Asia Rice-Thai traders hope for boost in shipments from Iraq deal

* India prices drop to $365-$370 a tonne from $368-$372
* Rains delay harvesting, damage paddies in many Indian
states
* Bangladesh rice output may jump 2.27% in May-April- USDA
* Vietnam's jasmine rice prices climb to $520/tonne

By Swati Verma
BENGALURU, Nov 7 (Reuters) - Thai rice export prices were
little changed this week, but traders hoped a deal with Iraq
could bolster shipments, while lacklustre demand and a slightly
weaker rupee weighed on rates for the Indian variety.
Local media on Wednesday reported Thailand signed a deal to
sell rice to Iraq, nearly 10 years after losing contracts over
quality concerns.
Traders said they hoped the new Iraqi market could jumpstart
fresh demand for Thai rice.
Also, fresh supply, which is expected to enter the market in
the coming weeks, could potentially bring down Thai prices, they
added.
Thai exports have been hurt by the relatively higher prices
for the variety from Thailand, especially compared with
Vietnamese prices, mostly due to a strong baht -- Asia's
best-performing currency this year, trader said.
One Thai trader said he was unable to sell any rice for more
than one month because customers turned to cheaper options from
Vietnam.
"It's been terrible. We've lost a lot of income," said
another trader, who has been facing the same problem for three
months.
Thailand's benchmark 5-percent broken rice RI-THBKN5-P1
prices were quoted at $390-$408 a tonne, versus $390-$413 last
week.
In Vietnam, rates for 5% broken rice RI-VNBKN5-P1 were
unchanged from last week at $345-$350 a tonne on Thursday amid
lacklustre trading.
The country's export prices had risen to a
four-and-a-half-month high last month.
"Low supplies at the end of the summer-autumn harvest have
helped keep prices from falling," said a Ho Chi Minh City-based
trader.
However, no deals were struck this week as most buyers were
waiting for new supply from the autumn-winter harvest in the
Mekong Delta, which is expected to come in bulk in December,
another trader said.
"While prices of the regular 5% broken rice stayed flat,
prices of jasmine rice have climbed up to $520 per tonne due to
tight supplies," he added.
Top exporter India's 5 percent broken parboiled variety
RI-INBKN5-P1 was quoted around $365-$370 per tonne this week,
down from $368-$372 last week.
"Demand is weak. We are waiting for the new season supplies
that could rise from this month," said an exporter based at
Kakinada in the southern state of Andhra Pradesh.
Many rice growing states received rainfall in the last two
weeks, which delayed harvesting and damaged paddy crops ready
for harvesting, exporters said.
In Bangladesh, rice output is expected to jump 2.27% to 35.8
million tonnes in the May-April marketing year, thanks to
favourable weather, the U.S. Department of Agriculture (USDA)
said.
Rice imports are expected to hit 50,000 tonnes in the year
to April, down 50% from a year earlier, USDA said in its latest
report on Bangladesh, released this week.