Thai prices ease but Vietnam rice steady
Friday, 19 March 2010
BANGKOK, March 17 (Reuters): Rice prices in Thailand, the world's biggest exporter, slipped on Wednesday but price-support measures are likely to prevent big falls this month, while prices in number two exporter Vietnam held steady.
Thailand's benchmark 100 per cent B grade white rice RI-THWHB-P1 fell 3.8 per cent to $510 per tonne from last week's $530 per tonne, hit by rising supplies, exporters said. Prices are now down about 14 per cent from January.
"We were concerned that prices may fall further as demand remains thin," one exporter said.
Farmers are still harvesting from a second crop expected to produce around 7 million tonnes of paddy, according to the Ministry of Agriculture. Output will probably peak next month.
But the Thai government's price-support scheme should prevent sharp price falls, and traders expect buyers to emerge soon, lured by the drop in prices.
"Some buyers in Africa are approaching Thailand expecting to buy parboiled rice, which could help support prices of other grades in general," one trader said. Parboiled grade rice is made from the same grade of white paddy rice.
In Vietnam, the second-biggest exporter, rice prices were firm, thanks to a government-backed stockpiling scheme.
Domestic rice used for processing five-per cent broken grade edged up to 5.57-5.63 million dong ($292-$295) a tonne on Wednesday in the Mekong Delta province of An Giang, from 5.55-5.60 million dong a week ago.
"Prices in domestic markets are stabilising despite a bumper harvest now peaking in the Mekong Delta," said an exporter in Ho Chi Minh City.
Farmers in the delta have been accelerating the winter-spring rice crop harvest, but an exporters' purchase under a plan to stockpile one million tonnes of husked rice has been helping prices, traders said.
The winter-spring crop, the highest yielding among three rice crops in the Mekong Delta, is expected to yield 10 million tonnes of paddy, similar to last year, traders said.
Thailand's benchmark 100 per cent B grade white rice RI-THWHB-P1 fell 3.8 per cent to $510 per tonne from last week's $530 per tonne, hit by rising supplies, exporters said. Prices are now down about 14 per cent from January.
"We were concerned that prices may fall further as demand remains thin," one exporter said.
Farmers are still harvesting from a second crop expected to produce around 7 million tonnes of paddy, according to the Ministry of Agriculture. Output will probably peak next month.
But the Thai government's price-support scheme should prevent sharp price falls, and traders expect buyers to emerge soon, lured by the drop in prices.
"Some buyers in Africa are approaching Thailand expecting to buy parboiled rice, which could help support prices of other grades in general," one trader said. Parboiled grade rice is made from the same grade of white paddy rice.
In Vietnam, the second-biggest exporter, rice prices were firm, thanks to a government-backed stockpiling scheme.
Domestic rice used for processing five-per cent broken grade edged up to 5.57-5.63 million dong ($292-$295) a tonne on Wednesday in the Mekong Delta province of An Giang, from 5.55-5.60 million dong a week ago.
"Prices in domestic markets are stabilising despite a bumper harvest now peaking in the Mekong Delta," said an exporter in Ho Chi Minh City.
Farmers in the delta have been accelerating the winter-spring rice crop harvest, but an exporters' purchase under a plan to stockpile one million tonnes of husked rice has been helping prices, traders said.
The winter-spring crop, the highest yielding among three rice crops in the Mekong Delta, is expected to yield 10 million tonnes of paddy, similar to last year, traders said.