Weak demand, export rice prices in Asia simultaneously decreased

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The reduced demand for Vietnamese rice makes the price of 5% broken white rice for export this week the lowest level in nearly 2 months at 450 USD / ton. Prices have been at their highest in 8 years on 4/6 on concern that heavy rains could affect the current harvest.

“Demand from foreign importers has decreased this week,” a trader in Ho Chi Minh City said. Meanwhile, the domestic rice supply is increasing because farmers are harvesting the Summer-Autumn crop. According to forecasts of traders, Vietnam can export 2.3 to 2.5 million tons of rice in this harvest.

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Export rice prices of Vietnam, Thailand and India all fell this week due to weakening demand. Photo: Bloomberg.

In India, prices of 5% broken parboiled rice also dropped to US $ 366 – 372 per tonne, the lowest since March 26. The reason is that the rupee fell more than 6% this year, forcing exporters to lower prices.

“Even after lowering prices, demand did not improve,” an exporter in Kakinada said. Demand weakened while the country’s rice production was forecast to record as farmers expanded their rice acreage amid favorable weather.

The price of 5% broken white rice for export in Thailand also dropped to 505 – 525 USD / ton, mainly due to the appreciation of the baht. However, because prices are still higher than Vietnam and India, the demand for Thai rice is still flat, according to a trader in Bangkok.

“During this rainy season, rainfall tends to increase and this will help improve supply. However, the market is still a little concerned about demand due to high prices, ”another trader said.

Source: ndh.vn