Vietnam rice export rates dropped to their lowest level in nearly two years due to weak demand, while Indian prices held steady near a 17-month low.
Vietnam’s 5% broken rice was offered at $460 per metric ton, down from last week’s $481, according to the Vietnam Food Association.
Prices were at their lowest since late March 2023.
“Activities stay sluggish this week on weak demand. The market will remain this tepid in the next couple of weeks when the Lunar New Year ends early next month,” said a trader based in Ho Chi Minh City.
Vietnam exported 590,000 metric tons of rice in December, up 19.9% from the same month a year earlier, government data showed. For 2024, the country exported 9 million tons of rice, up 11% from 2023.
The country’s trade ministry said earlier this week that the decreasing price over the past week was due to soft demands from Indonesia and the Philippines, and Indian rice’s exports resumption.
Top exporter India’s 5% broken parboiled variety was quoted at $436-$442 per ton, unchanged from the last week. Prices lingered near a 17-month low as demand improved amid the depreciation in the rupee.
Asia rice: Indian export prices extend fall on muted demand, weak rupee
Indian 5% broken white rice was quoted $440-$449 per ton.
“Buyers were making inquiries this week, as Indian rice is cheaper than supplies from other countries,” said a Kolkata-based dealer with a global trade house.
The Indian rupee hit a record low against the dollar this week, effectively increasing the margins of exporters.
The price of Vietnamese and Indian rice coming down, has also put pressure on Thai prices, said a Bangkok-based trader, adding that demand has been quiet with less demand from Indonesia expected this year.
The baht has been weakening for over a week now, he added.
Thailand’s 5% broken rice fell to $485 per tonne, its lowest level since May 2023, compared with last week’s $490-$502.
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