Rice export prices from Vietnam and Thailand saw declines this week, reaching their lowest levels in a while, as market attention turned to India, the leading rice exporter potentially easing restrictions.
In Vietnam, the price of 5% broken rice dropped to US$565-$570 per metric ton on Thursday, the lowest since July 27, 2023, down from $575 the prior week. Traders noted sluggish sales, with buyers awaiting potential easing of export restrictions by India.
June rice shipments from Vietnam decreased by 40% compared to May, totaling 513,409 tons, based on official government customs data. However, exports for the first half of the year rose by 7.4% year-on-year to 4.55 million tonnes.
Thai 5% broken rice prices fell to a range of $570 to $575 per ton on Thursday, hitting their lowest point since early April, down from $585 the previous week. Traders in Bangkok reported a lack of significant orders and noted that new supply was performing well.
In India, the 5% broken parboiled rice was quoted at $539-$545 per ton this week, decreasing from $541-$548 from the previous week due to weak demand caused by higher freight rates and rupee depreciation. Buyers in Kakinada, Andhra Pradesh, were delaying purchases after a robust buying spree in May.
Despite favorable harvests and sufficient reserves in Bangladesh, domestic rice prices remained elevated, causing strain on consumers. The situation could exacerbate due to widespread flooding affecting cropland and potentially impacting future rice production.
