Thai Rice Prices Surge to Near Four-Month Peak
Rice markets in Asia witnessed divergent trends this week, with Thailand's prices climbing to a near four-month high while Indian rates softened. The key benchmark, Thailand's 5% broken rice, was quoted at $370 per metric tonne, marking its highest level since July 31. This represents a significant increase of $30 from the previous week's prices.
Factors Driving the Price Rally in Thailand
Market analysts attribute this sharp price appreciation in Thailand to a combination of factors. Recent flooding has caused damage to some key production areas, tightening supply. Furthermore, traders reported news of fresh sales to China, a major importer, which bolstered market sentiment. The appreciation of the Thai baht against the US dollar also contributed to the higher dollar-denominated prices. Millers have slowed down their sales, and exporters with existing orders are compelled to purchase at these elevated rates to fulfil their commitments.
Indian Rice Export Prices Ease on Weak Demand
In contrast, the Indian rice market experienced a downturn. India's 5% broken parboiled variety was offered at $348-$356 per ton, down from the $352-$360 range seen last week. Similarly, the price for Indian 5% broken white rice was noted at $345 to $350 per ton. A Mumbai-based exporter explained the situation, stating, "The rice market is super competitive right now, and the weaker rupee is letting Indian exporters drop their prices." The Indian rupee trading near a record low against the dollar has increased traders' returns from overseas sales, giving them room to offer more competitive prices despite the weak global demand.
Vietnam Shifts Focus, Bangladesh Prices Remain High
Elsewhere in the region, Vietnam's 5% broken rice prices saw a modest increase to $359–$363 per metric ton from $350–$355 last week. Traders in Ho Chi Minh City noted that some exporters are beginning to divert shipments to African markets like Ghana and Ivory Coast due to sluggish demand from traditional Asian buyers. There are also considerations that farmers might switch to other rice varieties if shipments to the Philippines do not pick up.
Domestically in Bangladesh, the situation remains challenging for consumers. Despite good harvests and comfortable government reserves, domestic rice prices have stayed stubbornly high, continuing to put pressure on household budgets.
