SSRice Market Summary - Weekly

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.

Floods in Italy, Cyclone Mocha and impact on Bangladesh and Myanmar, heatwave across Asia plus more El Nino fears are a growing fear as markets cheered the extension of the grain export deal as global grain markets turn bearish, rice markets stay firm, while global financial markets focus on U.S. Debt ceiling, inflation and recession worries that persist

The big news this week comes from the weekend’s elections in Thailand, and one that the press seems to report as one that will test the Kingdom’s continued support for the Military, while some old names seem to return to the news, especially with Paetongtarn Shinawatra’s campaign which is seen gathering pace.

The big news this week seems to come from markets that have sold to Indonesia, as Thai and Viet sales seem to have run into markets that have made short cover buying a challenge, as margins and profits from sales are being squeezed. 

Yes, markets are off the highs, which seem to have coincided with a weak dollar, and more so due to news reports of a 330 TMT NFA import which was seemingly being pitched in Manila, but this was also short lived, and some see this as a dampener to the softer prices we have.