Thai rice prices rose this week to their highest in more than nine months on fresh demand from Japan and Africa and thin domestic supply, while Vietnamese rice export prices stood unchanged, traders said on Wednesday. Thai 5-percent broken rice rose to $398-$400 a tonne, FOB Bangkok, from $385-$390 a week ago. At $400 a tonne, the price is the highest since July 24, 2015, according to Reuters data. Thailand is the world's second-biggest exporter of the grain after India.
"Domestic prices went up because Japan is buying Thai rice and African clients are returning," a trader in Bangkok said. Thailand has been hit by the worst drought and water shortage in two decades and the government has advised farmers to avoid growing their second crop. "Our supply remains low. With no second crops, exporters are holding on to their stocks, so prices go up," another trader said.
In Vietnam, rice quotations for spot shipment were steady this week, while prices for the grain scheduled for loading from next month rose in anticipation of purchases by the Philippines, traders said. Vietnam's 5-percent broken rice stood unchanged in the past week at $370-$375 a tonne for spot shipment, free-on-board (FOB) Saigon Port, from a wider range of $365-$385 two weeks ago. However, for loading in June/July the grain is quoted at $385-$390 a tonne, FOB basis. The 25-percent broken rice also edged up at $355-$360 a tonne, from $345-$350 a week ago.
"The Philippines is holding a presidential election and we expect a rice import quota to be allocated to private firms after the election," a trader at a foreign firm in Ho Chi Minh City said. "Exporters are quoting higher prices for loading in June and July because of the Manila demand and due to the low quality of the summer-autumn paddy," he said. The Philippines, one of Vietnam's major rice importers, has said it planned to import 500,000 tonnes to boost state reserves.
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