Thailand second Quarter Exports Likely To Be Bearish

According to Chookiat Ophaswongse, president of the Thailand Rice Exporters Association, Thailand's rice exports could fall significantly in the second quarter of the current year due to the appreciation of the Thai baht.

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.

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.

Thai exports are also facing tougher competition as offers for Thailand are higher than Vietnamese rice by around $30-$60 PMT, FOB.