Asian rice costs will keep slumping from near a six-year low as Thailand clears out record stockpiles, threatening a price war with Vietnam and India.
Global rice prices may decline as increased harvests in the biggest producers exceed demand and boost stockpiles, according to the United Nations’ Food & Agriculture Organization.
The Thai baht’s rally to the highest level in 16 years is hindering exports from the world’s biggest rice shipper, curbing the government’s efforts to diminish record state stockpiles and threatening to increase its losses.
Vietnam, the world’s second-largest rice exporter, may release grain held in government stockpiles to cool the local market after a surge in export demand helped to drive domestic prices to a record.
"We will see heightened competition in the market because Thailand is quite eager to release the stockpiles."
- Darren Cooper on Apr 02, 2014