Indian rice export prices extended gains this week on robust demand, while those in Vietnam hit more than five-month highs as China’s move to ease coronavirus restrictions is expected to boost shipments from the country.
Top exporter India’s 5% broken parboiled variety was quoted at $375 to $382 per tonne, up from the last week’s $374 to $380 range. Gains were however curbed by rising supplies from new-season crops.
B.V. Krishna Rao, president of the Rice Exporters Association, said export demand for parboiled rice is better than for white rice, adding that Indian prices are very competitive.
Vietnam’s 5% broken rice was offered at $458 per tonne free on board on Thursday, the highest since mid July, from $448-$453 a week ago.
According to traders, Vietnam is likely to benefit from China’s move to ease its coronavirus restrictions, which could boost shipments of the staple to the country.
Rice exports from Vietnam in 2022 are estimated to have risen 15.7% to 7.22 million tonnes, according to government data released on Thursday.
December rice exports from Vietnam are estimated at 550,000 tonnes, valued at $283 million.
Asia rice: More exports, stronger baht send Thai rates to over 6-month high
Meanwhile, Thailand’s 5% broken rice prices were quoted at $452-$465 per tonne on Thursday, a 2022 high, versus last week’s $452-$460 range. The peak in export prices was due to the strong baht, one trader said.
A Bangkok-based trader said however that price movement was muted overall as farmers and mills reduced activity for the holidays, while noting that supply would not be an issue to meet new demand.
He highlighted that when prices are on an upwards trajectory, millers would buy more to stock up in anticipation of higher prices in future.
“Exports next year should be better, the market will do better,” he said, adding that shipments were being made to Indonesia.