:. Food Industry News


Thai, Vietnamese Agencies to Hold Talks on Rice Cooperation (DJ)

Source: Dow Jones Newswires
25/02/2008

Bangkok, Feb. 25 - The Rice Exporters Association of Thailand will hold a meeting Wednesday with the Vietnam Food Association to discuss rice trading cooperation among the two agencies in a bid to ensure less volatile export prices, the REA said in a statement Monday.

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REA president Chookiat Ophaswongse said the current rice market is unstable amid strong global demand and limited exportable supply from the world's two largest rice exporters, leading to a surge in rice prices.

He said export prices remain bullish as underlying demand is there, with the Philippines and Indonesia soon competing for available exports.

The cooperation should help boost fair competition and avoid price-cutting to create stable prices and narrow the export price gap between the two countries, he said.

Offers for Thai rice are higher than Vietnamese rice by around $30-$60 a metric ton, he said, adding that prices could be lower once the harvest of a major crop in Vietnam enters the market in the coming weeks.

Thai 100% grade B white rice is currently offered around $480/ton, free-on-board Bangkok, up from $430/ton earlier this month.



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