One million tons of Thai rice to be sold out by June

[webfact]

One million tons of rice to be sold out by June



BANGKOK: -- The Commerce Ministry targets to have sold up to one million tons of rice via the Agricultural Futures Exchange of Thailand (AFET) by June this year.

The target was expected to be achieved after yesterday’s rice auction on AFET.

Deputy Minister of Commerce Yanyong Puangrach said it was the 10th time that the government arranged an auction of the rice Wednesday.

He said 162,344 tons of over 212,900 tons of rice from 12 provinces nationwide were auctioned.

Around 700,000 tons of rice had been sold via AFET with 300,000 tons more set to be auctioned before June, the deputy minister said.

The rice auction was organized by the Internal Trade Department under the Ministry of Commerce, in collaboration with the Public Warehouse Association and AFET.

Fourteen rice traders participated in the auction.

Mr Yanyong confirmed Thailand’s rice exports were not affected by the rice price drop and expressed his confidence that rice price would not further decrease.

Source: http://englishnews.thaipbs.or.th/one-million-tons-rice-sold-june/


-- Thai PBS 2014-04-24

[NeverSure]

Yep, it's Thursday.

[issanaus]

New crop? not old stock from the stock pile?

[Gunna]

New crop? not old stock from the stock pile?

Nobody wants to buy the old stock while you can buy new crop at low prices.

And the farmers will be paid next week

Great work PT 5555

[jaidam]

Does that 700k tons sold include the much praisesd by PTP Phillipine sales(you know, the ones that turned out to be total BS, just like the Chinese sales, Iraq sales and all the other non existant rice sales that were announced to great fanfare to keep the PTP fanboys chugging off)?

[JeremyBowskill]

Better get on the blower to Uncle Ben then! He's the only man who could sell that amount of cr@ppy rice.

Edited April 24, 2014 by JeremyBowskill

[ggold]

Mr Yanyong confirmed Thailand’s rice exports were not affected by the rice price drop and expressed his confidence that rice price would not further decrease.

Maybe they are not effected because no one is really buying Thai rice! Reverse logic at play.

Edited April 24, 2014 by ggold

[billd766]

Does the Commerce Ministry have ANY proof that the rice has been sold?

Who it has been sold to, when and for how much would help and independent confirmation from outside agencies would be believeable.

Words from the Commerce Ministry alone mean absolutely nothing without proof.

[BillyBobThai]

The real question is how many million tons of rice are left in storage ?? The balance will most likely be made into rice whisky and animal feed.

[Scamper]

It's long past the point that these announcements pass the credibility test. They are never opened to scrutiny and verification, and are always subject to a lot of wishful thinking.

[WoopyDoo]

If they think that hard nosed futures investors and brokers are going to invest in a Thai rice future which can go anywhere and is most likely to plummet come September... They have another thing coming.

The Thai rice industry doesn't have a future, and that can expect to have massive repercussions in the entire region's rice industries.

Wait till September... all I am saying.

You watch everyone start to twitch and by October the realization will dawn on them and it is going to blow up in true style.

I would like to see the red shirt terrorists continue to tell the rice farmers to shut up and sit back down by then.... Not only will the million farmers in the swing constituencies be feeling it, but all those in the hardcore red shirt areas will be too.... they were the lucky ones who were paid last harvest from the scam... This time will be much much different.

I can't wait for those hardcore red farmers to get the wake up they voted for.

[Robby nz]

He said 162,344 tons of over 212,900 tons of rice from 12 provinces nationwide were auctioned.

What does that mean ?

Does it mean that 162,344 tons were bid on from 212,900 offered, or does it mean that 59,556 tons were withdrawn and only 162,334 offered ?

Other than those there are no numbers given as to how much was sold or at what price.

Looking through the answers given on the rice futures topic and looking through the AFET web site still doesn't give any clearer indication of just how these government auctions through the futures exchange work.

It is not clear whether the rice is paid for or just a small deposit paid by the successful bidder, nor if a bidder actually takes delivery of the rice.

Or, as the name suggests, there is a future delivery and payment date and the contract can be traded in the meantime.

Or indeed if a bidder forfeits the deposit at the future date and withdraws from the contract meaning no rice is actually sold at all.

Mr Yanyong confirmed Thailand’s rice exports were not affected by the rice price drop and expressed his confidence that rice price would not further decrease.

Considering that at recent auction (not through AFTE) for 400,000 tons of rice in which 34 bidders took part, none was sold because the prices offered were to low, I find the above difficult to believe.

[issanaus]

He said 162,344 tons of over 212,900 tons of rice from 12 provinces nationwide were auctioned.

What does that mean ?

Does it mean that 162,344 tons were bid on from 212,900 offered, or does it mean that 59,556 tons were withdrawn and only 162,334 offered ?

