry of Commerce's Office of
Commodity Standards, which does not release official fragrant rice
export data. FAS/BKK will report only official export numbers from the
Board of Trade for non-fragrant and from the Office of Commodity
Standards for fragrant rice when available, but the reader should bear
in mind the difference between the data.

Unofficial exports (excluding fragrant rice) for Jul. 16-22, 2007
totaled 97,823 tons, down 13,159 tons from the previous week's total,
and down 370 tons from the four-week moving average of 98,194 tons.
Export during Jan. 1 -- Jul 22, 2007 totaled 2,901,978 tons, as compared
with 2,713,143 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- Jul. 11,
2007, amounted to 4,288,105 tons, up 10.2 percent from 3,891,221 tons in
the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jul. 2-6, Jul.
9-13, and Jul. 16-20, 2007\
are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jul. 2-6          Jul. 9-13         Jul. 16-20

  Weekly sales        71,800            128,885           106,198

  4 week sum          382,848           370,441           387,340

  4 week mov. avg.    95,712            92,610            96,835

  Total weekly sales  2,946,678         3,075,563         3,181,761
  ------------------- ----------------- ----------------- -----------------

End of Report.