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DJ Asian Rice:Prices Steady; Buyers Expect Better Offers Next Week

MANILA (Dow Jones)--Asian physical rice export prices were unchanged Friday in thin trade in the absence of most buyers who are expecting suppliers to offer discounts next week, exporters said. In Thailand, domestic prices firmed up earlier this week following the government's announcement of an extension of the price support program for paddy. However, buyers are hopeful that exporters will be able to offer better prices if the baht softens as a result of the subprime woes in the U.S. "The current exchange rate isn't that good for exports. A more profitable level would be around THB35-THB36 against the dollar," one exporter said. The Thai baht closed Thursday at THB34.02 against the dollar. In the absence of new contracts in the markets, most exporters were busy trying to fill outstanding contracts, mostly for shipment to Iran and Iraq, exporters said. Some exporters are also preparing for a North Korean tender next week involving 100,000 metric tons of the grain. "We have a good chance of supplying rice to North Korea because of tight supply in India, Pakistan and Vietnam. There's no other place left (to buy rice from) but Thailand," a second exporter said. Thai 100% grade B was offered unchanged Friday at $335-$338/ton, FOB, Bangkok, 5% broken at $326-$330/ton, while parboiled 100% sortexed was offered at $330-$339/ton. In Vietnam, suppliers continue to make no offers following a government ban on fresh export contracts. Despite the ban, most exporters are busy trying to fulfill outstanding contracts involving large quantities of rice for shipment to the Philippines and Indonesia. Indicative price for Vietnam's 5% broken is at $315/ton, FOB, Ho Chi Minh City, while that of 25% is at $297/ton. Dow Jones Newswires

 

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