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WRAPUP 1-Thai rice prices fall, Vietnam crop looks good

Wed May 28, 2008 6:36am EDT
 
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* Vietnam's main rice crop up nearly 6 pct from year ago

* Thai rice prices drop about 13 pct from record highs

* Buyers wait for Hanoi to lift export ban

By Ho Binh Minh and Apornrath Phoonphongphipat

HANOI/BANGKOK, May 28 (Reuters) - World benchmark Thai rice prices fell back from near a record high on Wednesday while Vietnam reported a six percent increase in its main rice crop, further easing fears over supplies of Asia's staple food.

News of a bumper winter-spring harvest and of a big jump in plantings for the summer-autumn crop in Vietnam, typically the world's second-largest exporter behind Thailand, also added to expectations that Hanoi will end a months-long export ban on schedule from July, soothing anxious importers.

On Monday, Cambodia became the first exporter to lift trading curbs, with Prime Minister Hun Sen saying he was confident that after two months of restrictions the country had enough rice for its own needs.

The perception of a looming increase in supplies helped drive Thailand's benchmark 100 percent B grade white rice down more than 10 percent to $900-$930 per tonne on Wednesday, off the near record high $1,030-$1,050 a tonne last week, traders said.

Exports bans earlier this year by Cambodia as well as bigger sellers like Vietnam and India had triggered a wave of panic buying by importers who depend on the narrow spot rice market for their supplies, driving prices up nearly threefold since January.  Continued...

 

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