Major Asian rice hubs slow down rice harvest as heavy floods have affected fresh supply, with more floods in rice-growing provinces expected to hit in the coming weeks.
Export prices for Vietnamese variety rice hike up, going from $485-$490 the week prior to $485-$495 per tonne this week.
“Recent rains in the Mekong Delta has hampered an ongoing harvest there, affecting domestic supplies,” says An Giang trader.
Meanwhile, domestic rates in Bangladesh have also gone up, and Thai traders have been warned of the flooding’s potential risk to their harvest.
Ripening crops in Bangladesh have been damaged by heay rains. Even with the government’s move to set wholesale rates, the flooding has caused a spike in domestic rates.
$4.29 billion worth of crops were damaged without a decision on imports being made yet.
In Thailand, a dip in prices has been attributed also to low demand, with rates falling to $435-$440 from $445-$480 the previous week.
Meanwhile, in India, prices have fallen as well. This has been attributed to the weak demand and value depreciation of the Indian rupee. 5% broken parboiled rice has gone down to $372-$377 per tonne from $376-$382 the previous week.
“The flow of new orders has been moderating in last few days,” says Andhra Pradesh exporter at Kakinada.
However, India’s rice exports are still set to rise by 42% and a record 14 million tonnes, mainly due to competitors having reduced shipments.