Rice: Comprehensive Review of the Grain Market
Published on: December 21, 2023.
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Rice Prices Rise in East Asia and the Americas, While Market Outlook in India Remains Bearish
Kansas City, Missouri, US – Rice prices in East Asia, particularly Vietnam, and the Americas have continued to increase. However, the market outlook in India is bearish as the government makes efforts to keep food prices down.
According to the United Nations Food and Agriculture Organization (FAO)’s December Rice Price Index report, global rice prices in November 2023 remained unchanged from October and were 21% higher compared to November 2022.
The stability of the overall index in November was supported by Indica quotations, which rose by 0.8% month-on-month, offsetting price declines in other market segments. Quotations of Aromatic and Japonica rice decreased by 2% each, while Glutinous prices dropped 6.9% below October levels. The decrease in prices was driven by harvest pressure and subdued demand. The reduction of the floor price against which basmati shipments are assessed for registration by the Indian government in late October also weighed on sentiment in Pakistan’s basmati market.
Indica price trends were mixed in major Asian origins, with a bearish undertone in India due to sluggish demand for parboiled rice. On the other hand, Vietnamese prices rose to their highest nominal level since July 2008, driven by previously contracted deals and overall tight supply.
Thai and Pakistani quotations closed November steady to lower month-on-month, with new-crop arrivals keeping them in check. Increased buyer interest following hikes in Vietnamese quotations, awards from October tenders by Indonesia’s Bulog, and the appreciation of the baht against the US dollar added upward pressure.
In the Americas, US No. 2.4% quotations increased due to sustained bullishness in competing South American origins. South America saw rising prices due to dwindling supplies and uncertainties over the impact of weather on 2024-25 crops.
The US Rice Producers Association reported that prices remain firm in the US. The country is currently the only supplier of viable long-grain quantities in the Western Hemisphere. The strong domestic market is providing support in the current market environment.
Sources:
– Rice Price Index report: [https://www.world-grain.com](https://www.world-grain.com)
– US Rice Producers Association: [https://www.world-grain.com](https://www.world-grain.com)
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