First rice auction since NCPO took power open to all traders

[webfact]

RICE BIDING
First rice auction since junta took power open to all traders
Petchanet Pratruangkrai
The Nation


Thai traders have shown high interest in checking the quality of stockpiled rice and joining the first rice auction since the National Council for Peace and Order assumed power in May. The auction is scheduled to take place tomorrow

BANGKOK: -- The Commerce Ministry is scheduled to open bidding for 167,000 tonnes of rice tomorrow in what will be the first auction to reduce the size of the state's stockpile since the National Council for Peace and Order took power on May 22.

Unlike previous auctions, the process will be more transparent as the ministry is allowing all types of trader - exporters, domestic traders, rice packers, feed-meal producers, and millers - to take part in the bidding for a small lot of rice from 40 state warehouses.

The ministry will open the bidding letters, bargain over prices and select the winner within one day, during which all players can observe the transparency of the process, Duangporn Rodphaya, director-general of the Foreign Trade Department, said yesterday.

Bidders will be required to offer their prices between 8.30am and 11am, after which their letters will be opened at 1pm. The ministry's bidding committee will then select the winning bid or negotiate for the best price, all within the same day.

The result of the auction will then be submitted to the Rice Policy Committee for approval within a week, she added.

"The ministry has a working committee to work on the bidding process under a transparent method. They will set up a 'floor price' for the bidding. If bidders offer prices in accordance with the floor price, or not too low, the ministry will decide to sell the rice," said Duangporn.

Many rice traders are expected to show interest in joining the bidding due to the currently high demand in the market, she said, adding that the auction should not however negatively affect the market price because it is being held outside of the harvest season. About 30 rice traders participated in the department's clarification session concerning tomorrow's auction. They include CP Intertrade, Siam Indica, Capital Rice, Sandee Rice, and Olam (Thailand).

Rice purchased at the auction can either be sold domestically or in the export market.

Duangporn said the ministry would also hold other auctions and sell rice through other methods, such as allowing traders to offer to purchase rice directly from the ministry, selling through the Agricultural Futures Exchange of Thailand, and government-to-government contracts.

She said the sale of stockpiled rice from government warehouses should result in an increase in rice available on the market during the current global shortage.

Vietnam has had low rice production this year, while India has slowed down its rice export plan during the out-of-harvest season and because of lower stockpiles.

The Kingdom should be able to export 9 million-10 million tonnes of rice this year, said the senior official.

Meanwhile, the Commerce Ministry continues to sell rice to China under a memorandum-of-understanding contract to sell one million tonnes to the country each year.

Thailand has already shipped 100,000 tonnes of rice under this contract, and will soon negotiate to sell other 100,000 tonnes from the stockpiles, as well as a further 100,000 tonnes from the next crop due to be harvested starting in November.

Moreover, the department has also negotiated the sale of rice to other countries such as Malaysia, Indonesia and the Philippines. It projects releasing about 500,000 tonnes of rice per month from government stocks, starting this month.

Burin Thanatavornlap, managing director of Sandee Rice, said now was a perfect time for the authorities to sell rice from the stockpiles because of high demand in the market.

Rice prices should also be in accordance with market prices, which have increased during the past few months following the end of the last harvest season, he said.

The price of new-crop white rice is currently quoted at Bt12.50 per kilogram, while jasmine rice is quoted at Bt31 and husk rice at Bt9 per kilo, he added.

Source: http://www.nationmultimedia.com/business/First-rice-auction-since-junta-took-power-open-to--30240312.html

[thenation]2014-08-06[/thenation]

[billd766]

How quaint for Thailand.

 

Transparency in government. I wonder if it will catch on.

 

SUCH a refreshing change from the previous PTP government.

[Thai at Heart]

How quaint for Thailand.

 

Transparency in government. I wonder if it will catch on.

 

SUCH a refreshing change from the previous PTP government.

 

 

You reckon those 1kg samples are representative?

[opalred]

1 chap smelling ? see if rot removed another picking out left rat shit

[billd766]

 

How quaint for Thailand.

