NUSA DUA, Indonesia: Global rice prices are likely to rise or fall by $10-$20 a ton from now until the first quarter of 2013, as plentiful supply and an intervention scheme by top exporter Thailand keep prices largely steady, a senior rice economist said.
Samarendu Mohanty, senior economist at the Manila-based International Rice Research Institute (IRRI) said he expected steady demand to help absorb supplies, which were expected to start to rise in October when India and Thailand are due to begin harvesting their crop.
“Global rice stocks stood around 100 million tons and there is no factor to cause any supply shock as crops in India, Thailand and Vietnam are good,” Mohanty said. “Another factor that helps to prevent prices from falling sharply is the Thai government intervention.”
“Prices could move in a tight band of $10-$20 per ton up or down in the next few months. I don’t expected any big change in prices,” he added.
Prices for common grade 5 percent broken rice stood at $390-$430 per ton, offered by India and Vietnam, while Thai grade rose to $585 per ton because of the government buying scheme, which is aimed at helping farmers.
Thailand, the world’s biggest rice exporter, will renew its intervention policy in October after the current scheme expires, aiming to buy up to 25 million tons of paddy at 15,000 baht ($480) a ton, a senior government official said this month.
Mohanty said the fate of Thailand’s plentiful rice stocks would have an impact on prices. Any release of government stocks exceeding one million tons would drive prices lower, he added.
The Thai government had record high stocks of 12 million tons, bought from farmers since the scheme start in October 2011, which it so far has had little success in exporting due to its high price.
The government said it had sold up to 7.3 million tons to Indonesia, The Philippines and China, but buyers denied the deals.
It also tried to sell via open tender around 200,000-500,000 tons to exporters and local rice retailers, but most of that amount was sold to domestic retailers.
World rice prices to move in $10-$20 range until Q1 2013
World rice prices to move in $10-$20 range until Q1 2013
Closing Bell: Saudi Arabia’s main index closes in red at 10,364
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Sunday, shedding 185.05 points, or 1.75 percent, to end the session at 10,364.03.
Total trading turnover on the benchmark index stood at SR2.55 billion ($680 million), with 20 stocks advancing and 237 declining.
The Kingdom’s parallel market Nomu also retreated, falling 0.63 percent, or 147.19 points, to close at 23,371.82.
The MSCI Tadawul Index slipped 1.71 percent to 1,369.56.
Saudi Industrial Export Co. was the top gainer on the main market, with its share price jumping 9.87 percent to SR2.56.
Shares of Naqi Water Co. rose 2.53 percent to SR58.80, while Shatirah House Restaurant Co. advanced 2.18 percent to SR9.39.
On the downside, Gulf Union Alahlia Cooperative Insurance Co. posted the steepest decline, with its share price falling 4.61 percent to SR10.14.
On the announcements front, Scientific & Medical Equipment House Co. said it had been awarded a contract valued at SR260.98 million by the Ministry of Human Resources and Social Development to supply uncooked food materials and catering items to beneficiaries at the ministry’s residential branches across the Kingdom.
The project scope also includes providing cooked meals to selected anti-begging offices over a 24-month period, according to a Tadawul statement. The company added that the financial impact of the contract will begin in the fourth quarter of this year.
It said further developments would be disclosed in due course after all relevant parties sign the final contract and a copy is received.
Shares of Scientific & Medical Equipment House Co. edged up 0.31 percent to SR32.44.
Separately, Dr. Soliman Abdel Kader Fakeeh Hospital Co. and its subsidiaries signed an agreement with Oloof Development Co., a wholly owned subsidiary of Jazan Municipality, to lease a strategic land plot in Jazan City for SR217.99 million.
According to a Tadawul statement, the land, which spans 34,581 sq. meters, will be used to develop an integrated healthcare facility under a 50-year lease.
The company said the financial impact of the agreement is expected to begin once the medical facility is completed and becomes operational.
Shares of Dr. Soliman Abdel Kader Fakeeh Hospital Co. fell 1.92 percent to SR33.74.
