riceAs per recent reports it has been indicated that the Vietnamese rice prices have risen around 3 per cent to 11-week high following news of a major deal with Indonesia, while prices in Thailand also edged up as the market monitored Indonesian import demand as stated by the traders. Further, Vietnam, the world’s third-largest rice exporter after India and Thailand, has won a tender to supply nearly 1 million tonnes to Indonesia, as disclosed by the Vietnamese government since the archipelago nation struggles with a prolonged drought.

Furthermore, it  has been reported that Vietnam’s 5-per cent broken rice advanced about 3 per cent to US$350-US$355 (S$496-S$503) a tonne, free-on-board (FOB) Saigon Port, from US$340-US$345 a week ago, and 15-per cent broken rice stood at US$345 a tonne, or about US$10 above last week. At US$355, the price is the highest since July 22, as the data indicated. 

It has also been revealed that  25-per cent broken variety narrowed to US$330-US$335 a tonne, FOB basis, from a range of US$325-US$340 a tonne a week ago. As prices rise, some buyers have turned to Thailand, as trader in Ho Chi Minh City narrated. In addition to this, Pakistani rice has also become very competitive, with the 5-per cent broken grain standing at US$310 a tonne, FOB basis, according to a dealer at a regional trading firm.

Further, in this context, as the given price rises, the African buyers are not in the market while Vietnamese sellers don’t want to sell now as it was told. The traders also informed that they expected more purchases, including from Vietnam’s biggest rice buyer China, as the given price rise. As per reports, the rice imports in 2015 by China, the world’s largest producer of the grain, could rise to 6.7 per cent from 2014 to 3.2 million tonnes, as stated by the UN Food and Agriculture Organization.

Hanoi’s Agriculture Ministry data tells China has bought 1.5 million tonnes of Vietnamese rice in January-August, or one third of Vietnam’s total shipments in the period, based on China has set the rice import quota for 2016 at 5.32 million tonnes.

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Indian Queen Basmati Rice

In Thailand, prices edged up in anticipation of a contract with Indonesia, traders said. “We have already increased our prices last week to anticipate it”, told a Thai trader and also “If it ends up not happening, prices will absolutely weaken”. Thai 5-per cent broken grain RI-THBKN5-P1 rose to US$360 a tonne, FOB Bangkok, from US$350-US$357 on Tuesday, but is still below the US$350-US$362 level, a week ago. Prices have recovered from an eight-year low hit last month. Indonesia said late last month it planned to import up to 1.5 million tonnes of rice from Thailand and Vietnam in October to avert a price spike.