Supply concerns lift Indian rates; Vietnam loses out to competition



* Thailand prices slip to $416-$420/t

* China, Philippines have cut rice purchases from Vietnam - trader

By Bharat Gautam

Aug 18 (Reuters) - Indian rates for rice exports rose this week as lower planting fuelled concerns over supplies from the new season, while Vietnamese prices and quality of the grain lagged peers.

Top exporter India's 5% broken parboiled variety RI-INBKN5-P1 was quoted at $365-$371 per tonne, up from last week's $360-$366.

"Weather is not supporting crop in eastern and northern India. Traders have started quoting higher prices for paddy assuming lower production from the new crop," said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Neighbouring Bangladesh will begin selling rice at a cheaper rate for 5 million poor families and expand such sales from September, in a bid to rein in soaring domestic prices, which saw yet another uptick after the government hiked domestic oil prices.

"I hope domestic rice markets will be stable after the beginning of the sales," Bangladesh Food Minister Sadhan Chandra Majumder said, adding that the country has adequate stock.

Meanwhile, Vietnam's 5% broken rice RI-VNBKN5-P1 were unchanged from the previous week at $390-$393 per tonne on Thursday.

Vietnamese prices are lower than Thailand's due to weak demand and strong supplies from the summer-autumn harvest, a Ho Chi Minh City-based trader said.

The country's two key export markets, China and the Philippines, have reduced purchases, with buyers from the Philippines more interested in low-priced rice, the trader said.

Prices have also fallen behind because the quality of rice from the summer-autumn harvest was not better than the grain from competitors, traders said.

Thailand's 5% broken rice prices RI-THBKN5-P1 dipped to $416-$420 per tonne from $420-428 last week. Despite declining shipping costs, there haven't been large orders, a trader said.

Internal trade has kept domestic prices supported, another trader said, adding that there has been trading activity between the Middle East and Europe through Thailand, with continuous supply due to good rain and favourable weather.
Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Chayut Setboonsarng in Bangkok and Ruma Paul in Dhaka; editing by Uttaresh.V

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.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.