Prices of rice dropped by 0.30 baht

BANGKOK, 23 April 2014, (NNT) - The Department of Internal Trade (DIT) has revealed that the price of the 5% moisture Thai rice has declined by 0.30 baht, down to 11-12 baht per kilogram, after Thailand has failed to seal a rice deal with the Philippines.

According to Mr. Somchart Soithong, the DIT Director General, the failure to sell 800,000 tons of rice to the Philippines has shaken confidence of the bidders expected to participate in today’s Agricultural Futures Exchange of Thailand (AFET) rice auction.

The department will negotiate with bidders to prevent rice prices from dropping any further.

However, according to the Department of Foreign Trade’s reports, several countries such as Middle East nations, South Korea, African countries, and China have expressed interests in purchasing rice from Thailand, which is indicative that grain prices would recover next month, said Somchart.

The DIT plans to auction off over 200,000 tons of pledged rice in stock in today’s 10th AFET rice auction.

The rice on offer consists of 50,000 tons of Jasmine rice and 160,000 tons of 5% moisture white rice, Somchat said, adding that he is confident that the DIT will be able to sell more than half of that amount, while promising to forge ahead with the AFET auctions at least until the end of this year.

The DIT has been able to sell 547,000 tons of rice, worth over 7 billion baht altogether, in nine previous auctions, the Director-General said.


-- NNT 2014-04-23

When nobody wants to buy the stuff your grow or make, then you go broke.

Several nations are looking at buying , I was looking the other day at a new roller , I didn't buy cause I thought 1: the price was to high , 2: I couldn't afford it, there's a big difference than when you buy, these guy's remind me of mining contractors , they just put a price in and then tell everyone who will listen they have the contract, all is not well in the rice export market,maybe the Chinese should stop eating NZ lamb Rack Cutlets.

It's going from bad to worse . . . how much rice have they ACTUALLY sold so far, and at what price? And I'm not talking about what they "think" they will sell, or "anticipate", I'm talking about actual, real, verifiable sales . . .

seems that the rice stocks are not geting any less with sales, what happened to the "we have sold lots to other countries" guess that was just another furfie to make them look good, FAIL.

Been having a discussion in the jobs, economy, business, investment pages : http://www.thaivisa.com/forum/topic/717612-rice-futures/

On how the futures auctions that the Govt is holding really work .

It seems unclear just what is going on, whether the Govt is actually getting paid for the rice they sell this way or if any buyers take delivery of the rice.

Whatever, there seems to be doubt that it is actually helping the farmers or just to make it look like something is being done.

Administrators and bureaucrats may have their role. But not "as traders / in business"!!

Be that the procurement of tablet computers of the inability to sell a declining and perishable asset (rice).

Some traders and dealers would make it happen - based on the market, not wishful thinking of officials & politicians.

At my condo, a neighbor let his apartment stay vacant for years, instead of lowering the rent. Does this make sense? Apparently it does to him.

Am missing the sense of urgency here - we are talking taxpayers' money and farmers who have been driven to suicide.

While I don't know how this is supposed to work, the lack of action is sickening IMHO.

Why did the deal fell through? Was it because the DIT wanted 0.15 Baht more per tonne? Why let a serious buyer walk away from a deal? At some point, they got to do whatever it takes and sell the stuff. As it will be degraded over time and the whole world has been watching this nonsense. What's stopping the buyers from colluding and not buying for a few more months in order to drive a hard bargain?!?

I really think such deals should be handled by specialists, not officials and government people...

Traders have a unique way to close deals...

Hang on.... They declared in another thread that they have a 3 year deal to supply the Phills..... no, hang on..... That was the BS to get the other 40Bn out of the EC.... OK, no problem, it is clearer now.

The department will negotiate with bidders to prevent rice prices from dropping any further.

Because they have been so successful manipulating the rice market in the past?

Hang on.... They declared in another thread that they have a 3 year deal to supply the Phills..... no, hang on..... That was the BS to get the other 40Bn out of the EC.... OK, no problem, it is clearer now.

