Thai rice prices may ease 20 pct

By Sambit Mohanty and Apornrath Phoonphongphiphat

BANGKOK (Reuters) - Thai rice prices are likely to ease by about 20 percent in coming weeks as supply from the new domestic crop has improved substantially, the secretary general of the Thai Rice Exporters' Association said on Monday.

"It is very likely that prices will ease. After the Philippine tender, I don't see any strong bullish factor for the market to drive it higher," Korbsook Iamsuri told Reuters in an interview.

"The market is likely to correct up to 20 percent even if the bans by India and Vietnam remain," said Korbsook, who is also managing director of Kamolkij Co Ltd, a leading Thai parboiled rice exporter.

"Crop arrivals are much better than what it was three weeks ago," she said as Thai prices remained above the historic $1,000 per tonne level reached a week ago.

The benchmark Thai 100 percent B grade white rice was quoted at around $1,030-$1,050 per tonne on Monday, slightly below last week's top quote of $1,080 per tonne, she said.

Thailand, the world's largest rice exporter, expects to produce about 4.2 million tonnes of milled rice from a smaller second crop due to be harvested by May, according to the commerce ministry.

Around 1.6 million tonnes of additional paddy, equivalent to 1 million tonnes of milled rice, is due to hit the market in June when farmers harvest this rare third crop planted to take advantage of soaring prices.

Exports to Africa would likely fall by up to 700,000 tonnes this year, Korbsook said, from overall Thai rice exports of 3.9 million tonnes to the continent last year.