Asia Rice: Thai rates slip on weak baht; India’s demand
Published on: February 25, 2022.
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Rice export prices in Thailand fell to an over 1-1/2 month low this week due to a weaker baht, while an uptick in overseas buying boosted rates in leading exporter India.
Thailand’s 5% broken rice prices were quoted at $400 per tonne this week, down from $410-$420 a week ago.
The baht weakened to 32.68 against the US dollar on Thursday, or by nearly 1.6% from a week ago and 1.3% from Wednesday, following Russia’s invasion of Ukraine.
“Prices eased in line with the baht weakening, which is an effect of Russia’s invasion,” a Bangkok-based trader said, adding that domestic rice prices still remained stable.
India’s 5% broken parboiled variety was quoted at $370 to $376 per tonne this week, up from the last week’s $368 to $374.
“Despite the depreciation in rupee, exports prices are moving higher. Demand is good from African and Asian buyers,” said an exporter based at Kakinada in southern state of Andhra Pradesh.
Indian farmers are likely to harvest a record 127.93 million tonnes of rice against 124.37 million tonnes produced the year before.
In neighbouring Bangladesh, domestic rice prices stayed elevated despite good crops and reserves, officials said.
The country’s rice stock at government warehouses surged to 1.7 million tonnes this month, according to the data from the food ministry.
Vietnam’s 5% broken rice were offered at $395-$400 per tonne, compared with $400 per tonne a week ago.
“Importers are buying moderately, waiting for prices to fall when the winter-spring harvest peaks,” said a trader based in Ho Chi Minh City. “Exports will increase from next month, with the key markets being the Philippines and Africa,” the trader said.
Preliminary shipping data showed 219,000 tonnes of rice is to be loaded at Ho Chi Minh City port in February, with most of the rice heading to the Philippines.
