Asia rice: Indian rates fall to two-year low on robust rains, weaker rupee
Indian rice export prices fell to their lowest level in two years this week due to depreciation of the rupee and expectations that a second year of robust monsoon rains would lead to another bumper crop, while Thailand saw muted demand.
India's 5% broken parboiled variety was quoted at $380-$386 per ton, down from the last week's $382-$389. Indian 5% broken white rice was priced at $373 to $378 per ton this week.
'India is poised to harvest another bumper crop if monsoon rains remain conducive. This will add to already overflowing stocks,' said a Kolkata-based trader.
The country last month raised the price at which it will buy the new-season common rice paddy variety from local farmers by 3%, the lowest increase in five years, as New Delhi struggles to manage overflowing granaries after last year's record harvest.
Meanwhile, Thailand's 5% broken rice held at $410 per tonne, from $405-$410 per tonne last week.
Asia rice: Rates subdued across top exporting hubs on weak demand, ample supply
'Demand is not good at all,' while supply has been ample, said a Bangkok-based trader.
'The Philippines and Indonesia are not buying large lots this year.'
Vietnam's 5% broken rice was offered at $396 per metric ton, unchanged from a week ago, according to Vietnam Food Association.
'The Philippines is seeking to diversify its sources of rice supplies and this might have a certain impact on Vietnam as the Philippines is the largest buyer,' a trader based in Ho Chi Minh City said.
The trader, however, said Vietnam is also seeking to increase the proportion of high-quality rice for markets such as Japan and Europe at higher prices.
'We have noticed that the Philippines has cut down on their purchases from Vietnam,' another trader based in the city said.
State media reported on Thursday Vietnam's rice exports in May were estimated at 1.1 million tons, raising total shipments in the January-May period to 4.5 million tons.
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