Friday 14 March 2008
Asian Rice: Prices Unch-Up On Steady Demand Amid Tight Supply
Indicative prices of Asian rice were steady to higherThursday on steady demand from consumers amid tight export inventories inThailand and Vietnam. In Thailand, buyers and traders were making inquiries, but most suppliersweren't providing price indications as local prices have been steadily on therise, exporters said. "Domestic prices are increasing not just on a daily basis but on hourlybasis. Morning prices are different from afternoon prices," one exporter said. Most suppliers are reluctant to sign new contracts as they could lose moneydue to unpredictable local prices, exporters said. At the same time, most suppliers are busy securing supplies to fulfilloutstanding contracts, they added. "We haven't been responding to inquiries because we have been busy withpending shipments. People are now lining up for supply," another exporter said. Most exporters won't be able to make offers until next month when the bulk ofa new crop will have been harvested, exporters said. The new crop, which farmers have started to harvest, is expected to yieldaround 3.3 million metric tons of rice, they said. Thai 100% grade B was indicated at $570 per ton, free-on-board Bangkok; 5%broken at $560/ton, FOB and parboiled at $620/ton, FOB. These prices are$10-$20 higher than prices indicated Wednesday.
Asian Rice:Prices Rise Sharply On Tight Supply, Fresh Demand
Asian physical rice indicative export prices were sharplyhigher Wednesday from Friday, boosted by fresh demand from the Philippines amidtight supplies in most origins, exporters said. Offers made at a Philippine National Food Authority tenderTuesday, at prices50% higher compared to contract prices signed in January, have lifted exportprices in Thailand, Bangkok-based exporters said. (Thailand and Vietnam are thetwo top rice suppliers to the Philippines.) "Prices at the Philippine tender have set the trend for other prices. If(low-quality) 25% broken was being offered at $600 a metric ton, FOB, whatshould the prices of other varieties be?" an exporter asked.
Meanwhile, most Thai suppliers aren't keen on signing new deals as domesticprices are at lofty levels. "No one is willing to sign forward contracts because prices could rise by$100 in a matter of days," a second exporter said. Thai 100% grade B was indicated at $556-$560/ton, FOB Bangkok; 5% broken at$544-$550/ton, FOB and parboiled at $600-$604/ton, FOB. These prices are about$50 higher from prices indicated Friday. However, the exporters added actual offers would be higher by $20/ton asindicative prices don't include the suppliers' profit.
Meanwhile, most Thai suppliers aren't keen on signing new deals as domesticprices are at lofty levels. "No one is willing to sign forward contracts because prices could rise by$100 in a matter of days," a second exporter said. Thai 100% grade B was indicated at $556-$560/ton, FOB Bangkok; 5% broken at$544-$550/ton, FOB and parboiled at $600-$604/ton, FOB. These prices are about$50 higher from prices indicated Friday. However, the exporters added actual offers would be higher by $20/ton asindicative prices don't include the suppliers' profit.
Manila rice auction fails to attract enough bids
A Philippine rice auction attracted only around 335,500 tons of tenders, below the 550,000 tons required, and at high prices, Reuters calculations on Tuesday showed. Prices ranged from $618.5-$745 a ton, including cost and freight, from 10 bidders. At the government's last rice tender in January, the average price was $474.41 per ton. Vina Foods submitted the largest tender of 128,000 tonn, to be sourced from Thailand, Vietnam and Pakistan. The other trading firms said the would source their bids from the same three countries and China.
Inland container depots reject rice cargoes
The latest Government of India decision to restrict export of both basmati and non-basmati rice through four select ports of JNPT, Mumbai, Kakinda and Kolkatta has led to a piquant situation as the basmati rice exporters from Delhi are unable to send their cargo through the Inland Container Depots (ICDs).
Exporters told Business Line here that since the notification of March 5, 2008 has not clarified about export of basmati and non-basmati rice exports through the ICDs which are deemed dry ports, customs authorities in the ICDs here are not accepting the basmati rice export cargo in ICDs for the needed customs clearance of the goods. Since the notification was issued, no rice cargo export has supervened from the ICD ports, they said, adding that they would meet the DGFT for clarification.
Exporters told Business Line here that since the notification of March 5, 2008 has not clarified about export of basmati and non-basmati rice exports through the ICDs which are deemed dry ports, customs authorities in the ICDs here are not accepting the basmati rice export cargo in ICDs for the needed customs clearance of the goods. Since the notification was issued, no rice cargo export has supervened from the ICD ports, they said, adding that they would meet the DGFT for clarification.
