China, flush with cash, rushes to Yingluck's rescue

[Wildfire]

A rice deal signed during Premier Wen Jiabao's official visit to Thailand took immediate effect,
as the Chinese private sector bought 260,000 tons of rice worth about 7 billion baht ($228
million) from Thailand.

The deal helped ease domestic political and market pressure on the Thai government, which
has come under fire for its rice-trading policies.

<a href="http://s1267.beta.photobucket.com/user/365Wildfire/library/" target="_blank"><img src="http://i1267.photobucket.com/albums/jj559/365Wildfire/121.jpg" border="0" alt="Photobucket"/></a>

Wen and Thai Prime Minister Yingluck Shinawatra on Wednesday witnessed the signing of a
memorandum of understanding on the rice deal, which will help boost trade between the two
countries.

The rice deal with China was the most-watched agenda item during Wen's visit because the Thai
government had faced accusations from an opposition party and academics that its rice price
policies damaged the domestic market and led to the decline of Thai rice trading.

 

[Froggy]

A rice deal signed during Premier Wen Jiabao's official visit to Thailand took immediate effect,
as the Chinese private sector bought 260,000 tons of rice worth about 7 billion baht ($228
million) from Thailand.

The deal helped ease domestic political and market pressure on the Thai government, which
has come under fire for its rice-trading policies.



Wen and Thai Prime Minister Yingluck Shinawatra on Wednesday witnessed the signing of a
memorandum of understanding on the rice deal, which will help boost trade between the two
countries.

The rice deal with China was the most-watched agenda item during Wen's visit because the Thai
government had faced accusations from an opposition party and academics that its rice price
policies damaged the domestic market and led to the decline of Thai rice trading.

Total deal is 5 million tons, 5,000,000 tons, 5 billion kilogram, 5,000,000,000kg

 

[Sir_Fcuk]

Still the chee hong from china wins. Thought Obama might have wanted to rubba her....

 

[sleaguepunter]

Total deal is 5 million tons, 5,000,000 tons, 5 billion kilogram, 5,000,000,000kg

considering a chinese eat abt 100kg of rice per year, so 5b tons just enought for 50m chinese and that only 4% of the total population. PRC paid $1.14 per kg, that way above market price.

 

[chonburifc]

time for me to go back to where i first start.

 

[Kinana]

considering a chinese eat abt 100kg of rice per year, so 5b tons just enought for 50m chinese and that only 4% of the total population. PRC paid $1.14 per kg, that way above market price.

What is the current market price?

 

[laksaboy]

Wonderful. Now all the Tiongs can gin khao and not go hungry.

 

[Wildfire]

What is the current market price?

Current FOB contract price for 100% Jasmine Rice from Thailand is at around $ 629 per ton and China is paying $ 876 per ton.

Thailand has repeatedly tinkered with price supports for farmers. The previous government paid farmers when market prices
fell below a floor rate. Prime Minister Yingluck Shinawatra, who took power in August 2011 with overwhelming rural support, has
committed to buying rice from farmers, as much as possible, in order to boost their incomes. The price for unmilled paddy rice
has been set at $500 a ton, compared to $271 a ton in July.

Vichai Sriprasert, CEO of Riceland International, calculated that at $500 a ton, overseas buyers could expect FOB export prices
of $830 a ton. This compares to current prices of $629 a ton, which is already on the upswing since it became clear that Thailand
was serious about jacking up crop prices.

So even at current FOB price of between $ 629 to a target price of $ 830 per ton, China is paying an exceptionally high price of
$ 876 per ton.

My guess is that China intends to prop up Yingluck's government because of the excellent bilateral relationship since her visit to
Beijing in April 2012. It is also in China interest to support a friendly (and pretty) southern neighbour in order to preempt attempt
by US and Japan to encircle them economically through Trans-Pacific Partnership Pact.

 

[chonburifc]

me just sold my kubota harvester and tractor. sianz. :*:

 

[Kinana]

Seems like good move by China.
Good for Thai govt, good for China.

Like I always said, the whole of SEAsia n Japan will eventually fall under China's conquest or sphere of influence for sure in another 2 decades.

