Thailand Will Meet Rice Export Target from Weakening Baht

[snoop1130]

 

BANGKOK (NNT) - The Thai Rice Exporters Association expects the weakening baht to help Thailand meet its target of exporting 6 million tons of rice this year, though it only shipped 2.59 million tons in the first seven months.

 

Association president Charoen Laothammatas said exports began looking up after mid-year, with 419,578 tons, valued at 7.47 billion baht, being exported in July, up 7.6% and 4.9% respectively compared to June.

 

He said rice exports in July improved because the price of Thai rice dropped in line with market conditions and a weakening baht, which made it possible for Thailand to compete with key competitors like India.

 

Charoen added that the association expects August shipments to stand at 600,000 tons, especially since the price of Thai rice has dropped to match those of competitors. The demand for rice has also been consistently high in Africa, the Middle East and Asia. The export of white and parboiled rice is expected to stand between 600,000 and 700,000 tons per month until the end of the year, which will help achieve the 6-million-ton target.

 

-- © Copyright NNT 2021-09-01

 

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[nausea]

I wouldn't get your hopes up too much mate, re the "weakening" baht. The sterling TT buying rate (as per Bangkok Bank 1/9) is now just hanging on at 44, after looking like it might break 46. And there was I thinking we were possibly heading back to the pre-Brexit 50. What's changed to cause this resurgence is beyond me, I'll leave that to the economic gurus.

[hotchilli]

19 hours ago, snoop1130 said:

He said rice exports in July improved because the price of Thai rice dropped in line with market conditions and a weakening baht, which made it possible for Thailand to compete with key competitors like India.

Finally worked out how the market place works... better than subsidies.

[superal]

8 hours ago, nausea said:

I wouldn't get your hopes up too much mate, re the "weakening" baht. The sterling TT buying rate (as per Bangkok Bank 1/9) is now just hanging on at 44, after looking like it might break 46. And there was I thinking we were possibly heading back to the pre-Brexit 50. What's changed to cause this resurgence is beyond me, I'll leave that to the economic gurus.

If the Thai economy was reflected in the Baht why is it so strong ? baffling because things will not improve for at least another year . Is the Thai government printing money ?

[jacko45k]

On 9/2/2021 at 2:58 PM, superal said:

If the Thai economy was reflected in the Baht why is it so strong ? baffling because things will not improve for at least another year . Is the Thai government printing money ?

Usually that devalues it..... 

I suspect they are out there purchasing baht..... using foreign reserves which they have a moderate war chest of. 

[zzaa09]

On 9/1/2021 at 11:33 PM, hotchilli said:

Finally worked out how the market place works... better than subsidies.

Yet, a highly controlled and manipulated market. 

There was a time, not too long ago, that Thai rice exports were worth their weight in gold within these subsidized markets.

Thai rice was currency. 

 

 

 

[hotchilli]

3 minutes ago, zzaa09 said:

Yet, a highly controlled and manipulated market. 

There was a time, not too long ago, that Thai rice exports were worth their weight in gold within these subsidized markets.

Thai rice was currency. 

 

 

 

Yes, it was once king of the castle, but government meddling, price controls, subsidies and a falling of quality has seen other players knock them off the perch.

[zzaa09]

2 minutes ago, hotchilli said:

Yes, it was once king of the castle, but government meddling, price controls, subsidies and a falling of quality has seen other players knock them off the perch.

Yep and all that. 

Plus, Thailand's SE Asian neighbors [Cambodia and Vietnam in particular] have quietly gained by leaps and bounds as to the high production and quality export rice. And because of the higher volume they can sell cheaper, cutting into Thailand's once famous Asian surplus.

[bojo]

On 9/2/2021 at 8:58 AM, superal said:

If the Thai economy was reflected in the Baht why is it so strong ? baffling because things will not improve for at least another year . Is the Thai government printing money ?

I'm assuming every government is printing in sync, all playing the same game.............................. pretty much evens out.............

 

[superal]

3 hours ago, bojo said:

I'm assuming every government is printing in sync, all playing the same game.............................. pretty much evens out.............

 

Not sure about that but one fact is that the U.S. is trillions of dollars in debt but is not concerned , it appears . However the dollar remains the dominant world currency . Thailand is losing some foreign investment to other Asian countries , e.g. Cambodia , Vietnam . The baht can only be at its current level for a little longer , I feel .