High demand seen as 18 rice traders take part in Thai govt auction

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RICE BIDING
High demand seen as 18 rice traders take part in govt auction
Petchanet Ptatruangkrai
The Nation

BANGKOK: -- Eighteen rice traders joined the Thai government's auction for 420,000 tonnes of rice late yesterday, reflecting high market demand.

Surasak Riangkrul, director-general of the Commerce Ministry's Foreign Trade Department, said that at the end of the main-crop harvest season, traders seemed to have more demand for rice. The auction should be able to release rice at a good price.

The bids are open for 420,000 tonnes of main-crop white rice harvested in 2013-14, and 13,000 tonnes of damaged rice.

After this process, the Commerce Ministry will bargain for the best price with all bidders today. If price and volume needs are met, the deals will be proposed to caretaker Commerce Minister Niwatthumrong Boongsongpaisan for approval.

Surasak expects that the ministry should be able to sell half of the rice in this round for no less than the market price.

According to a report by the Thai Rice Exporters Association, as of Wednesday, the price of 5-per-cent Thai white rice was quoted at US$403 a tonne.

The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price.


-- The Nation 2014-04-11

[NongKhaiKid]

I wouldn't expect them to be anything less than super positive.

[jalansanitwong]

The only reason 18 rice traders turned up is because they will get the rice at throw away prices.

The damaged rice ......worthless.... (pissed on by rats,dogs cats) will be sold for pig feed.

Is the Thai government going to tell us how much this 400,000 tonne lot sold for ? I think not.

[Robby nz]

The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price.

So in fact they didn't sell the rice last month.

The bids are open for 420,000 tonnes of main-crop white rice harvested in 2013-14, and 13,000 tonnes of damaged rice.

What they are selling is current seasons rice and not stored rice.

Eighteen rice traders joined the Thai government's auction for 420,000 tonnes of rice late yesterday, reflecting high market demand.

So 34 traders last month and they didn't sell to them and now 18 this month.

Could that be seen as only a little over half the interest (demand) ?

[issanaus]

The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price.

So in fact they didn't sell the rice last month.

The bids are open for 420,000 tonnes of main-crop white rice harvested in 2013-14, and 13,000 tonnes of damaged rice.

What they are selling is current seasons rice and not stored rice.

Eighteen rice traders joined the Thai government's auction for 420,000 tonnes of rice late yesterday, reflecting high market demand.

So 34 traders last month and they didn't sell to them and now 18 this month.

Could that be seen as only a little over half the interest (demand) ?

Last month was the first day of the Harrods annual sale

This month is the second day

If they don't offer extra discounts then the third day could be very quiet

The rice buyers have the choice to buy

Next month there is 20 Billion to repay so the government will have to pay a price - economic, political or both???

The only certainty is that the rice farmer will lose and the poor rice farmers will lose the most.

[Thaddeus]

Can someone please explain this definition of 'high demand' as I do not appear to be familiar with it.

[slapout]

I think the rice auctions are past the stage of being regarded as the glass being half full or half empty. The rice bids offered are not to the liking of the Commerce Ministry, (much less than their public announcement of probable current market price) they are frantic to find monies to pay back several billion by months end, new crop harvest being sold locally is depressing the value of the program rice in storage, plus that up for auction.

The longer this boondoggle goes on, and the proposed fixes are allowed, of ''those who are never wrong'' the more taxpayer money is being skimmed off.

[apetley]

The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price.

So in fact they didn't sell the rice last month.

The bids are open for 420,000 tonnes of main-crop white rice harvested in 2013-14, and 13,000 tonnes of damaged rice.

What they are selling is current seasons rice and not stored rice.

Eighteen rice traders joined the Thai government's auction for 420,000 tonnes of rice late yesterday, reflecting high market demand.

So 34 traders last month and they didn't sell to them and now 18 this month.

Could that be seen as only a little over half the interest (demand) ?

