Required Report - public distribution

**Date:** 6/6/2006

**GAIN Report Number:** TH6056

TH6056

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2006**

**Approved by:**

![](media/image1.wmf)Russ Nicely, Agricultural Attaché

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Export prices remained unchanged at high levels. Also, the Government's
stock release will not ease the prices. Meanwhile, some Thai exporters
will likely conclude deals with Iran at US\$ 310/MT.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jun. 5):**

  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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   490            \-     480    495    495    480    500    490      486

  WR 100 B     322            315    319    321    320    317    315    318      318

  PB 5%        300            298    305    311    306    305    305    304      304

  WR 5%        317            310    312    313    312    309    310    312      312

  WR 10%       309            303    307    311    308    305    305    307      307

  WR 15%       301            297    295    308    297    288    295    297      297

  WR 25%       277            277    275    295    275    270    280    278      279

  WR 35%       275            \-     \-     289    \-     268    \-     277      278

  A 1 SUP      219            218    213    216    220    212    210    215      216

  A 1 SPEC     217            216    211    213    218    \-     208    214      214

  Source:                                                                        
  Average                                                                        
  actual                                                                         
  prices                                                                         
  received                                                                       
  from                                                                           
  exporters                                                                      
  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- -------

**Market Tone**

Export prices for most grades of rice remained unchanged. Exporters
expect the prices will not ease despite the Government's plan to release
intervention stocks of around 120,000 tons through tender on Thursday,
June 8, 2006, as exportable supplies are still tight. The tender will
include white rice and fragrant rice from the intervention programs in
2001/02 -- 2003/04. Most rice is 5% grade white rice, of which around
20,000 tons are low quality rice. This stock release is for both
domestic and export markets. Trade sources expect many exporters to
participate in this tender, particularly those who are sourcing white
rice to fulfill pending shipments. Meanwhile, current foreign demand
remained quiet except for Iran, with which some Thai exporters are
reportedly expected to conclude deals for 100% B grade white of around
100,000 tons at around US\$ 310/MT, F.O.B.

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)        \%

  APR 16     66,847      77,725      1,287       1,598        -19.4

  APR 23     103,185     82,068      1,390       1,721        -19.2

  APR 30     105,690     88,070      1,496       1,847        -19.0

  MAY 7      111,369     96,773      1,607       1,947        -17.4

  MAY 14     100,083     105,082     1,707       2,042        -16.4

  MAY 21     121,879     109,755     1,829       2,131        -14.1

  MAY 28     70,293      100,906     1,900       2,205        -13.8

  JUN 4      172,816     116,268     2,073       2,297        -9.8
  ---------- ----------- ----------- ----------- ------------ ------------

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 May 29 -- Jun. 4, 2006
totaled 172,816 tons, up 172,816 tons from the previous week's total,
and up 56,548 tons from the four-week moving average of 116,268 tons.
Exports during Jan. 1 -- Jun. 4, 2006 totaled 2,072,528 tons, as
compared with 2,297,320 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- May 25,
2006, amounted to 2,873,133 tons, down 3.7 percent from 2,984,501 tons
in the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of May 15-19, May
22-26, and\
May 29 -- Jun. 2, 2006 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       May 15-19         May 22-26         May 29 -- Jun. 2

  weekly sales        78,560            129,953           60,616

  4 week sum          514,250           441,503           363,862

  4 week mov. avg.    128,563           110,376           90,966

  Total weekly sales  2,404,047         2,534,000         2,594,616
  ------------------- ----------------- ----------------- -----------------

End of Report.