Steady demand counterbalances declining supply, keeping Asia rice prices steady
Published on: January 15, 2024.
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Prices of rice exported from major Asian countries have remained steady this week. While demand for the staple has been moderate to flat, declining supplies have helped support prices.
In India, the price of the 5% broken parboiled variety of rice remains unchanged at $510-$517 per metric ton. Despite slightly low demand, exporters are unable to lower prices due to the strengthening rupee. Additionally, supplies in northern states are falling.
Vietnam’s 5% broken rice is offered at $653 per metric ton, with prices unchanged from last week. Global demand for Vietnamese rice is expected to remain strong, which may encourage farmers to expand production in the future. Preliminary shipping data shows that a significant amount of rice will be loaded at the Ho Chi Minh City port in January, with most of it heading to the Philippines and Indonesia.
Thailand’s 5% broken rice prices are quoted at $648-$650 per ton, with little change from last week. Demand from Southeast Asian markets, particularly Indonesia and the Philippines, remains consistent. The fluctuation of the exchange rate this week has also contributed to the stability of prices. Additionally, supply levels have dropped as the market awaits new crops to enter in February and March.
Overall, despite moderate demand, prices of rice remain steady due to declining supplies. The global demand for rice from Asian countries is expected to remain strong, which may have a positive impact on production in the future.
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