Asia rice: Vietnam prices rise on El Nino concerns; Bangladesh rates stay high amid heatwave

Vietnamese rice rose this week as concerns over potential El Nino-related impacts on production weighed on prices, while rates in Bangladesh remained elevated as the country battles a heatwave.

Vietnam’s 5% broken rice was offered at $415-$420 per metric ton on Thursday, up from $405-$410 a week ago.

“Prices rise on concerns of possible impact of El Nino on rice production in Asia,” a trader based in Ho Chi Minh City said, adding that Vietnam is often prone to harsh weather conditions.

The World Meteorological Organization said there is an 80% chance of an El Nino event developing between June and August, and a 90% chance it will last until at least November.

Government data showed on Wednesday that Vietnam exported 925,000 tons of rice in May, up 19% from a year earlier. This raised the country’s total rice shipments in the first five months of this year to 4.3 million tons, a 2.4% increase from last year.

In Bangladesh, a mild to moderate heatwave is straining the ongoing harvest. Farmers said soaring temperatures are affecting yields and accelerating dehydration in crops in key growing areas.

Heavy pre-monsoon rains have already damaged more than 200,000 metric tons of rice, further tightening supply.

Asia rice: Indian prices extend gains; Thai demand firms

Meanwhile, India’s 5% broken parboiled variety was quoted at $337-$345 per ton this week, unchanged from the last week, amid modest demand and ample supplies.

Indian 5% broken white rice was priced at $338 to $344 per ton.

“Other suppliers have limited surplus stocks. They are raising prices in anticipation of lower production next season due to El Nino. In contrast, Indian prices remain stable, supported by ample supplies,” said a New Delhi-based dealer.

Thailand’s 5% broken rice was quoted at $450 from a range of $450-$460, traders in Bangkok said.

Prices were firm because the price of broken rice used for animal feed rose, which has pushed up costs, a trader said, adding that demand is mainly from regular customers.

On El Nino, the trader said markets are waiting to see the yield of the next crop in about three months.