Thai rice export prices fell to a 14-month low this week pressured by quiet demand and competition from cheaper rivals, while Indian prices edged higher on a stronger rupee, despite sluggish demand from Asian and African buyers.
Benchmark 5% broken rice from Thailand was quoted at $560 per tonne, the lowest level since July 20, 2023 and down from $565 last week.
There was demand coming from Indonesia, but competitors were buying rice from other exporters at lower prices, said a Bangkok-based trader, adding that depreciation in the Thai baht would help soften prices.
Commerce Minister Pichai Naripthaphan said the impact of the baht’s rally on exports would be felt in the next three months, especially in agricultural goods.
Another trader said the market was waiting to see changes in Indian rice policy in the coming months and that supply was in the harvesting stages.
5% broken parboiled rice from India, the world’s top exporter, was quoted at $536 per tonne this week, up from the $534, the lowest since mid-January, the week before.
“The strong rupee is driving up prices, but demand is still sluggish. Buyers are holding off on purchases, hoping India will cut export duties,” said a Mumbai-based trader.
Vietnamese 5% broken rice was offered at $565 per tonne on Thursday, according to the Vietnam Food Association. Traders said prices were around $580 last week.
“Prices fell on competition from other suppliers such as Thailand, Cambodia and Myanmar,” a trader based in Ho Chi Minh City said.
Traders said a Vietnamese exporter secured contracts to export 59,000 tonnes of rice, part of an Indonesian government tender to buy 450,000 tonnes of rice, after the exporter accepted a lower price.
Vietnamese rice exports in the year to mid-September rose 6.2% from a year earlier to 6.5 million tonnes, according to customs data.