Asia rice: Vietnam rates climb as traders eye year-end demand boost

MUBAI/HANOI/BANGKOK AND DHAKA: Prices of rice exported from Vietnam held at a one-year peak, as traders anticipated a fillip from seasonal end-year demand, while rates of the staple from other hubs were little changed amid a lack of fresh orders.

Vietnam’s 5% broken rice was unchanged from the previous week at $425-$430 per tonne, free-on-board, the highest level since November 2021.

Traders said prices were likely to stay at this level or even edge up slightly over the coming weeks, as demand is often higher towards the year-end, with global food supplies unstable amid the Ukraine crisis.

Vietnam’s rice exports in October rose 22.3% from the previous month to 713,546 tonnes, government data showed, with exports in the first 10 months this year rising 17.4% year-on-year to around 6 million tonnes — valued at $2.95 billion.

Thailand’s 5% broken rice prices were quoted at $410 per tonne, versus $405-$410 last week. Prices have not moved much due to limited demand, but could soon weaken as new supply flows in, traders said.

“It’s harvest season, so supply will gradually come,” said a Bangkok-based trader. Prices of top exporter India’s 5% broken parboiled rice were also unchanged at $370-$375 per tonne.

“Flow of new orders have slowed down, but exporters could not reduce prices as rupee has been appreciating in last few days,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Heavy rainfall earlier this month damaged rice crops just before harvest in key producing states. Meanwhile, severe flooding destroyed crops in neighbouring Bangladesh at a time when the country was struggling to rein in high domestic rates amid low supplies.

The US Department of Agriculture forecast Bangladesh’s production could drop 1% from last year to 35.6 million tonnes in the 2022-23 marketing year due to the floods.