Agricultural market: Rice supply is decreasing

Rice prices in the Mekong Delta region remained stable last week after two consecutive weeks of significant increases. Rice supply is gradually decreasing as the winter-spring crop in this region has basically been harvested.

Farmers in Nga Nam ( Soc Trang ) harvest the 2023 - 2024 Winter - Spring rice crop. Illustrative photo: Tuan Phi/VNA

In An Giang, according to the update of the Department of Agriculture and Rural Development of the province, the prices of most types of rice remained stable, such as: Dai Thom 8 from 8,000 - 8,200 VND/kg, OM 18 also from 8,000 - 8,200 VND/kg, Nang Hoa 9 from 7,600 - 7,700 VND/kg, Nhat rice from 7,800 - 8,000 VND/kg. Some types increased slightly, such as: IR 50404 from 7,400 - 7,600 VND/kg, an increase of 100 VND/kg; OM 5451 from 7,600 - 7,800 VND/kg, an increase of 100 VND/kg...

Regarding rice products in the retail market in An Giang , regular rice costs from 15,000 - 16,000 VND/kg; long-grain fragrant rice from 19,000 - 20,000 VND/kg; Jasmine rice from 17,500 - 19,000 VND/kg; common white rice 17,000 VND/kg, Nang Hoa rice 19,500 VND/kg...

According to the Ministry of Agriculture and Rural Development, by mid-April 2024, provinces and cities in the Mekong Delta had planted 1.498/1.5 million hectares of the planned Winter-Spring crop 2023-2024; of which, about 1.375 million hectares were harvested with an output of about 9.9 million tons of rice.

Thus, rice supply is gradually decreasing because the winter-spring crop has basically been harvested.

According to the Vietnam Food Association, the export volume from April 1 to April 15 reached 511,785 tons, worth 318.97 million USD, down 1.2% in quantity and up 18.03% in value over the same period last year. Cumulative rice exports from the beginning of the year to April 15 reached 2.691 million tons, worth 1.744 billion USD, up 13.5% in quantity and up 39.46% in value over the same period in 2023.

Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association, commented: With the positive export situation, Vietnam's rice export capacity in 2024 will exceed the original plan (7.6 million tons).

According to the Ministry of Industry and Trade, in the first quarter of 2024, for the first time, Vietnam became the largest rice exporter to the Singapore market, accounting for 32.03% of the market share, with a higher turnover than India (6.96%) and Thailand (8.28%). Vietnam's rice exports to the Singapore market in the first quarter of 2024 reached a turnover of about SGD 36.15 million, an increase of 80.46% over the same period in 2023. Similarly, in the domestic market, although there was a downward adjustment in the first months of the year, rice prices are still 20-30% higher than the same period last year.

On the export side, traders said Vietnam’s 5% broken rice was offered at $575-$580 a tonne on April 25. Trading activity in Vietnam is slowing ahead of a five-day holiday that starts on April 27. A Ho Chi Minh City-based trader said a slowdown in purchases by rice millers has put downward pressure on domestic rice prices.

Meanwhile in the Asian rice market, export prices of India, the world's top rice exporter, fell to their lowest in more than three months this week due to low demand and abundant supply, while prices of Thai rice were generally little changed.

India’s 5 percent broken parboiled variety was quoted at $528-$536 a tonne this week, down from $538-$546 last week. Prices of the variety hit a record high of $560 a tonne last month.

“Demand from Asian and African countries is very weak. Some exporters are taking advantage of lower export duties and are offering lower prices to overseas buyers,” said a rice exporter based in the southern Indian state of Andhra Pradesh. The Indian government has imposed a 20% duty on parboiled rice exports from August 2023 to control domestic prices.

Thailand’s benchmark 5% broken rice was quoted at $580-$585 a tonne, down from $585 last week. A Bangkok-based trader said Thai rice prices had been little changed as demand from Indonesia and a weaker baht helped underpin prices.

Meanwhile in Bangladesh, an agriculture ministry official said summer rice production could reach 20.50 million tonnes, up from 20 million tonnes in the previous season, as farmers increased their acreage to take advantage of higher prices. The summer crop, also known as “Boro,” typically accounts for more than half of Bangladesh’s rice output, which typically stands at around 37 million tonnes.

Regarding the world coffee market, at the end of the weekend trading session, the prices of two coffee products reversed and decreased simultaneously.

Specifically, the price of Arabica coffee on the New York floor on April 27 decreased in all terms. The delivery term for July 2024 was 224.00 cents/lb; the delivery term for September 2024 was 222.40 cents/lb; the delivery term for December 2024 was 220.70 cents/lb and the delivery term for March 2025 was 219.95 cents/lb (1 lb = 0.4535 kg).

Similarly, the price of Robusta coffee on the London floor on April 27 also reversed and decreased in all terms, ranging from 3,850 - 4,151 USD/ton. Specifically, the delivery term for July 2024 is 4,151 USD/ton; the delivery term for September 2024 is 4,065 USD/ton; the delivery term for November 2024 is 3,971 USD/ton and the delivery term for January 2025 is 3,850 USD/ton.

After a seemingly endless run of strong gains, Robusta coffee prices have come to a halt to rebalance their trading positions on the market. The drought has further increased concerns about future supply of Robusta coffee.

In addition, rising inventories have limited the upward momentum, causing coffee prices to reverse. Arabica coffee inventories on the New York market are said to have increased by 5,142 bags on April 25, reaching 652,672 bags.

In the domestic market, the average price of coffee in the Central Highlands provinces is currently 134,000 VND/kg, the highest price in Dak Nong province is 134,200 VND/kg. Specifically, the price of raw coffee beans in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at 133,500 VND/kg.

The purchase price of coffee in Gia Lai and Kon Tum provinces is 133,800 VND/kg. In Dak Lak province, in Cu M'gar district, coffee is purchased at about 134,200 VND/kg, and in Ea H'leo district, Buon Ho town, it is purchased at the same price of 134,300 VND/kg.

According to VNA

Source