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Thai Rice Industry Cut Down Has Little Effect on China

The world's largest rice exporter, Thailand is experiencing the worst 20-year drought. The latest statistics show, the new Thai rice harvest season will fall Liu Cheng. Hong Kong Industry insiders estimate that Thai rice prices may be increased by 10% to 20%. However, Guangzhou and Shenzhen in the industry said that the price cut on the local market has little effect.

It is reported that each year two to four seasons of Thailand rice harvest, yield about 20 million tons. Thailand's rice export 9 million tons a year, is the world's largest rice exporter. Once the yield reduction, global rice prices may fluctuate. Now, the government of Thailand 53, nearly 6 million mu of farmland affected by drought, mainly in east and northeast. Thai Food Industry Association, said people on the 8th, nearly 20 years because he has suffered its worst drought in rice harvest is expected in August to two million tons, than the previous forecast of 5 million tons cut 60%.

Hong Kong media reported that Thai rice in Hong Kong there is adequate inventory, the price of rice has not change, but it is estimated that 3 months later, the drought will continue to be reflected in the price of rice on. If the drought continues, the Hong Kong system of non-staple food of rice and rice should increase about 1 percent, some rice traders in Hong Kong and Vietnam has to import rice in the Mainland.

However, Guangzhou and Shenzhen in the analysis is that the local Thai rice price is not high up the possibility. Publicly available data, the price of Thai rice exports to China are not currently declined. Jasmine fragrant rice to China CIF before more than 1080 U.S. dollars per ton, but is currently 950 U.S. dollars. One big reason is the export price of Vietnamese rice is not more than 350 U.S. dollars per ton, will Thailand's rice exports to China more than 500 U.S. dollars per tonne down from to 420 dollars, which affects the export price of rice.

A dealer said the Thai rice up once in the last year, the brand now part of the wholesale price of 25 kilos rice has more than 200 yuan mark, and has been sustained at a high level. The current price is beyond the scope of ordinary consumers of psychological acceptance, performance is nearly a year in sales to sales of Thai rice has been declining. Although Thailand's drought could lead to higher prices of rice, but now in Guangzhou and Shenzhen Renhe Tai Inter dealer still has not received information to price increases, can digest stock solution. "Re-price increases, then one will buy one, rose and white rose."

It is understood that the rice imported from Thailand to China remained at hundreds of tons per year, the peak in 2004 when only 760,000 tons, while China's annual consumption of more than 150 million tons of rice, is self-sufficient. Department of Commerce's recent announcement also indicated that May 31 to June 6 in 36 cities nationwide to monitor the consumption of key agricultural market prices showed slightly higher food prices remained stable. Commerce Department estimated that with a library of rice and rice demand increased seasonally down, stabilize rice prices stop rising.
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Article Added on Tuesday, September 20, 2011
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