Asia rice prices barely changed, but set to fall soon

Asian rice prices changed only slightly this week as fresh demand from the Middle East and the Philippines helped support Vietnamese prices, traders said. But rice prices in Thailand, the world’s biggest exporter of the grain, were unchanged and likely to fall over the next few weeks as traders braced for the government to release its stocks. In Vietnam, the second biggest rice exporter, prices edged up this week on loading demand for Iraq and the Philippines after a major harvest had ended, Vietnamese traders said. The Vietnamese 5 percent broken grade white rice rose to $360-$365 a ton, free on board basis, from $350-$365 in late April. The 25-percent broken rice also increased to $330 a ton from $325-$330 a ton. "The harvest has ended and farmers raise their paddy prices when they see ships are coming to load rice," another trader said. He did not give an exact shipment volume this week but said at least 50,000 tons were now being loaded at Saigon Port. At Saigon Port, Vietnam’s largest port, several ships were loading rice for Iraq and also to fill small orders from private companies in the Philippines. Manila has allowed private firms to import 200,000 tons of rice until mid-September. So far this year Vietnam has exported more than 2.2 million tons of rice, of which 72 percent has gone to Asian countries, followed by 14.6 percent to Africa and 9.6 percent to the Middle East, the Vietnam Food Association said. In Thailand rice prices were quoted mostly unchanged on the back of government intervention, which helped prop up prices. But prices lacked momentum on thin demand as cheaper prices lured most buyers to shift to purchases from Vietnam, exporters said. The price of benchmark 100 B grade Thai white rice was quoted unchanged at $465 per ton. "Prices are now supported by limited supply as most of the rice is bought and kept in the government stocks," a Thai exporter said. Thai rice prices were expected to fall over the next few weeks and were likely to drag down Asian rice prices in general on concerns over rising supply as rumours spread that the Thai government would release its rice stocks soon, traders said. "Buyers expected the Thai government to release stocks after they settle the chaos there, so prices may drop," one trader said, without giving any timeframe for the lower price. The Thai government has declared a week-long holiday this week as it tackles escalating anti-government protests in the capital, Bangkok that have killed 39 people and wounded more than 300. The cabinet agreed on Tuesday a framework to sell some of the 6 million tons of rice stocks on the market, urging the commerce minister to sell them at an "appropriate" time and in quantities of no more than 300,000 tons each. But it gave no further details on when the rice stocks should be sold.