 

[Cestbon]

Current FOB contract price for 100% Jasmine Rice from Thailand is at around $ 629 per ton and China is paying $ 876 per ton.

Thailand has repeatedly tinkered with price supports for farmers. The previous government paid farmers when market prices
fell below a floor rate. Prime Minister Yingluck Shinawatra, who took power in August 2011 with overwhelming rural support, has
committed to buying rice from farmers, as much as possible, in order to boost their incomes. The price for unmilled paddy rice
has been set at $500 a ton, compared to $271 a ton in July.

Vichai Sriprasert, CEO of Riceland International, calculated that at $500 a ton, overseas buyers could expect FOB export prices
of $830 a ton. This compares to current prices of $629 a ton, which is already on the upswing since it became clear that Thailand
was serious about jacking up crop prices.

So even at current FOB price of between $ 629 to a target price of $ 830 per ton, China is paying an exceptionally high price of
$ 876 per ton.

My guess is that China intends to prop up Yingluck's government because of the excellent bilateral relationship since her visit to
Beijing in April 2012. It is also in China interest to support a friendly (and pretty) southern neighbour in order to preempt attempt
by US and Japan to encircle them economically through Trans-Pacific Partnership Pact.

Like that Sg retailer mark up 100~200%.

 

[chonburifc]

Like that Sg retailer mark up 100~200%.

there are many alternative sources. pinoy and vietnam rice grains are improving and price quite good.

 

[Wildfire]

there are many alternative sources. pinoy and vietnam rice grains are improving and price quite good.

Currently, Vietnam and India are the two major exporters with Thailand in third. It will be very difficult for Thailand to hope for $ 830 per ton
pricing.

Pinoy is not a netted exporter of rice.

 

[Logisex]

Chinese don't eat and don't like Thai fragrance rice so its definitely not for domestic consumption

 

[Wildfire]

Chinese don't eat and don't like Thai fragrance rice so its definitely not for domestic consumption

China is still a netted exporter of rice, although this is rapidly declining since 2008. China exported about 3.1% of the world total
demand in 2010.

At current rate of output and consumption, it is forecast that by 2015, China will be a netted importer of rice.

 

[sleaguepunter]

Like that Sg retailer mark up 100~200%.

Now then u notice. Even ntuc cheapest Thai rice is $1.40 per kg.

 

[chonburifc]

Now then u notice. Even ntuc cheapest Thai rice is $1.40 per kg.

ntuc rice also not new rice. the rice warehouse is first in and first out concept meaning the oldest rice is sold first. some bros here migh have a taste of new rice (not more than 1-2 months after harvest) still can get in lower quantity.

 

[sleaguepunter]

ntuc rice also not new rice. the rice warehouse is first in and first out concept meaning the oldest rice is sold first. some bros here migh have a taste of new rice (not more than 1-2 months after harvest) still can get in lower quantity.

New rice more expensive rite? Price of rice had been low for last 1-2 yrs yet current rice price in spore still at time of the grain shortage of 2008. All the rice merchants in Singapore are blood suckers.

 

[boomtown]

thai farmers boom boom liow. what a relief for them and the thai govt.

 

[chonburifc]

New rice more expensive rite? Price of rice had been low for last 1-2 yrs yet current rice price in spore still at time of the grain shortage of 2008. All the rice merchants in Singapore are blood suckers.

Actually there are no difference in price between new rice or old rice. Price is determined by supply and demand. If over supply, middlemen store the rice in warehouse and sell it at the right time. That explains why a lot of rice available outside are old rice. The older the rice, the shorter the shelf life and so these old rice are pushed out first. On the surface, it seems that the government is controlling the price, in actual fact, it is the middlemen that call the shot. It's a big business. Rice smuggling from neighboring countries was very rampant untill not too long ago.

New rice is usually sold directly to the middlemen who will decide what grade the rice is. Most farmers will keep a small portion of their harvest for personal consumption and some for sale. These are the new rice not available at the supermarkets. Farmers could not store so much rice because they do not have the storage facilities like the government and middlemen.