Asia Rice: Thai prices hit 18-year low on surplus supplies; Indian rates slump
Thai and Indian rice export prices hit multi-year lows this week due to abundant supply, weak demand, and currency volatility. Thailand’s 5% broken rice fell to $340/ton, its lowest since 2007, while India’s 5% broken parboiled rice dropped to $340–$345/ton, the weakest since 2016. Strong supply and buyer caution are pressuring prices.
Thai rice export prices slumped to their lowest level in nearly 18 years this week, while Indian prices were at their weakest in more than nine years due to weak demand and strong supplies, with volatile local currencies also adding pressure.Thailand’s 5% broken rice was quoted at $340 per metric tonne, slipping from last week’s $345, a Bangkok-based trader said. Prices were at their lowest since November 2007. “Supply is strong this year, thanks to good rainfall across all producing countries, but prices will not increase because buyers will only purchase what they need,” said a trader, adding the strengthening baht had an impact.
The strong baht is impacting exports but if there is a chance of weakening, it would help, the trader said.India’s 5% broken parboiled variety was quoted this week at $340-$345 per ton, the lowest levels since mid-2016. Prices have fallen from last week’s $358-$365 range.
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Indian 5% broken white rice was priced at $360 to $370 per ton this week.Prices are falling as exporting countries compete for market share, giving buyers greater bargaining power, said a Kolkata-based exporter.
The rupee, trading near record low levels, also added pressure.Vietnam’s 5% broken rice was offered at $440-$465 per ton on Thursday, flat from last week, according to the Vietnam Food Association.”Trade remains tepid due to thin demand as one of Vietnam’s biggest buyers, the Philippines, is still suspending imports,” said a trader based in Ho Chi Minh City.Vietnam exported 483,000 metric tons of rice in September, down 41.3% from the same month of last year, government data showed.For the January-September period, rice exports fell 1.6% from a year earlier to 6.9 million tons, with a value of $3.5 billion, it said.Bangladesh has approved the purchase of 50,000 metric tons of Indian rice at $359.77 per ton through an international tender, part of a wider effort to stabilize domestic food prices amid ongoing volatility in global grain markets
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Source : The Economic Times
