DJ Asian Rice: Thai Prices Steady On Rising Demand From Africa

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Tự Hào Gentraco

Wed, 08/02/2012 - 10:55 pm.

DJ Asian Rice: Thai Prices Steady On Rising Demand From Africa

MANILA (Dow Jones)--Asian physical rice export prices were unchanged Friday, with prices in Thailand supported by burgeoning demand for low-grade varieties, market participants said.

Exporters said several vessels had started to arrive at Bangkok port to pick up the low-grade rice, bound mostly for Africa.

Thailand is also expected to supply up to 245,000 metric tons of rice to the Philippines based on offers made in an auction Friday.

The Philippines, a major rice importer in Asia, usually buys its rice from Vietnam. But the price of Vietnamese rice has risen because of a tightening in supply so severe that the government has imposed an export ban.

At the auction, offers for Thai rice by Asia Golden Rice International and trading firm LG International were at $343 a metric ton, on a cost-and-freight basis.

The second best offer was made by Thai suppliers Sethi Rice at $343.25/ton and then by Thai Hua at $343.75/ton, C&F.
Vietnam's lowest offer, however, was $350/ton, C&F basis, from state-owned Vietnam Southern Food Corp., or Vinafood.
That Vinafood made an offer at all is surprising, considering the ban on rice exports, although Vietnam's ambassador to the Philippines had suggested the ban could be suspended for this tender.

Thai exporters said that offers for low-grade rice are likely to rise next week.
Thai 100% grade B was offered steady Friday at $332-$334/ton, FOB Bangkok, 5% broken at $323-$325/ton, while parboiled 100% sortexed was offered at $330-$335/ton.

In Vietnam, indicative prices were unchanged Friday as exporters continued to gather supply for shipment abroad. Exporters aren't making any offers for new deals as most of them are busy trying to fill outstanding contracts. Indicative price for Vietnam's 5% broken was unchanged Friday at $320/ton, FOB, Ho Chi Minh City

In other news, a Thai government sell tender attracted bids from six exporters for the 5% broken grade, with Chaiyaporn Rice Co. offering the highest prices, said a government official Thursday.

Chaiyaporn Rice bid for 87,811 metric tons of 5% broken rice for export at prices ranging from $259.61/ton to $261.37/ton, FOB, Bangkok, said Vichak Visetnoi, deputy director general of the Department of Foreign Trade.
Bids from other exporters ranged from $220.01/ton to $261.08/ton, FOB, Bangkok, Vichak said.

The Commerce Ministry offered for sale 558,598 metric tons of 5% broken white rice from its stocks Thursday. Of the total, 513,495 tons is for export and 45,103 tons is for domestic consumption, Vichak said.