Stock checks ordered to detect rice hoarding
Commerce Minister Mingkwan Sangsuwan yesterday ordered a blanket survey of the government's rice stockpile nationwide and threatened to take legal action if grain was found missing.
Chookiat Ophaswongse, president of the Rice Exporters Association, said the stock survey could be a signal that the ministry may be planning to do something to address rising rice prices.
''We expect that the government is planning to release its stockpile, particularly for 5% white rice and low-grade rice which is used to produce animal feeds and noodles, to help local consumers,'' he said.
Deputy Commerce Minister Wiroon Techapaiboon said last week he would propose auctioning about 700,000 tonnes of rice in government stockpiles to help ease tight supplies, as the release of second-crop output is still relatively small.
Chookiat Ophaswongse, president of the Rice Exporters Association, said the stock survey could be a signal that the ministry may be planning to do something to address rising rice prices.
''We expect that the government is planning to release its stockpile, particularly for 5% white rice and low-grade rice which is used to produce animal feeds and noodles, to help local consumers,'' he said.
Deputy Commerce Minister Wiroon Techapaiboon said last week he would propose auctioning about 700,000 tonnes of rice in government stockpiles to help ease tight supplies, as the release of second-crop output is still relatively small.
Egypt hikes rice export duty
Egypt has raised the export duty on rice to 300 Egyptian pounds ($54.84) a tonne, from 200 pounds, the state news agency Mena said on Saturday.
Egypt introduced the duty last September to ensure supplies of rice to the local market and hold down domestic prices. Mena said trade and industry minister Rachid Mohamed Rachid had increased the duty in response to higher world prices.
The retail price of local rice has risen by up to 30 per cent in recent months, along with sharp rises in the prices of other staple foodstuffs. The government tried to persuade rice dealers to impose their own voluntary restrictions on exports but the prices on offer abroad were too high to resist, said an expert familiar with the rice trade
Egypt introduced the duty last September to ensure supplies of rice to the local market and hold down domestic prices. Mena said trade and industry minister Rachid Mohamed Rachid had increased the duty in response to higher world prices.
The retail price of local rice has risen by up to 30 per cent in recent months, along with sharp rises in the prices of other staple foodstuffs. The government tried to persuade rice dealers to impose their own voluntary restrictions on exports but the prices on offer abroad were too high to resist, said an expert familiar with the rice trade
Monday 10 March 2008
Prices Steady At High Levels Amid Tight Supply
Asian physical rice export prices held steady at lofty levels Friday, supported by strong demand in local markets as exporters were desperate to secure supplies for shipment abroad amid global tightness, market participants said.
In Thailand, exporters are no longer accepting orders as most of them are busy buying supplies to fulfill outstanding contracts. Worried they could lose a lot of money if local prices continue to escalate, most exporters are frantically sourcing supplies.
Local prices continue to rise amid the tight supply. "We're in a difficult situation right now. It would help if exporters ease on their buying activities (in the local market). But they are also eager to get their hands on available supply so they can fulfill their contracts," one exporter said.
Farmers will harvest a new crop later this month. However, the harvest isn't likely to substantially reduce prices given the global tightness of export material, traders said.
Thai 100% grade B was offered steady Friday at $508-$510 a metric ton, FOB
Bangkok; 5% broken was at $490-$495/ton, FOB; parboiled was at $540-$555/ton,
FOB.
In Thailand, exporters are no longer accepting orders as most of them are busy buying supplies to fulfill outstanding contracts. Worried they could lose a lot of money if local prices continue to escalate, most exporters are frantically sourcing supplies.
Local prices continue to rise amid the tight supply. "We're in a difficult situation right now. It would help if exporters ease on their buying activities (in the local market). But they are also eager to get their hands on available supply so they can fulfill their contracts," one exporter said.
Farmers will harvest a new crop later this month. However, the harvest isn't likely to substantially reduce prices given the global tightness of export material, traders said.
Thai 100% grade B was offered steady Friday at $508-$510 a metric ton, FOB
Bangkok; 5% broken was at $490-$495/ton, FOB; parboiled was at $540-$555/ton,
FOB.
Thai market report
Domestic and export prices surged to new highs due to lifting of capital control on Mar. 3, 2008.
