Thai rice prices are expected to fall over the next week with few overseas buyers in sight and with speculation that the government may sell its large stockpile, traders said on Thursday. Thai 100 percent parboiled grade was down $4 at $300 per tonne, free on board, on Thursday from a week ago. Indian parboiled grade was steady at $285 per tonne, free on board. "The government is indicating that they might want to sell some stock," said one trader. Commerce Minister Thinning Bidaya has scheduled meetings with at least two international trading houses Novel Commodities on Friday and Ascot Commodities next on Thursday, a ministry official said.
Exporters have long urged the government to release its stocks, accumulated under a state-buying scheme intended to support domestic prices. They argue the country will lose its competitiveness if the government holds onto the stocks estimated at five million tonnes of paddy, of which 1.8 million tonnes is Jasmine grade.
Grade Jasmine rice was trading steadies at $415-420 a tonne FOB on Thursday from a week ago.
Trade has been thin this week due to soft demand from foreign buyers. The domestic price of Thai five percent white rice grades was off 0.15 baht at 11 baht a kg ($278 a tonne) from a week.
The Philippines, one of Asia's biggest buyers, said this week that it would hold a tender to buy 400,000 tonnes of rice on May 24. It said it would buy 300,000 tonnes of 25-percent broken rice and 100,000 tonnes of 5 percent, 15 percent or 25 percent broken grade.
Traders said they did not expect Thailand to win the tender due to its unattractive high prices. Thai rice is $17-45 per tonne more expensive, on a FOB basis, than rice from Vietnam, the world's second-largest exporter.