Asian rice prices stayed mostly steady this week and were likely to remain firm over the next few months, supported by demand for year-end celebrations, exporters said. The benchmark 100 percent B grade white rice was quoted unchanged at $540 per tonne, they said.
"Demand for Thai white rice was thin but the price remained firm as it was supported by strong demand for parboiled rice," said one exporter, referring to the semi-boiled rice produced from the same grade of white rice paddy. Thailand, the world's biggest rice exporter, planned to promote the sale of parboiled rice in a bid to offset falls in white rice exports, a Commerce Ministry official said.
The price of Thai 5 percent broken grade white rice was quoted at $520 per tonne, well above Vietnam prices of $380-$385 per tonne, traders said. The prices of low quality 25 percent broken grade Thai rice was $425 per tonne, higher than Vietnam's price of around $325 per tonne, they said. Thai trade representatives and exporters plan to visit South Africa to drum up sales while demand is strong.
In Vietnam, the world's second-biggest exporter, prices were also steady, with domestic rice prices quoted at around 5,600 dong ($315) per kg this week. Vietnam rice exports are expected to rise in the last quarter of this year as demand rises during Christmas and New Year celebrations, traders said.
The US Department of Agriculture revised up slightly Vietnam's expected rice production this year, projecting an increase in planting areas pushing output to 35.99 million tonnes, from 35.92 million in its previous forecast. It also revised up Vietnam's rice exports this year to 5.7 million tonnes from 5.5 million tonnes in its previous forecast, citing the pace of exports so far this year.