BENGALURU, Nov 8 (Reuters): Rice output is expected to jump 2.27 per cent in Bangladesh to 35.8 million tonnes in the May-April marketing year, thanks to favourable weather, the US Department of Agriculture (USDA) said.
Rice imports are expected to hit 50,000 tonnes in the year to April, down 50 per cent from a year earlier, USDA said in its latest report on Bangladesh, released this week.
Thai rice export prices were little changed this week, but traders hoped a deal with Iraq could bolster shipments, while lacklustre demand and a slightly weaker rupee weighed on rates for the Indian variety.
Local media on Wednesday reported Thailand signed a deal to sell rice to Iraq, nearly 10 years after losing contracts over quality concerns.
Traders said they hoped the new Iraqi market could jumpstart fresh demand for Thai rice.
Also, fresh supply, which is expected to enter the market in the coming weeks, could potentially bring down Thai prices, they added.
Thai exports have been hurt by the relatively higher prices for the variety from Thailand, especially compared with Vietnamese prices, mostly due to a strong baht-Asia's best-performing currency this year, trader said.
One Thai trader said he was unable to sell any rice for more than one month because customers turned to cheaper options from Vietnam.
"It's been terrible. We've lost a lot of income," said another trader, who has been facing the same problem for three months.
Thailand's benchmark 5-per cent broken rice prices were quoted at $390-$408 a tonne, versus $390-$413 last week.
In Vietnam, rates for 5 per cent broken rice were unchanged from last week at $345-$350 a tonne on Thursday amid lacklustre trading. The country's export prices had risen to a four-and-a-half-month high last month.
"Low supplies at the end of the summer-autumn harvest have helped keep prices from falling," said a Ho Chi Minh City-based trader.
However, no deals were struck this week as most buyers were waiting for new supply from the autumn-winter harvest in the Mekong Delta, which is expected to come in bulk in December, another trader said.
"While prices of the regular 5 per cent broken rice stayed flat, prices of jasmine rice have climbed up to $520 per tonne due to tight supplies," he added.
Top exporter India's 5 per cent broken parboiled variety was quoted around $365-$370 per tonne this week, down from $368-$372 last week.
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