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-$555/ton,
FOB.
Monday, 10 March 2008
Thai market report
Domestic and export prices surged to new highs due to lifting of capital control on Mar. 3, 2008.
Exporters based their quotations on 31 baht/$, 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.
Thursday, 2 August 2007
Asian Rice: Prices Steady To Lower Amid Quiet Trade
Asian physical rice export prices were steady to lower Wednesday from Friday amid thin trade, with Thai offers being driven down slightly by a weaker baht, exporters said.
"The baht is weaker so Thai prices are coming down," one Bangkok-based exporter said.
Despite softer prices, buyers remained elusive as Thai prices are still high, exporters said.
Meanwhile, Thai suppliers are busy gathering supplies to fulfill outstanding contracts, they said.
"Demand in the local market is quite strong because we have a lot of outstanding contracts. This is why local prices haven't changed," a second exporter said.
Thai 100% grade B was offered slightly lower Wednesday at $338-$339/ton, FOB, Bangkok, and 5% broken at $325-$330/ton. Parboiled 100% sortexed was offered unchanged at $333-$342/ton.
In Vietnam, prices were unchanged Wednesday on firm demand in the local market even as the government has imposed a ban on new export contracts.
"The baht is weaker so Thai prices are coming down," one Bangkok-based exporter said.
Despite softer prices, buyers remained elusive as Thai prices are still high, exporters said.
Meanwhile, Thai suppliers are busy gathering supplies to fulfill outstanding contracts, they said.
"Demand in the local market is quite strong because we have a lot of outstanding contracts. This is why local prices haven't changed," a second exporter said.
Thai 100% grade B was offered slightly lower Wednesday at $338-$339/ton, FOB, Bangkok, and 5% broken at $325-$330/ton. Parboiled 100% sortexed was offered unchanged at $333-$342/ton.
In Vietnam, prices were unchanged Wednesday on firm demand in the local market even as the government has imposed a ban on new export contracts.
Indonesia sees rice prices remaining stable until yearend amid sufficient supply
The Indonesian government expects rice prices to remain stable for the remainder of the year as it will maintain rice stocks at the ideal level of 1.5-2 million tons, deputy coordinating minister for economic affairs Bayu Krisnamurti said.
Wednesday, 1 August 2007
Pak challenges India's Super Basmati claim
The Indian and Pakistani commerce ministers might come out on Wednesday with a positive statement on the long-pending joint Geographical Indications(GI) on Basmati but a notice from Islamabad to New Delhi on registering Super Basmati has already spiked the mood against such a move.
The notice sent to the Indian government, confirmed by sources in the commerce ministry, comes in the wake of India registering Super Basmati variety in 2006 for export.
Pakistan believes India's registration of the variety could hit its international market. Pakistan exports close to 800,000 tonnes of the variety annually.
But Indian groups contend that the registration of Super Basmati came as a retaliatory move when Pakistan in negotiations with EU registered the right in 2004 to export Pusa Basmati — a variety known to be widespread in India.
The Indian government's reciprocal action came within two weeks of the Pakistani move. Sources said that the Indian right over Super was bound to stand any legal challenge that Pakistan might put up in pursuance of the notice.
"We registered Super as a Indian variety only after research done by Punjab Agricultural University (PAU) confirmed that the Super variety was the same as a Indian variety traded traditionally in the country as Shabnam or Sikandar generic names. This study had been confirmed in 2003," sources told TOI.
They emphasised that despite the PAU study being available with India, the government did not move on the issue till Pakistan went ahead and registered the Pusa variety as theirs. Officially though, sources said, the issue came up for discussion during the commerce secretary level talks on Tuesday and the two countries seemed to have agreed to work together. A joint statement is expected on Wednesday sources said.
Sources in the commerce ministry raise doubt about how India would progress on the GI issue in the wake of the legal notice even though Pakistan is keen to move on both fronts — attack the Super Basmati registration and look at the possibility of a joint GI.
"It's a rather contradictory move on Pakistan's part. It will be difficult to move on the GI issue without resolving the legal conundrum on Super Basmati," sources in commerce ministry told.
The joint GI has been lying on the backburner for long with trading lobbies in India and Pakistan at loggerheads over basmati trade issues, as TOI had reported earlier. Within India, the agriculture and commerce ministries too have too been playing different tunes on the basmati issue.
Sources say that the key trouble with defining a GI for Basmati is the way Basmati is defined. Tweaking the Basmati definition one way or the other could end up with gains or losses not only for traders but also farmers across the country growing different traditional or evolved varieties of the aromatic rice.
The notice sent to the Indian government, confirmed by sources in the commerce ministry, comes in the wake of India registering Super Basmati variety in 2006 for export.
Pakistan believes India's registration of the variety could hit its international market. Pakistan exports close to 800,000 tonnes of the variety annually.
But Indian groups contend that the registration of Super Basmati came as a retaliatory move when Pakistan in negotiations with EU registered the right in 2004 to export Pusa Basmati — a variety known to be widespread in India.
The Indian government's reciprocal action came within two weeks of the Pakistani move. Sources said that the Indian right over Super was bound to stand any legal challenge that Pakistan might put up in pursuance of the notice.
"We registered Super as a Indian variety only after research done by Punjab Agricultural University (PAU) confirmed that the Super variety was the same as a Indian variety traded traditionally in the country as Shabnam or Sikandar generic names. This study had been confirmed in 2003," sources told TOI.
They emphasised that despite the PAU study being available with India, the government did not move on the issue till Pakistan went ahead and registered the Pusa variety as theirs. Officially though, sources said, the issue came up for discussion during the commerce secretary level talks on Tuesday and the two countries seemed to have agreed to work together. A joint statement is expected on Wednesday sources said.
Sources in the commerce ministry raise doubt about how India would progress on the GI issue in the wake of the legal notice even though Pakistan is keen to move on both fronts — attack the Super Basmati registration and look at the possibility of a joint GI.
"It's a rather contradictory move on Pakistan's part. It will be difficult to move on the GI issue without resolving the legal conundrum on Super Basmati," sources in commerce ministry told.
The joint GI has been lying on the backburner for long with trading lobbies in India and Pakistan at loggerheads over basmati trade issues, as TOI had reported earlier. Within India, the agriculture and commerce ministries too have too been playing different tunes on the basmati issue.
Sources say that the key trouble with defining a GI for Basmati is the way Basmati is defined. Tweaking the Basmati definition one way or the other could end up with gains or losses not only for traders but also farmers across the country growing different traditional or evolved varieties of the aromatic rice.
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