Rice Prices Surge as Thailand’s Drought Worsens

[webfact]

Rice Prices Surge as Thailand’s Drought Worsens
BY RENE EMERY


Crab Fried Rice - Fried rice thai style Asia Thailand.

BANGKOK: -- Thailand’s rice prices have hit a two-year high following anticipation of lower supply due to increasing drought conditions that have plagued Thailand this year. Honorary president of the Thai Rice Exporters Association, Chookiat Ophaswongse, stated, “Prices for all types of rice have risen.”

Prices have risen significantly even from last month’s prices, according to the association. Glutinous rice is up to US$900 a ton, up from US$867 last month. White rice prices have risen to US$424 a ton, up from US$397 in April.

Hom Mali rice prices have remained stable over the last month, at US$795 a ton. The free-on-board export price of Hom Mali rice and higher demand for the rice from China caused Thai farmers to shift much of their production to the staple. Demand for Hom Mali rose in Indonesia and Malaysia, too. The surge in demand for Hom Mali has caused domestic production for glutinous rice to drop.

Full story: https://ethailand.com/business-news/rice-prices-surge-thailands-drought-worsens/2649/

-- eThailand 2016-05-19

[jaidam]

If only there would have been a forward thinker that could have arranged for the mass purchase and storage of billions of tonnes of grain while the price was rock bottom........

[lujanit]

Chookiat Ophaswongse, stated, “Prices for all types of rice have risen.”

That statement while it is semi-true does not equal a 'surge' for the two types of rice for which the price increased.

From the article "Rice demand rises before the Ramadan holiday on June 6. The Islamic holiday lasts until July 5." So this may just be a seasonal variance. This minor adjustment in prices is hardly going to save the farmers from financial distress.

[NongKhaiKid]

If only there would have been a forward thinker that could have arranged for the mass purchase and storage of billions of tonnes of grain while the price was rock bottom........

Forward thinker / forward thinking ? Solly, no have.

[Lingba]

If only there would have been a forward thinker that could have arranged for the mass purchase and storage of billions of tonnes of grain while the price was rock bottom........

Unfortunately forward thinking never did and never will exist in Thailand....wishful thinking but impossible

[NongKhaiKid]

The drought's worsening ?

In another thread it's reported that recent rains have eased the drought and that's official !

[ezzra]

jaidam, on 19 May 2016 - 05:58, said:

If only there would have been a forward thinker that could have arranged for the mass purchase and storage of billions of tonnes of grain while the price was rock bottom........

Don't be silly and ask for too much from the governments that allow millions tons of rice to just rote away

or be sold for animal feed, but when a drought comes, the price goes up, that's will be like asking them

to have a sustainable water resources programs to avoid a disastrous water shortage Thailand

is experiencing now.....

[graemeaylward]

Am I the only one who understands jaidam's irony? Surely it doesn't have to be spelled out!

[Johnniey]

Am I the only one who understands jaidam's irony? Surely it doesn't have to be spelled out!

I think it does, although bloody obvious.

[loong]

Chookiat Ophaswongse, stated, “Prices for all types of rice have risen.”

That statement while it is semi-true does not equal a 'surge' for the two types of rice for which the price increased.

From the article "Rice demand rises before the Ramadan holiday on June 6. The Islamic holiday lasts until July 5." So this may just be a seasonal variance. This minor adjustment in prices is hardly going to save the farmers from financial distress.

I doubt that it will help farmers at all. The vast majority of farmers are not harvesting any rice crops at the moment and will have already sold their last crops.

Of course come November or whenever most farmers are selling their crops, the price will fall.

[iBike]

Aren't there millions of tons of rice in warehouses from the rice pledging thingamejig

[ratcatcher]

Rice Prices Surge as Thailand’s Drought Worsens

Todays news.

Rains have eased drought and forest fires

http://www.thaivisa.com/forum/topic/918388-rains-have-eased-drought-and-forest-fires/

Well, what is it? Better or worse?

[Brer Fox]

I am trying to reconcile as to why the rice prices have risen yet Thailand is flogging off their rice stockpiles as discounted auction prices. Vietnam complained recently that they were having difficulty selling their rice because their prices were internationally uncompetitive compared to the hugely discounted prices the Thais were selling at.

http://www.bangkokpost.com/news/general/948409/record-60-day-rice-sale-blitz-set-to-begin

[darren84310]

If only there would have been a forward thinker that could have arranged for the mass purchase and storage of billions of tonnes of grain while the price was rock bottom........

Unfortunately forward thinking never did and never will exist in Thailand....wishful thinking but impossible

Lingba.... it's called sarcasm.

[NongKhaiKid]

Rice Prices Surge as Thailand’s Drought Worsens

Todays news.

Rains have eased drought and forest fires

http://www.thaivisa.com/forum/topic/918388-rains-have-eased-drought-and-forest-fires/

Well, what is it? Better or worse?

Seemingly the drought does or doesn't exist depending on official needs at the time.

[Eric Loh]

Aren't there millions of tons of rice in warehouses from the rice pledging thingamejig

11 M tons and the current price is at the pledged price. Don't think the government will thank the previous government for the unexpected windfall.

[FloridaExport]

No mention of the prices of rotten rice.

[iBike]

Aren't there millions of tons of rice in warehouses from the rice pledging thingamejig

11 M tons and the current price is at the pledged price. Don't think the government will thank the previous government for the unexpected windfall.

