Thailand Weekly Rice Price Update 7-16-2013

Domestic and export prices declined 1 percent due to the government’s announcement that it will issue tenders for its rice stocks. On July 26, 2013, the government is expected to conduct two tenders totaling 353,600 metric tons for its MY2011/12 main-crop rice stocks. The tenders are expected to consist of 152,837 metric tons of 5% grade white rice for export and 200,763 metric tons of grade A1 Super broken white rice for the domestic or export market. The results of the tenders will likely be announced on July 29, 2013. The winners are required to collect the rice from the government warehouses within 30 to 120 days depending on the bidding amounts (less than 20,000 metric tons within 30 days; 20,000 – 50,000 metric tons within 60 days; 50,000 – 100,000 metric tons within 90 days; and over 100,000 tons within 120 days). In addition, if the rice is destined for the export market, exporters will have to ship the rice within 45 days after they collect the stocks from the government warehouses.