What it probably means is that the successful bidder has the option to supply for the next 2 years at that price - that bidder being Vietnam as it turns out. Unless there is another contract for that class of rice. In the past the Philippine government has mainly been looking for 15% broken W/R

In the other paper the head of some Thai Rice organization is quoted as saying that these MOUs are worthless pieces of paper. Actual sales contracts are the only things that matter. The MOU with the Philippines enabled the traders to talk to each other, but didn't force them to actually close the sales.

Where can I buy some of this rice for 11 baht per kg? Retail prices don't seem to have changed.

I don't think Thai people have the ability to understand the basic rule of supply and demand. Why would they expect the price for a perishable commodity that has been stockpiled for what's probably approaching an unsafe period of time to remain steady or rise? Of course it's going to go down, and it will continue to go down because competing rice-exporting counties don't have any problem with the most basic rules of business. They understand that people don't want to buy rice of questionable quality and safety at inflated prices.

Why did the deal fell through? Was it because the DIT wanted 0.15 Baht more per tonne? Why let a serious buyer walk away from a deal? At some point, they got to do whatever it takes and sell the stuff. As it will be degraded over time and the whole world has been watching this nonsense. What's stopping the buyers from colluding and not buying for a few more months in order to drive a hard bargain?!?

I really think such deals should be handled by specialists, not officials and government people...

Traders have a unique way to close deals...

If what I understand is true then there was no deal as such but an auction. http://www.thaivisa.com/forum/topic/711492-thailand-to-join-rice-auction-in-the-philippines-to-compete-with-vietnam/

And the Vietnam bid was lower than the Thai bid and was the one accepted by the Philippians.

It would also seem that all sales (offerings) recently have been of new (2013-2014) seasons rice.

Meaning that none of the stockpiled rice in the warehouses has actually been sold.

There was talk some of the old seasons rice being added in with some of the Govt auctions but there has never been an auction where all the offering was sold, so quite possibly no body wanted the old stuff..

In fact there was one auction recently where the whole inventory of 400,00 tons was not sold because the prices offered were way below world price.

http://www.thaivisa.com/forum/topic/718081-high-demand-seen-as-18-rice-traders-take-part-in-thai-govt-auction/

Apparently the deal was done but when the Filipino official went to the ATM to settle up it wouldn't dispense more than 20,000 baht and none of his staff had enough spare change to make up the difference.

What is this 0.3 baht per kilo.... at 11-12 baht a kilo. How does one define an effective drop when the exact price is defined between points of 1.00 baht, but a drop of 0.30 baht? How ludicrous is the undefinitive article?

Several nations are looking at buying , I was looking the other day at a new roller , I didn't buy cause I thought 1: the price was to high , 2: I couldn't afford it, there's a big difference than when you buy, these guy's remind me of mining contractors , they just put a price in and then tell everyone who will listen they have the contract, all is not well in the rice export market,maybe the Chinese should stop eating NZ lamb Rack Cutlets.

I believe people with the class and wherewithal to buy luxury vehicles usually refer to them as a Royce. Spivs and wide boys usually buy Rollers.

A nice compact Roller. An equally ugly Royce.

Several nations are looking at buying , I was looking the other day at a new roller , I didn't buy cause I thought 1: the price was to high , 2: I couldn't afford it, there's a big difference than when you buy, these guy's remind me of mining contractors , they just put a price in and then tell everyone who will listen they have the contract, all is not well in the rice export market,maybe the Chinese should stop eating NZ lamb Rack Cutlets.

I believe people with the class and wherewithal to buy luxury vehicles usually refer to them as a Royce. Spivs and wide boys usually buy Rollers.

roller.jpgroyce.jpg

A nice compact Roller. An equally ugly Royce.

I would rather drive the Roller in BKK - a bit slow when the traffic is moving but good when it stops

devious plan to get out of paying the farmers the agreed on price ?