Exporters based their quotations on 31 baht/$, compared to 32 baht/$ in the previous week. Every 1 baht/$ strengthening will normally cause $25/MT higher in quotations. Many exporters would not quote prices due to the volatility of the baht. Also, domestic prices increase by around $20- 30/MT, up 6 percent from the previous week. Thai exporters who will participate in the
Philippines tender next week (Mar. 11) are reportedly securing white rice supplies. They are
expected to get a portion of the tender of 550,000 tons (450,000 tons for 25% grade white rice,
50,000 tons for 15% grade white rice, and 50,000 tons for 5% grade white rice for shipment
between March - April this year), particularly for premium white rice, as Vietnamese rice supplies are also tight for the next few months in anticipation of possible rice crop damage. In addition, a sharp increase in domestic prices reflected aggressive speculative demand. The Government is reluctant to release intervention stocks as it argues that there is considerable paddy stock in private storage. Also, second crops in major growing areas in the central plain will be harvested gradually starting next week with anticipated total production of around 6.5 - 7.0 million tons of paddy, up slightly from the previous year following good weather conditions.
Exporters based their quotations on 31 baht/$, compared to 32 baht/$ in the previous week. Every 1 baht/$ strengthening will normally cause $25/MT higher in quotations. Many exporters would not quote prices due to the volatility of the baht. Also, domestic prices increase by around $20- 30/MT, up 6 percent from the previous week. Thai exporters who will participate in the
Philippines tender next week (Mar. 11) are reportedly securing white rice supplies. They are
expected to get a portion of the tender of 550,000 tons (450,000 tons for 25% grade white rice,
50,000 tons for 15% grade white rice, and 50,000 tons for 5% grade white rice for shipment
between March - April this year), particularly for premium white rice, as Vietnamese rice supplies are also tight for the next few months in anticipation of possible rice crop damage. In addition, a sharp increase in domestic prices reflected aggressive speculative demand. The Government is reluctant to release intervention stocks as it argues that there is considerable paddy stock in private storage. Also, second crops in major growing areas in the central plain will be harvested gradually starting next week with anticipated total production of around 6.5 - 7.0 million tons of paddy, up slightly from the previous year following good weather conditions.
India Confirms Hiking Minimum Export Price Of Non-Basmati Rice
India Friday confirmed hiking the minimum export price of non-basmati rice to $650 per metric ton, on a free-on-board basis, to further shore up local availability, an official notification said. Earlier, only non-basmati rice valued over $500/ton was allowed to exported from the country.
The government also restricted the export of basmati rice to Russia, allowing only varieties above $900/ton, FOB basis. The notification also imposed some restrictions on export of all types of
rice varieties from Indian ports of Kandla, Kakinada, Kolkata and Mumbai.
The government also restricted the export of basmati rice to Russia, allowing only varieties above $900/ton, FOB basis. The notification also imposed some restrictions on export of all types of
rice varieties from Indian ports of Kandla, Kakinada, Kolkata and Mumbai.
Asian Rice: Prices Rise On Surging Demand Amid Tight Supply
Asian physical rice export prices rose Thursday as surging demand amid tight supply boosted offers for Thai and Vietnam varieties, market participants said.
In Thailand, traders and importers continued to seek new deals amid tight supply in other exporting countries such as Vietnam and India. Most Thai suppliers are still busy buying rice in the local market to fulfill outstanding contracts and aren't keen on signing fresh contracts, exporters said. "Most exporters have stopped offering. Everyone is worried that if we sell something today, then we may have to worry about where to buy rice at the time of the shipment," an exporter said. Most inquiries in Thailand involve the parboiled varieties for shipment to West Africa, exporters said.
Thai 100% grade B was offered Thursday at $508-$510 a metric ton, FOB Bangkok; 5% broken was at $490-$495/ton, FOB; parboiled was at $540-$555/ton, FOB. These prices are higher by $15-$20/ton from offers Wednesday.
In Vietnam, prices were offered higher Thursday following a government decision to set a floor prices for its rice contracts, exporters said. The decision to set a floor prices was meant to ease the country's rice shipments and help keep local prices at levels affordable to local consumers,
an exporter said.
In Thailand, traders and importers continued to seek new deals amid tight supply in other exporting countries such as Vietnam and India. Most Thai suppliers are still busy buying rice in the local market to fulfill outstanding contracts and aren't keen on signing fresh contracts, exporters said. "Most exporters have stopped offering. Everyone is worried that if we sell something today, then we may have to worry about where to buy rice at the time of the shipment," an exporter said. Most inquiries in Thailand involve the parboiled varieties for shipment to West Africa, exporters said.
