USDA report on Thai rice

Despite a slight domestic price slowdown from increasing second-crop harvest supplies, export
prices for most grades of rice rose by $2-3/MT due to the continued strengthening Thai Baht.
The Thai Baht reached a new high of 33.7 baht/$U.S., as compared to the strengthening 34
baht/$U.S. last week. Iran and Iraq are still buying Thai rice regularly, but import demand from
African and European countries has been quiet due to concerns over high freight costs. Current
freight costs of bulk vessels, particularly to African countries, are still high despite a recent 10
percent cost reduction from the previous week. Although freight costs for container vessels
seasonally increase by almost double, particularly to Europe, freight costs this year remain much
higher. Trade sources allege vessel owners are attempting take advantage of the relative high
demand for their vessels.