Asian Rice: Prices Steady At High Levels On Surging Demand

Asian physical rice export prices were unchanged from last week Wednesday as buyers continued to make inquiries for Thai and Vietnamese grain, market participants said.

In Thailand, exporters aren't keen to sign new deals as local prices have been rising steadily.  "Our company isn't really interested in selling rice, especially parboiled. We don't know when this price increase will stop and we could lose a lot of money," one exporter said. Strong domestic prices led offers for parboiled varieties to breach the $500 a metric ton level last week, FOB basis, participants said.

The commerce ministry may abandon an earlier plan to hold an auction aimed at the export market to sell a portion of its rice stocks, they said. By maintaining its rice stocks, the ministry may be able to stem further price rises, since traders will be aware a ready supply of rice could at any time be released into the market. "The government is beginning to worry about local prices. Of course, they would always prioritize the domestic market," a second exporter said.

In Vietnam, prices were offered unchanged Wednesday on steady demand in the local market from exporters who need to fill pending contracts. The government is continuing a ban on private exporters signing contracts for March shipment. One exporter said the government is likely to extend the ban through April.