Commodity Update

The country's main agricultural crops show mixed fortunes in terms of price and production during the summer season, Achara Pongvutitham writes.
Rice- and rubber-farmers continue to enjoy high prices in both domestic and export markets, but other crops are facing a decline in export prices due to seasonal demand and increased production. The Office of Agricultural Economics (OAE) said prices for tapioca, red onions, processed chicken and pork had fallen but it was the supply-and-demand cycle for farm products that had had the main impact on the sector. The OAE also closely monitors water supplies to farms to ensure they are adequate during the planting season. It recommended that farmers concentrate on quick-growing plants that needed less water, such as beans. Forecasts for crop prices, production and export trends are as follows: Rice Production of second-crop rice is forecast to increase 10.73 per cent to 6.52 million tonnes of paddy this year thanks to heavy rains and high water levels in dams. In addition, high prices in both domestic and export markets have encouraged farmers to grow second-crop rice. Farmers started harvesting second-crop rice last month. However, main-crop prices are projected to rise due to lower production than last year. For instance, 5-per-cent rice price (main crop) was quoted at Bt6,505 per tonne between March 27 and April 2, compared with Bt6,472 the previous week. The price of second-crop rice with 14-15 per cent of moisture dropped from Bt6,646 to Bt6,623 per tonne. Rubber Rubber production is projected to increase from 2.75 million tonnes last year to 2.99 million tonnes this year. but rubber coming onto the market in March dropped to 152,000 tonnes, compared with 224,000 tonnes in February. Rubber exports are increasing thanks to rising global demand, particularly from China. Export volume rose to 230,000 tonnes in February compared with 219,000 tonnes in January. C-grade rubber-sheet price at farm is Bt73.72 per kilogram, an increase of Bt1.39 from a week earlier. Tapioca Production plunged from 4.16 million tonnes in February to 2.92 million tonnes in March. However, exports during January and February increased by 61.87 per cent to 1.12 million tonnes compared with the same period last year. The cassava-root price dropped from Bt1.3 to Bt1.26 per kilo last week due to higher production and a lower flour content. Pineapples Thailand has seen pineapple exports increase by an average of 4.65 per cent during the past 10 years. It is expected that total production will surge by 11.11 per cent to 2.3 million tonnes this year. The OAE also said the pineapple price to factories remained unchanged, quoting it at Bt2.65 per kilogram while pineapples for domestic consumption were Bt3.40. Chicken The worldwide bird-flu epidemic is damaging chicken exports, prompting exporters to focus more on processed products than fresh meat. The country's fresh and frozen chicken exports have declined by an average of 20.84 per cent over the past decade. At the same time, processed chicken exports have jumped 23.14 per cent. The chicken price at farm is Bt32.14 per kilogram, compared to Bt31.73 in the middle of March. The increase is due to lower production in high summer temperatures.
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