Thai Rice Prices Higher; Demand From Philippines, Iran Eyed

Jun 05,2007 00:00 by dailynews
Thai rice prices were higher in the week to Monday, with expected demand from the Philippines and Iran helping to boost prices. The Philippines National Food Authority, or NFA, plans to buy 300,000 metric tons of rice in a tender to be held Wednesday. The NFA said the rice will comprise 275,000 tons of 25% broken white rice and 25,000 tons of iron-fortified rice for shipments between June and August.

Iran, a major buyer of Thai rice, has been seeking to buy more rice from Thailand after having bought 300,000 tons of rice last month in a government-to-government deal. Iran is estimated to have contracted to buy as much 580,000 tons of Thai rice for confirmed transactions so far this year, traders and exporters said. It is
forecast to buy up to 800,000 tons of rice from Thailand this year, they said.

Elsewhere, Japan bought 10,000 tons of Thai rice at a tender held last week for processing and alcohol manufacturing, traders said. The shipments are for between end-June and mid-August.

Indonesia will have to import rice as its domestic reserves are running thin, traders said. However, the Indonesian government hasn't made any decision regarding rice imports.

Monday, Thai 100% grade B was offered at $331/ton, FOB Bangkok, up from $328/ton a week ago. Thai 5% broken rice was offered at $320/ton, FOB Bangkok, up from $317/ton last week.

Thai parboiled 100% sorted was offered higher at $324-$325/ton, FOB Bangkok, from around $322/ton a week ago, mostly on the stronger baht against the U.S. dollar, traders said.