Thai 5% broken rice price falls to 18-year low

Thailand’s 5% broken rice prices fell to $335 a tonne, the lowest since 2007, due to ample supplies and weak demand. Meanwhile, the domestic rice market remained flat.

Asian rice export prices continue to be gloomy

Asian rice export prices continued to be sluggish this week, with Thailand’s 5% broken rice prices falling to an 18-year low. This put pressure on the entire regional market, while the domestic market in Vietnam remained relatively stable.

Thailand: Rice prices hit bottom since 2007

Thailand’s benchmark 5% broken rice prices fell to $335 a tonne from $338 last week, the lowest since October 2007, according to Reuters data.

Traders in Bangkok said the main reason was weak demand and ample supplies as the new harvest began. In addition, news that India may bring more cheap rice to the market has made importers cautious and only place small orders. Persistently low prices are also prompting Thai farmers to consider reducing their cultivation areas.

India and Bangladesh: Market Developments

In India, the price of 5% broken parboiled rice remained stable at $344-$350 per tonne. Similarly, 5% broken white rice fluctuated between $350-$360 per tonne. According to a trader in New Delhi, the new crop supply is putting pressure on domestic prices, despite the government’s increased purchases to support the market.

In another development, the Bangladesh government has approved a plan to import 50,000 tonnes of parboiled rice at $355.59 per tonne to strengthen national reserves and control domestic prices.

Thai 5% broken rice prices hit an 18-year low, putting pressure on Asian export markets.

Domestic rice market is quiet

In contrast to the strong fluctuations in the world market, rice prices in the Mekong Delta region on November 15 were relatively stable, with only a few minor adjustments and no clear trend. Transactions were quite quiet due to weak buying power, in the context of supply and demand being in a state of balance.

Price fluctuations of some commodities in the Mekong Delta

• Raw rice OM 380: Slightly decreased by 100 VND/kg, down to 7,200 - 7,300 VND/kg.
• Dai Thom 8: Increase 100 VND/kg, up to 8,700 - 8,900 VND/kg.
• OM 5451 plate: Slightly increased to 7,350 - 7,500 VND/kg.
• Rice husk: Keep price stable at 1,700 - 1,800 VND/kg.

In general, the domestic rice market is in a stagnant state due to the lack of clear driving force from the export market.

Source: https://baolamdong.vn/gia-gao-thai-lan-5-tam-roi-xuong-muc-thap-nhat-18-nam-402915.html