Bangkok – Thai rice prices have surged to a more than six-month peak, fueled by concerns over flood-related supply disruptions and rising expectations of increased demand following China's commitment to purchase rice. Meanwhile, rates in India and Vietnam have remained steady.
The price of Thailand's 5% broken rice has climbed to $400 per tonne, a notable increase from $375 the previous week. This marks the highest level since May 29. Traders anticipate a further boost in demand as China is expected to finalize a rice deal later in December, following its pledge to buy 500,000 tonnes of rice from Thailand. A Bangkok-based rice trader noted that the deal with China, along with prospects of additional purchases from the Philippines, is invigorating the market. Recent flooding in several parts of Thailand has also contributed to a decrease in supply, further supporting the price increase.
In India, rice export prices have held steady, with the rupee's slide towards a record low providing some offset to rising paddy prices in the local market. India's 5% broken parboiled variety is currently priced at $347-$354 per metric ton, unchanged from the previous week. The 5% broken white rice is priced at $340 to $345 per metric ton this week. A Kolkata-based exporter explained that paddy prices remain elevated due to government procurement at increased minimum support prices, which in turn encourages traders to offer higher rates. The recent weakening of the Indian rupee against the dollar is also improving traders' returns from overseas sales.
Conversely, Vietnam's 5% broken rice is being offered at $365-$370 per metric ton, holding steady from the previous week, according to traders. A trader in Ho Chi Minh City reported sluggish sales due to weak demand. Data indicates that Vietnam's rice exports in November experienced a significant decline, falling 49.1% compared to the same period last year.
Adding to the market dynamics, Bangladesh has issued a tender to purchase 50,000 tons of rice. These developments highlight the interplay of factors influencing the Asian rice market, from weather-related supply concerns to currency fluctuations and shifts in international demand.
