Asia Rice-India prices slip for 3rd straight week on slow demand
Thu Oct 11 2018
Rice export prices in India eased
for a third consecutive week due to waning demand and prospects of fresh
supplies, while markets in Thailand and Vietnam were propped up by expectations
of orders from China and Philippines.
Rates for top exporter India’s 5
percent broken parboiled variety fell
to $365-$370 per ton from $367-$373 last week, as demand remained tepid,
traders and dealers said.
“As prices are falling every
week, buyers are postponing purchases,” said an exporter based in the southern
state of Andhra Pradesh.
Also weighing on prices, was a
plunge in the Indian rupee to a lifetime low on Thursday, allowing exporters to
lower their offers.
Supplies from summer-sown crop
will become available for exports from the next month, dealers said.
The country’s production of
summer-sown rice is estimated to grow 1.8 percent to 99.24 million tons.
In neighbouring Bangladesh,
imports slowed down to 80,000 tons in July-September owing to the imposition of
a tax on rice imports in June, the country’s food ministry data showed.
The south Asian country, which
emerged as a major importer in 2017 after floods damaged crops, imposed the 28
percent duty to support its farmers after local production revived.
In Thailand, benchmark 5 percent
broken rice prices were quoted at $398-$400 per ton, free on board (FOB)
Bangkok, versus $390-$403 last week.
Traders said activity was muted,
despite speculation of new deals with countries including Indonesia, Japan, and
Philippines.
Many Thai private exporters who
have been involved in a recent sale of 100,000 tons of rice to China are also
speculating that China may purchase more Thai rice before year end, said a
trader in Bangkok.
“There are talks that the Chinese
may order more rice and that could help drive up the price before the end of
the year.”
In Vietnam, rates for 5 percent
broken rice were unchanged from last week at $400-$405 a ton.
“Trade is slow as domestic
supplies are running low,” a Ho Chi Minh City-based trader said. “The
Philippines has announced it will buy more rice for the rest of the year and
that may be supportive for prices.”
Vietnam’s Ministry of Industry
and Trade said Thursday the value of the country’s rice exports this year would
likely rise 26.9 percent to $3.2 billion-$3.3 billion.
Customs data released this week
showed Vietnam exported 4.89 million tons of rice in the January-September
period, up 6.7 percent from a year earlier. Rice export revenue rose 21.3
percent in the period to $2.46 billion.
Source: https://www.brecorder.com/2018/10/11/445316/asia-rice-india-prices-slip-for-3rd-straight-week-on-slow-demand/