Thai Rice Prices Steady On Strong Baht, Local Demand

Thai rice prices were steady in the week to Monday, with the strong baht and steady local demand helping to sustain prices. "Most buyers are waiting for prices to go down before making fresh deals," a Bangkok-based exporter said.
 
A strong baht, however, will continue to limit price falls even though farmers are currently harvesting a major crop. "At the moment we're fulfilling pending orders of Thai jasmine rice in the local market and to China," the exporter said.
 
Industry participants are waiting for Thailand's Rice Convention to be held on May 11-12 to generate new overseas transactions. Meanwhile, officials at the Ministry of Commerce said that despite the baht's strength, Thailand's total rice exports this year are expected to reach the targeted volume of 8.5 million metric MT, compared with 7.5 million MT exported last year as demand for Thai rice on the world market remains high. 
 
In the 2007 crop season, offer prices of paddy rice averaged THB6,000-THB6,600/MT, THB200-THB300 higher from last year. At the same time, export prices are at least $25 higher from year. Monday, Thai 100% grade B rice was offered steady at $323/MT, free on-board Bangkok, while 5% broken rice was offered at $312-$316/MT, compared with $315/MT last week. Thai parboiled 100% sortexed was offered unchanged at $320/MT, FOB Bangkok.