Thai prices hit near 4-month high; India prices ease on weak demand, soft rupee

[BANGKOK] Thailand’s rice prices jumped to a near four-month high this week as flooding hit production areas and traders cited news of sales to China and a firmer baht, while Indian prices slipped on sluggish demand and a rupee trading near a record low.

Thailand’s 5 per cent broken rice was quoted at US$370 per metric tonne, its highest since July 31, and up US$300 from last week, due to flood-related damage to some production areas, said a Bangkok-based trader. Demand was still quiet, the trader added.

Prices also climbed on news of sales to China and the appreciation of the baht, another trader said.

Millers have slowed sales, while exporters with existing orders still need to purchase for shipment, the trader said.

“The situation is positive for farmers, while crop damage occurred in some areas due to flooding.”

India’s 5 per cent broken parboiled variety was quoted at US$348-US$356 per ton, down from US$352-US$360 last week. Indian 5 per cent broken white rice was priced at US$345 to US$350 per ton this week.

“The rice market is super competitive right now, and the weaker rupee is letting Indian exporters drop their prices,” said a Mumbai-based exporter.

The Indian rupee traded near a record low against the dollar this week, boosting traders’ returns from overseas sales.

Vietnam’s 5 per cent broken rice was offered at US$359–US$363 per metric ton on Thursday, up from US$350–US$355 last week, according to Vietnam’s Food Association. Prices have inched higher after touching an over five-year low last week.

“Some exporters have started to divert to African markets such as Ghana or Ivory Coast due to weak demand from traditional Asian markets,” said a trader based in Ho Chi Minh City.

“If shipments to the Philippines remain sluggish, farmers may consider switching to other rice varieties,” the trader said.

Meanwhile, domestic rice prices in Bangladesh have remained stubbornly high despite good harvests and comfortable government reserves, hitting consumers hard. REUTERS