ASIA RICE-Thai rates soar to 15-year highs as India looks on from two-month peak

Prices of rice exported from some Asian hubs climbed on Thursday, as supply constraints drove Thai rates to over fifteen-year highs, while prices for India's parboiled variety trailed behind at a two-month peak.

Thailand's 5% broken rice prices RI-THBKN5-P1 were quoted at $655-$660 per metric ton, its highest since early October, 2008, versus last week's $646-$650.

Prices of the Thai variety are also set to log their biggest ever yearly gain since LSEG data going back to early 2000's, up around 41% for the year so far.

Traders attributed the price increases to new demand from overseas, particularly Indonesia and the Philippines, as supply has become short ahead of the New Year holiday.

India's parboiled rice exports prices extended gains this week to their highest level since October, on limited supplies and tracking gains in prices offered by other competing countries.

"White rice prices have been rallying in the past few weeks, which is making parboiled varieties attractive for price-sensitive consumers," said a Mumbai-based exporter.

India's 5% broken parboiled variety RI-INBKN5-P1 was quoted at $508 to $515 per metric ton, from last week’s $505-$512, and looked set for its biggest annual rise since 2004.

India's rice output is expected to drop this year for the first time in eight, raising the prospect that New Delhi will extend curbs on exports of the grain to keep a lid on food prices ahead of elections.

Vietnam's 5% broken rice RI-VNBKN5-P1 was offered at $653 per metric ton, down from last week's $660-$665. It is also set to log highest yearly gains at 44% so far.

"Prices edged down slightly this week as the market in general is tepid now, with traders awaiting new supplies from the Winter-Spring crop," said a trader based in the Mekong Delta, Vietnam's rice bowl.

"Looking forward to the first half of 2024, Philippines, China and Indonesia will remain Vietnam rice's top destinations, while exports to Ghana, Egypt may be slightly lower," the trader added.