Thai rice prices fall in a grainy twist as Indonesian bids drop

Thai rice prices plunged to their lowest levels in over a year as Indonesian bidders were compelled to lower their high prices in a recent auction. Meanwhile, Indian rice export prices continued their downward trend, reaching an eight-month low.

Indian 5% broken parboiled rice was priced at US$534 (around 17,000 baht) per tonne this week, marking the lowest level since mid-January, down from US$540 a week earlier.

Krishna Rao, President of the Rice Exporters Association stated that demand has been very weak for the past few weeks. Buyers anticipate a reduction in India’s export duty structure and are postponing purchases.

Indian authorities are urged to swiftly cut or eliminate the floor price for basmati rice exports to assist farmers in boosting overseas sales of the premium grade and to prevent a surplus that would further diminish farm income, according to millers.

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

A trader from Bangkok commented that the market still sees Thai prices as too high. However, flash floods have been affecting short-term harvest yields, which could lead to price improvements in the future.

Another trader noted that prices were depressed by competition, and Thai bidders lost out to other exporters in a recent Indonesian auction due to their higher prices.

There is anticipated demand from African and European customers before October, as those orders are scheduled for delivery before late December.

Vietnamese 5% broken rice was offered at US$567 per tonne yesterday, September 12, down from US$575 a week ago, according to the Vietnam Food Association.

A trader based in Ho Chi Minh City stated that trading activity remains slow while demand is weak.

Traders indicated that the ongoing floods in northern Vietnam might impact rice production, although rice for export is primarily cultivated in the Mekong Delta in the south, reported Bangkok Post.