Wednesday, Aug 08, 2012
By Apornrath Phoonphongphiphat
BANGKOK (Reuters)- Demand for low-quality white rice from African buyers
has forced Thai exporters to purchase additional stocks from Cambodia
and Vietnam to meet orders because domestic rice is in short supply due
to a government buying scheme, traders said on Wednesday.
The price of 25 per cent broken grade Thai white rice jumped to $545
per tonne on Wednesday, some way above the $520-$530 per tonne being
offered recently, although the benchmark 100 per cent B grade was steady
at $580, they said.
The government has extended its intervention scheme, paying farmers
15,000 baht ($480) per tonne for paddy, to end-September and is expected
to renew it again in October, when harvesting of the main crop is due
to start.
The
scheme has pushed government rice stocks up to a record high of 17
million tonnes of paddy, or around 10 million tonnes of milled rice -
what Thailand exports in normal years.
Due to a lack of broken grade rice on the market, some Thai exporters
have had to import some from Cambodia, or even from Vietnam via
Cambodia.
"There was some rice coming from neighbouring countries, but some of
it was smuggled so there's no record of how much has been brought in,"
said one Thai exporter.
VIETNAMESE PRICES RISE Demand from Thai exporters and hopes for
possible orders from countries affected by recent adverse weather helped
support Vietnamese prices, traders said.
A drought affecting US corn, low monsoon rain in India and floods in
China and the Philippines have pushed up the price of ingredients for
feed production, dragging up rice prices, a trader in Ho Chi Minh City
said.
"Exporters and trading firms all have started buying, so prices have gone up quickly," he said.
The 5 per cent broken rice rose to $425-$430 a tonne on Wednesday,
free on board Saigon Port, from last week's $415-$420. The 25 per cent
broken rice jumped to $395-$405 a tonne from $375-$380.
"Given the bad weather, India may consider limiting its grain exports
and that talk has also fuelled the price gain,"the Ho Chi Minh City
trader said. Harvesting of the Mekong Delta's summer-autumn crop has
peaked and will end later this month, meaning no fresh grain supply to
weigh on prices in coming weeks.
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