Asia rice: Rates subdued across top exporting hubs on weak demand, ample supply

BENGALURU/MUMBAI/BANGKOK/HANOI AND DHAKA: Rice export prices in major Asian hubs were subdued this week, weighed down by weak demand and higher supplies, with Indian rates pinned near their lowest level in nearly two years.

India’s 5% broken parboiled variety was quoted at $384-$391 per metric ton, unchanged from last week, while the 5% broken white rice was priced at $378 to $385 per ton.

“Prices are stabilizing after a sharp correction in the last two months. Hopefully, this stability will bring back buyers who have been on the sidelines,” said a New Delhi-based dealer with a global trade house.

Thailand’s 5% broken rice was quoted at $410 per ton on Thursday, slightly down from $420 per ton last week. Traders attributed the drop to the exchange rate, saying that demand has generally been quite for some time. On the other hand, supply has been robust, which has further weakened prices, a Bangkok based trader said. Vietnam’s 5% broken rice was offered at $397 per metric ton on Thursday, little changed from $398 a week ago, according to Vietnam Food Association.

“Supplies from the summer-autumn harvest is building up, but processors and exporters are not yet rushing to buy due to weak external demand,” a trader based in Ho Chi Minh City said.