SSRice Market Summary - Weekly

Breaking – India’s ban on white rice export confirmed on 20 July 2023. Last week’s news continues to leave a taste with last night (20 July) notice from the DGFT website of a “prohibition” status for non-basmati white rice (specifically HS code 10063090, effective immediately, while leaving the window open for the government of India to make exceptions. 

Perhaps the market chatter fulcrum this week came from the Bloomberg story we carried in the link above.

Markets this week saw one key highlight in Bulog’s interest and 8 Jul tender for 300 TMT of rice, to be delivered by 15 Sep as sellers face the challenge of bidding for this demand. Other demand saw Iraq, Philippines and Malaysia are steady buyers and as broader weaker demand came mostly from Africa and Middle East markets that are stocked with cheaper rice procured over the start of the year.

The week’s highlights show a continued undercurrent of Indonesian demand lead the influence in a weakening global demand, as more buyers look towards the next set of crop arrivals, while the current active arrivals show mostly in Vietnam, where oversold exports seem to be providing ample support to the Viet market with short sellers in Vietnam feeling more heat from firm markets, especially in white rice exports. 

The week’s highlights revealed a document from India that showed what could be construed as a lifting of some restrictions faced in broken rice sales, as special allowances were addressed, conditions for purchases, and a list of conditions which seem to open the door to a likely rise in Indian broken rice sales ahead, the devil will be in the details

The week’s highlights really refocuses on the weather element which has been a focus on the global press with lots of worries over El Nino, droughts, even excessive and untimely weather events, while the rice trade sees India, Pakistan and Myanmar slow, with monsoon focus ahead

The week’s highlights saw markets quieten, there was talk of an Indonesian interest returning to markets, but the emphasis was on the next crop, El Nino worries and the shape of production ahead while we saw the dollar rise from the lows of last week while we focus on “stealth buying” as a subject as we have seen Indonesia’s Bulog

The week’s highlights saw Indian parboiled rice prices rise to close-in on $400 PMT levels, while we also saw focus in global markets and both the houses of representatives and U.S. senate vote overwhelmingly to pass a bill allowing the U.S. to borrow money, thereby lifting the debt ceiling and preventing a U.S. default in financial markets.

India’s government officially clarified on special broken rice exports permitted by the Government of India to countries seeking to meet food security needs, with these requests expected to come from the government representing import needs, as markets eased in terms of activities, we saw Thai prices ease as the dollar strengthened, while most other origins were up or steady compared to a week ago.