Rice prices ease in Vietnam; Thai grain stable
Rice export prices weakened in Vietnam this week from a nine-month high on thin buying demand, while Thai rice prices were stable ahead of sales from Thai government’s huge stocks next month, traders said on Wednesday. Vietnam’s 5-percent broken rice eased to $375-$380 a tonne, free-on-board (FOB) Saigon Port, from $370-$390 a week ago, and the indicative price for the 25-percent broken grade also weakened to $360 a tonne from $365 last week.
“The price hike has stopped as nobody wants to buy at high prices,” a trader in Ho Chi Minh City said, noting that Thai rice was cheaper. Rice prices in Vietnam, the world’s third-largest exporter after India and Thailand, surged earlier this month on limited supply and news of demand from Indonesia and the Philippines.
While loading of a combined 67,900 tonnes on five vessels for Indonesia is underway at Saigon Port, Indonesia has not confirmed the purchase. On Tuesday Indonesia’s state food procurement agency Bulog said the country would decide within two weeks whether to ship in rice from Vietnam and other Asian countries. Vietnam’s rice exports in the first 10 months of this year would fall 4.6 percent from a year earlier to an estimated 5.32 million tonnes, the Agriculture Ministry said on Monday. China, the top buyer of Vietnamese rice, has bought 1.39 million tonnes of the grain between January and September, up 37.5 percent from a year earlier, based on China’s customs data. Overall, China’s rice imports jumped 26.7 percent in the same period to 2.31 million tonnes.
In Thailand, the 5-percent broken grain has been held stable at $360-$365 a tonne, FOB basis, while the Thai government plans to sell 2 million tonnes of rotten rice from huge stockpiles for industrial use in November. Thai traders said the market, which has been quiet due to the absence of Chinese and African buyers, could see prices rising if Thailand secures a deal with Indonesia as part of the latter country’s demand for 1.5 million tonnes.