Brazil’s competitive broken rice prices likely to shape Asian trade dynamics

As Asian rice markets contend with a global oversupply, producers from Asian origins are struggling to attract buyers, despite offering their lowest prices. Brazilian brokens are becoming a more economical option, and may prompt buyers to reevaluate their purchasing strategies, trade sources told Platts. This struggle for Asian producers to secure buyers, despite competitive pricing, may signal a bearish trend for 100% brokens in Asian markets, particularly as competition from Brazil’s lower-priced alternatives intensifies. Platts, part of S&P Global Energy, assessed Indian 100% broken white rice was assessed at $293/mt FOB, Myanmar B1 & B2 broken rice at $295/mt FOB FCL, Pakistan and Vietnamese 100% broken rice at $314/mt FOB, while Thai A1 super 100% broken white rice was assessed at $340/mt FOB on Dec. 12. “Brazilian broken rice is currently being quoted at around $250/mt FOB,” a Brazil-based trader confirmed, highlighting highly competitive pricing compared to Asian origins. ...