Last month was the first day of the Harrods annual sale

This month is the second day

If they don't offer extra discounts then the third day could be very quiet

The rice buyers have the choice to buy

Next month there is 20 Billion to repay so the government will have to pay a price - economic, political or both???

The only certainty is that the rice farmer will lose and the poor rice farmers will lose the most.

The farmer has already lost out.

Where I live the latest crop is only selling for 4,500-5000bht and many still haven't been paid for what they cropped last Oct/Nov.

This farce is destroying the small rice farmer.

[Tatsujin]

So, this month 18 traders bidding on 420,000 tonnes of main-crop white rice harvested in 2013-14, and 13,000 tonnes of damaged rice, none sold as yet.

Last month, 34 traders bidding on 400,000 tonnes of rice, price was too low (surprise, surprise), none sold as yet.

The older rice will be given away.

That loan isn't going to get paid back now is it and there's still no money to pay the farmers. Don't recall any recent announcements on the state of payments from the Govt . . . any updates?

[Gunna]

Can someone please explain this definition of 'high demand' as I do not appear to be familiar with it.

I think it is similar to smoking weed and then getting the munchies ie " A high demand for food "

[GAZZPA]

What sensible business man with the means to buy thousands of tons of rice is going to waste time participating in an auction where the auctioneer has no authority to sell?

Ridiculous scenario. Prior to the auction there needs to be a pre approval process with a minimum price drawn which forms the starting bid. If, under these conditions there are no participants then the price will need reviewing and you start again.

No one would bother with this unless their was a chance of below market price purchasing, otherwise a sensible buyer would simply go eleswhere. Typical arrogance of people with inflated self importance out of touch in the real world.

[rickirs]

My rice bowl must be half-full, not half empty like most of the TV commentors.

While an auction of 420,000 tons of rice spread among 18 traders reflects nominal demand, it comes on top of several 1 million+ recently planned trades, and reflects the broad market demand for Thailand rice. So there appears to be MOMENTUM in the Thailand rice market despite foreign competition advantage during Thailand's government being prevented to conduct sales since October 2013. Thailand is the premier rice supplier and even its damaged rice commands market value. You don't need Jasmine rice to feed hogs, chickens, and cattle.

Hopefully there will be no further interruptions in the government's sales of rice by whatever cause. These sales are the best hope for Thailand rice farmers' futures and for the future of the Thailand agricultral economy.

[bigbamboo]

No wonder those government auctions are popular. There are huge bargains to be had if you have the right connections.

[jreidy]

Is the rice pledging scheme still operating.....the buyers may have a customer !!

[Scamper]

" Surasak expects that the ministry should be able to sell half of the rice in this round for no less than the market price. "

But this -

" The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price. "

And that's exactly what will happen this time, so why the confident prediction that the rice will be sold " for no less than the market price " ? Based on what ? If this rice is ever sold, it will be interesting if Pheu Thai ever reveals how much they were able to get from the sale of it.

Or maybe they won't.

[SICHONSTEVE]

No its not destroying the small rice farmer!!!

Yingluck says it is benefitting them just as intended and how can you argue against someone in such a high position - don't forget, it is the master strategist's brain child??

[SICHONSTEVE]

" Surasak expects that the ministry should be able to sell half of the rice in this round for no less than the market price. "

But this -

" The ministry last month opened bidding for about 400,000 tonnes of rice, which 34 traders joined. But the ministry has not agreed to sell the rice as the bids were far below the market price. "

And that's exactly what will happen this time, so why the confident prediction that the rice will be sold " for no less than the market price " ? Based on what ? If this rice is ever sold, it will be interesting if Pheu Thai ever reveals how much they were able to get from the sale of it.

Or maybe they won't.

I would just love to know what the offer prices were for the unsold rice. For the government to refusal to sell when they so desperately need money means that the prices were stupidly low. The traders have them over a barrel and the rice from this years harvest will be 'going for a song' and all because Thaksin has destroyed the Thai rice industry!!!!

