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United States Department of Agriculture
Foreign Agricultural Service
Circular Series
FG 1010
October 2010
Grain:  World Markets and Trade
RICE: WORLD MARKETS AND TRADE
 

Text Box: Thai Parboiled

PARBOILED MARKET

Thai parboiled exports have been expanding for several years, while white rice exports have dropped off since 2008.  India’s export ban, relatively higher U.S. prices, and insufficient quantities from other suppliers have enabled Thailand to dominate the global parboiled market.  In just 3 years, Thailand’s share of global parboiled exports jumped from one-third to 90 percent.  This contrasts with the white rice market, where Thailand has lost market share to lower-priced Vietnamese rice and has struggled to compete with historically higher-priced U.S. rice.  If India lifts its export ban or cheaper suppliers such as Pakistan increase parboiling capacity, these dynamics could shift somewhat.  For now, however, Thailand seems to have found its niche.

PRICES 

Thai 100B quotes, up $20 this month, have once again converged with U.S. #2/4 quotes, which surged $55 to reach $500 per ton, FOB.  Whether U.S. quotes will continue on par with Thai quotes remains to be seen considering the disconnect between Thai prices and current market developments

TRADE CHANGES

  • Indonesia’s imports are raised 200,000 tons to 700,000 for 2010 and 150,000 tons to 400,000 for 2011 as the government is considering purchases from Thailand and Vietnam.

 

  • Guinea’s imports are dropped 130,000 tons to 200,000 for 2010 and 150,000 tons to 225,000 tons for 2011 on expanded production and the slow pace of imports this year.

 

  • Burma’s 2011 exports are lowered 100,000 tons to 600,000 on a smaller crop.