Required Report - Public distribution

**Date:** 1/15/2008

**GAIN Report Number:** TH8008

TH8008

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2008**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

A strengthening Thai baht and speculative demand caused domestic and
export prices to increase by 2-3 percent. Domestic supplies continue to
tighten for low grade white and broken rice as feed mills are currently
sourcing for feed production.

Includes PSD Changes: No

Includes Trade Matrix: No

Trade Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jan. 14):**

  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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    670            645    640    616    635    630    610    635      625

  WR 100 B      380            387    375    370    368    381    370    376      372

  PB 5%         380            398    390    381    380    391    395    388      383

  WR 5%         373            382    370    364    360    371    365    369      364

  WR 10%        370            377    365    358    356    369    360    365      360

  WR 15%        368            375    360    355    352    367    355    362      356

  WR 25%        365            372    350    352    350    \-     \-     358      352

  WR 35%        362            \-     \-     349    \-     \-     \-     356      349

  A 1 SUP       359            \-     \-     340    347    \-     352    350      343

  A 1 SPEC      356            \-     \-     337    344    \-     349    347      339

  Source:                                                                         
  Average                                                                         
  actual prices                                                                   
  received from                                                                   
  exporters,                                                                      
  Exchange                                                                        
  rate: 32.9                                                                      
  baht/U.S.\$                                                                     
  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------

###### Market Tone

Export and domestic prices for all grades of rice surged by 2-3 percent
in the past week. The increase was driven by the continued strengthening
of the Thai baht (32.9 baht/\$ against 33.1 baht/\$ in the previous
week) and strong speculative demand among local rice traders. Traders
are reportedly holding stocks in an attempt to take greater advantage of
increasing global commodities prices. In addition, new enquiries for 5%
grade white rice to Iraq were concluded while fulfilling outstanding
contracts. Exporters involved in last week's sales to Iraq will need to
source new supplies to fulfill those 5% grade white rice contracts.
Also, international trading houses reportedly concluded deals with some
Thai rice exporters for low-grade white rice to African countries. Some
exporters are not providing quotations for low-grade white and broken
rice due to tight domestic supplies. Domestic supplies of broken rice
are further strained by strong demand from feed mills, which are
currently sourcing broken rice for feed production.

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)        \%

  NOV 25     204,239     201,626     5,660       4,400        28.6

  DEC 2      210,399     205,060     5,870       4,481        31.0

  DEC 9      146,624     191,129     6,017       4,567        31.7

  DEC 16     189,887     187,787     6,207       4,650        33.5

  DEC 23     204,027     187,734     6,411       4,734        34.3

  DEC 30     186,048     181,646     6,597       4,804        37.3

  JAN 6      81,497      \-          81          33           145.0

  JAN 13     172,556     \-          254         102          149.0
  ---------- ----------- ----------- ----------- ------------ ------------

*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 Jan. 7-13, 2008 totaled
172,556 tons, up 91,059 tons from the previous week. Exports during Jan.
1-13, 2008 totaled 254,054 tons, as compared with 102,167 tons in the
previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- Dec. 31,
2007, amounted to 9,504,906 tons, up 28 percent from 7,415,519 tons in
the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Dec. 24-28, 2007,
Jan. 1-4, and\
Jan. 7-11, 2008 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Dec. 24-28        Jan. 1-4          Jan. 7-11

  Weekly sales        139,961           43,079            143,821

  4 week sum          644,044           \-                \-

  4 week mov. avg.    161,011           \-                \-

  Total weekly sales  6,880,047         43,079            186,900
  ------------------- ----------------- ----------------- -----------------

End of Report.