MUMBAI/HANOI/ BANGKOK/DHAKA: Prices of rice exported from Asian hubs extended their breakneck rally this week, as top exporter India’s recent ban on shipments continued to fuel concerns over global supply of the staple.
Vietnam and Thailand rates have now jumped nearly 20% since India’s ban on exports of non-basmati white rice last month. Thailand’s 5% broken rice prices were quoted at $650-$655 per metric ton - the highest since October 2008 - compared to $627-$630 last week.
New supply was limited, a Bangkok-based trader said, adding he had closed a few deals with Asian countries, but did not provide further details.
“Demand was coming in from all over the world including Indonesia, Africa and the Philippines,” said another trader, adding “there could be more supply, but millers could be holding on to it to later sell at higher prices.”
Vietnam’s 5% broken rice was offered at $620-$630 per ton, its highest since July 2008 and up from $590-$600 a week ago. “Trading activity is limited as exporters still anticipate a further rises in prices,” a Ho Chi Minh City-based trader said.
“Exporters do not sign new export contracts as domestic paddy prices are getting more expensive, making it more difficult for them to ensure sufficient supplies for the contracts,” another trader said. Preliminary shipping data showed 182,180 tons of rice to be loaded at Ho Chi Minh City port during Aug. 1-15.
India’s 5% broken parboiled rice was quoted at a record $460-$467 per ton this week, up from last week’s $450 to $455 as demand shifted towards the grade following the ban on the non-basmati variety. “A few buyers did make purchases at record prices, as rival Thailand and Vietnam are quoting even higher prices,” said an exporter. Neighbouring Bangladesh, meanwhile, is lifting a ban on exports of aromatic rice due to good domestic reserves and record crops, a commerce ministry official said.
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