Business | Markets

Thai rice prices break five-week losing streak

Thai rice prices rose 0.7 per cent in the week yesterday, breaking a five-week losing streak, as prices neared the level at which Bangkok has promised to buy paddy from farmers and on demand from Nigeria.

  • Reuters
  • Published: 00:04 July 10, 2008
  • Gulf News

Bangkok: Thai rice prices rose 0.7 per cent in the week yesterday, breaking a five-week losing streak, as prices neared the level at which Bangkok has promised to buy paddy from farmers and on demand from Nigeria.

In Vietnam, traders said a four per cent drop in the floor price on Tuesday was not enough to attract foreign buyers who planned to wait until new supply hit the market in July.

The median price of Thai 100 per cent B grade white rice rose to $725 a tonne, up from last week's $720 per tonne, but well below a record high of $1,080 per tonne in April.

"I think the price has passed through a corrective phase and it is now supported mostly by the intervention scheme and some fresh orders from Nigeria," a Thai exporter said.

Traders said Thai rice prices should remain firm at the floor price indirectly set by a government scheme which began in late June and pays farmers 14,000 ($415) baht per tonne for paddy rice, equivalent to around $700 per tonne of milled rice.

The government tried to dispel market rumours that the state might release some of its 2.1 million tonne stockpile soon to make room for rice bought under another intervention programme.

"We were not in a rush to sell the stocks because we were concerned that the sale would push domestic prices lower," Suparat Nakboonnam said.

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