Indonesia delays rice shipments from Thailand<\/p>\n
BANGKOK (Reuters): Indonesia has delayed taking delivery of
\nshipments of around 100,000 tons of Thai rice due to problems
\nwith its letters of credit following its announcement of a
\ntemporary freeze on corporate debt repayments, traders said
\nyesterday.<\/p>\n
Shipments would be delayed by two to five months, they said.<\/p>\n
"If Indonesia's debt situation does not improve, we can expect
\nmore rescheduling of shipments," said one trader.<\/p>\n
In Jakarta, officials at the State Logistic Agency (Bulog)
\ndeclined to comment on the report.<\/p>\n
"I can't give you a comment on that," said a Bulog spokesman.<\/p>\n
The spokesman also refused to confirm remarks by Thai traders
\nthat shipments had been delayed.<\/p>\n
Industry sources estimate that Indonesia has bought 300,000-
\n400,000 tons of rice from Thailand since late last year, 200,000
\ntons of which had been delivered so far.<\/p>\n
Indonesia is a leading buyer of Thai rice, with the potential
\nto buy up to 800,000 tons from Thailand this year alone, trade
\nsources said.<\/p>\n
Upward pressure on Thai rice prices eased this week as
\nIndonesia delayed taking delivery of at least 100,000 tons of
\nThai rice due to financial problems, traders said.<\/p>\n
Fresh orders were thin as buyers were sidelined by renewed
\nvolatility in the Thai baht this week, although the market
\nbelieved overall demand remained strong.<\/p>\n
Benchmark 100 percent B grade rice was quoted around $300-310
\nton FOB Bangkok. The 100 percent jasmine or fragrant rice was
\nquoted around $600-620 per ton on the same basis.<\/p>\n
The market was divided over Indonesia's decision to delay rice
\nshipments. While some traders saw the development as merely a
\nhiccup, others said they feared this could be a start of a flood
\nof bad news.<\/p>\n
Shipments will be delayed by two to five months.<\/p>\n
"It is no doubt bad news but I wouldn't worry much. The
\nproblem is very likely to be temporary. Indonesia will need to
\nimport up to 2.0 million tons this year and it is crucial for
\nthem that basic demand is met," said an executive at one major
\nrice firm.<\/p>\n
Indonesia is a leading buyer of Thai rice, with potential to
\nbuy up to 800,000 tons from Thailand this year alone, trade
\nsources said.<\/p>\n
Activities this week focused mainly on loading rice for
\ndelivery to Asian, Middle Eastern and African destination.<\/p>\n
Thailand has exported 719,049 tons of rice between Jan. 1 and
\nFeb. 3 compared with 397,736 tonnes during the same period last
\nyear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-delays-rice-shipments-from-thailand-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}