Indonesia rice order boosts Thai market, more seen
Indonesia rice order boosts Thai market, more seen
BANGKOK (Reuters): Indonesia's purchase of 300,000 tons of
Thai rice has cheered the local market amid expectations of
further orders, trade sources said Thursday.
They estimated that Indonesia was likely to import between 1.5
million and 2.0 million tons of rice from various sources between
now and early 1998 to make up for a local shortfall due to
effects of the El Nio weather phenomenon.
Local rice prices surged due to higher overall demand in the
market but export prices edged up only slightly owing to the
cheaper baht.
Thai benchmark 100 percent B grade was quoted around $270-275
per ton FOB Bangkok while the 100 fragrant grade was quoted at
$650-670 on the same basis, traders said.
"Thai rice is likely to get a big share out of that. I think a
fear that the financial crisis in Indonesia will force the
country to sideline Thailand and turn to lower end markets is
unfounded," a local exporter told Reuters.
"If the price is not that different, Thai rice would be a
preferred choice as Indonesians like our consistency and
punctuality in delivery," he said.
Indonesia was said to have bought 300,000 ton of 15-20 percent
grade rice from Thailand for nearby shipments. Traders said
loading had already begun.
A senior Indonesian official said the El Nio induced drought
was expected to cut this year's domestic unhusked rice production
by 3.9 percent from 1996's output of 51.3 million tons.
Meanwhile, trade and government sources said Thailand was
edging closer towards sealing a deal to sell 100,000 tons of rice
to the Philippines.
"The deal will be on a government-to-government basis. I heard
they are still negotiating on prices but many expect it to come
through," said a trader with a major rice firm.
According to trade sources, the Philippines has bought 150,000
tons from Vietnam, 50,000 tons from India, 100,000 tons from
China and 75,000 tons from Malaysia.
Regular buyers such as Nigeria and other Asian countries also
entered the market this week, traders said.
Thailand has exported around 4.44 million tons of rice between
Jan. 1-Nov. 25 this year compared with 4.67 million tons during
the same period last year.
Of the total, 4.19 million tons were traded through the
private sector while the rest went through the government
channel, according to trade sources.