Asia rice: India rates at 3-month high; demand fears grip Thai, Vietnam traders

BENGALURU, BANGKOK, MUMBAI, HANOI AND DHAKA: India rice export prices rose to a near three-month high this week to reflect higher local paddy costs, even as traders in Thailand and Vietnam worried about persistent lackluster global demand.

India’s 5percent broken parboiled variety was quoted at USD355-USD360 per ton, the highest since October 2. Last week, the quote was USD350-USD357 per ton.

“African buyers are not active in the market and are delaying purchases, hoping prices will fall,” said Umesh Jain, director of Sponge Enterprises, an exporter. Thailand’s 5percent broken rice was quoted at USD410 per ton, same as last week.

On the demand side, traders said buyers stopped purchasing rice since Christmas week, with some deliveries taking place over this period. “This year, both exporters and traders have had a very tough time as prices have fallen,” said a Bangkok-based trader.

The supply situation remains unchanged, with the market anticipating more output from the harvest early next year. Vietnam’s 5percent broken rice was offered at USD360-USD365 per metric ton, unchanged from a week ago.

“Trading activity is subdued as a mini-harvest in the Mekong Delta is ending, while external demand remains weak,” a trader based in Ho Chi Minh City said. Traders said they are concerned rice exports from Vietnam next year will face more difficulties.

“The Philippines might impose its limit on rice imports again next year, while Indonesia is now no longer a key buyer,” another trader said, adding that supplies from India are expected to be strong. Meanwhile, Bangladesh has approved buying 50,000 metric tons of rice at USD359.77 per ton from India’s trading house Bagadiya Brothers, the lowest bidder in its December 22 international tender. Rice prices in Bangladesh have risen 15–20percent over the past year and remain high despite increased imports and duty cuts.