Vietnam creates rice export competition for Thailand

30.08.2016

Thailand’s government said it is holding rice stocks of around 9 million tonnes of which 40% is industrial grade rice and the remainder is food grade rice.
 
Thailand’s rice export prices continue to decline 5% to 6% due to competition from Vietnamese rice, which is reportedly cheaper as its new-crop supplies are entering the market, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) said in a Aug. 23 report. Also, traders are awaiting the government’s upcoming rice stock tenders of around 1 million tonnes, which will be issued on Aug. 29-30.

The tenders will consist of 755,572 tonnes of 5% grade white rice (food grade for domestic and export markets) and 255,796 tonnes of broken white rice (A1 Super grade for industrial uses), which are carry-over stocks from the market year 2012-13 and market year 2013-14 pledging programs, the FAS said. Presently, export prices of old-crop 5% grade white rice is at $332 per tonne, which is 10% cheaper than those of current-crop white rice.

Thailand’s government said it is holding rice stocks of around 9 million tonnes of which 40% is industrial grade rice and the remainder is food grade rice. The government announced that it plans to completely sell off its old rice stocks during 2017, according to the FAS. The government also stated that new tenders during September–December 2016 mainly will be for industrial uses in order to prevent domestic rice prices from falling during the harvest period in the last quarter of this year.

Unofficial preliminary rice exports (excluding premium white and fragrant rice) for Aug. 15-21 totaled 78,411 tonnes, up 27,575 tonnes from the previous week and up 10,137 tonnes from the four-week moving average of 68,274 tonnes. Rice exports from Jan. 1–Aug. 21 totaled 2.241 million tonnes, down 13% from the same period last year, the FAS said.



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