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
Saudi stock market opens its doors to foreign investors
RIYADH: Foreigners will be able to invest directly in Saudi Arabia’s stock market from Feb. 1, the Kingdom’s Capital Market Authority has announced.
The CMA’s board has approved a regulatory change which will mean the capital market, across all its segments, will be accessible to investors from around the world for direct participation.
According to a statement, the approved amendments aim to expand and diversify the base of those permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
International investors' ownership in the capital market exceeded SR590 billion ($157.32 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SR519 billion during the same period — an annual rise of 4 percent.
“The approved amendments eliminated the concept of the Qualified Foreign Investor in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements,” said the CMA, adding: “It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.”
In July, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included natural foreign investors residing in one of the Gulf Cooperation Council countries, as well as those who had previously resided in the Kingdom or in any GCC country.
This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
Saudi Arabia, which is more than halfway through an economic plan to reduce its dependence on oil, has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.
