Thai rice prices hit 1-month peak on strong baht, supply woes

By Shreyansi Singh (Reuters) - Thai rice export prices rose to their highest in about a month this week due to a strong baht currency and persistent supply concerns, losing out to cheaper offers from other Asian hubs. Quotes for Thailand's benchmark 5-percent broken rice prices rose to $505-$533 per tonne on Thursday - the highest level since early May - from $490-$512 last week.

Reuters June 12, 2020 00:06:24 IST
Thai rice prices hit 1-month peak on strong baht, supply woes

Thai rice prices hit 1month peak on strong baht supply woes

By Shreyansi Singh

(Reuters) - Thai rice export prices rose to their highest in about a month this week due to a strong baht currency and persistent supply concerns, losing out to cheaper offers from other Asian hubs.

Quotes for Thailand's benchmark 5-percent broken rice prices rose to $505-$533 per tonne on Thursday - the highest level since early May - from $490-$512 last week.

"Our prices are higher than all of our competitors thanks to the strong baht which makes it hard to find buyers," a Bangkok-based trader said.

The baht hit a more than four month high, translating into higher export prices in U.S. dollars.

Supply concerns also persist in the domestic market despite rain that helped soften the blow from one of the worst droughts in decades earlier this year, adding to the rise in prices, another trader said.

In Vietnam, rates for the benchmark 5% broken rice remained at their highest since early 2012, at $475 per tonne, as demand remains steady though supplies rose.

"The Philippines' recently completed rice purchase and the build-up in domestic supplies have kept export prices from rising further," a trader based in Ho Chi Minh City said.

Vietnam exported 3.09 million tonnes of rice in the first five months of the year, up 12.2% from the year-earlier period.

Prices of top exporter India's 5 percent broken parboiled variety were also unchanged at $368-$373 per tonne, the lowest in over two months, amid weak demand.

The new season supplies have started in a few Indian states, but export demand is negligible, said an exporter based at Kakinada in the southern state of Andhra Pradesh.

India has raised the price at which it will buy new-season common rice varieties from local farmers by 2.9%.

Neighbouring Bangladesh, the world's fourth-biggest rice producer, will speed up rice procurement to secure supplies for relief operations amid the coronavirus pandemic, Food Minister Sadhan Chandra Majumder said.

The virus has infected 78,052 people and killed 1,049 in Bangladesh as of Thursday.

(Reporting by Rajendra Jadhav in Mumbai, Ruma Paul in Dhaka, Khanh Vu in Hanoi and Panu Wongcha-um in Bangkok; editing by Arpan Varghese and Nick Macfie)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.