Thai 2017/18 main rice crop revised downwards on flood damage

The forecast for the MY2017/18 main Thai crop rice production is revised down slightly due to higher than expected flooding damage to fragrant rice, the U.S. Department of Agriculture (USDA) said.

However, total MY2017/18 main crop rice production remains higher than MY2016/17 rice production due to higher average yields. The forecast for rice exports remains unchanged at 11 million metric tons as Thai rice is likely to maintain its export growth path for the rest of 2017, it said.

In November, the government recalled the sale of 1 million metric tons of low-quality rice stocks, the USDA said.

Its forecast for supply and demand for corn and wheat remains unchanged from October 2017

According to the USDA, the government is no longer planning to raise import tariffs on feed wheat due to concerns about higher livestock production costs. However, the domestic corn purchase requirement will remain in place to protect domestic corn farmers from imported feed wheat.

Approximately 70-80 percent of MY2017/18 main crop rice production has been harvested, the report said, adding that USDA’s forecast for MY2017/18 main crop paddy rice production is revised down slightly to 22.2 million metric tons, compared to the previous forecast of 22.3 million metric tons due to higher than expected damage from flooding in the northeastern region of Thailand, a major growing area of fragrant rice.

“The prolonged flooding in the northeast resulted from heavy rainfall (25 percent above the normal average) and limited reservoir storage capacity.

However, trade sources expect that net losses from the flooding to be only 1-2 million rai (0.2 – 0.3 million hectares), accounting for 2-4 percent of total planted area. Famers were able to replant most of the area affected by flooding in July and August after the water receded,” the report added.

Prashant has worked in the publishing industry for 17 years. His keen interest in commodities developed while working for organisations such as like Thomson Reuters, Wolters Kluwer & McGraw-Hill eventually brought him here. In his free time, Prashant consults with businesses in the digital space.

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