Asian rice: fresh demand fails to lift prices

BANGKOK  (January 16, 2011) : Asian rice prices were barely changed this week despite fresh demand from the Philippines and Indonesia as harvests mean there will be plenty of grain in top producers Thailand and Vietnam in coming weeks, traders said. Thailand's benchmark 100 percent B grade white rice was unchanged from last week at $535 per tonne, exporters said on Wednesday.
Indonesia is looking for at least 170,000 tonnes of Thai rice for delivery from January to March. The Philippines, the world's biggest rice buyer, said it may go back to the market to buy rice in February to hold down domestic prices. "The news about Philippine and Indonesian purchases may help boost prices eventually, but not right now, as buyers know there's plenty of rice here in Thailand and in Vietnam," a Bangkok-based trader said.
Thailand is approaching the end of harvesting of its main crop and Vietnam, the world's second-biggest rice exporter, is about to harvest its main, winter-spring crop. Rice prices in Vietnam softened this week even though the authorities raised the floor price for its most common export grade Although the Philippines has said it could buy rice in February, it has not announced any specific volume, so the plan has yet to have any impact on prices, traders said.
"Demand by trading firms is low right now, so prices have eased a bit this week," said a Vietnamese trader at a foreign company in Ho Chi Minh City. Indicative quotations for the 5 percent broken rice eased to $480 a tonne, free on board, from $495-$520 last week, with $520 the export floor imposed by the Vietnam Food Association last month.
The floor for the 25 percent broken rice was raised to $490 a tonne from Monday but the price in the market stood at $470 a tonne and there was no new demand yet, traders said. "Loading for Indonesia and Bangladesh will end in February and without new demand, prices will drop when the next harvest comes in," another trader said.
WEEK AHEAD Indonesian state buying body Bulog is expected to announce the results of its tender to buy 170,000 tonnes of rice.

(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1144192:news.html)