The demand by Nigerian traders for Thai rice has dropped sharply, on fears of congestion at Indian ports.
Rice prices in Thailand fell as unexpected demand from Nigeria, which had supported Thai prices in recent weeks, subsided, traders said.
Nigerian buyers, weary of port congestion in India, had switched to buy about 100,000 tonnes of rice from Thai exporters, Reuters reports.
“Loading demand for Nigerian orders is expected to subside within a few weeks, after which demand will be thin,” said a Bangkok-based trader.
The demand by Nigerian traders for Thai rice has dropped sharply, on fears of congestion at Indian ports.
Rice prices in Thailand fell as unexpected demand from Nigeria, which had supported Thai prices in recent weeks, subsided, traders said.
Nigerian buyers, weary of port congestion in India, had switched to buy about 100,000 tonnes of rice from Thai exporters, Reuters reports.
“Loading demand for Nigerian orders is expected to subside within a few weeks, after which demand will be thin,” said a Bangkok-based trader.
With an absence of Nigerian demand, benchmark 100 percent B grade white rice RI-THWHB-P1 dropped to $550 per tonne, from last week’s $560.
Another five per cent broken grade Thai white rice was offered at $495 per tonne, down from last week’s $550.
Thai rice exports in the first quarter of this year fell sharply to 1.3 million tonnes, from 2.6 million tonnes a year earlier.
However, traders said they did not expect Thai rice prices to fall significantly as government intervention should keep prices above $500 per tonne.
The Thai government has extended a subsidy scheme to the end of June, paying 15,000 baht ($490) per tonne of paddy to support farmers, well above the market price about 9,000 baht per tonne.
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