RPT-Asia Rice-Thai rates climb to near 2-year high as drought persists

(Repeats item first published on Thursday with no changes to
text)
* Possible deal from Cotonou boosts India market - dealer
* Vietnam prices slip to $345 a tonne
* Philippine buyers eye upcoming Vietnamese harvest
* Thai exports forecast to drop to 7-year low in 2020

By Shreyansi Singh
BENGALURU, Jan 16 (Reuters) - Thai rice export prices scaled
a more than 20-month peak this week as a persistent drought
heightened supply concerns, while improved demand from African
countries drove an uptick in rates for the Indian variety.
Thailand's benchmark 5% broken rice RI-THBKN5-P1 prices
rose to their highest since late April 2018 at $435-$445,
compared with $425-$435 last week.
Risks to supply from the ongoing drought, coupled with a
strong baht have supported Thai prices, traders said.
Exports from Thailand, the world's second largest rice
exporter after India, are forecast to drop to their lowest in
seven years, at 7.5 million tonnes, in 2020, the country's rice
exporters group said.
The baht THB=TH , Asia's strongest-performing currency in
2019, is currently trading near a more than six-year high.
In India, 5% broken parboiled rice RI-INBKN5-P1 rose to
$364-$368 per tonne from $362-$366 last week, on increased
demand from buyers in Africa.
"Rice demand has finally seen some uptick as the news of a
Cotonou (Benin) order opening soon has seen some trade
happening," said Nitin Gupta, vice president for Olam India's
rice business.
In neighbouring Bangladesh, the state is providing a subsidy
to reduce production costs and boost domestic output,
Agriculture Minister Abdur Razzak told Reuters on Thursday.
Dhaka has failed to clinch any overseas deals since a
long-standing export ban on the common variety was lifted in
May, as its rice competes with lower-prices for the grain from
India and Thailand. Meanwhile in Vietnam, rates for 5% broken rice
RI-VNBKN5-P1 fell to $345 a tonne on Thursday from $355 a week
earlier.
"Buyers have slowed their purchases to wait for fresh rice
from the upcoming winter-spring harvest available from next
month," said a trader based in the Mekong Delta province of An
Giang.
The trader also said multiple buyers from the Philippines
had shown interest in the winter-spring rice.
Vietnamese customs data released earlier this week showed
Vietnam exported 6.4 million tonnes of rice in 2019, up 4.2%
from 2018. Earlier this week, a Malaysian buyer purchased 40,000 tonnes
of Vietnamese 5% broken rice for around $340 per tonne, to be
delivered in January and February, traders said.