Pakistan parboiled milled rice 5% hits one-year low, likely rivals Thai rice
As of August 27, Pakistan’s parboiled milled rice 5% STX prices dropped to a one-year low of $544/t, down $49/t year-on-year. Despite the decrease, it remains $20/t higher than Indian parboiled 5% STX. The decline is attributed to increased 2024 crop arrivals, leading to reduced forward prices of $545-$550/t FOB for September-October shipments.
Pakistan parboiled milled rice 5% STX prices reached a one-year low on Aug. 27, with Platts assessing it falling $49 per metric ton on the year to $544/t, S&P Global Commodity Insights data showed, potentially making it competitive against Thai rice.
Despite the price decrease, Pakistan parboiled 5% remained at a $20/t premium to Indian parboiled 5% STX and is unlikely to attract more international demand, sources told Commodity Insights Aug. 27.
Platts assessed Pakistan parboiled 5% down $35/t on the month and $5/t on the week Aug. 27, according to Commodity Insights data, highlighting a downtrend in the Pakistani rice market.
The falling price is attributed to the pressure from the arrival of the 2024 crop, leading exporters to offer lowered forward prices for Pakistan parboiled 5% STX at $545-$550/t FOB for September-October shipment deliveries.
“There is limited market activity for [Pakistani parboiled] rice as [2024] crop arrivals will begin from October-November for Pakistan,” sources said.
Supply remained restricted in the Pakistani rice market as it awaits the arrival of the 2024 crop in the first week of September. While harvest has started in the districts of Sindh and Punjab, the crop is likely to arrive in full force only in September.
“We are receiving parboiled inquiries from West African destinations for 1,000-5,000 [metric tons]. However, we are not in a position for forward bookings as of now,” a Pakistan-based exporter said.
While the Platts Indian parboiled 5% STX assessment was at a $20/t discount to Pakistan parboiled 5% STX, the Thai parboiled 5% STX assessment was at a $28/t premium to Pakistan parboiled 5% STX on Aug. 27, Commodity Insights data showed. This highlights the potential competitiveness of Pakistani rice against Thai rice.
Pakistan is forecast to ship out 5.70 MMt of rice in marketing year 2024-25 (October-September), down 9.5% on the year, according to Commodity Insights data.
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