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.






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