Millers and exporters are more upbeat about rice prices and shipment prospects after the surge in foreign rice purchase orders in the past couple of weeks.
According to Charoen Laothamatas, president of Thai Rice Exporters Association, the most recent foreign purchase orders were made despite the stronger baht, and boosted the domestic prices of all types rising 20-30% from a few weeks ago.
"There are now purchase orders for nearly 100,000 tonnes of hom mali rice and 100,000 tonnes of white rice 100% grade B from Iran, which is regarded as a premium market," said Mr Charoen. "In addition, there are many purchase orders from Africa for parboiled rice."
Mr Charoen said he also believed the Philippines will call a new bid for at least 250,000 tonnes, while Bangladesh recently opened the bids for 50,000 tonnes of parboiled rice.
Mr Charoen predicted Thailand's rice shipments will exceed 9.5 million tonnes this year.
In February this year, The Thai Rice Exporters Association predicted Thai rice shipments will stand at 9.5 million tonnes this year, fetching US$4.3 billion or about 150 billion baht.
Of the total export volume, 4.6 million tonnes is forecast to be white rice, 2.4 million tonnes hom mali rice, 2 million tonnes parboiled rice, and the rest glutinous and broken rice.
Last year Thailand shipped 9.88 million tonnes of milled rice, up by 0.9% from a year before, valued at $4.4 billion. Thailand trailed only India, which exported 10.43 million tonnes last year, while Vietnam shipped 4.95 million tonnes.
Kriangsak Tapananon, president of Thai Rice Mills Association, said domestic rice prices have witnessed an unexpected surge despite the state's announcement to dispose of a million tonnes of stored rice.
The prices of white rice are now quoted at 13 baht per kilogramme compared with 11.30 baht a few weeks ago, with those of hom mali increasing to 20 baht per kg from 18 baht, and parboiled rice to 13.50-13.60 baht per kg from 12 baht.