Vietnam rice rates fall to near 5-year low on weak demand

Vietnam's rice rates fell to a near five-year low this week on weak demand and a push for higher-quality production, while India's demand stayed muted as buyers chose cheaper rivals even as parboiled prices rose to a six-week high with government procurement underway, reports Reuters.
Vietnam's 5 per cent broken rice was offered at $350 to $355 per tonne on Thursday compared to $415 to $430 last week, traders said, its lowest level since January 2020.
"Weak external demand has pushed down prices significantly, and this will force Vietnam to restructure its rice production, switching from quantity to quality," a trader based in Ho Chi Minh City said.
"Key buyers such as the Philippines and Indonesia are making moves to boost their domestic production to reduce their reliance on imports," the trader said, adding that Vietnam's main buyers are now African countries.
Vietnam exported 159,122 tons of rice in the first half of November, down 46% from the same period last year, according to Vietnamese customs data.
India's 5 per cent broken parboiled rice was quoted at $352-$360 per tonne this week, up from $344 to $350 last week, hitting its highest since October 2. The 5 per cent broken white rice variety was priced at $350 to $355 per ton.
"Export demand is still weak, with African and Asian buyers finding other origins more competitive," said Himanshu Agarwal, executive director at Satyam Balajee, a leading rice exporter.
"As government rice procurement begins, local prices are expected to stay firm, further straining export prospects."
Thailand's 5 per cent broken rice was quoted at $340 per tonne, up from $335 last week, edging higher from an 18-year low.
Buyers are only ordering what is needed, said a Bangkok-based trader.
After India announced more rice exports, buyers were holding back to see prices, which made the Thai rice market quiet, the trader said, adding that supply was good in every country.