Thailand's rice prices have surged to a six-month high due to concerns about flood-related supply disruptions and anticipated increased demand following China's commitment to purchase rice. The price of Thailand's 5% broken rice (RI-THBKN5-P1) has risen to $400 per tonne, a notable increase from $375 the previous week; this is the highest level since May 29.

Traders anticipate a rise in demand as China finalizes a rice deal later this month, with a pledge to buy 500,000 tonnes of rice from Thailand. A Bangkok-based rice trader noted that the deal with China, along with the prospect of further purchases from the Philippines, is invigorating the market. The trader also mentioned a decrease in supply caused by recent flooding in several regions of the country.

In contrast to Thailand's rising prices, rice export prices in India have remained steady this week. The Indian rupee's slide towards a record low has helped traders offset rising paddy prices in the local market. India's 5% broken white rice is priced at $340 to $345 per metric ton this week. A Kolkata-based exporter explained that paddy prices remain high because of government purchases at the increased minimum support price, which is also encouraging traders to offer higher rates. The weakening rupee has improved traders' returns from overseas sales.

Meanwhile, Vietnam's 5% broken rice (RI-VNBKN5-P1) is being offered at $365-$370 per metric ton, unchanged from the previous week, according to traders. A trader in Ho Chi Minh City reported slow sales due to weak demand.

Other factors influencing the Asian rice market include:

• Vietnam's Export Decline: Vietnam's rice exports in November experienced a sharp drop of 49.1% compared to the previous year.
• Bangladesh's Tender: Bangladesh has issued a tender to purchase 50,000 tons of rice.
• Philippines Imports: There are expectations that the Philippines will resume rice imports from January, potentially importing 300,000 to 400,000 tonnes in the month.
• Rupee impact: The Indian rupee traded near a record low against the dollar recently, boosting traders' returns from overseas sales.

Overall, the Asian rice market presents a mixed picture, with Thai prices rising due to supply concerns and Chinese demand, while Indian and Vietnamese prices remain stable amid currency fluctuations and subdued demand.