Vietnam rice prices rise, Thai prices to fall

BANGKOK: Rice prices in Vietnam have edged up this week because of strong demand after a currency devaluation helped competitiveness, exporters said.

That left Thailand, the world's biggest rice exporter, at a disadvantage and trade there concentrated on fragrant and parboiled grades, they said.

The price of Vietnamese 5 percent broken rice rose to $470-$480 a tonne on Wednesday from last week's $470, thanks to the prospect of new demand from the Philippines and Malaysia plus loading for Indonesia, traders said.

Its 25 percent broken rice edged up to $440-$445 a tonne, free on board, from $440.

Indonesia has bought 400,000 tonnes of 15 percent broken rice from Vietnam for shipment from next month after Thai exporters could not meet loading requirements, traders said.

Private firms in the Philippines were believed to be in the market, seeking up to 660,000 tonnes of Vietnamese rice, traders said.

Malaysia was also stepping up rice buying and the Bangladeshi government wants to buy up to 800,000 tonnes over the next few months, according to Vietnamese state-run radio on Wednesday.

"I don't think Thailand will take a big share of those Malaysian and Bangladeshi orders as our prices are uncompetitive, compared to cheaper Vietnamese prices," said a Bangkok-based trader.

Thai 5 percent broken grade white rice was offered at $500 a tonne, well above the same grade of Vietnamese rice at $470, traders said.

Prices in Thailand were steady this week, supported by demand for parboiled and premium-grade fragrant rice, which helped support prices in general, traders said.

The benchmark 100 percent B grade white rice stood at $535 per tonne, unchanged from last week.

But prices were likely to fall over the next few weeks as demand for white rice, which accounts for around 60 percent of Thai exports of around 9 million tonnes a year, has been diverted to Vietnam, traders said.

"We can sell only small lots of 500 tonnes of fragrant rice to our traditional buyers in Asia. If things go on like this for a few more years, Thailand could lose all of its market for white rice," another Thai trader said.