Other than those there are no numbers given as to how much was sold or at what price.

Looking through the answers given on the rice futures topic and looking through the AFET web site still doesn't give any clearer indication of just how these government auctions through the futures exchange work.

It is not clear whether the rice is paid for or just a small deposit paid by the successful bidder, nor if a bidder actually takes delivery of the rice.

Or, as the name suggests, there is a future delivery and payment date and the contract can be traded in the meantime.

Or indeed if a bidder forfeits the deposit at the future date and withdraws from the contract meaning no rice is actually sold at all.

Mr Yanyong confirmed Thailand’s rice exports were not affected by the rice price drop and expressed his confidence that rice price would not further decrease.

Considering that at recent auction (not through AFTE) for 400,000 tons of rice in which 34 bidders took part, none was sold because the prices offered were to low, I find the above difficult to believe.

The question is if the rice is intended export or is this release for domestic consumption where it will compete in the market place against direct sales by farmers - thus potentially putting downward pressure on domestic prices.

[Siripon]

Fellow posters, which is more credible, this is really the final push by the great reformist, Kamnan Suthep or the government really will sell 1 million tons (or tonnes?) of rice by the end of June?

[bigbamboo]

Tell me the old, old story.........

[soalbundy]

Is there that much left?

[issanaus]

Is there that much left?

You would need to ask the rats - both species

[Torkmada]

Despite the constant attempts to destroy the rice scheme by self interested saboteors what we have here is good government policy working as it should for the betterment of the nation and its citizens.

Three cheers!

[Robby nz]

Seems we have a new troll.

Don't feed it.

According to the evidence given to the NACC there is still 20 million tons in storage give or take a grain or two :

Minister Yanyong visited the NACC on Wednesday to submit a letter asserting that inspections of the rice stock in warehouses, carried out in March by Ministry of Commerce officials and members of the rice stock inspection committee, found that the entire 18.7 million tons of rice was intact and another 1.1 million tons was being fumigated.

Which gives the lie to how much they have sold.

I note they all seem to have dropped the caretaker prefix.

[soalbundy]

Seems we have a new troll.

Don't feed it.

According to the evidence given to the NACC there is still 20 million tons in storage give or take a grain or two :

Minister Yanyong visited the NACC on Wednesday to submit a letter asserting that inspections of the rice stock in warehouses, carried out in March by Ministry of Commerce officials and members of the rice stock inspection committee, found that the entire 18.7 million tons of rice was intact and another 1.1 million tons was being fumigated.

Which gives the lie to how much they have sold.

I note they all seem to have dropped the caretaker prefix.

That is because they haven't been taking care

[soalbundy]

Despite the constant attempts to destroy the rice scheme by self interested saboteors what we have here is good government policy working as it should for the betterment of the nation and its citizens.

Three cheers!

You've been sucking on something have't you but it wasn't mine.

[animatic]

Targets, not sales.

We expect thus and such,

not

we have done thus and such and here's the pay stub.

More smoke and mirrors.

[pattayasnowman]

Its not an unusual sale - But as pointed out is this from old stock or new harvest.

Thailand sells approx 8 million plus tons a year. With ambitious goal to export 8.5+ million tons of rice in 2014.

With 14 - 18 million tons in storage and more from new harvest - annual sales of 8 million tons, you can see the huge scope of the problem.

Current Rice price is approx $435 (14000 baht) per ton and has been declining and the price chart looks very negative and could go down another $100/ton closer to its "traditional" price level.

Moreover, Thailand cannot just dump its stock of Rice on the world market as it would be santioned by the WTO.

In my view this was a good idea gone bad. The government pledging scheme promised rice farmers15,000 baht ($488) per ton. At the time this was the world price for Rice.

The goverment thought by holding the Rice from the Market it woulld force the price up and then they could sell at a higher price then that was pledged.

Of course you need to ask the question if this had worked - who would have got the profit..

The "Govermment" for the benifit of the people? Or People in the Goverment?

[edwinchester]

Despite the constant attempts to destroy the rice scheme by self interested saboteors what we have here is good government policy working as it should for the betterment of the nation and its citizens.

Three cheers!

The rice scheme is finished. My Thai father in law still hadn't been paid for his rice since last October as has the guy who rents my wifes paddy.

Those farmers selling to the local rice mill were offered 4500 bht per tonne last week so they are effectively selling at a loss.

The rice scheme has destroyed the market for Thai rice at a level that gives the farmer any sort of livelyhood.

[ratcatcher]

Is there that much left?

You would need to ask the rats - both species

Correct, in fact there are so many of the four legged variety, that I have had to take on extra staff to go after the two legged versions who are presently posing as politicians..

[issanaus]

Its not an unusual sale - But as pointed out is this from old stock or new harvest.

Thailand sells approx 8 million plus tons a year. With ambitious goal to export 8.5+ million tons of rice in 2014.

