Thai white rice prices reach two-month high

The price of Thai 5% broken white rice has reached its highest level in two months. According to Platts, a unit of S&P Global Energy, the FOB price was set at $475 per ton on September 3, marking a $9 increase from the previous week.

Several factors are contributing to this upward trend, including water scarcity as the region enters the end of the rainy season and weather-related milling constraints that affect the recovery rate of whole grains. These conditions have increased both paddy prices and production costs.

While demand from Iraq has seen a significant decline due to shifts in trade routes, demand from other Asian markets, specifically the Philippines and Malaysia, remains a focus for exporters. Market analysts suggest that while prices may stabilize if export purchasing slows, short-term delivery needs and replenishment activities are currently supporting high price levels.