Required Report - public distribution

**Date:** 8/7/2007

**GAIN Report Number:** TH7104

TH7104

**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 changed insignificantly as a slight weakening of the Thai
baht offset a slight increase in domestic prices. Meanwhile, new
enquiries are being received, but without an expectation of conclusion
as current high prices and freight costs will keep buyers hesitant.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Aug. 6):**

  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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    567            570    \-     544    580    550    550    560      560

  WR 100 B      334            340    \-     333    331    335    330    334      335

  PB 5%         327            348    \-     329    328    335    325    332      333

  WR 5%         328            335    \-     328    327    325    325    328      329

  WR 10%        322            330    \-     325    323    321    320    324      325

  WR 15%        313            325    \-     322    319    315    315    318      319

  WR 25%        301            305    \-     316    301    301    310    306      307

  WR 35%        298            \-     \-     \-     \-     297    \-     298      297

  A 1 SUP       268            \-     \-     258    263    266    260    263      262

  A 1 SPEC      265            \-     \-     255    260    \-     257    259      259

  Source:                                                                         
  Average                                                                         
  actual prices                                                                   
  received from                                                                   
  exporters,                                                                      
  Exchange                                                                        
  rate: 33.7                                                                      
  baht/U.S.\$                                                                     
  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------

###### Market Tone

Export prices changed insignificantly as a slight weakening of the Thai
baht offset a slight increase in domestic prices. Exporters are
aggressively securing white rice, particularly for 100% grade and 5%
grade, to fulfill outstanding shipments to Iran under the
Government-to-Government deals. Meanwhile, the exchange rate weakened
slightly to 33.7 baht/\$U.S., as compared to last week's average of 33.6
baht/\$U.S. Export prices remain under upward pressure, despite the
slight weakening of the Thai baht, as most exporters worry the baht will
strengthen over the next few months.

Also, new enquiries have been received from Iraq, Iran, and Africa.
African buyers are reportedly more optimistic about current freight
costs, which have been much higher than average for several months.
Nevertheless, these new deals are unlikely to be concluded soon,
particularly for large-volume contracts, due to ongoing exchange rate
uncertainties and anticipation of increases in exportable supplies
competitors, like Vietnam and India. However, trade sources report
Vietnam may be limited by a lack of exportable supplies until the end of
the year.

**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 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

  JUL 29     93,085      98,433      2,995       2,800        7.0

  AUG 5      84,102      96,498      3,079       2,859        7.7
  ---------- ----------- ----------- ----------- ------------ ------------

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. 30 -- Aug. 5, 2007
totaled 84,102 tons, down 8,983 tons from the previous week's total, and
down 12,396 tons from the four-week moving average of 96,498 tons.
Export during Jan. 1 -- Aug. 3, 2007 totaled 3,079,165 tons, as compared
with 2,858,717 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. 31,
2007, amounted to 4,689,778 tons, up 9.8 percent from 4,269,485 tons in
the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jul. 16-20, Jul.
23-27 (Updated), and\
Jul. 30 -- Aug. 3, 2007 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jul. 16-20        Jul. 23-27        Jul. 30 -- Aug. 3

  Weekly sales        106,198           75,442            53,418

  4 week sum          387,340           382,325           363,943

  4 week mov. avg.    96,835            95,581            90,986

  Total weekly sales  3,181,761         3,257,203         3,310,621
  ------------------- ----------------- ----------------- -----------------

End of Report.