Vietnamese rice prices reportedly slumped to their lowest in nearly 12 years in the week ending 8th September, driven by sluggish demand. Declining interest from the Philippines, as the country is forecast to reduce rice imports, has pressurised the Vietnamese rice market. The Mintec Vietnamese rice price has been trending down since the beginning of the year, with the price falling 8.5% between January and August.
However, Indian rice prices rose slightly between the same period, driven by strong demand from African markets and an appreciation of the Indian rupee. Meanwhile, Thailand’s rice prices fell, as new supply entered the market following harvest of the second main crop last month. However, concerns persist over supply, after a tropical storm damaged more than 240,000 hectares of agriculture land; months after long droughts hit the country. Therefore, Thai rice prices are likely to fluctuate over the next few months as the impacts from the drought and flood on rice output are yet to be realised.
Nevertheless, Mintec Thai rice prices remain at premiums levels against Vietnam and India. Thai exporters have been struggling since the beginning of the year due to less competitive prices, mainly as a result of a strong Thai baht.