BANGKOK: Asian rice prices eased on Wednesday and are likely to drop further over the next few weeks as supply is rising at a time when demand remains thin, exporters said.
The price of Thailand's benchmark 100 percent B grade white rice fell to $495 per tonne from last week's $500.
"Demand from African buyers, which has supported Thai prices in the past few months, has eased while supply is rising so there's nothing to boost prices at this moment," a Bangkok-based trader said.
Traders said most African buyers were well stocked after buying a lot of rice in recent months.
"Buyers, including those from Africa, are likely to stay on the sidelines but may step in again when they think prices have touched bottom," another Thai trader said.
Orders for 5 percent broken white rice from the Middle East helped prevent more significant falls in prices.
Thailand, the world's biggest rice exporter, has shipped 4.2 million tonnes of rice so far this year, up from 2.9 million in the same period last year. It aims to sell 9.0-9.5 million tonnes in 2011.
There was a similar picture in Vietnam, the second biggest rice exporter. Prices were a little weaker and were expected to drop further, especially with more grain likely to come onto the market from the Mekong Delta's summer-autumn harvest due to start in July.
Export quotations for 5 percent broken rice have already softened a little to a wide range of $465-$475 a tonne, depending on exporter's stock availability, from $480-$485 free on board last week.
The 25 percent broken rice eased to $425-$440 a tonne from last week's $445-$450 a tonne.
"Loading is under way for the Philippines but it's not strong enough to boost prices," a trader in Ho Chi Minh City said.
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