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USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed


13 March 2012

USDA GAIN: Thailand Weekly Rice PriceUSDA GAIN: Thailand Weekly Rice Price

TH2021 Export prices for most grades of white rice remain unchanged, except for parboiled rice prices which increased around 2.0 percent as exporters are fulfilling their outstanding contracts of parboiled rice to Nigeria. The MY2011/12 main-crop Paddy Pledging Program absorbed a total of 6.8 million tons of paddy. The Sub-committee on Intervention Stock Release approved a plan to release a portion of its MY2011/12 intervention stocks of fragrant rice.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

Market Tone

Export prices for most grades of white rice remain unchanged, except for parboiled rice prices which increased around 2.0 percent from the previous week. Exporters are fulfilling their outstanding contracts of parboiled rice to Nigeria which reportedly expects to purchase around 300,000 – 400,000 tons for delivery by June 2012. Meanwhile on March 6-9, 2012, the Thai Government will retender 38,495 tons of broken rice from the current MY2011/12 main-crop Paddy Pledging Program. The last tender on February 6-8 was cancelled as the bidding offers were below market prices. In addition, the Government’s Sub-committee on Intervention Stock Release chaired by the Commerce Minister approved a plan to release a portion of the MY2011/12 intervention stocks of fragrant rice of 2.2 million tons. However, the plan’s details have not been finalized.

Presently, the Government is holding total intervention stocks of around 6.5 million tons, of which 2.0 million tons are old-crop intervention stocks, and 4.5 million tons are MY2011/12 crop. The MY2011/12 main-crop Paddy Pledging Program, which began on October 7, 2011 and finished on February 29, 2012, has accepted a total of 6.8 million tons of paddy (4.5 million tons milled equivalent) valued at approximately 100 billion baht ($3.3 billion) (Table 2). When taking into account the operating costs and storage costs, the total cost increases to 140 billion baht ($4.7 billion), as compared to the government’s initial credit line of 400 billion baht ($13 billion). This accounts for 31.5 percent of the expected total MY2011/12 main-crop production of 21-22 million tons of paddy (14.5 million tons milled equivalent). Around 34 percent of farmers participated in the program, far below the 95 percent participation rate of the Price Insurance Program in MY 2009/10 and MY2010/11, due to logistical challenge, especially for small-farm households in the Northeastern Region to pledge their paddy with participating mills.

In addition, the MY2011/12 off-season Paddy Pledging Program started on March 1, 2012 and has absorbed 16,213 tons of paddy during March 1- 4 (Table 3). By the end of the program on September 15, 2012, the Government expects that the program will pledge 8.0 million tons of paddy (5.3 million tons milled equivalent) which accounts for around 70 percent of anticipated total off-season rice production. {For Tables 2 and 3, please download the document]

Rice Export Update

Unofficial rice exports (excluding fragrant rice) for February 27 – March 4, 2012 totaled 71,798 tons, down 54,547 tons from the previous week, and down 34,463 tons from the four-week moving average of 106,262 tons. Exports of white rice and parboiled rice during January1 – March 4, 2012 totaled 786,593 tons, down 53.9 percent from 1,706,418 tons in the previous year.

According to the Department of Foreign trade, Ministry of Commerce, total rice exports (including fragrant rice) during January 1 – February 29, 2012 amounted to 985,764 tons, down 48.0 percent from 1,894,886 tons in the previous year. [For Tables 4 and 5, please download the document]

March 2013

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