High Shipping Costs Impact Vietnam’s Rice Rates while Indian and Thai Variants Remain Stable
Published on: June 14, 2024.
Filed under:
Rice Export Prices from Vietnam Dip Slightly as Shipping Costs Rise
In the world of rice exports, Vietnam has seen a slight dip in prices this week due to rising shipping costs. Traders have reported that Vietnam’s 5% broken rice is now being offered at $570-$575 per metric ton, down from the previous range of $575-$580. The increase in shipping costs, both domestically and internationally, has had an impact on rice shipments.
Meanwhile, another trader has stated that the Philippines’ decision to lower its import tariff on rice will lead to an increase in shipments of Vietnamese rice. The Philippines has historically been Vietnam’s largest rice export market. According to the government’s customs data, Vietnam’s rice exports in May fell by 14.6% from April to 856,000 tons. However, for the first five months of this year, the country’s rice exports rose by 11.2% from the same period last year to reach 4.02 million tons.
Moving on to another major rice exporter, India is holding steady with its 5% broken parboiled variety. Prices for this variety remain unchanged at $539-$546 per ton. A trader based in Mumbai has noted that African buyers are continuously making purchases. The depreciation of the rupee has allowed exporters to absorb the increase in local prices, which have fallen due to a decrease in supplies.
Lastly, Thailand’s 5% broken rice is also maintaining its price at $630 per ton. Demand from regular customers in Indonesia and the Philippines continues to come in, and a trader based in Bangkok has added that new demand and additional crops are expected in July.
Overall, while Vietnam’s rice export prices have dipped slightly due to rising shipping costs, prices from other major Asian hubs remain steady. The market is seeing fluctuations due to factors such as import tariffs, currency depreciation, and overall demand.
Source
