Rice price may peak at $550 a ton Q3 2011

Thailand the biggest exporter of rice may see more in exports this year as demand from Middle East and Asia remains strong.

Thailand supply of rice may subside by the third quarter of the calendar year and prices would peak at $550 a ton believes Sermsak Kuonsongtum vice president of Thai Rice Exporters Association. Thailand the biggest exporter of rice may see more in exports this year as demand from Middle East and Asia remains strong.

Even the new crop arrivals may not pose a case of over supply said a Bloomberg report appeared in The Economic Times. In the first quarter of the calendar year Thailand exported rice to the tune of 3 million tons (a 40% increase from 2.14 million tons last year). If the trend continues the country would be exporting 9.5 million tons of rice Permanent Secretary for Commerce Yanyong Phuangrach was cited by Bloomberg as saying.

Last year the exports stood at 9 million tons. Thailand is expecting a harvest of 4 million tons of rough rice in May and 1.4 million tons in June. Under government to government contracts for a delivery by May the country had agreed to supply 250 000 tons of rice to Bangladesh and Iraq. Thai 100% grade B white rice has fallen 8.8% till date this year and was last at $506 a tonne on April 20 the report said.

(Source: http://www.indiainfoline.com/Markets/News/Rice-price-may-peak-at-dollar-550-a-ton-Q3-2011/5139477112)