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DJ Asian Rice: Prices Steady; Strong Mkt Boosts Vietnam Offers

MANILA (Dow Jones)--Asian physical rice export prices were steady to higher Thursday amid thin trade with offers in Vietnam being boosted by strong domestic market, exporters said. While the Vietnamese government continues to implement a ban on new export contracts, indicative offers are rising on strong demand in the local market. "There has been no trade this week (in the export market) but exporters are aggressively buying paddy to fulfill existing contracts," one exporter based in Ho Chi Minh City. At the rate suppliers are buying paddy, local prices could continue to rise in the coming weeks, exporters said. "We don't know when the government will lift the ban but we have many outstanding contracts to keep exporters busy," a second exporter said. The indicative price for Vietnam's 5% broken is higher by $7 at $315 a metric ton, FOB, Ho Chi Minh City, while 25% broken is up $2 at $297/ton. In Thailand, prices were steady Thursday as limited supply in the local market was working to support prices, exporters said. They said continuous rainfall in some rice producing areas kept farmers from drying their paddy, limiting supply available for export. This will prevent exporters from offering price discounts despite a favorable exchange rate for export trade. "Most of our trade are limited to small quantities for export to West Africa," one Bangkok-based exporter said. Meanwhile, the Thai government has extended by another month a price intervention program for paddy, intended to keep local prices at profitable level for local farmers. The latest program, which was supposed to end July, will be implemented up to the end of August, a second exporter said. Thai 100% grade B was offered steady Thursday at $335-$336/ton, FOB, Bangkok, 5% broken at $325-$330/ton, while parboiled 100% sortexed was offered at $335-$338/ton. In other news, Thailand's rice exports from Jan. 1 to July 25 rose by 10.3% on year to 4.60 million tons, the Commerce Ministry's Department of Foreign Trade said Wednesday. Rice exports from July 1-25 totaled 532,267 tons, up 17.5% on year. Thailand is the world's largest rice exporter.

 

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