BANGKOK, Nov 19- Thailand scrambled on Tuesday to fund a rice subsidy scheme that has not paid out to farmers since Oct. 1, a delay that risks alienating key supporters of Prime Minister Yingluck Shinawatra. The Commerce Ministry buys rice at 15,000 baht a tonne, well above market prices, but has struggled to sell enough to keep the subsidy scheme afloat.» Read More
*Exporters say bids likely to range from $390- $468 per T. BANGKOK, July 26- Bids in Thailand's first tender to sell rice from national stocks in nearly 10 months could be well below the amount it paid for the grain under a controversial intervention scheme, forcing the government to take big losses if it decides to sell.
SA KAEO, Thailand/ SINGAPORE, July 15- Hidden in 18- wheeler trucks, carts and pick-up vans, hundreds of thousands of tonnes of rice are being smuggled from Cambodia and Myanmar into Thailand, although the country holds enough stocks to meet half the world's annual trade in the commodity.
--Clyde Russell is a Reuters market analyst. On July 1 the amount paid to farmers was supposed to be cut to 12,000 baht per tonne of paddy rice from the previous 15,000 baht.
Thailand has piled up about 17 million tonnes of milled rice since the scheme started in October 2011, and with warehouses filled to brim it's running out of space for the next crop that will start arriving in November this year.
Thailand is set to sell half-a-million tons of rice on world markets at a loss, as it scrambles to offload a record stockpile deteriorating in quality in warehouses filled with grain.
Jim Bower, Bower Trading, discusses the impact the big Midwest drought is having on rice. "We think there is potentially there down the road in the rice market," he says.
Record high prices of corn and soybean brought on by the worst U.S. drought in 56 years may be triggering a sense of de ja vu for Asia concerned about a repeat of the food scare in 2008, but most economists are downplaying those fears, for now.
Jonathan Barratt, Founder of Barratt's Bulletin says the volatility and one-way direction in soft commodity prices will spur more buying activity. He thinks potential limits by futures exchanges could stem further moves to the upside.
With commodities enjoying a robust start to 2012, some traders are concerned that crude oil and other hard assets are ripe for a fall.
In spite of the Thai government's warning that the world's largest exporter of rice could lose as much as a quarter of its crop because of the floods, analysts tell CNBC the potential shortfall is unlikely to impact prices.
Abah Ofon, director, agricultural commodities analyst at Standard Chartered, says that soybean prices will continue to outperform other grain markets.
Leif Lybecker Eskesen, chief economist for India & ASEAN at HSBC, talks about food price pressures in India and Southeast Asia.
Michael Langford, proprietary trader at StreamTrading.com., says the commodity market is positioning for higher prices on the back of optimism coming from Europe.
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