Thai Rice Export Prices Plummet to Lowest Levels in Over a Year Due to Weak Demand and Competition
Thai rice export prices have hit a 14-month low this week as traders face pressure from subdued demand and fierce competition from cheaper rivals. Indian prices, on the other hand, have seen a slight increase driven by a stronger rupee, despite lackluster demand from buyers in Asia and Africa.
The benchmark 5% broken rice from Thailand was quoted at $560 per tonne, marking the lowest level since July 20, 2023, and down from $565 just last week. While there has been some demand coming from Indonesia, competitors have been purchasing rice from other exporters at lower prices, according to a trader based in Bangkok. The depreciation of the Thai baht is expected to help soften prices in the near future.
Commerce Minister Pichai Naripthaphan acknowledged that the recent rally of the baht could have a significant impact on exports, especially in the agricultural sector, over the next three months. Traders are closely monitoring any changes in Indian rice policy in the coming months as the supply is currently in the harvesting stages.
Meanwhile, 5% broken parboiled rice from India, the leading rice exporter globally, was quoted at $536 per tonne this week, slightly up from the previous week’s $534, which was the lowest since mid-January. Despite the stronger rupee driving up prices, demand remains sluggish as buyers are holding off on purchases in anticipation of potential export duty cuts by India, as stated by a trader from Mumbai.
Vietnamese 5% broken rice was offered at $565 per tonne on Thursday, as reported by the Vietnam Food Association. Traders noted that prices were around $580 just a week ago. Competition from other suppliers such as Thailand, Cambodia, and Myanmar has led to the decrease in prices, according to a trader based in Ho Chi Minh City.
A Vietnamese exporter recently secured contracts to export 59,000 tonnes of rice as part of an Indonesian government tender to purchase 450,000 tonnes of rice after accepting a lower price. Customs data revealed that Vietnamese rice exports in the year up to mid-September increased by 6.2% from the previous year to reach 6.5 million tonnes.
Subheadings:
Thai Rice Export Prices Hit Lowest Point
Traders Face Pressure from Weak Demand and Competition
Impact of Strong Rupee on Indian Rice Prices
In conclusion, the decline in Thai rice export prices to the lowest levels in over a year can be attributed to factors such as quiet demand and competition from cheaper rivals. While Indian prices have seen a slight increase due to a stronger rupee, overall demand remains sluggish in the Asian and African markets. The Vietnamese rice export market is also facing challenges from competitors, leading to a drop in prices. Traders are closely monitoring market dynamics and policy changes to navigate these challenging times in the global rice trade industry.