Thai rice prices hit seven-month high on China purchase deal

Thailand’s rice prices climbed to their highest in more than seven months, following a deal with China to buy Thai rice, while rates in India and Vietnam strengthened on higher demand.

Thailand’s 5% broken rice was quoted at US$415 per metric ton, up from US$400 last week, hitting its highest level since May 8.

Prices have continued to increase after in mid-November China said it would buy 500,000 tonnes of Thai rice, a Bangkok-based trader said.

Indian rice export prices edged higher this week as demand increased slightly.

An exporter based in New Delhi said demand was gradually growing “at lower price levels” as Asian and African buyers made small purchases.

The Indian rupee hit a record low against the dollar this week, lifting traders’ rupee returns from overseas sales.

India’s 5% broken parboiled variety was quoted this week at US$348-US$356 per ton, up from the last week’s US$347-US$354. Indian 5% broken white rice was priced at US$345 to US$350 per ton this week.

Vietnam’s 5% broken rice was offered at US$370-US$375 per ton on Thursday, up from a range of US$365-US$370 a week ago, according to traders. Prices were at their highest level since November 6.

A trader based in Ho Chi Minh City said there were signs of higher demand from markets “such as China, Indonesia, Bangladesh and Africa,” adding that prices of Vietnamese rice are still more competitive than Thailand’s.

Meanwhile, Bangladesh has approved the purchase of 50,000 tons of rice through an international tender at a price of US$351.11 per ton, CIF liner out, the lowest bid submitted by trading house Bagadiya Brothers.

The deal continues Bangladesh’s heavy rice-buying in international markets, as authorities issued a series of tenders in recent months to try to cool domestic prices. Another tender to import an additional 50,000 tons of rice also closed early this week.