Asia rice: Tight supply lifts Vietnam rates but demand woes persist

BENGALURU /MUMBAI/BANGKOK/HANOI AND BANGLADESH: Rice export prices in major Asian hubs edged up this week, with rates in Vietnam hitting their highest level in nearly three months as supply tightened, although lacklustre demand for the staple kept gains in check.

Vietnam’s 5% broken rice was offered at $578 per metric ton on Thursday, up from $570 a week ago, according to Vietnam Food Association.

“Supplies are tight as the summer-autumn harvest is ending in the Mekong Delta,” a trader based in Ho Chi Minh City said, adding that prolonged rains in the area have impacted rice quality. Traders said sales are, however, slowing down due to high prices.

Top exporter India’s 5% broken parboiled variety was quoted at $540-$545 per metric ton this week, up from the last week’s $536-$540.

“Supplies of last season’s crop have nearly depleted. Rice exporters are now adjusting to the support price for the new season’s crop,” said a Mumbai-based dealer with a global trade house, adding that demand is weak from almost all destinations.

India has raised the price at which it will buy new-season common rice paddy from farmers by 5.4% to 2,300 rupees per 100 kg. Meanwhile, Thailand’s 5% broken rice was quoted at $570 per metric ton, slightly higher than last week’s $567, with traders attributing the price fluctuation to the exchange rate while demand has been flat. “Most of the buyers are regular customers and the deals are not large size,” a Bangkok-based trader said.

Rice prices in Bangladesh stayed high and are likely to rise further as flash floods in northeastern part of the country could hit crops and disrupt supply.