Thai rice prices hit one-year low

Thai rice prices fell to their lowest in over a year as bidders were forced to reduce their high prices in a recent auction held by Indonesia, while Indian rice export prices extended losses this week to hit an eight-month low.

Thai 5% broken rice fell to the range of $550 to $565 per ton this week, the lowest since July 20, 2023, down from $585 quoted last week. The market still sees Thai prices as too high, said a Bangkok-based trader. But flash floods have been hurting short-term harvest yields, so prices can improve down the road.

Another trader said prices were weighed down by competitors and that Thai bidders lost out to other exporters in a recent auction held by Indonesia due to higher prices.

There will be demand from African and European customers before October because those orders would be delivered before late December, the trader said.

Indian 5% broken parboiled rice was quoted at $534 per ton this week, the lowest since mid-January, and down from the $540 a week earlier.

Meanwhile, Vietnamese 5% broken rice was offered at $567 per ton on September 12, down from $575 a week ago, according to the Vietnam Food Association.

A trader based in Ho Chi Minh City revealed that trading activity remains slow while demand is weak.

Traders said the ongoing floods in northern Vietnam might have an impact on rice production, though rice for export is mostly grown in the Mekong Delta in the south.