Vietnam's rice export price still holds the highest position

In the rice export market, according to the Vietnam Food Association, on August 25, Vietnam's rice export price maintained its highest position in the world. Accordingly, the price of 5% broken rice was at 638 USD/ton; 25% broken rice was at 623 USD/ton.

Meanwhile, the price of 5% broken rice from Thailand is at 628 USD/ton; Pakistan is 598 USD/ton.

Data from the Institute of Policy and Strategy for Agricultural and Rural Development shows that in Can Tho, rice prices continue to remain stable for some varieties such as: IR 50404 is 8,200 VND/kg, Jasmine is 7,600 VND/kg; OM 4218 is 9,000 VND/kg.

In Soc Trang, the price of Dai Thom 8 rice is still at 8,500 VND/kg, down 100 VND/kg; other types remain stable: RVT is 7,400 VND/kg; OM 5451 is 7,400 VND/kg.

Meanwhile, rice prices in Hau Giang increased: IR 50404 increased to 8,500 VND/kg, an increase of 100 VND/kg; OM 18 increased to 8,800 VND/kg, an increase of 200 VND/kg; RVT was 9,000 VND/kg, also an increase of 200 VND/kg.

Rice prices in Tien Giang have increased/decreased depending on the type: IR 50404 is at 7,600 VND/kg, down 200 VND/kg; OC10 decreased by 100 VND/kg to 7,000 VND/kg. Jasmine rice alone is at 7,700 VND/kg, up 100 VND/kg.

Rice prices in Kien Giang remained stable for many types such as IR 50404 at 6,600 VND/kg; OM 5451 at 6,900 VND/kg; Jasmine at 7,100 VND/kg.

ST rice price in Ben Tre is at 7,800 VND/kg; OM 4900 in Tra Vinh is 7,700 VND/kg. OM 6979 rice in Dong Thap alone increased by 100 VND/kg, to 8,100 VND/kg.

In An Giang, according to the provincial Department of Agriculture and Rural Development, the price of Dai Thom 8 rice ranges from 7,800 - 8,000 VND/kg; OM 5451 ranges from 7,750 - 8,000 VND/kg; Nang Hoa 9 ranges from 7,800 - 8,200 VND/kg; OM 18 rice ranges from 7,800 - 8,000 VND/kg; and IR 50404 ranges from 7,7500 - 7,900 VND/kg.

The Summer-Autumn rice crop is considered to have a "good harvest and good price", bringing profits to Kien Giang farmers of about 1.3 - 1.7 million VND/cong (1,000 m2), about 500,000 VND/cong higher than the 2022 Summer-Autumn crop. The remaining Summer-Autumn rice area in Kien Giang will be harvested in late August and early September.

In Can Tho, although the harvest has not yet begun, most of the city's autumn-winter rice fields have been pre-purchased by traders or businesses.

Currently, the price of fresh rice ordered by traders and businesses ranges from 7,500 VND to 8,000 VND/kg, depending on the variety, 1,700 to 2,000 VND/kg higher than the same period last year. This is the highest price ever in the Autumn-Winter rice crop in Can Tho city.

With the above rice price, farmers expect to earn a profit of around 25 million VND per hectare, the highest profit in the Autumn-Winter rice crop in Can Tho.

Farmers in Tra Vinh province are harvesting the Summer-Autumn rice crop and quickly renovating their fields to plant the Autumn-Winter rice crop. The reason why Tra Vinh farmers are urgently sowing the Autumn-Winter rice crop is because the price of rice is currently high in the market.

For this crop, Tra Vinh's agricultural sector recommends that farmers strictly adhere to the crop calendar, focus on early planting but must be done simultaneously in each region, each field, and completely plant the Autumn-Winter rice area by the end of September 2023.

While Vietnam’s rice export price remains the highest in the world, the world rice market continues to suffer a new shock from the Indian government’s decision to impose a 20% tax on parboiled rice exports. The tax will take effect immediately and last until October 16.

The decision was announced by the Indian Finance Ministry on the evening of August 25 to control rising prices while ensuring adequate supplies for the domestic market. With this new measure, India has now imposed export restrictions on all non-basmati rice varieties, which account for 25% of the country's total rice exports.

The imposition of a 20% tariff on parboiled rice exports could push the price of this type of rice even higher on the world market. Parboiled rice is a type of rice in which the paddy is soaked in hot water before being processed.

The earlier ban on exports of all rice except basmati prompted some buyers to increase purchases of parboiled rice and push prices of the grain to a record high, a Mumbai-based dealer said.

With the latest tariffs, Indian parboiled rice will become as expensive as rice from Thailand and Pakistan. Buyers now have little choice.

Global rice prices have started to stabilize in the past few days after rising more than 25% due to India’s export restrictions last month. However, prices are expected to rise again after the move, a Mumbai-based dealer pointed out.

The UN Food and Agriculture Organization's rice price index rose to its highest level in nearly 12 years in July 2023, as prices in major rice exporting countries surged on strong demand after India imposed export restrictions.

Regarding the US agricultural market, prices of agricultural products in futures contracts on the Chicago Mercantile Exchange (USA) had mixed developments in the last trading session of the week, with corn and wheat prices falling while soybeans increased.

At the close of the session, corn for December 2023 delivery fell 0.25 US cents (0.05%) to $4.88/bushel. Wheat for December 2023 delivery fell 10 US cents (1.58%) to $6.2175/bushel. In contrast, soybeans for November 2023 delivery rose slightly by 16 US cents (1.17%) to $13.8775/bushel (1 bushel of wheat/soybean = 27.2 kg; 1 bushel of corn = 25.4 kg).

Observers said wheat futures fell as the dollar strengthened. On the other hand, U.S. and global agricultural markets remained high as they awaited the Pro Farmer survey report, the most thorough and closely watched report on potential yields at a crucial time of the season.

The risk of the national average soybean yield falling to or below 50 bushels per acre and corn yield falling to 170-173 bushels per acre is growing, with Chicago-based agricultural market research firm AgResource recommending traders buy on a correction in prices over the next 10 days.

The world coffee market showed that at the end of the weekend trading session, Robusta coffee prices on the ICE Europe - London exchange extended their recovery streak for the fifth session. The November futures increased by 31 USD, to 2,437 USD/ton, and the January 2024 futures increased by 24 USD, to 2,349 USD/ton, very significant increases. Trading volume was at an average level.

On the contrary, Arabica coffee prices on the ICE US - New York exchange adjusted down. December futures decreased by 1.15 cents to 153.15 cents/lb and March 2024 futures decreased by 1 cent to 154.30 cents/lb, both slight decreases (1 lb = 0.4535 kg). Trading volume was below average.

Arabica coffee prices have fallen due to abundant supplies from Brazil, which is harvesting its new crop in a “biennial” cycle. Brazil’s coffee production is forecast to reach nearly 50 million bags and new crop sales remain strong thanks to a weakening of the Reais.

Meanwhile, Robusta coffee prices continued to rise as ICE inventories continued to fall sharply without any additions from major producers. This is because the supply side realized that direct sales without going through the exchange would reduce many indirect costs for all parties, in the context of a global Robusta coffee shortage.