Thai floods damage rice crop, raise export prices
Thai floods damage rice crop, raise export prices
BANGKOK (Reuter): Thailand's worst monsoon flooding in at
least 12 years has destroyed more rice crops and sent Thai rice
prices soaring this week, officials said yesterday.
An agriculture ministry official monitoring floods in more
than 40 provinces said about 499,000 hectares of paddy (unhusked
rice) fields have been ruined beyond salvage, up from 467,200
hectares a week ago.
Ministry officials estimated that about 1.05 million tons, or
5.8 percent, of the main 1995-1996 (May/January) paddy have been
destroyed against 987,000 tons, or 5.5 percent, estimated a week
ago.
The main paddy crop, which normally accounts for 85 percent of
Thailand's total annual output, is now projected at 17.13 million
tons against 18.18 million forecast early this month.
Ministry officials and traders said, however, actual total
Thai rice output may not be substantially lower than earlier
projections as this year's abundant rainfall and high-water
levels behind dams will greatly increase the irrigated second
November/April paddy crop.
Thai exporters yesterday quoted FOB rice prices US$10-$20
higher than a week ago, partly due to flood-related shipment
problems, a low end-season supply and world shortages.
They quoted 100 percent B white Thai rice at about $385 FOB
Bangkok, up from $375 a week ago. Ten percent white was quoted at
$365 against $345 a week ago.
Current Thai rice prices are about $30-$70 a ton higher than a
year ago, due mainly to shortages in major Asian producers
including China, the Philippines and Indonesia.
"It's tricky to quote this week amid current high prices. I
don't think prices can go much higher as buyers may try to hold
back until the new Thai crop arrives in November," a major rice
exporter told Reuters.
Commerce ministry officials said the government would seek to
postpone for two months the delivery of about 140,000 tons of 100
percent B white rice to Iran originally scheduled by end-October.
The rice is part of 200,000 tons Iran ordered on a government-
to-government contract earlier this year at about $293.5 per
ton against a $380-385 market price this week.
The ministry officials said heavy flooding in Thailand
prevented paddy from reaching rice mills and traders selling to
the government.
A manager at Kamnan Song paddy market in north central Nakhon
Sawan, the country's biggest, said flooding would delay this
year's main paddy harvest for at least a month.
She said trade had also been hurt as widespread daily rains
this month have raised the moisture of paddy delivered to the
market, affecting its quality.
But she agreed with agriculture ministry officials that the
final two-crop harvest this year may not be much lower than
earlier annual average because of an expected bigger second crop.
An exporter said he expected some farmers would try to start
harvesting the main crop in October in a bid to salvage flooded
fields but the unmatured rice plants would yield low-quality,
high-moisture grains that would fetch lower prices.