Thai rice was steady this week amid lacklustre overseas demand, but traders said on Wednesday they expected prices to drop over the next few weeks ahead of the October harvest and the lack of a government-backed buying scheme. The price of benchmark 100 percent B grade Thai white rice was steady at $600 baht per tonne, while the 5 percent broken grade was also offered steady at $585 per tonne, the traders said.
Prices were unaffected by an announcement last week by the commerce minister that the government had sold a total of 7.3 million tonnes of rice from stocks to Indonesia, the Philippines and China, as the buyers denied the deals. "The market did not recognise the deals and there was no impact on prices," said a Bangkok-based trader.
Traders expect Thai rice prices to fall over the next few weeks as farmers are about to start harvesting the major crop in October, when around 25 million tonnes of paddy is due to come to the market. The government insists it will renew an intervention scheme to support farmers and to shore up prices, but the proposal has yet to be approved by the cabinet.
In Vietnam, rice prices were steady at relatively firm levels supported by loading demand, traders said. Several buyers have recently struck small deals to sell rice to Africa. The 5-percent broken rice held steady at $455 a tonne, free-on-board (FOB) Saigon Port, against $455-$465 last Wednesday. The 25 percent broken rice was also unchanged at $425 a tonne from $425-$435 a tonne a week ago. "Loading demand remains high and that also keeps prices up while there is no new buying demand," said an exporter from the Mekong Delta province of An Giang.
INDIAN SALES Traders said demand for common Indian rice varieties improved as traditional buyers in Africa seek supplies for October shipment, which helped boost prices. Prices of common rice varieties rose by about $15-$20 per tonne to $395-$445 per tonne FOB. "Export demand is building up but the late revival of monsoon rains will delay new supplies as the rice crop has to be dried before harvesting," said a Delhi-based trader.
India's summer sown rice is planted in June-July and harvested from October onwards after the end of the four-month long rainy season in September. India's monsoon rains have picked up since the last week of August with three straight weeks of above average rainfall soaking rice growing areas.
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