Thailand Government Scraps Govt. To Govt. Deals

Domestic rice prices in Thailand are likely to fall following the government's decision to scrap a plan to sell up to 2.1 million MT of the grain from its stockpile through government-to-government deals.

The Thai commerce ministry now prefers to sell rice to exporters, but exporters are unlikely to buy the rice unless the government sells the grain at prices lower than prevailing market rates.

Thailand's 5% broken is being offered at $690 PMT, FOB substantially higher than Vietnam's offer of $570 PMT, FOB for the same variety.