thestar online
Thursday June 26, 2008
BANGKOK: Vietnam lowered the minimum export price for rice yesterday and the Thai market fell another 3%, signalling improving supplies in coming months and easing concerns over shortages of Asia’s staple food.
A lifting of export bans by Vietnam and Cambodia is expected to give private importers and governments, which had scrambled to secure supplies in recent months, some breathing space and help cap food-driven inflation.
“Buyers are waiting to see the bottom level for rice prices in July when supply from the two countries peaks,” a Thai exporter said, referring to supplies from Thailand and Vietnam.
The price of Thai 100% B grade white rice, the world’s benchmark, eased to US$770 per tonne from last week’s US$795 per tonne. It is now nearly 30% lower than a record high quote of US$1,080 per tonne on April 24.
Prices in Vietnam, which vies with India to be the world’s number two exporter behind Thailand, appear to be moving in close lock-step ahead of the harvest of an unusually large “extra” June–July crop planted to cash in on the soaring prices.
Following on from its lifting of an export ban this month, Vietnam had cut its minimum price for shipments by 2.5% to US$780 per tonne from last week’s US$800 due to slowing export demand, the Vietnam Food Association said.
“Foreign buyers are still expecting India to lift its export ban so they are not rushing to sign deals with Vietnam yet,” a trader in Ho Chi Minh City said. “And with Thai prices at about US$770 per tonne, Vietnam prices would have to fall further.” – Reuters
Thursday June 26, 2008
BANGKOK: Vietnam lowered the minimum export price for rice yesterday and the Thai market fell another 3%, signalling improving supplies in coming months and easing concerns over shortages of Asia’s staple food.
A lifting of export bans by Vietnam and Cambodia is expected to give private importers and governments, which had scrambled to secure supplies in recent months, some breathing space and help cap food-driven inflation.
“Buyers are waiting to see the bottom level for rice prices in July when supply from the two countries peaks,” a Thai exporter said, referring to supplies from Thailand and Vietnam.
The price of Thai 100% B grade white rice, the world’s benchmark, eased to US$770 per tonne from last week’s US$795 per tonne. It is now nearly 30% lower than a record high quote of US$1,080 per tonne on April 24.
Prices in Vietnam, which vies with India to be the world’s number two exporter behind Thailand, appear to be moving in close lock-step ahead of the harvest of an unusually large “extra” June–July crop planted to cash in on the soaring prices.
Following on from its lifting of an export ban this month, Vietnam had cut its minimum price for shipments by 2.5% to US$780 per tonne from last week’s US$800 due to slowing export demand, the Vietnam Food Association said.
“Foreign buyers are still expecting India to lift its export ban so they are not rushing to sign deals with Vietnam yet,” a trader in Ho Chi Minh City said. “And with Thai prices at about US$770 per tonne, Vietnam prices would have to fall further.” – Reuters
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