“The market had expected lower OMSS reserve prices, but the government’s decision to raise them lifted open market prices,” said a Kolkata-based trader.
Farmers planted summer-sown rice on 11.5 million hectares as of July 10, down from last year’s 12.6 million hectares.
In Bangladesh, floods have damaged crops on at least 28,610 hectares across 12 districts, with paddy and rice seedbeds among the hardest hit.
“The current estimates are preliminary. The full extent of crop losses will become clear as the floodwaters recede,” a Department of Agricultural Extension official said. Thailand’s 5% broken rice was quoted at $445-$450, down slightly from $450 quoted last week, traders said.
“Buying has been limited to essential purchases, with the Philippines’ temporary suspension of imports of Thai 5% broken rice further weighing on demand,” a Bangkok-based trader said.
Supply is gradually increasing as the dry-season rice harvest enters the market, although traders remain cautious over the potential impact of El Nino on production later this year. In Vietnam, 5% broken rice was offered at $445-$450 per metric ton on Thursday, unchanged from last week.”Trading activity is slow as buyers are awaiting rising supplies from an ongoing harvest,” a trader based in Ho Chi Minh City said.
Meanwhile, farmers said, the summer-to-autumn harvest will peak from the end of this month through August.