Thai rice was quoted higher on Thursday due to the strong baht and prices were expected to remain high over the next few weeks, dampening trade, traders said. Thai 100 percent white rice B grade was offered at $315 per tonne, free on board, up from $308 per tonne quoted last week.
Thai 100 percent fragrant rice premium grade rose to $520 a tonne, free on board, from last week's $485. Other grades of Thai rice also rose $10-$15 a tonne from last week, and they are now around $30 a tonne higher than prices in Vietnam, the world's second biggest exporter.
"We have to offer at higher prices in a bid to offset losses from exchange rates," a trader said. "We are losing our competitive advantage. It's hard to sell at these prices, but we could not bear the loss if we sell at lower prices," he said. The Thai baht has risen about 15 percent against the dollar this year, the most of any Asian currency.
"That caused a big problem to exporters," another trader said. "Now, some buyers have suspended their orders, waiting to buy when prices soften, but I can't tell you when that would be." Thai rice prices were expected to remain high over the next few weeks with the Thai central bank saying it expected the baht to continue rising next year.