Third round rice auction successful

[webfact]

Third round rice auction successful

BANGKOK: -- The Commerce Ministry's 1.1 million tons rice auction ended with success as were bought up by private buyers, generating almost 10 billion baht into national coffers.

Duangporn Rodphayathi, the director-general of the ministry’s Department of Foreign Trade said the rice auction, the third round for this year, saw 48 bidders forwarding bids for the entire quota of 1,190,000 tons of rice estimated to be almost 10 billion baht in value.

She stated that following this, the Rice Policy and Management Committee will handle the actual processing and approvals to distribute the rice stocks.

With regards to the signing of sales agreements for rice stocks under the G-2-G agreements with the Chinese government, the contract will be divided into two parts.

The first agreed amount of 1 million ton is at present in the process of being delivered while the remaining 1 million tons, it is expected that negotiations will be concluded and the contract will be signed by June of this year when a delegation of Chinese officials arrives in Thailand, she said.

Source: http://englishnews.thaipbs.or.th/content/164051

-- Thai PBS 2016-05-20

[Srikcir]

Sale of 1,190,000 tons of rice estimated to be almost 10 billion baht in value is equivalent to about Bt8,400/ton or Bt9/kg.

In February 2016 the second government auction for low-quality rice stocks was sold to the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht equivalent to Bt6,250/ton or about Bt7/kg.

Rice stocks sold as feed earn around 6 -7 baht/kg while ethanol producers will pay around 2 -3 baht/kg. (ref. Duangporn Rodpayathi, the director-general of the Department of Foreign Trade)

So it would seem the rice sold in the third auction was a higher quality than livestock feed rice. Or that the market price for rice has risen about 30-50% since the second auction, ie., due to a rice shortage caused by the drought? Either case seems to support the fundamentals behind Yingluck's pledge strategy.

[phoenixdoglover]

Sale of 1,190,000 tons of rice estimated to be almost 10 billion baht in value is equivalent to about Bt8,400/ton or Bt9/kg.

In February 2016 the second government auction for low-quality rice stocks was sold to the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht equivalent to Bt6,250/ton or about Bt7/kg.

Rice stocks sold as feed earn around 6 -7 baht/kg while ethanol producers will pay around 2 -3 baht/kg. (ref. Duangporn Rodpayathi, the director-general of the Department of Foreign Trade)

So it would seem the rice sold in the third auction was a higher quality than livestock feed rice. Or that the market price for rice has risen about 30-50% since the second auction, ie., due to a rice shortage caused by the drought? Either case seems to support the fundamentals behind Yingluck's pledge strategy.

This rice must be low quality, at about $240 per ton. Can't imagine this latest batch was fit for export...so assuming you are right about its intended use. Edited May 20, 2016 by phoenixdoglover

[rubl]

Sale of 1,190,000 tons of rice estimated to be almost 10 billion baht in value is equivalent to about Bt8,400/ton or Bt9/kg.

In February 2016 the second government auction for low-quality rice stocks was sold to the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht equivalent to Bt6,250/ton or about Bt7/kg.

Rice stocks sold as feed earn around 6 -7 baht/kg while ethanol producers will pay around 2 -3 baht/kg. (ref. Duangporn Rodpayathi, the director-general of the Department of Foreign Trade)

So it would seem the rice sold in the third auction was a higher quality than livestock feed rice. Or that the market price for rice has risen about 30-50% since the second auction, ie., due to a rice shortage caused by the drought? Either case seems to support the fundamentals behind Yingluck's pledge strategy.

Well, with the government paying 15,000 Baht per tonne of paddy, you need a lot of sudden price rises to offset paying 'farmers' way above market price. Of course any government is into wishful thinking as sound, near scientific approach to economical issues.

Pity no further details forthcoming, I wonder for how much the rice was still registered in the books. If the full 15,000 Baht per tonne of paddy losses may only increase.

[GOLDBUGGY]

Sale of 1,190,000 tons of rice estimated to be almost 10 billion baht in value is equivalent to about Bt8,400/ton or Bt9/kg.

In February 2016 the second government auction for low-quality rice stocks was sold to the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht equivalent to Bt6,250/ton or about Bt7/kg.

