THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Export prices for most grades of rice further declined 1-2 percent, except for fragrant rice prices which increased significantly. The government is expected to issue a new tender for 0.6 million metric tons of deteriorated rice by the end of August. Additionally, the government is proceeding with the sale of rice stocks after the sale’s suspension was overturned by the Supreme Administrative Court.
Ponnarong Prasertsri, Agricultural Specialist Paul Welcher, Agricultural Attaché
Weekly Rice Price Update
Rice Price - Weekly
Thailand
TH7110
8/23/2017
Post:
Market Tone
Export prices for white rice further declined 1-2 percent from the previous week due mainly to the sale of government stocks. The government is proceeding with the sale of 2.6 million metric tons of rice stocks to the selected tender buyers after the August 11 Supreme Administrative Court decision
overturned the Administrative Court’s ruling that had suspended the planned rice stock sales. The sale will consist of (1) 0.5 million metric tons of deteriorated rice stocks from the April 28, 2017 tender and (2) 2.1 million metric tons of feed-quality rice stocks from the June 15, 2017 tender. Additionally, the government announced that it will issue a new tender for the remaining 0.6 million metric tons of deteriorated rice by the end of August 2017. The details of this tender have yet to be finalized. If the 0.6 million metric tons of rice stocks are purchased, government stocks are expected to decline to 0.1 - 0.2 million metric tons.
However, export prices for fragrant rice increased significantly from the previous week due to tighter seasonal domestic supplies. Although the flash flooding in July and early August reportedly has had a minimal impact on fragrant rice production, rice millers expect that most supplies of new-crop fragrant rice will not enter the market until December 2017. Furthermore, the government has sold food-quality fragrant rice stocks. Additionally, farmers participating in the MY2016/17 On-Farm Pledging Program have reportedly already redeemed almost all of their rice as the market prices are well above the loan rate.
Rice Export Update
Unofficial and preliminary rice exports (excluding premium white and fragrant rice) for August 7-13, 2017, totaled 152,720 metric tons, up 5,088 metric tons from the previous week, and up 10,360 metric tons from the four-week moving average of 142,360 metric tons (Table 2). Rice exports from January 1
