Rice rates across Asian hubs hold flat as steady demand counters falling supply

Synopsis

India’s 5% broken parboiled variety was quoted at $510-$517 per metric ton, unchanged from last week when rates climbed to their highest level since October 2023.

Supply level has also dropped as market waits for new crops to enter around February and March.

Prices of rice exported from major Asian hubs remained steady this week, as moderate-to-flat demand for the staple was offset by support from declining supplies. India’s 5% broken parboiled variety was quoted at $510-$517 per metric ton, unchanged from last week when rates climbed to their highest level since October 2023.

“Demand is a bit low, but exporters can’t lower prices because of strengthening rupee. Supplies are also falling in northern states,” said an exporter at Kakinada, Andhra Pradesh.

Vietnam’s 5% broken rice was offered at $653 per metric ton, also unchanged from last week.

“We expect global demand for Vietnamese rice to remain strong this year, with prices staying at levels that might encourage farmers to expand production over the next crops,” a Ho Chi Minh City-based trader said.

Preliminary shipping data showed 80,840 metric tons of rice to be loaded at Ho Chi Minh City port in January, with most heading to the Philippines and Indonesia.

Thailand’s 5% broken rice prices were quoted at $648-$650 per ton, little changed from $650 last week, with traders attributing the rates to unchanged demand from Southeast Asian markets.

“There are consistent demands from Indonesia and the Philippines,” a Bangkok-based trader said, adding that the fluctuation of the exchange rate this week has also played a role in holding the prices steady.

Supply level has also dropped as market waits for new crops to enter around February, March, another trader said.

Published Date: January 12, 2024