We are pleased to send you the new issue of the FAO Rice Price Update. 

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·         The FAO All Rice Price index (2002-04=100) has moved within a narrow range of 221-223 points since the onset of 2019. The Index averaged 222.0 points in May 2019, unchanged from a month earlier and confirming this general tendency. Across the major market segments, the most salient price movements took place in the fragrant market last month. Underpinned by consistent Near Eastern demand for basmati rice, the Aromatic sub-index inched up by another 0.9 percent to reach an 11-month high of 218.8 points. In contrast, the Higher Quality Indica and Japonica sub-indices shed close to one point each during May, while the Lower Quality Indica sub-index held mostly steady.

·         May export quotations of Indica rice were steady to weaker across much of Asia. In Thailand and Pakistan, prices took a downturn, as a slow pace of sales offset support provided by currency movements in both countries. In India and Viet Nam, quotations of white rice proved more resilient, stabilising around April levels, although the firmness did not extend to India’s parboiled market. May values of Indian IR36 5% parboiled rice dipped by 3.7 percent to USD 368 per tonne, as a slow pace of sales to West Africa was compounded by prospects of even lower shipments to Bangladesh following import duty hikes in that country. In the Americas, prices changed little in Argentina and Uruguay, while they strengthened in Brazil due to lower domestic sales of paddy. By contrast, US long-grain quotations eased to a year low, despite a late month boost provided by a deal with Iraq and concerns over planting delays or cuts triggered by overly wet conditions.

·         According to the Index, international rice prices in the first five months of 2019 were 2.3 percent below their levels in the corresponding period of 2018.