Vietnam rice prices restrained by increasing supplies in Asia
Published on: June 8, 2024.
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Rice export prices from Vietnam weakened this week due to an increase in supplies from the ongoing harvest. On the other hand, the prices for the Indian variety increased as there was a decrease in supplies coupled with higher demand from major importers.
The top exporter, India, saw its 5% broken parboiled rice quoted at a range of $539 to $546 per metric ton this week, up from last week’s range of $535 to $543. Mumbai-based exporters mentioned that there is growing demand from all major importing countries, with India being preferred due to its lower prices.
Vietnam’s 5% broken rice prices were offered at $575 to $580 per ton on Thursday, down from $580 to $585 a week ago. Traders in Ho Chi Minh City reported that supplies continue to build up as the harvest progresses. The agriculture ministry in Vietnam expects the country’s rice paddy output to remain flat at 43 million tons, similar to last year.
Vietnamese rice demand is expected to be supported by India’s export ban, which is likely to last until September, according to Cong Thuong newspaper.
Thailand’s 5% broken rice was priced at $630 per ton, relatively unchanged from the previous week due to stable demand. There has been some interest from markets like the Philippines, Brazil, and Africa, but no major deals have been finalized that could impact prices. Buyers are hesitant to purchase due to high prices, and the market is awaiting new supply from the off-season crop later this month.
Bangladesh is expected to exceed last year’s rice production of 20.7 million tons with its summer crop. Farmers increased their land holdings to take advantage of higher prices, leading to a potentially higher output. The summer-sown crop, also known as ‘boro’, contributes to more than half of Bangladesh’s total rice production of about 37 million tonnes.
In conclusion, rice export prices fluctuated in key countries due to factors such as harvest progress, demand, and export bans. India’s lower prices made it a preferred choice for major importers, while Vietnam’s supplies continued to build up. Thailand saw stable demand with some interest from international markets. Meanwhile, Bangladesh’s summer crop is expected to contribute to a higher rice production this year.
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