Asia rice: Tight supply, robust demand propels export prices to 2-yr peak

MUMBAI/HANOI/ BANGKOK/DHAKA: Top rice exporters saw rates for the staple grain advance this week to a more than two-year peak on supply concerns and continuing high demand.

Vietnam’s 5% broken rice was offered at $495-$505 per tonne, a peak since April 2021, up from $498 last week. “Exporters are rushing to purchase domestic rice to fulfil export contracts, boosting domestic prices amid tight supplies,” a Ho Chi Minh City-based trader said. Due to unfavourable weather, output from the summer-autumn crop is also not as high as expected, traders said.

Vietnam exported 284,798 tonnes of rice in the first half of June, taking total shipments this year to June 15 to 3.9 million tonnes, customs data showed. Thailand’s 5% broken rice prices rose to $505 per tonne, also an over two-year peak on average, versus $495 last week.

“There are ships waiting to collect rice bound for Indonesia while new rice product has not entered the market,” a Bangkok-based trader said, adding “exporters are struggling to find enough supply in time.” Another trader said prices could remain at this level due to rising domestic prices.