World Grain - December 2021 - 16

GRAINMARKET REVIEW
Rice monthly price
(in US dollars per tonne)
RICE
Prices recover, but still down from previous year
by Chris Lyddon
Rice prices around the world have staged a small recovery in
recent months, but still remain lower than they were at this
time last year.
" Despite some recent signs of recovery, international rice
prices have been generally subdued since May 2021, reflecting
currency depreciations against the US dollar and efforts to
attract fresh sales, held off by high freight costs and container
shortages, " the United Nations Food and Agriculture Organization
(FAO) said in its twice yearly Food Outlook report,
published on Nov. 11. Its index of all rice prices was down by
9.7% in October compared with May and 7.9% lower than its
October 2020 level.
FAO went into more detail in its Rice Price Update for November
2021, published Nov. 4, in which it said prices in October
were 1.2% up from the previous month.
" Export prices edged up in all the major market segments in
October, " it said. " For Indica and Glutinous rice, gains were
in the order of 1.0%, as the onset of harvests in various Asian
suppliers and currency movements tended to cap increases. "
Japonica prices were up by 1.6% on the month, with aromatic
rice up 2.2% " reflecting some more support provided
in these segments by lowered expected output of Basmati in
India and tight short-grain supplies in Vietnam. "
" Export prices of Indica rice followed mixed trends in the
major Asian exporters in October, " FAO said. " In India, quotations
of white whole-grain rice slipped to 11-month lows, as
the Rupee weakened against the US dollar and Kharif crops
reached the harvesting stage. In Thailand, low demand and a
weaker Baht tended to offset support provided by concerns
over flood-induced damage to crops, keeping whole-grain
prices little changed month-on-month.
" Market sentiment was firmer for fully broken rice in both origins,
reflecting seasonally tight availabilities, which in the case of
India were magnified by a record-breaking export pace to Asian
and African destinations. Steady improvements in trading activities
also buoyed offers in Pakistan and Vietnam, even though in
the latter, following the lifting of COVID-19 lockdowns, trade
concentrated on fulfilling previously sealed orders. "
FAO reported that " some disappointment over milling
yields propped prices further up in the United States, while
Uruguayan values steadied. "
" By contrast, efforts to attract buyers and weaker currencies
lowered prices in Argentina and Brazil to one-year lows, " it said.
16
Rice (Thailand), 5% broken, white rice (WR), milled, indicative
price based on weekly surveys of export transactions, government
standard, f.o.b. Bangkok.
In its Grain: World Markets and Trade report of Nov. 9, the
USDA's Foreign Agricultural Service (FAS) said that " over
the past month, US quotes remained unchanged at $600 per
tonne, while Uruguayan quotes dropped $35 to $545 per
tonne due to ample supplies. "
A fall in prices quoted in Thailand to $385 per tonne, reflected
" a return to normal market conditions following a surge of
shipments in September and early October, " the report said.
" Vietnamese prices trended up amid tight supplies and strong
domestic demand, with an $8 increase to $433 per tonne. "
FAS put Pakistan price quotes $7 lower at $363 per tonne,
influenced by the weakening rupee and continued container
shortages.
" Indian prices rose $5, but remain very competitive at $355
per tonne, amid robust supplies and steady demand, " FAS
said.
The International Grains Council's version of price developments,
in its Oct. 21 Grain Market Report, was that " international
white and parboiled rice prices were mildly stronger, "
month on month, with an increase of nearly 1%.
" Despite generally subdued demand, quotations in Thailand
edged up as floods led to heightened concerns for the upcoming
main season harvest, " it said, quoting 5% broken as being
up by $3 per tonne, to $382 fob Bangkok.
" Vietnamese offers were supported by an upturn in activity
and strong local demand following a relaxation of COVID19-linked
movement restrictions, with the 5% grade increasing
by $8, to $428 fob Ho Chi Minh. In contrast, Indian offers were
a touch softer, while fob values in Pakistan were steady. "
Chris Lyddon is World Grain's European correspondent.
He may be contacted at: chris.lyddon@ntlworld.com.
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December 2021 / World Grain / World-Grain.com
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Source: USDA; World Bank
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World Grain - December 2021

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