Buyers sit out as rice harvests loom
Buyers sit out as rice harvests loom
BANGKOK (Reuter): The world's two biggest rice exporters are
currently finding few buyers as prices drift languidly with the
onset of the rice harvest in India and the approach of the new
crop in Thailand, traders said yesterday.
Thai traders said they have received inquiries from the
Philippines and Indonesia although no orders had been placed so
far. Traditional importers like China and Iran have also slowed
down their purchases, trade sources in Bangkok said.
"It seems they (the buyers) are waiting for new crop to enter
the market to pull prices down before making any decision," a
Thai trader said.
The new Thai rice crop is expected to enter the market in
November.
Thai benchmark 100 percent B grade rice was quoted at around
US$325-$340 a ton FOB Bangkok, down slightly from $335-$340 last
week. Demand for top grades like fragrant rice is still strong,
trade sources said.
"Exporters are only buying rice from millers to cover
outstanding orders," a trader said.
Traffic at Bangkok's port was being hampered by rain. Only six
vessels were loading a total of 28,500 tons of rice for shipment
to China, Malaysia, Japan, Singapore and an unknown destination
in Africa.
In India, the winter rice harvest started during the week in
the northern states of Punjab and Haryana.
"According to trade sources, the winter output is expected to
be around 75 million tons," said Mulraj Tanna, a Bombay
foodgrains exporter. Output last year was 71 million tons.
The winter harvest starts in early October and runs to late
November. India harvests two rice crops. Some 85 percent of its
output comes from the winter crop.
Punjab and Haryana contribute nearly 25 percent of the
country's total rice production. In other rice producing states,
harvesting is expected to start in a week.
Export prices from the new crop were almost the same as last
week, traders said.
Indian five percent broken long grain non-Basmati rice for
October shipments was quoted at around $285-$290 a ton FOB, 10
percent at $275, 15 percent at $250 and 25 percent at $235 a
ton, they said.
Traders said Indian export contracts would go up once
harvesting in the other rice producing states starts and the
level of total rice production is known.
"There are good export inquiries mainly from CIS countries. We
expect to export substantial quantities of rice to them this
season once the crop output is finalized," said Prem Garg, a
foodgrains exporter in New Delhi.
Prices of Vietnamese rice remained firm in active trade
despite transport delays caused by the annual flooding of the
Mekong river delta, dealers said.
Traders quoted five percent broken grade at around $276-$280 a
ton FOB Saigon Port, little changed from last week's $280-$283.
Prices for ten percent broken were around $10 below this level.
"The flooding is causing transport delays. There are also
problems with storage, but the situation doesn't look any worse
than last year" said one Ho Chi Minh City dealer.
Traders said current buyers for higher rice grades included
China, Peru and Malaysia as well as traditional destinations in
the Middle East and Africa.
But they said prices for lower-grade 25 percent broken
currently being shipped to Sri Lanka had fallen to around $208-
$210 a ton C&F.