Thai 100% grade B was offered Thursday at $508-$510 a metric ton, FOB Bangkok; 5% broken was at $490-$495/ton, FOB; parboiled was at $540-$555/ton, FOB. These prices are higher by $15-$20/ton from offers Wednesday.
In Vietnam, prices were offered higher Thursday following a government decision to set a floor prices for its rice contracts, exporters said. The decision to set a floor prices was meant to ease the country's rice shipments and help keep local prices at levels affordable to local consumers,
an exporter said.
Thursday 6 March 2008
Asian Rice: Prices Steady At High Levels On Surging Demand
Asian physical rice export prices were unchanged from last week Wednesday as buyers continued to make inquiries for Thai and Vietnamese grain, market participants said.
In Thailand, exporters aren't keen to sign new deals as local prices have been rising steadily. "Our company isn't really interested in selling rice, especially parboiled. We don't know when this price increase will stop and we could lose a lot of money," one exporter said. Strong domestic prices led offers for parboiled varieties to breach the $500 a metric ton level last week, FOB basis, participants said.
The commerce ministry may abandon an earlier plan to hold an auction aimed at the export market to sell a portion of its rice stocks, they said. By maintaining its rice stocks, the ministry may be able to stem further price rises, since traders will be aware a ready supply of rice could at any time be released into the market. "The government is beginning to worry about local prices. Of course, they would always prioritize the domestic market," a second exporter said.
In Vietnam, prices were offered unchanged Wednesday on steady demand in the local market from exporters who need to fill pending contracts. The government is continuing a ban on private exporters signing contracts for March shipment. One exporter said the government is likely to extend the ban through April.
In Thailand, exporters aren't keen to sign new deals as local prices have been rising steadily. "Our company isn't really interested in selling rice, especially parboiled. We don't know when this price increase will stop and we could lose a lot of money," one exporter said. Strong domestic prices led offers for parboiled varieties to breach the $500 a metric ton level last week, FOB basis, participants said.
The commerce ministry may abandon an earlier plan to hold an auction aimed at the export market to sell a portion of its rice stocks, they said. By maintaining its rice stocks, the ministry may be able to stem further price rises, since traders will be aware a ready supply of rice could at any time be released into the market. "The government is beginning to worry about local prices. Of course, they would always prioritize the domestic market," a second exporter said.
In Vietnam, prices were offered unchanged Wednesday on steady demand in the local market from exporters who need to fill pending contracts. The government is continuing a ban on private exporters signing contracts for March shipment. One exporter said the government is likely to extend the ban through April.
Monday 3 March 2008
Thai 2Q Rice Exports May Fall Sharply On Stronger Baht
"The baht keeps getting stronger every day. Thai rice exports will be badly hit because every one-baht appreciation against the dollar pushes up rice export prices by $25 a metric ton," Chookiat Ophaswongse, president of the Rice Exporters Association said, adding that exporters are finding it difficult to quote prices.
The Thai baht has risen by 6.2% from the end of last year, with the U.S. dollar quoted at a 10.5-year low of THB31.58 Monday. The baht could appreciate to THB30 against the dollar within a short period following the central bank's removal of the capital control rules as foreign investors and speculators will pour money into the country, Chookiat said.
Another factor that could slow rice shipments in the second quarter is that local rice millers and merchants continue to hoard stocks in anticipation of higher prices, leading to tighter supplies and preventing exporters from taking large orders.
Moreover, Thai exports will face tougher competition as offers for Thai rice are higher than Vietnamese rice by around $30-$60/ton, free-on-board, he said.
The Thai baht has risen by 6.2% from the end of last year, with the U.S. dollar quoted at a 10.5-year low of THB31.58 Monday. The baht could appreciate to THB30 against the dollar within a short period following the central bank's removal of the capital control rules as foreign investors and speculators will pour money into the country, Chookiat said.
Another factor that could slow rice shipments in the second quarter is that local rice millers and merchants continue to hoard stocks in anticipation of higher prices, leading to tighter supplies and preventing exporters from taking large orders.
Moreover, Thai exports will face tougher competition as offers for Thai rice are higher than Vietnamese rice by around $30-$60/ton, free-on-board, he said.
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