Global rice prices rising, time to offload Thai government stockpiles?
By Jon Fernquest
Rice
prices have risen recently due to supply-side
climate factors.
In 2008 global commodity prices rose to very high levels before the global recession shot them down (Read article and archives).
Experts predicted that they would rise once again and stay high (Read article).
Government rice stockpiles shot up to the point where there were not enough warehouses to store the rice.
With rice prices rising again, the ideal time for Thailand to offload its stockpiled rice on global markets may have arrived.
Today's article begins after the vocabulary below.
Photo on right shows rice sacks purchased by the government stacked high in a warehouse waiting for prices to rise so the government does not lose money.
supply-side - in
markets where goods are bought and sold, the side where the supply of
goods comes from
climate - the general weather conditions usually found in a particular place สภาพอากาศ
factors - the different things that affect the outcome of a situation, event, or decision ปัจจัย
global - throughout the world ทั่วโลก
commodity - some basic good (food, fuel) sold in units of weight or quantity (kilos, liters) every unit being the same (if you buy one more kilo of rice that kilo is the same as the last kilo you bought)
stockpiles - large amounts of something stored for future use
shot up - increase very quickly (like a rocket "shot" into the sky)
warehouse - a large building that a business uses to store goods in (see photo of rice warehouse on the right, also see Wikipedia)
sacks - a large and strong bag for caryying things (examples: sack of cement, sack of rice)
stacked - a pile of things, placed one on top of another
climate - the general weather conditions usually found in a particular place สภาพอากาศ
factors - the different things that affect the outcome of a situation, event, or decision ปัจจัย
global - throughout the world ทั่วโลก
commodity - some basic good (food, fuel) sold in units of weight or quantity (kilos, liters) every unit being the same (if you buy one more kilo of rice that kilo is the same as the last kilo you bought)
stockpiles - large amounts of something stored for future use
shot up - increase very quickly (like a rocket "shot" into the sky)
warehouse - a large building that a business uses to store goods in (see photo of rice warehouse on the right, also see Wikipedia)
sacks - a large and strong bag for caryying things (examples: sack of cement, sack of rice)
stacked - a pile of things, placed one on top of another
Marketing
AGRICULTURE
Rice prices pick up as demand improves
23/08/2010Phusadee Arunmas
Rice prices are expected to rise by 6% to 7% this month or early next amid a resumption in foreign demand ahead of year-end festivals and lower supply due to climate change.
Foreign purchase orders have already resumed, and a flood of orders is anticipated next month to serve the many year-end festivals, said Sumeth Laomoraphorn, the chief operating officer of CP Intertrade.
More purchase orders from African markets are also likely after Ramadan.
pick up - get
better, go faster (here: prices increase)
demand - the need and desire to buy goods and services by households and businesses
expected - believe will happen คาดว่า (จะเกิดขึ้น)
X amid Y - X happened while Y was happening
resumption - to start or begin again เริ่มใหม่
climate change - long-term negative changes in weather patterns and temperature caused by changes in greenhouse gases (GHGs) (See Wikipedia)
Greehouse Gases (GHGs) - gases in the Earth's atmosphere such carbon dioxide, methane, nitrous oxide, and ozone that are associated with climate change (See Wikipedia)
purchase - buy goods
purchase order - an order to buy goods, "a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services" (See Wikipedia)
resumed - started again (after stopping)
flood - a large amount or number of something จำนวนมาก
flood of orders - a large amount of goods being ordered
anticipated - believe will happen, expected คาดว่าจะเกิดขึ้น
officer - a high level person in an organisation with special responsibilities (a government officer, a police officer, an army officer)
CP Intertrade - the subsidiary of the CP Group responsible for food exports
