So while local currencies have depreciated, no major exporter has gained a competitive edge. Nonetheless, prevailing prices for most grains are lower now than they have been in the past two years and this will serve to partially mitigate the appreciation of exporters' currencies. With no regional wheat production, importers have little choice but to import in order to meet growing demand. Regional corn production is insufficient to meet the rapidly increasing demand of the regional feed industry. While the impact on grain imports by the region may be limited, the impact on the export position of Southeast Asian nations is profound.
Thai competition comes mainly from Vietnam, a low cost supplier.
Consequently, by early 1997 Thai rice was almost completely uncompetitive with Viet rice in price sensitive markets. While the premium for U.S. rice has grown, U.S. exports remain largely unaffected.