Asia Rice-Vietnam prices plunge to near 12-year low as demand dries up

* India rates gain on good demand from Africa, higher rupee
* Thai prices slip, but still near June-2018 high
* Bangladesh may face more floods this month

By K. Sathya Narayanan
BENGALURU, Sept 12 (Reuters) - Vietnamese rice export rates
slumped to their lowest in nearly 12 years this week on sluggish
demand, while an appreciating rupee helped rates for the Indian
variety.
Vietnam's 5% broken rice prices RI-VNBKN5-P1 fell to $325
per tonne, their lowest since November 2007, versus last week's
$325-$330 range.
The lack of fresh deals, especially due to waning interest
from the Philippines, amid expectations that the major buyer
could cut down on imports to support local farmers, have
squeezed the Vietnamese market, with prices now about 13% lower
compared to the beginning of the year.
"Demand remains very weak this week," a trader based in Ho
Chi Minh City said.
Meanwhile, only 82,450 tonnes of rice are scheduled to be
loaded at Ho Chi Minh City ports during September 1-15, with
most shipments bound for West Africa and Philippines, traders
said.
Top-exporter India's 5% broken parboiled variety
RI-INBKN5-P1 rose to $370-$376 per tonne from $369-$374 a week
ago, amid good demand from African nations and a resurgent
rupee.
Local paddy supplies are limited and prices are firm,
forcing exporters to increase rates, said an exporter based at
Kakinada in the southern state of Andhra Pradesh.
The rupee INR=D4 rose to an over three-week high on
Thursday.
The country's rice exports in April-July, however, had
plunged 26.5% from a year ago to 3.14 million tonnes, a
government body said on Monday. Meanwhile, prices for second-biggest exporter Thailand's
benchmark 5% broken rice RI-THBKN5-P1 fell to $400-$418 a
tonne on Thursday, from $410-$422 last week.
"There was new supply that entered the market last month
after the harvest, but the flat demand means prices have been
dropping," a Bangkok-based trader said.
However, concerns over supply still persist after flash
floods caused by tropical storm Podul damaged over 240,000
hectares of agriculture land, months after a long drought hit
the country's rice-growing region. "Prices could fluctuate further as the extent of the impact
from the drought and flood becomes clearer on rice supply,"
another trader said, adding "but even with this price drop, Thai
prices are still higher than Vietnam and India."
Thai exporters have struggled since the start of the year as
a strong baht kept prices high compared to competitors.
At an average of $409, Thai rice was still near its highest
since June 2018.
Bangladesh, which was still recovering from a devastating
flood, could lose more crops as its weather office has forecast
more floods this month.
Floods in July washed away crops that would have yielded
nearly 400,000 tonnes of rice, agriculture ministry estimates
showed.