Ramadan - "the ninth month of the Islamic calendar. It is the Islamic month of fasting, in which participating Muslims refrain from eating, drinking and sexual relations from dawn until sunset. Fasting is intended to teach Muslims about patience, humility, and spirituality. It is a time for Muslims to fast for the sake of God (Arabic: الله, trans: Allah)" (See Wikipedia)
demand - the need and desire to buy goods and services by households and businesses
expected - believe will happen คาดว่า (จะเกิดขึ้น)
X amid Y - X happened while Y was happening
resumption - to start or begin again เริ่มใหม่
climate change - long-term negative changes in weather patterns and temperature caused by changes in greenhouse gases (GHGs) (See Wikipedia)
Greehouse Gases (GHGs) - gases in the Earth's atmosphere such carbon dioxide, methane, nitrous oxide, and ozone that are associated with climate change (See Wikipedia)
purchase - buy goods
purchase order - an order to buy goods, "a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services" (See Wikipedia)
resumed - started again (after stopping)
flood - a large amount or number of something จำนวนมาก
flood of orders - a large amount of goods being ordered
anticipated - believe will happen, expected คาดว่าจะเกิดขึ้น
officer - a high level person in an organisation with special responsibilities (a government officer, a police officer, an army officer)
CP Intertrade - the subsidiary of the CP Group responsible for food exports
Ramadan - "the ninth month of the Islamic calendar. It is the Islamic month of fasting, in which participating Muslims refrain from eating, drinking and sexual relations from dawn until sunset. Fasting is intended to teach Muslims about patience, humility, and spirituality. It is a time for Muslims to fast for the sake of God (Arabic: الله, trans: Allah)" (See Wikipedia)
Mr Sumeth said other supporting factors were the impact from global warming and widespread drought that has led Russia to ban wheat exports.
Hot, dry weather is also expected to cut the output and export capacity of Ukraine and other European nations.
In addition, Mr Sumeth said lower output in Latin American countries, particularly Brazil, due to climate change is also expected to prompt them to increase their rice imports.
impact
- an effect or influence ผลกระทบ
widespread - happening or existing in many places, or affecting many people อย่างแพร่หลาย
drought - a period of time when there is very little rain and water available ความแห้งแล้ง (See Wikipedia)
ban - to officially say that someone is not allowed to do something การห้าม ห้ามอย่างเป็นทางการ
capacity - the amount of something that can be produced ความสามารถในการ (ผลิต)
capacity - the highest amount of production possible if all factories and machines are used
capacity - the largest amount that can be produced with current resources (factory, equipment, machines, facilities)
prompt - to cause someone to take action กระตุ้น
prompt - to cause something to happen or be done ก่อให้เกิด
widespread - happening or existing in many places, or affecting many people อย่างแพร่หลาย
drought - a period of time when there is very little rain and water available ความแห้งแล้ง (See Wikipedia)
ban - to officially say that someone is not allowed to do something การห้าม ห้ามอย่างเป็นทางการ
capacity - the amount of something that can be produced ความสามารถในการ (ผลิต)
capacity - the highest amount of production possible if all factories and machines are used
capacity - the largest amount that can be produced with current resources (factory, equipment, machines, facilities)
prompt - to cause someone to take action กระตุ้น
prompt - to cause something to happen or be done ก่อให้เกิด
The Philippines, which is the world's leading rice importer, is also now facing inadequate rice production and will have to import as much as two million tonnes this year," he said. "If Vietnam, which has already secured massive advance purchase orders, fails to deliver on its commitments, opportunity will return to our grains.
Vietnam expects to export 6.5 million tonnes of rice this year, 4 million of which have already been exported.
Mr Sumeth said Vietnam's 2% depreciation of the dong last week was unlikely to improve the rice industry's export competitiveness very much.
