Required Report - Public distribution

**Date:** 8/5/2008

**GAIN Report Number:** TH8122

TH8122

**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, Maysa Kunasirirat,
Agricultural Assistance

**Report Highlights:**

Export and domestic prices remain under downward pressure as Vietnamese
rice is being offered \$100/MT lower than Thai rice. Last week, the Thai
Prime Minister announced old-crop intervention stocks of 2.1 million
tons would be used for the Government-to-Government sales, which is
expected to generate inquiries from African and Asian buyers.

Includes PSD Changes: No

Includes Trade Matrix: No

Trade Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Aug. 4):**

  ------------- -------------- ------ ------ ------ ------ ----- ------ -------- ------
  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    830            \-     \-     \-     900    850   \-     860      873

  WR 100 B      690            \-     775    760    740    750   740    743      763

  PB 5%         \-             \-     830    \-     780    800   750    790      799

  WR 5%         670            \-     767    750    720    730   720    726      747

  WR 10%        \-             \-     \-     \-     \-     \-    \-     \-       \-

  WR 15%        \-             \-     \-     \-     \-     \-    \-     \-       \-

  WR 25%        \-             \-     \-     \-     \-     670   \-     670      700

  WR 35%        \-             \-     \-     \-     \-     \-    \-     \-       \-

  A 1 SUP       455            \-     \-     \-     520    515   510    500      545

  A 1 SPEC      \-             \-     \-     \-     \-     \-    \-     \-       \-

  Source:                                                                        
  Average                                                                        
  actual prices                                                                  
  received from                                                                  
  exporters,                                                                     
  Exchange                                                                       
  rate: 33.4                                                                     
  baht/U.S.\$                                                                    
  ------------- -------------- ------ ------ ------ ------ ----- ------ -------- ------

###### Market Tone

Export and domestic prices remain under downward pressure. Foreign
buyers have reportedly shifted to relatively cheaper Vietnamese rice
which is presently offered \$100/MT lower than Thai rice at \$600/MT,
FOB, for premium white rice. In addition, some contracts for Thai white
rice were reportedly cancelled by buyers who had earlier contracted
under significantly higher prices. Although the current intervention
program is fully implemented, domestic prices continued to decline by
5-6 percent from the previous week, as supplies of second-crop harvest
continue to enter the market. So far the program has absorbed 1.2
million tons of paddy, out of a targeted 2.5 million tons. Last week,
the Thai Prime Minister agreed to release old-crop intervention stocks
of 2.1 million tons for Government-to-Government sales. The Government
expects several inquiries from African and Asian buyers, such as
Nigeria, Liberia, and Malaysia. However, no deals have been announced as
Thai rice prices are currently high.

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 8      192,204     190,977     3,952       2,248        75.8

  JUN 15     180,467     189,198     4,132       2,385        73.3

  JUN 22     159,051     132,930     4,291       2,494        72.0

  JUN 29     212,103     190,391     4,503       2,579        74.5

  JUL 6      168,072     179,923     4,671       2,679        74.3

  JUL 13     171,699     177,731     4,843       2,784        73.9

  JUL 20     178,180     182,513     5,021       2,877        74.5

  Jul 27     182,769     175,180     5,204       2,980        74.6

  Aug 3      101,488     158,534     5,305       3,062        73.3
  ---------- ----------- ----------- ----------- ------------ ------------

*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 28-Aug 1, 2008
totaled 101,488 tons, down 81,281 tons from the previous week, and down
57,046 tons from the four-week moving average of 158,534 tons. Exports
during Jan. 1 -- Aug 3, 2008 totaled 5,305,401 tons, as compared with
3,061,650.49 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- July 25,
2008, amounted to 6,718,014 tons, up 45.82 percent from 4,606,779 tons
in the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jul 14-18, July
21-25 and Jul 28-Aug 1, 2008 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jul. 14-18        Jul 21-25         Jul 28-Aug 1

  Weekly sales        136,346           130,046           129,343

  4 week sum          584,568           518,630           543,010

  4 week mov. avg.    146,142           129,658           135,753

  Total weekly sales  5,143,815         5,273,861         5,403,204
  ------------------- ----------------- ----------------- -----------------

End of Report.