India rates jump to 7-month peak on freight trains shortage
* The Philippines will be Vietnam’s largest buyer in 2022- traders
* Indian traders stopped signing Feb. export contracts- officials
* Overseas demand still muted- Thai traders
By Kavya Guduru
Jan 20 (Reuters) - Rice prices in top exporter India hit a more than seven-month high this week due to a railway wagon scarcity, while rates in Thailand reached their highest level since July on a stronger baht.
India's 5% broken parboiled variety RI-INBKN5-P1 was quoted at $375-$382 per tonne, its highest since June, up from last week's $367-$375.
"Railway wagons are not available and moving rice by trucks means spending nearly double on transportation," said a Kakinada-based exporter in Andhra Pradesh.
Nearly a third of India's rice exports for this month are stuck due to a shortage of freight trains. Most traders have stopped signing February export contracts to avoid demurrage charges, industry officials told Reuters.
Thailand's 5% broken rice RI-THBKN5-P1 prices rose to $407-$410 per tonne, the highest since last mid-July, from $404-$405 last week.
The baht THB=TH appreciated against the U.S. dollar, causing rice prices to rise, said Bangkok-based traders, adding that prices are expected to hover around these levels for a while as overseas demand is muted.
Vietnam's 5% broken rice RI-VNBKN5-P1 was offered at $395-$405 per tonne, unchanged from a week ago.
"The market is quiet, and we expect it to remain so until after the Lunar New Year holiday," said a trader based in Ho Chi Minh City, adding domestic supplies will remain low until the harvest beginning next month.
Traders forecast export prices to remain high this year on strong wheat and corn prices, and said Philippines will continue to be Vietnam's largest buyer this year.
Bangladesh started selling cut-price rice to help poor people hit by exceptionally high commodity prices during the pandemic and stepped up imports while it strengthens efforts to grow more rice.
The lowest price offered in the tender from Bangladesh's state grains buyer to purchase 50,000 tonnes of rice which closed on Sunday was $421.99 a tonne CIF liner out, officials said.
Reporting by Kavya Guduru in Bengaluru, Patpicha Tanakasempipat in Bangkok, Khanh Vu in Hanoi, Rajendra Jadhav in Mumbai and Ruma Paul in Bangladesh, additional reporting by Swati Verma; Editing by Amy Caren Daniel
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.