Singapore, May 5 - Rice prices are likely to remain firm at current levels over the next three months before easing when new crops arrive in six-to-nine months' time, said Olam International Ltd. chief executive Sunny Verghese Monday.
"We expect a correction (in prices) with good crops expected from Vietnam, Thailand, Indonesia and India in the next six-to-nine months," said Verghese. Listed in Singapore, Olam is a global supply chain manager of agricultural products including rice.
Even though rice prices are expected to ease with the onset of the new harvest, Verghese expects prices to remain above the previous year's average price of $300/ton for the benchmark 100% B-grade Thai rice.
"It is likely to trade at a higher level, above $500/ton," he said.
The free-on-board price of exportable 100% B-grade Thai white rice is now around $900/ton, or $940/ton on a cost and freight basis for the Philippines, down $50/ton from a month ago.