Vietnam's rice and coffee prices continue to peak in 2024

The impact of the El Nino phenomenon, increased world market demand while limited supply helped rice prices continue to rise, while coffee prices set a new record.

Rice prices have hit a record high recently. Photo: VNA

Since the beginning of the year, domestic and world coffee prices have continuously reached new peaks. At the end of last week's session, each kilogram of green coffee was traded at VND80,100, up VND1,400 compared to the previous week. This is a record high ever. With the export price of rice still maintained at USD640 per ton, equivalent to last year's peak, Mr. Nguyen Ngoc Quynh - Deputy General Director of the Vietnam Commodity Exchange (MXV) said that 2024 continues to raise concerns about a global rice supply shortage, especially in the context of global rice inventories heading towards a decline for the third consecutive year. Currently, the export price of 5% broken rice from our country is fluctuating at USD653/ton, which is an increase of USD200/ton compared to January 2023, continuing to maintain its position as the highest in the world. Notably, since the beginning of December 2023, domestic rice export prices have remained at record highs and rice exports are likely to continue to be favorable in the first half of 2024 thanks to high global demand. Regarding the coffee market, according to Mr. Quynh, in 2023, global coffee output will also be heavily affected by the El Nino phenomenon, especially Robusta coffee output in leading Asian producing countries such as Vietnam and Indonesia. The decline in coffee output in Vietnam and some of the world's leading coffee producing countries such as Brazil and Indonesia has caused the market to worry about a supply shortage. This pushed domestic coffee prices to a historic peak of VND69,600/kg on December 20, 2023. "In 2024, I think that although the new crop coffee supply in our country is ready, the low output will cause coffee prices to continue to stay high and it will be difficult for them to decrease deeply. Moreover, Robusta coffee output in Brazil and Indonesia is expected to decrease, inventories on the ICE-EU (Intercontinental Commodity Exchange) are gradually falling to a historic low, causing concerns about a global supply shortage to increase, which will affect price movements," he said. Mr. Nguyen Dinh Tung - CEO of Vina T&T Group predicts that prices of many agricultural products will continue to increase in the first months of the year and balance out in the middle of the year. In particular, durian, coffee, and rice are Vietnam's key products that will achieve many new achievements. The report of the Ministry of Agriculture and Rural Development also predicts that commodity prices will have many changes this year. In January, prices of most commodities tended to increase compared to November 2023. Of which, coffee increased by 4-9%, regular rice by over 6%, Cat Chu mango by 8%, raw shrimp (4%), raw fish (5-6.7%)... The Ministry set a target of 3.2-4% growth rate for the whole industry; Total export turnover of agricultural, forestry and fishery products by 54-55 billion USD. Of which, key agricultural products such as rice, coffee, and durian will continue to grow this year.

Laodong.vn

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