Thai bidders lose out to other exporters in Indonesian auction.

Thai rice prices fell to their lowest level in over a year as bidders were forced to reduce their high prices in a recent auction held by Indonesia, while Indian rice export prices extended losses this week to hit an eight-month low.

Indian 5% broken parboiled rice was quoted at $534 per tonne this week, the lowest since mid-January, and down from the $540 a week earlier.

“Demand has been very weak for the past few weeks. Buyers are anticipating a reduction in India’s export duty structure and are postponing purchases,” said Krishna Rao, president of the Rice Exporters Association.

Indian authorities need to promptly cut or remove a floor price for basmati rice exports to help farmers increase overseas sales of the premium grade and avoid a glut that would further erode farm income, millers said.

Thai 5% broken rice fell to the range of $550 to $565 per tonne this week, the weakest levels since July 20, 2023, down from $585 quoted last week.

The market still sees Thai prices as too high, said a Bangkok-based trader. But flash floods have been hurting short-term harvest yields, so prices could improve down the road.

Another trader said prices were weighed down by competitors and that Thai bidders lost out to other exporters in a recent auction held by Indonesia due to higher prices.

There would be demand from African and European customers before October because those orders would be delivered before late December, the trader said.

Vietnamese 5% broken rice was offered at $567 per tonne on Thursday, down from $575 a week ago, according to the Vietnam Food Association.

“Trading activity remains slow while demand is weak,” a trader based in Ho Chi Minh City said.

Traders said the ongoing floods in northern Vietnam might have an impact on rice production, though rice for export is mostly grown in the Mekong Delta in the south.

Published Date: September 13, 2024