Export prices in India had shot up earlier after Chhattisgarh, a leading rice producing state in central India, raised the minimum paddy buying price.
In Thailand, benchmark 5-percent broken rice prices narrowed to $390-$400 range, free on board Bangkok, from $380-$400 last week due to the baht’s strength against the U.S. dollar.
Traders said prices remained relatively unchanged due to flat demand, but expected a surge in supply between January-end to early February, which could affect prices.
Meanwhile, rates for Vietnam’s 5 percent broken rice stayed flat from last week at $370-$375 a tonne, and traders expect prices to fall in the coming weeks on rising supplies and weak demand.
“Some of the farmers in the Mekong Delta have started harvesting their winter-spring crop and the harvest in expected to peak after Tet (Lunar New Year) holiday,” a trader based in Ho Chi Minh City said.
“We haven’t received new orders for this year and our potential clients haven’t made any move to make new purchases,” Nam said.
China’s move to tighten control on rice shipments from Vietnam will put a brake on Vietnam’s rice exports, the Ho Chi Minh City-based trader said, adding that the Southeast Asian country had not worked out any effective measures to cope with the situation.
“Some exporters are looking to trade rice for cashew nuts from Africa, but it’s not clear yet how it will fare.”
Meanwhile, a report from the United Nation’s Food and Agriculture Organisation (FAO) estimated Bangladesh’s rice output will hit a record 53.6 million tonnes in 2018, due to strong domestic prices and bumper yields due to favourable weather conditions.
Bangladesh, which emerged as a major importer of the grain in 2017 after floods damaged crops, imported a record 3.9 million tonnes of rice in the last financial year that ended in June 2018.
Source – Business Standard