Strong foreign demand sends Thai rice export projection to 11 million tons this year

[webfact]

Strong foreign demand sends Thai rice export projection to 11 million tons this year

 

FILE photo

 

BANGKOK, 13 august 2018 (NNT) – Growing demand for Thai rice abroad has resulted in an export estimate of 11 million tons this year with the Ministry of Commerce reporting 6.7 million tons already exported as of August 8. 

The Department of Foreign Trade (DFT) Director-General, Adul Chotinisakorn, reported that Thai rice sales are up in almost all foreign markets this year, especially in Indonesia where sales have increased 679 percent, Malaysia where sales are up 53 percent and in the Philippines, where sales are up 25 percent.

 

From the start of this year to August 8, Thailand has exported 6.7 million tons of rice, 1.82 percent more compared to the same period last year and worth 3.425 billion USD, 9.85 percent up on-year. The upward trajectory of demand is predicted to continue through the latter half of the year. 

A delegation from China, formed under a farm goods trade deal with Thailand, is scheduled to travel to the Kingdom at the end of this month to negotiate the purchase of a second batch of 1 million tons of rice. A sixth stock of 100,000 tons of rice to be sent to China as part of the first batch of 1 million tons is currently pending while pricing is concluded. 

The government is also preparing to enter an auction to sell 500,000 tons of rice to the Philippines. The auction has been signaled to start early and the administration is aiming to sell about 250,000 tons via a Government to Government deal and the other 250,000 tons via general auctions joined by the private sector. 

It is believed Thai rice sales will hit 11 million tons this year. The Thai Rice Exporters Association has accordingly adjusted its 2018 target to 11 million tons from an initial estimate of 9.5 million tons.

 

-- nnt 2018-08-13

[Netease]

No mention about priceing or profit, that would be more important to know

[Srikcir]

22 hours ago, webfact said:

The Thai Rice Exporters Association has accordingly adjusted its 2018 target to 11 million tons from an initial estimate of 9.5 million tons.

I believe that that "initial estimate" was supposed to be target in order to not flood the market with a surplus and thus support higher rice prices.

The problem has been however that the other major rice producers such as India continue to export as much as they can grow. So by year end it's more likely with Thailand producing an equally large supply will help drive the price down even though demand has increased.

[Chelseafan]

1 hour ago, Netease said:

No mention about priceing or profit, that would be more important to know

Absolutely. I'm a Buyer for commodities and rice from Thailand has never been so cheap if you factor out exchange rates.

 

[IAMHERE]

Pay no attention to the man behind the curtain. They make me dizzy  with their math.

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[Aussieroaming]

Which will likely result in a decrease in domestic rice stock and hence an increase in the cost of domestically purchased rice. Im sure the average Thai will celebrate the governments good fortune.

[holy cow cm]

Can't be good. China is even flocking back to suck it up on a second run. Just like the durian prices, this will hit a high-end too. They are doing a pretty good job at slowly strangling the country.