Mintec Indian rice prices in October have fallen to the lowest levels seen this year, mainly driven by sluggish demand. Demand for Indian rice, the top exporter, has been slow as buyers continue to delay purchases on anticipation of further drop in prices. Indian rice prices have been trending down since the beginning of the year, with trades almost inexistent, despite the low prices. As a result, Indian rice exports in August fell to 644,249 tonnes (-29% y-o-y).
Meanwhile, Vietnamese rice prices have been trending high since April, reaching the highest level in August, due to limited domestic supplies offsetting low demand. However, prices have eased in September, falling 4% m-o-m over concerns that the Philippines (Vietnam’s largest rice export market) would reduce its import volumes.
In Thailand, rice prices have also been trending up, driven by strong Thai baht, which has maintained Thai rice prices higher than competitors, consequently impacting demand. In addition, drought conditions in the country have been impacting the rice crop and increasing speculations over a reduced yield for 2019/20.