 

Transparency in government. I wonder if it will catch on.

 

SUCH a refreshing change from the previous PTP government.

 

 

You reckon those 1kg samples are representative?

 

 

Don't you and if not why not?

 

If YOU think that there is a problem then YOU contact the military and complain about it.

 

They can do something about it. Here on ThaiVisa all we can do is read your daily whinings.

[jayjayjayjay]

Well I'll be screwed. What happens if the stockpile makes money. Vietnam with a low crop, India having to service an increasing domestic market! Low and behold, plenty of RED faces if it does. Pardon the pun.... ;)

[billd766]

Well I'll be screwed. What happens if the stockpile makes money. Vietnam with a low crop, India having to service an increasing domestic market! Low and behold, plenty of RED faces if it does. Pardon the pun....

 

Well to actually make money is has to be sold at a price which not only covers the original purchase price of supposedly 15,000 baht/ton but also the transportation and storage costs added on top which will add anothe 5 to 15,000 baht/ton.

 

The Kbank exchange rate today for USD if 32.12 for the TT selling rate and 32.48 if you want to buy bank notes.

 

If I use the figure of 32 thb/$1 USD then at 20,000 then it has to be sold at $625 USD/ton or at 30,000 baht  it will have to be sold at $937 USD/ton.

 

Even at the purchase price of 15,000/ton with NO addons it has to be sold for more than $469 USD/ton always assuming that it is good quality saleable rice.

 

That is $50 a ton more than the world market price in June 2014.

 

I did a Google search for rice prices and chose this one as it covers a 5 year span.

 

http://www.indexmundi.com/commodities/?commodity=rice&months=60

 

Jan 2014 441.04 -1.45 % Feb 2014 447.00 1.35 % Mar 2014 434.14 -2.88 % Apr 2014 409.94 -5.57 % May 2014 403.59 -1.55 % Jun 2014 414.67 2.75 %

[Thai at Heart]

 

Well I'll be screwed. What happens if the stockpile makes money. Vietnam with a low crop, India having to service an increasing domestic market! Low and behold, plenty of RED faces if it does. Pardon the pun....

 

Well to actually make money is has to be sold at a price which not only covers the original purchase price of supposedly 15,000 baht/ton but also the transportation and storage costs added on top which will add anothe 5 to 15,000 baht/ton.

 

The Kbank exchange rate today for USD if 32.12 for the TT selling rate and 32.48 if you want to buy bank notes.

 

If I use the figure of 32 thb/$1 USD then at 20,000 then it has to be sold at $625 USD/ton or at 30,000 baht  it will have to be sold at $937 USD/ton.

 

Even at the purchase price of 15,000/ton with NO addons it has to be sold for more than $469 USD/ton always assuming that it is good quality saleable rice.

 

That is $50 a ton more than the world market price in June 2014.

 

I did a Google search for rice prices and chose this one as it covers a 5 year span.

 

http://www.indexmundi.com/commodities/?commodity=rice&months=60

 

Jan 2014 441.04 -1.45 % Feb 2014 447.00 1.35 % Mar 2014 434.14 -2.88 % Apr 2014 409.94 -5.57 % May 2014 403.59 -1.55 % Jun 2014 414.67 2.75 %

 

 

 

You have missed out the fact that during the milling process, one tonne of paddy in makes about 650 to 750 kg out the other end.  15,000/ 0.70 = 21,428 then start adding the transport and storage charges.  If this is top quality best grade rice, the break even is probably around 30,000 /tonne.

[billd766]

 

 

Well I'll be screwed. What happens if the stockpile makes money. Vietnam with a low crop, India having to service an increasing domestic market! Low and behold, plenty of RED faces if it does. Pardon the pun....

 

Well to actually make money is has to be sold at a price which not only covers the original purchase price of supposedly 15,000 baht/ton but also the transportation and storage costs added on top which will add anothe 5 to 15,000 baht/ton.

 

The Kbank exchange rate today for USD if 32.12 for the TT selling rate and 32.48 if you want to buy bank notes.

