LIVE RICE INDEX

INDIA:

Indian white rice prices have softened this week as harvesting of the main (kharif ) crop has progressed well following dry weather, thus increasing availability. IR 64 5% broken is currently listed at US $420 PMT FOB and PR 106 5% broken at US $480 PMT. Demand for Indian white rice remains slow, although unconfirmed reports suggest that China’s COFCO has agreed to buy 100,000 MTS of various qualities of white rice from India. 

Indian Basmati exports between April and October 2012 totalled 1.92 million MTS, up 17% on the corresponding period last year as a result of increased demand from traditional buyers in the Middle East and sales to new buyers in Africa. However, sales to India’s third largest Basmati export market, Iran, may soon be reduced as Iran is planning to rework its multiple exchange rate system in order to negotiate the various trade sanctions imposed upon the country.

VIETNAM:

Vietnamese prices are softer again this week, despite supply remaining very tight and exporters still having to fulfill their commitments to Bulog of Indonesia, Bernas of Malaysia and West African Buyers. 5% broken white rice is currently listed at US $430 PMT FOB, whilst 25% broken stands at US $400 PMT FOB. There has been a lot of speculation as to what is causing the prices to soften, although there is certainly less demand from local buyers than there has been in recent months. 

Some exporters may also be eager to clear their warehouses due to fears of flooding which could damage their stock and as they begin to prepare their facilities for 2013 crop arrivals (although these are unlikely to begin until February at the earliest).

PAKISTAN:

Pakistani white rice prices have remained stable this week as the market has reopened quietly following the Muharram Ul Haram New Year holidays. IRRI-6 5% broken white rice is unchanged at US $435 PMT FOB. The attention of the market is largely focused on East Africa and China as exporters are hoping for a significant increase in buying when Chinese importers are allocated their next tranche of import licences in January. Purchases of small volumes of 100% broken white rice have continued from West Africa and a single shipment is expected to be loaded from the first week of December.

USA:

The market in the south has been quiet following the Thanksgiving holiday, although domestic demand has continued for small volumes; the Kansas City Commodity Office will tender for 1,450 MTS of U.S. #5, 20% broken white rice and a further 390 MTS of U.S. #2, 7% broken white rice on 4 December. The start of the hunting season has led to a quietening of the market, although mills are booked through to the New Year largely because the 79,000 MTS awarded under the Colombia Tariff Rate Quota is required to be shipped by 31 December. Long grain prices remain unchanged, with U.S. #2, 4% broken at US $620 PMT FOB and U.S. #1, parboiled 4% broken at US $625 PMT FOB. Additional offshore demand has come from the European Union as the first tender of the January 2013 Tariff Rate Quota has been issued, totalling 9,681 MTS of milled rice of U.S. origin.

SOUTH AMERICA:

Prices in South America are softer this week, both Argentine and Uruguayan 5% broken white rice varieties are now quoted at US $630 PMT FOB. Although the Brazilian government continues to attempt to ease the situation by auctioning paddy from its stocks, the significantly smaller crop harvest in the 2011/12 season compared to 2011 could ultimately mean that Brazil becomes a net importer of rice this year. Estimates suggest that Brazil’s total imports for 2012 are likely to reach at least 900,000 MTS which is a 50% increase from the year before.

Courtesy: Live Rice Index.