Thai, Vietnam rice prices hit near two-year highs

Rice export prices in Vietnam and Thailand surged to near two-year highs this week, driven by concerns over potential supply disruptions and robust demand, while Indian prices softened as improved supply from the new season eased the situation. Vietnam’s 5% broken rice fetched $480 to $490 per metric ton, marking the highest level since December 2024, up from $470 to $480 a week earlier.

Traders noted that the Philippines has restarted rice purchases from Vietnam, contributing to the price increase. Currently, most of the 5% broken rice is bound for Africa, with only 25% and 100% breaking being bought by the Philippines. Vietnam's rice exports in October posted a 37.2% year-on-year increase, totaling 475,000 tons, bringing the cumulative shipments from January to October to 6.83 million tons, as per government data.

Thailand's 5% broken rice prices climbed to $490 to $495 per ton, its highest level since January 2025 and a rise from $480 quoted the previous week, fueled by foreign demand and a decline in supply in certain regions. Some rice-growing areas in Thailand experienced flooding, leading to a reduction in production. Concerns over El Niño and the limited availability of the next crop until next year have maintained prices at elevated levels.

In India, the 5% broken parboiled variety was quoted at $382 to $386 per ton, the lowest level since October 8, down from the previous week’s $387 to $392. Indian 5% broken white rice was priced at $389 to $393 per ton. With new-season paddy arrivals commencing in northern Indian states, export demand from West African countries was met, according to a Kolkata-based exporter.

Despite adequate market supply, rice prices in Bangladesh remained elevated, with traders attributing the high prices to increasing production and transportation costs due to rising fuel prices.