With 14 - 18 million tons in storage and more from new harvest - annual sales of 8 million tons, you can see the huge scope of the problem.

Current Rice price is approx $435 (14000 baht) per ton and has been declining and the price chart looks very negative and could go down another $100/ton closer to its "traditional" price level.

Moreover, Thailand cannot just dump its stock of Rice on the world market as it would be santioned by the WTO.

In my view this was a good idea gone bad. The government pledging scheme promised rice farmers15,000 baht ($488) per ton. At the time this was the world price for Rice.

The goverment thought by holding the Rice from the Market it woulld force the price up and then they could sell at a higher price then that was pledged.

Of course you need to ask the question if this had worked - who would have got the profit..

The "Govermment" for the benifit of the people? Or People in the Goverment?

There is clearly a justifiable case that can be made for Thailand to hold a stockpile of rice - while I have not looked too closely at the figures a stockpile of some thing in the order of 3-6 million tons as a buffer against adverse growing conditions to avoid major price hikes and resulting social pressures. The policy (for want of a better word) behind the whole scheme was contrived in a market environment where there had been a shortage of supply against the demand in the recent past.

As rice is a product with many suppliers, producers are price taker and government policies should have been made in the context of trend prices rather than peak prices that had been experiences. As one of my old economics lectures would have said "the scheme would have had the same chance of long term economic success as deciding that the way to staff a brothel would be by employing virgins". Price interventions by governments in these types of markets should only be short term and based on the phase of the cycle being experienced.

I know that statements were made that the intention was to try and force world prices up. Ignoring the economic stupidity by such a claim and the fact that was speculating with taxpayers money; we now have the situation where rice farmers are providing the ongoing finance as bond holders with 0% interest and no clear date when the bonds will mature. Belatedly there are claims that the scheme was not meant to make a profit; rather that the scheme was to help the poorest people. The outcomes of the scheme are clearly a failure in this regard. The outcomes for the poorest rice farmers as group are far worse than any analysis that I have seen in TVF.

One of the major problems with the scheme, and is so nicely illustrated by announcements such as the one in this thread is the total lack of transparency. However we should not be surprised as this is one of the hallmarks of the PTP (mal) administration.

Edited April 24, 2014 by issanaus

[Torkmada]

Despite the constant attempts to destroy the rice scheme by self interested saboteors what we have here is good government policy working as it should for the betterment of the nation and its citizens.

Three cheers!

The rice scheme is finished. My Thai father in law still hadn't been paid for his rice since last October as has the guy who rents my wifes paddy.

Those farmers selling to the local rice mill were offered 4500 bht per tonne last week so they are effectively selling at a loss.

The rice scheme has destroyed the market for Thai rice at a level that gives the farmer any sort of livelyhood.

The alleged levels of rampant corruption simple do not exist.

The rice scheme is as clean as any Thai government policy can be and cleaner than many of Abhisit's policies

That's the reason why the NACC refuses to go and check the warehouses themselves for proof of missing rice.

Their content to rely on rumours and accusations rather than seek the truth because reality won't further their cause of pushing through trumped up charges against the nations leader.

The ship of state is slowly righting itself and shall soon be sailing through clear waters under blue skies with the same skipper at the helm.

The people have won.

[Skywalker69]

The real question is how many million tons of rice are left in storage ?? The balance will most likely be made into rice whisky and animal feed.

18.7 million tons of rice was intact and another 1.1 million tons was being fumigated.

http://www.thaivisa.com/forum/topic/721043-pm-yingluck-urges-nacc-to-inspect-rice-stock-to-determine-whether-rice-was-really-missing/

[rhythmworx]

I hope I don't cop for any of that stale old sheeite.

[Skywalker69]

Despite the constant attempts to destroy the rice scheme by self interested saboteors what we have here is good government policy working as it should for the betterment of the nation and its citizens.

Three cheers!

The rice scheme is finished. My Thai father in law still hadn't been paid for his rice since last October as has the guy who rents my wifes paddy.

Those farmers selling to the local rice mill were offered 4500 bht per tonne last week so they are effectively selling at a loss.

The rice scheme has destroyed the market for Thai rice at a level that gives the farmer any sort of livelyhood.

The alleged levels of rampant corruption simple do not exist.

The rice scheme is as clean as any Thai government policy can be and cleaner than many of Abhisit's policies

That's the reason why the NACC refuses to go and check the warehouses themselves for proof of missing rice.

Their content to rely on rumours and accusations rather than seek the truth because reality won't further their cause of pushing through trumped up charges against the nations leader.

The ship of state is slowly righting itself and shall soon be sailing through clear waters under blue skies with the same skipper at the helm.

The people have won.

Note to one self! Don`t feed the troll, don`t feed the troll, don`t feed the troll, don`t.......................