 

If I use the figure of 32 thb/$1 USD then at 20,000 then it has to be sold at $625 USD/ton or at 30,000 baht  it will have to be sold at $937 USD/ton.

 

Even at the purchase price of 15,000/ton with NO addons it has to be sold for more than $469 USD/ton always assuming that it is good quality saleable rice.

 

That is $50 a ton more than the world market price in June 2014.

 

I did a Google search for rice prices and chose this one as it covers a 5 year span.

 

http://www.indexmundi.com/commodities/?commodity=rice&months=60

 

Jan 2014 441.04 -1.45 % Feb 2014 447.00 1.35 % Mar 2014 434.14 -2.88 % Apr 2014 409.94 -5.57 % May 2014 403.59 -1.55 % Jun 2014 414.67 2.75 %

 

 

 

You have missed out the fact that during the milling process, one tonne of paddy in makes about 650 to 750 kg out the other end.  15,000/ 0.70 = 21,428 then start adding the transport and storage charges.  If this is top quality best grade rice, the break even is probably around 30,000 /tonne.

 

 

I didn't miss it out but ignored it. Using that figure of 30,000 baht means it has to be sold at more than double the world market price which will never happen. The alternative is to sell it at say $415 USD and make a loss of $517 or 16,500 baht/ton IF you can sell it. Selling 11,000,000 tons at that would lose Thailand 5.687 billion dollars or 181,894 BILLION baht.

 

[Thai at Heart]

 

 

Well I'll be screwed. What happens if the stockpile makes money. Vietnam with a low crop, India having to service an increasing domestic market! Low and behold, plenty of RED faces if it does. Pardon the pun....

 
Well to actually make money is has to be sold at a price which not only covers the original purchase price of supposedly 15,000 baht/ton but also the transportation and storage costs added on top which will add anothe 5 to 15,000 baht/ton.
 
The Kbank exchange rate today for USD if 32.12 for the TT selling rate and 32.48 if you want to buy bank notes.
 
If I use the figure of 32 thb/$1 USD then at 20,000 then it has to be sold at $625 USD/ton or at 30,000 baht  it will have to be sold at $937 USD/ton.
 
Even at the purchase price of 15,000/ton with NO addons it has to be sold for more than $469 USD/ton always assuming that it is good quality saleable rice.
 
That is $50 a ton more than the world market price in June 2014.
 
I did a Google search for rice prices and chose this one as it covers a 5 year span.
 
http://www.indexmundi.com/commodities/?commodity=rice&months=60
 Jan 2014 441.04 -1.45 % Feb 2014 447.00 1.35 % Mar 2014 434.14 -2.88 % Apr 2014 409.94 -5.57 % May 2014 403.59 -1.55 % Jun 2014 414.67 2.75 %
 

 
 
You have missed out the fact that during the milling process, one tonne of paddy in makes about 650 to 750 kg out the other end.  15,000/ 0.70 = 21,428 then start adding the transport and storage charges.  If this is top quality best grade rice, the break even is probably around 30,000 /tonne.
 

 
I didn't miss it out but ignored it. Using that figure of 30,000 baht means it has to be sold at more than double the world market price which will never happen. The alternative is to sell it at say $415 USD and make a loss of $517 or 16,500 baht/ton IF you can sell it. Selling 11,000,000 tons at that would lose Thailand 5.687 billion dollars or 181,894 BILLION baht.

 

Well, it is about the biggest factor in the cost. Moisture and losses for the shell and all the rest can be up to 50% if the stuff is really wet.

It is the be all and end all of the rice business and processors fight like crazy in the processing to save a few percent which can add up to millions of baht.

Top price hom Mali which was what was 15000 is priced at 1000 USD/tonne. According the orzya.com

However, I have q feeling all the really good stuff has been sold and they are sitting on the lower grade stuff so god knows what they paid for it. Edited August 8, 2014 by Thai at Heart

[Thai at Heart]

http://www.oryza.com/news/rice-news/thai-rice-auction-receives-overwhelming-response-amid-high-demand-and-rising-prices