Asia rice: Vietnam prices hit over 2-month low on weak demand; Indian rates hold steady

Vietnam’s rice prices fell to a more than two-month low this week on subdued demand and poor crop quality, while Indian rates held steady amid sluggish export demand and concerns that heavy rains in key eastern states from a cyclone could hurt output.

India’s 5% broken parboiled variety was quoted this week at $344-$350 per ton, unchanged from the last week. Indian 5% broken white rice was priced at $350 to $360 per ton this week.

The paddy crop is ready for harvest, but heavy rainfall is damaging the fields and is likely to negatively impact yields, said a Kolkata-based trader.

Vietnam’s 5% broken rice was offered at $415-$430 per ton on Thursday, down from $420-$435 a week ago, hitting its lowest since August 21, according to the Vietnam Food Association.

“Demand remains weak while the quality of the freshly harvested paddy is not great,” a trader based in the Mekong Delta province of An Giang said.

Vietnam’s trade ministry said on Thursday a memorandum of understanding had been signed with Singapore to facilitate rice exports, on the sidelines of the APEC summit in South Korea.

India’s rice exporters seek deals with emerging markets after strong monsoon

Thailand’s 5% broken rice was quoted at $340 per tonnes, up slightly from $337 last week, snapping a six-week losing streak and rebounding from an 18-year low.

A Bangkok-based rice trader said the demand for Thai rice remained relatively unchanged from the week before.

“There are many competitors for 5% broken rice, like Myanmar and Pakistan, which sell cheaper products,” the trader said.

Supply has also been plentiful with harvest ongoing in many parts of the country, the same trader said.

Meanwhile, Bangladesh has extended the deadline for aromatic rice exports by a month to November 30, giving traders more time to meet shipment targets amid logistical delays.

The country resumed limited premium rice exports earlier this year after production surpassed domestic demand and is monitoring the market to prevent any impact on local prices amid high food inflation.