The export price of rice skyrocketed, whereas the price of coffee continued to 'plunge'

DNHN - The price of Vietnam's 5% broken rice increased to $550-575/ton on July 27, the highest level since 2011; meanwhile, coffee prices on the global market continued to decrease.

In the Mekong Delta region, the price of rice and rice of all varieties increased significantly last week.

This week, prices for rice exports from Vietnam and Thailand reached their highest levels in over a decade as a result of India's restrictions on rice exports.

Specifically, the price of Vietnam's 5% broken rice increased from $515-525/ton to $550-575/ton on July 27, the highest level since 2011. A trader in Ho Chi Minh City stated, "Exporters anticipate rice prices to increase further following India's decision to restrict rice exports; therefore, it is extremely risky for them to sign new export contracts at this time."

Also on July 27, the price of 5% broken rice in Thailand increased to its highest level in 11 years, reaching $605-610 per tonne from $545 per tonne the previous week. A trader in Bangkok remarked, "Exporters were shocked because the ban pushed prices up and there was no more supply."

Last week, India halted its largest rice export to stabilise domestic rice prices, which have reached multi-year highs in recent weeks due to unfavourable weather conditions. export. India is the world's largest rice producer and accounts for forty per cent of global rice exports.

Even as demand decreased, the rice export ban pushed India's rice prices to a five-and-a-half-year high of $445-450 per tonne, up from $421-428 per tonne last week. India imposed the export ban after the retail price of rice rose by 3 per cent per month as a result of prolonged monsoon rains that caused significant crop damage.

"Demand decreased due to uncertainty caused by India's ban on rice exports. Meanwhile, exporters were cautious and not selling', said Himanshu Agarwal, CEO of Satyam Balajee Rice Export Company. "

A senior Indian food ministry official stated that neighbouring Bangladesh, which is also attempting to reduce food prices on its domestic market, has no plans to import the grain due to its production and forecasts. Storage is still adequate.

According to the Vietnam Food Association, the highest price of common rice in the field on the domestic market was 6,950 VND/kg last week, while the average price was 6,882 VND/kg, an increase of 186 VND/kg. The average price of ordinary rice at the warehouse rose by 225 VND/kg to 8,258 VND/kg; the highest price is 8,450 VND/kg.

Similarly, the prices of rice-based products rose sharply. Accordingly, the highest price for 5% broken rice is 12,500 VND per kilogramme, while the average price is 12,304 VND per kilogramme, a rise of 754 VND per kilogramme. The highest price for 15% broken rice is 12,300 VND/kg, while the average price is 12,050 VND/kg, representing an increase of 742 VND/kg. The highest price for 25% broken rice is 12,100 VND/kg, while the average price is 11,758 VND/kg, representing an increase of 692 VND/kg. The highest price increase was 963 VND/kg for grade 1 white milled rice; the average price was 12,500 VND/kg.

According to the Ministry of Agriculture and Rural Development, summer-autumn rice has been planted on 1,556,660ha in the South for 2023, 0.6% more than planned. As of July 20, over 564,500 hectares, or 36.27 per cent of the cultivated area, have been harvested. The remainder of the area is predominantly in the maturing, flowering, and larval stages.

In addition, the provinces of Dong Thap, Long An, Can Tho, Kien Giang, Vinh Long, Hau Giang, Soc Trang, Ba Ria-Vung Tau, and others have planted approximately 287,900 hectares of Autumn-Winter and Seasonal rice.

Regarding the global coffee market, the price of Robusta coffee on the ICE Europe-London floor decreased at the end of the final session of the week on July 28. The price of Robusta coffee for shipment in September decreased by 85 USD to 2,588 USD per tonne, and the price of Robusta coffee for shipment in November decreased by 62 USD to 2,437 USD per tonne, which are both significant decreases. The volume of trades remained above average.

Similarly, the price of Arabica coffee continued to decline on the ICE US-New York (USA) floor. Arabica for September delivery fell another 3.55 US cents to 157.90 cents/lb, and Arabica for December delivery fell another 3.50 US cents to 158.20 cents/lb, both of which are significant decreases. The volume of trade is significantly above average (1 lb = 0.4535 kg).

The price of coffee on both exchanges fell at the same time at the end of the week as a result of the balance, shifting of capital flows of funds, and speculation following the pressure of monetary interest rates.

Due to persistently high inflation in the Eurozone, the European Central Bank (ECB) decided to increase interest rates by 0.25 percentage points to 3.75 per cent, the highest level since October 2000.

Editorial Assistant (Synthesis)