ASIA RICE-Thai prices extend slump to 18-year low as demand falters
By Reuters
Thailand’s rice export prices fell for the fifth straight week to an eighteen year low, while Indian prices held near their lowest level in more than nine years this week, as top exporters struggled to secure any major deals in the face of weak demand.
Thailand’s 5% broken rice is at its lowest level since October 2007, at $335-$340 per tonne versus $340 quoted last week.
Traders say demand has been relatively flat from the week before.
“Customers are only buying what is necessary,” a Bangkok based trader said adding that there has not been any major deals for Thai rice export.
Supply has been plentiful, another rice trader said.
India’s 5% broken parboiled variety was quoted at $340-$345 per ton, unchanged from the previous week, around its lowest level since mid-2016.
Indian 5% broken white rice was priced at $360 to $370 per ton this week.
Demand from both Asian and African buyers remains weak, as they are in no rush to make purchases and are waiting for prices to hit the bottom, said a Mumbai-based dealer with a global trade house.
Vietnam’s 5% broken rice was offered at $420-$435 per ton on Thursday, its lowest level in nearly two-months, down from $440-$465 a week ago, according to the Vietnam Food Association.
“Demand is weak, especially after the Philippines decided to extend its rice import suspension,” said a trader based in Ho Chi Minh City.
“Rice exporters have been encouraged by the authorities to increase their inventories and find new markets to compensate for the shortfall triggered by the suspension, but those measures are not enough to prop up prices,” the trader said.
Meanwhile, domestic rice prices in Bangladesh have surged 15% over the past year despite a good harvest, leaving both farmers and consumers struggling.
Market insiders attribute the rise to high input costs, market manipulation by middlemen, and inefficiencies in storage, procurement, and distribution. (Reporting by Anushree Mukherjee in Bengaluru, Phuong Ha Nguyen in Hanoi, Rajendra Jadhav in Mumbai, Panu Wongcha-um in Bangkok and Ruma Paul in Dhaka; Editing by Ronojoy Mazumdar)
This article has been republished from The Livemint.