inadequate
- not enough, or not good enough for a particular purpose, not enough
to achieve goals อย่างไม่เพียงพอ
import - to buy or bring in products from another country นำเข้า
secure - get
massive - very large in size, amount or numberใหญ่โต
advance purchase orders - people requesting to buy something far ahead of when it is to be delivered
commitments - things you must do (because you promised to do them)
deliver on its commitments - do what it promised to do
opportunity - a situation when it is possible to do something that you want to do (See glossary)
depreciation - reduce the value of a countrys' currency (so that exports are cheaper)
improve - to make better ทำให้ดีขึ้น
competitiveness - how well a business can do compared to other firms (does it have lower price or higher quality?) การแข่งขัน
import - to buy or bring in products from another country นำเข้า
secure - get
massive - very large in size, amount or numberใหญ่โต
advance purchase orders - people requesting to buy something far ahead of when it is to be delivered
commitments - things you must do (because you promised to do them)
deliver on its commitments - do what it promised to do
opportunity - a situation when it is possible to do something that you want to do (See glossary)
depreciation - reduce the value of a countrys' currency (so that exports are cheaper)
improve - to make better ทำให้ดีขึ้น
competitiveness - how well a business can do compared to other firms (does it have lower price or higher quality?) การแข่งขัน
The currency devaluation would instead drive up inflation and interest rates, consequently raising production costs for Vietnamese producers, he said.
Prices for Thai rice have bottomed out and are now starting to improve due largely to shrinking world rice stocks after traders delayed their purchases over the past four or five months," said Mr Sumeth. "The second half will represent an opportunity for Thai rice exports, which are expected to reach 8.5-9 million tonnes.
Pakistan, the world's third-largest rice exporter, [is] suffering from floods and other disasters...parboiled rice shipments would especially benefit from India's continued ban on non-basmati exports...
currency
- the money accepted for exchange of goods in an economy เงินตรา (See Wikipedia)
devaluation - when a currency becomes less valuable or "weaker" compared to other currencies (meaning that less of the currency buys the same amount of goods as before) การลดค่าเงินบาท
drive up - make it increase
inflation - the rate at which all prices in the economy are increasing (See Economist Glossary) อัตราเงินเฟ้อ, ภาวะเงินเฟ้อ
interest - payments made for the use of another's money for a period of time
interest rates - the percentage of the loan amount that must be paid as a fee for using the money, the cost of borrowing money
bottomed out - reached the lowest point (will now start increasing again)
shrinking - reducing in size, getting smaller and smaller
stocks - large amounts stored for future use
traders - people who trade securities (stocks, bonds), derivatives or commodities ผู้ค้าหุ้นและหลักทรัพย์
X represents Y - X will be an example of Y
suffering - physical or mental pain or problems ความทุกข์ทรมาน
parboiled rice - rice that is boiled until partially cooked ข้าวต้มสำเร็จรูป
benefit - to get help or an advantage from something ผลประโยชน์
basmati rice - a variety of long grain rice, grown in India and Pakistan notable for its fragrance and delicate, nuanced flavour (See Wikipedia) ข้าวพันธุ์บาสมาติ ของอินเดีย
devaluation - when a currency becomes less valuable or "weaker" compared to other currencies (meaning that less of the currency buys the same amount of goods as before) การลดค่าเงินบาท
drive up - make it increase
inflation - the rate at which all prices in the economy are increasing (See Economist Glossary) อัตราเงินเฟ้อ, ภาวะเงินเฟ้อ
interest - payments made for the use of another's money for a period of time
interest rates - the percentage of the loan amount that must be paid as a fee for using the money, the cost of borrowing money
bottomed out - reached the lowest point (will now start increasing again)
shrinking - reducing in size, getting smaller and smaller
stocks - large amounts stored for future use
traders - people who trade securities (stocks, bonds), derivatives or commodities ผู้ค้าหุ้นและหลักทรัพย์
X represents Y - X will be an example of Y
suffering - physical or mental pain or problems ความทุกข์ทรมาน
parboiled rice - rice that is boiled until partially cooked ข้าวต้มสำเร็จรูป
benefit - to get help or an advantage from something ผลประโยชน์
basmati rice - a variety of long grain rice, grown in India and Pakistan notable for its fragrance and delicate, nuanced flavour (See Wikipedia) ข้าวพันธุ์บาสมาติ ของอินเดีย
(Source: Marketing, AGRICULTURE, Rice prices pick up as demand improves, 23/08/2010, Phusadee Arunmas, link)
