Platts-assessed Myanmar 5% broken rice price slides to one-year lows
As of August 23, Myanmar’s 25% broken white rice is priced at $469/t FOB, down $108/t year-on-year and $33/t month-on-month. B1 & B2 broken rice is at $369/t FOB, down $91/t year-on-year. The decline is due to weak demand, high freight costs, and kyat depreciation. Myanmar’s rice exports in July 2024 increased 2% to 165,444 mt.
Platts assessed Myanmar 25% broken white rice at $469/t FOB on Aug. 23, down $108/t on the year, down $33/t on the month and off $3/t on the week.
Platts is part of S&P Global Commodity Insights.
Myanmar’s exporters attributed the decline in the country’s market prices to sluggish demand and high freight costs. Furthermore, the depreciation of Myanmar’s kyat against the US dollar has further pressured rice prices there.
Despite the competitive prices, sentiments for Myanmar rice remains weak due challenges related to export licenses, payment issues and high container freight rates, sources told Commodity Insights.
Prices fall despite latest Bulog tender
According to market participants, many large exporters in Myanmar will not participate in Indonesian state purchasing agency Bulog’s current tender for 350,000 metric tons of 5% broken white rice due to the limited supplies. Announced Aug. 23, the tender was the seventh by Bulog in 2024.
“There may not be a lot of 5% [white rice] available,” a source said.
Myanmar secured five lots to export 135,000 mt of 5% broken white rice in Bulog’s sixth tender, awarded Aug. 2, with all winning bids at $563/t CNF.
Platts-assessed Myanmar 5% broken white rice was at a $61/t discount to Thai 5% broken white rice, a $45/t discount to Vietnam 5% broken white rice and a $21/t discount to Pakistan 5% broken white rice on Aug. 28, Commodity Insights data showed. The current price levels showcase that Myanmar 5% white rice price was the most competitive on the day.
Myanmar’s rice exports in July 2024 increased 2% month on month to 165,444 mt, according to the Myanmar Rice Federation. Myanmar exported 1,243,670 mt of rice in the first seven months of 2024.
Myanmar is forecast to export 2 MMt of rice in the year 2024, up 27% from previous year, according to the US Department of Agriculture.
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