[tingtongteesood]

Let's hope the farmers have learnt their lesson from all this. Populist policies can do great damage to the country especially with so many criminals trying their best to fill their pockets.

[Thai at Heart]

I don't get how this mechanism works at all.

Do the buyers have guaranteed clients. Is this for export or domestic.

[bkkjames]

I am a little surprised they havent tried to barter it for jet fighters or something.

Sent from my LG-P970

[issanaus]

I don't get how this mechanism works at all.

Do the buyers have guaranteed clients. Is this for export or domestic.

Is that a quote from Ms Yinluck's face book page?

[hawker9000]

The only reason 18 rice traders turned up is because they will get the rice at throw away prices.

The damaged rice ......worthless.... (pissed on by rats,dogs cats) will be sold for pig feed.

Is the Thai government going to tell us how much this 400,000 tonne lot sold for ? I think not.

That's my question. How do the prices at these auctions compare to the price that was promised to the rice farmers? Is it actually high enough that the farmers will get the amounts they were promised and have been expecting? That doesn't seem possible, but someone, preferably with a reasonably direct knowledge of who's getting what, please enlighten us.

[Morch]

My rice bowl must be half-full, not half empty like most of the TV commentors.

While an auction of 420,000 tons of rice spread among 18 traders reflects nominal demand, it comes on top of several 1 million+ recently planned trades, and reflects the broad market demand for Thailand rice. So there appears to be MOMENTUM in the Thailand rice market despite foreign competition advantage during Thailand's government being prevented to conduct sales since October 2013. Thailand is the premier rice supplier and even its damaged rice commands market value. You don't need Jasmine rice to feed hogs, chickens, and cattle.

Hopefully there will be no further interruptions in the government's sales of rice by whatever cause. These sales are the best hope for Thailand rice farmers' futures and for the future of the Thailand agricultral economy.

Unless I got something wrong, that exactly the same rice they didn't sell on last month's auction.

As for "several 1 million+ recently planned trades" - well, there aren't any actual trades for a while now. Just rumors.

The government isn't prevented to conduct sales since October 2013. If they were - how can they suddenly sell it now?

Until they actually sell something, the "momentum" is mostly wishful thinking.

[GAZZPA]

My rice bowl must be half-full, not half empty like most of the TV commentors.

While an auction of 420,000 tons of rice spread among 18 traders reflects nominal demand, it comes on top of several 1 million+ recently planned trades, and reflects the broad market demand for Thailand rice. So there appears to be MOMENTUM in the Thailand rice market despite foreign competition advantage during Thailand's government being prevented to conduct sales since October 2013. Thailand is the premier rice supplier and even its damaged rice commands market value. You don't need Jasmine rice to feed hogs, chickens, and cattle.

Hopefully there will be no further interruptions in the government's sales of rice by whatever cause. These sales are the best hope for Thailand rice farmers' futures and for the future of the Thailand agricultral economy.

I hope you're right, I really do because what the government has done to the farmers is unforgivable.

I guess the problem for me and most is I just don't believe what they say. I don't recall seeing any news so far of a significant, completed sale of the old rice stock and how much they sold it for,, not one. And if they had then I assume rice farmers would have been paid, right?

So, what is going to happen when the money needs to be paid back to the AG bank? The government quite literally will not have enough money either because they haven't sold enough or they have sold it below what was paid for it. And of course they are not even paying the farmers right now.

The only way the rice industry will thrive again in Thailand, and get back to its number 1 global export position is when all of this goes away but don't see it happening soon.

[Thai at Heart]

I don't get how this mechanism works at all.

Do the buyers have guaranteed clients. Is this for export or domestic.

Is that a quote from Ms Yinluck's face book page?

So please explain . To whom and for supply to whom are they auctioning ? Why does the government HAVE to use a middleman to sell?