Rice stocks sold as feed earn around 6 -7 baht/kg while ethanol producers will pay around 2 -3 baht/kg. (ref. Duangporn Rodpayathi, the director-general of the Department of Foreign Trade)

So it would seem the rice sold in the third auction was a higher quality than livestock feed rice. Or that the market price for rice has risen about 30-50% since the second auction, ie., due to a rice shortage caused by the drought? Either case seems to support the fundamentals behind Yingluck's pledge strategy.

This rice must be low quality, at about $240 per ton. Can't imagine this latest batch was fit for export...so assuming you are right about its intended use.

I agree with you as this must be low quality rice. Or they sold this rice at a steal price.

The present white rice price is about $424/ ton. They would have gotten $240/ ton as you said. But Rice Prices have gone up a lot these past couple of months. If I recall it was $376 last month and about $370 the month before. So I would guess that Cattle Feed Rice Prices also go up with normal rice prices to.

http://www.thaivisa.com/forum/topic/918410-rice-prices-surge-as-thailands-drought-worsens/?utm_source=newsletter-20160519-0647&utm_medium=email&utm_campaign=news

[GOLDBUGGY]

Sale of 1,190,000 tons of rice estimated to be almost 10 billion baht in value is equivalent to about Bt8,400/ton or Bt9/kg.

In February 2016 the second government auction for low-quality rice stocks was sold to the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht equivalent to Bt6,250/ton or about Bt7/kg.

Rice stocks sold as feed earn around 6 -7 baht/kg while ethanol producers will pay around 2 -3 baht/kg. (ref. Duangporn Rodpayathi, the director-general of the Department of Foreign Trade)

So it would seem the rice sold in the third auction was a higher quality than livestock feed rice. Or that the market price for rice has risen about 30-50% since the second auction, ie., due to a rice shortage caused by the drought? Either case seems to support the fundamentals behind Yingluck's pledge strategy.

Well, with the government paying 15,000 Baht per tonne of paddy, you need a lot of sudden price rises to offset paying 'farmers' way above market price. Of course any government is into wishful thinking as sound, near scientific approach to economical issues.

Pity no further details forthcoming, I wonder for how much the rice was still registered in the books. If the full 15,000 Baht per tonne of paddy losses may only increase.

Well, not really.

According to a recent TV Quote Rice Prices are now 424/ ton. There is about 1.1 tons to a tonne, so for 1 tonne of rice it would be $466. The present exchange rate on the U.S.D. is about 35.27 Baht/ U.S.D. So 1 tonne of rice sells for $466 x 35.27 = 16,435 Baht.

So not only does this Rice Price not have a long way to go to get to 15,000 Baht/ tonne, from what I read it has already passed that point. Having said though, since when does a government make a profit off of a subsidy? They don't for Diesel Fuel or Cooking Gas. So why is Rice so different?

LINK to Rice Prices:

http://www.thaivisa.com/forum/topic/918410-rice-prices-surge-as-thailands-drought-worsens/?utm_source=newsletter-20160519-0647&utm_medium=email&utm_campaign=news

[williamgeorgeallen]

lets not forget the cost of storing the stuff, the volume lost to being stored improperly and the losses due to rice being paid for that never existed. these sale recoup a small part of what was lost

[Dumbastheycome]

Sale of 1,190,000 tons of rice estimated to be almost 10 billion baht in value is equivalent to about Bt8,400/ton or Bt9/kg.

In February 2016 the second government auction for low-quality rice stocks was sold to the private sector making bids for a total of 240,000 tons worth over 1.5 billion baht equivalent to Bt6,250/ton or about Bt7/kg.

Rice stocks sold as feed earn around 6 -7 baht/kg while ethanol producers will pay around 2 -3 baht/kg. (ref. Duangporn Rodpayathi, the director-general of the Department of Foreign Trade)

So it would seem the rice sold in the third auction was a higher quality than livestock feed rice. Or that the market price for rice has risen about 30-50% since the second auction, ie., due to a rice shortage caused by the drought? Either case seems to support the fundamentals behind Yingluck's pledge strategy.

Well, with the government paying 15,000 Baht per tonne of paddy, you need a lot of sudden price rises to offset paying 'farmers' way above market price. Of course any government is into wishful thinking as sound, near scientific approach to economical issues.

Pity no further details forthcoming, I wonder for how much the rice was still registered in the books. If the full 15,000 Baht per tonne of paddy losses may only increase.

? Current offerings are 7/8Bht per kilo. We have 6 tonne you can have for 10. Onsell in lala landfor 15 and you are handsome!