Thai Rice Prices Rise On Strong Demand Amid Tight Supply

Thai rice prices rose in the week to Monday on strong
demand from exporters who need to fulfill contracts amid tight supply in the
local market. Local supply has been on the lower side in recent weeks as unfavorable
weather conditions hindered proper drying of paddy.
 
  Rice prices have risen by around 15% since the beginning of the year because
exporters are increasing purchases from farmers to fulfill their outstanding
contracts in June and July, exporters said, adding that a stronger baht also
supported rice export prices.
 
  Meanwhile, Vietnamese businesses won the bulk of a tender held last Wednesday
by the Philippines to supply for mostly 25% broken rice because they offered
more competitive prices than their Thai rivals, one trader said.
 
  However, the Vietnamese trade ministry has told rice exporters to delay
signing new export contracts in the next few months due to risks presented by possible floods or price fluctuations as the year progresses.
 
  A higher freight cost, shortage of shipping vessels and declining supplies in
Vietnam have caused prices to hike and prompted buyers to stay away from the
market, exporters said. 

 
  Monday, Thai 100% grade B was offered higher at $335-$337 a metric ton, FOB
Bangkok, from $331-$333/ton last week. Thai 5% broken rice was offered at
$322-$325/ton, FOB Bangkok, compared with $320/ton a week ago.
 
  Thai parboiled 100% sortexed was offered at $327-$331/ton, FOB Bangkok, from
$325/ton the previous week.