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Friday, January 8, 1999

Thai rice firm on overseas demand 

Reuters  
Bangkok, Jan 7: Thai rice prices edged up in the FOB market this week on robust buying by Iran and Nigeria, traders said on Thursday.

Iran recently bought 150,000 tonnes of Thai rice for January-April shipments, said Vorapong Pichpongsa, the president of the Thai Rice Exporters' Association.

Nigeria also bought a substantial amount of parboiled rice, sending the Thai parboiled rice price up to $320 per tonne FOB Bangkok from around $310 last week.

"There are a lot of vessels here waiting for the lifting of rice to various destinations, primarily Nigeria. The demand sent prices higher," said a trader with a major US house.

The price of 100 per cent B grade also edged up to $295-300 per tonne on an FOB basis from $290 last week.

Other major news in the market was Iraq approaching Thailand for rice under its oil-for-food programme with the United Nations but no deal has yet been concluded, traders said.

The market also watched closely developments in rice price renegotiations between Indonesia andThailand on Jakarta's purchase of 100,000 tonnes of Thai rice.

Indonesia proposed to pay cash for the government-to-government deal, formerly agreed in August last year on a three-year credit basis, provided Thailand cut the price from $282 per tonne.

Trade sources said both sides had yet to agree on the new deal but Thai commerce ministry officials had said that they would try to wrap up the issue as soon as possible.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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