Weak African demand pressures India rates; Vietnam, Thai rates rise
BENGALURU, MUMBAI, HANOI, BANGKOK, AND DHAKA: Indian rice export prices extended losses on subdued demand from African nations and ample supplies, while export rates in Vietnam and Thailand rose as the rice harvest season comes to an end in both countries.
India’s 5package broken parboiled variety was quoted at USD337-USD344 per ton this week, down from last week’s USD344-USD350. Indian 5package broken white rice was priced at USD336-USD340 per ton. “Most African countries are not placing new orders. Winter-crop supplies are rising, and that’s weighing on prices,” said a New Delhi-based trader.
Vietnam’s 5package broken rice was offered at USD395-USD400 per metric ton on Thursday, up from USD375-USD380 two weeks ago, according to traders.
Vietnamese markets were closed last week for a public holiday. “Prices are rising on tight supplies, while the country’s next harvest won’t begin until the end of July or early August,” a trader based in Ho Chi Minh City said.
Traders said prices are expected to stay at the current levels or rise further until the new harvest. Vietnam exported 3.28 million tons of rice in the first four months of this year, down 4.1package from a year earlier, according to government data.
Elsewhere, Thailand’s 5package broken rice rose to around USD404 to USD405 per tonne, from USD395-USD400 last week. The harvest season is nearing its end, with output at regular levels. The next crop cycle will be monitored closely, as forecasts of an El Niño event could raise concerns over rice supply, a Bangkok-based trader said. Demand has not been particularly strong, with buying interest coming mainly from regular Asian customers, a trader said.
African buyers have also slowed imports due to new government measures promoting domestic production, which have resulted in stricter rice import requirements, another trader added.
Meanwhile, Bangladesh is heading for a rice shortfall of more than 200,000 metric tons after heavy pre-monsoon rains and upstream inflows damaged its main crop in the northeastern haor wetlands at the peak of harvest.—Reuters