Ironic, so the ultimately the pledging scheme has the potential to turn out good !

[GuestHouse]

Unfortunately forward thinking never did and never will exist in Thailand....wishful thinking but impossible

We'll perhaps come back to this the next time TVF lights up with farangs complaining they can't buy a bottle of beer during an annual Thai Buddhist celebration / holiday.

[Artisi]

Rice Prices Surge as Thailand’s Drought Worsens

Todays news.

Rains have eased drought and forest fires

http://www.thaivisa.com/forum/topic/918388-rains-have-eased-drought-and-forest-fires/

Well, what is it? Better or worse?

Don't ask difficult questions, you should only ever ask 1 not 2 questions in the same sentence.

Edited May 19, 2016 by Artisi

[worgeordie]

I hope this does not result in an increase in Rice on the

retail market,as its already expensive,and does not

correlate with the farmers been in so much debt.

The prices would have to rise dramatically for the Govt.

to break even on the Rice bought at 50% over World

market prices,the storage costs alone must be tremendous

never mind the losses on rotten,misplaced stocks.

regards Worgeordie

[rubl]

I hope this does not result in an increase in Rice on the

retail market,as its already expensive,and does not

correlate with the farmers been in so much debt.

The prices would have to rise dramatically for the Govt.

to break even on the Rice bought at 50% over World

market prices,the storage costs alone must be tremendous

never mind the losses on rotten,misplaced stocks.

regards Worgeordie

The much in demand and best quality stuff from October 2011 to May 2014 will have been sold already. Price the remaining 14m tonnes may fetch will probably not really rise and selling for the remaining book value will not effect the 500++ billion Baht loss reported.

[anon467848]

No doubt the poor rice farmers won't be paid any extra for their crop. The middle men as usual will be coining it in, using the mythical shortage as a reason to bump up the prices...

[remobb]

I have been informed from my Pakistan seller that this is also the case from there, si it's not only Thai rice.

[HenryB]

Look at the History of Rice on the Chicago Board of Trade

Yes place your bets ether way open an account I say the trend is still down

at 12.50 I will buy. But think we will see 10 first

[lovelomsak]

I am trying to reconcile as to why the rice prices have risen yet Thailand is flogging off their rice stockpiles as discounted auction prices. Vietnam complained recently that they were having difficulty selling their rice because their prices were internationally uncompetitive compared to the hugely discounted prices the Thais were selling at.

http://www.bangkokpost.com/news/general/948409/record-60-day-rice-sale-blitz-set-to-begin

I think it is getting rid of the rice so a loss can be shown . No loss then the last government gets off the charges against them concerning the rice pledging.and stock piling. Cannot have that as we all know.

[Dumbastheycome]

Aren't there millions of tons of rice in warehouses from the rice pledging thingamejig

11 M tons and the current price is at the pledged price. Don't think the government will thank the previous government for the unexpected windfall.

Ironic, so the ultimately the pledging scheme has the potential to turn out good !

In the haste to combine ridicule and defence its seems forgotten or ignored that the "good' rice went astray and the rice stocks presented as evidence of good management turned out to be less than worth chicken feed! The scheme itself was valid but the outcome was something else.

The "ongoing" impact of the drought is now being felt due to a shift in prices for premium rice and the prediction that the next harvest yield will be below demand. The armchair critics who know jack shi. about farming in Asia but have ex spurt opinion might be best advised to fill their gobs with useless roast peanuts at the bar and contemplate navel fluff !

[NCFC]

I hope this does not result in an increase in Rice on the

retail market,as its already expensive,and does not

correlate with the farmers been in so much debt.

The prices would have to rise dramatically for the Govt.

to break even on the Rice bought at 50% over World

market prices,the storage costs alone must be tremendous

never mind the losses on rotten,misplaced stocks.

regards Worgeordie

The much in demand and best quality stuff from October 2011 to May 2014 will have been sold already. Price the remaining 14m tonnes may fetch will probably not really rise and selling for the remaining book value will not effect the 500++ billion Baht loss reported.

Is this quotable fact, or just your opinion? Edited May 19, 2016 by NCFC

[rubl]

I hope this does not result in an increase in Rice on the

retail market,as its already expensive,and does not

correlate with the farmers been in so much debt.

The prices would have to rise dramatically for the Govt.

to break even on the Rice bought at 50% over World

market prices,the storage costs alone must be tremendous

never mind the losses on rotten,misplaced stocks.

regards Worgeordie

The much in demand and best quality stuff from October 2011 to May 2014 will have been sold already. Price the remaining 14m tonnes may fetch will probably not really rise and selling for the remaining book value will not effect the 500++ billion Baht loss reported.

Is this quotable fact, or just your opinion?

Which part?

It was reported that almost all paddy was sold to the government. Normally Thailand consumes about 20m tonnes yearly (I think). Only normal white 5% broken or less left (as reported). 14m tonnes left (as reported a month or two ago).

As for 'book value', that I assume and I only hope it has been adjusted downwards. If not the losses will increase with another hundred billion or so (educated guess).

Further remember the government also had/has to pay for storage and rice will diminish is quality (and value) after three years already under good conditions. Lastly keep in mind the government paid for close to 70m tonnes paddy which after processing result in about 50m tonnes of rice.

You may of course quote me

[elgordo38]

If only there would have been a forward thinker that could have arranged for the mass purchase and storage of billions of tonnes of grain while the price was rock bottom........

Isn't that the reason Shinawatra is in court right now??