World rice prices suddenly dropped sharply by 40 USD/ton, Vietnamese rice prices remain high

Export rice prices continue to increase again. How will export rice prices develop in the coming months?

According to the Vietnam Food Association (VFA), in the trading session on October 4, rice prices from some Asian suppliers such as Thailand and Pakistan suddenly decreased sharply.

Vietnam's rice exports in 9 months hit a record high of 3.66 billion USD

Specifically, Thai rice prices were adjusted down by 3-4 USD/ton for all three types of 5%, 25% and 100% broken rice. After the adjustment, the price of 5% broken rice in this country is now 586 USD/ton (down 4 USD/ton), 25% broken rice is at 538 USD/ton (down 3 USD/ton), and 100% broken rice is at 461 USD/ton (down 4 USD/ton).

Pakistani rice prices have been sharply adjusted down by 5-30 USD/ton. Of which, 5% broken rice prices have fallen sharply by 30 USD/ton, down to 558 USD/ton; 25% broken rice prices have fallen by 20 USD/ton, down to 498 USD/ton and 100% broken rice prices have fallen by 5 USD/ton, down to 478 USD/ton. Previously, in the trading session on October 3, the country also adjusted down 10 USD/ton for both 5% and 25% broken rice. Thus, in just 2 days, Pakistani rice prices have fallen by 40 USD/ton.

In particular, Vietnamese rice prices remain unchanged at 613-617 USD/ton for 5% broken rice and 598-602 USD/ton for 25% broken rice.

With the current adjustment, the price of 5% broken rice from Vietnam continues to be 27 USD/ton higher than that of Thailand and 55 USD/ton higher than that of the same type of rice from Pakistan.

Explaining the reason for the adjustment of rice prices in many countries at this time, Mr. Phan Van Co, Marketing Director of Vrice Company, said that countries are reducing prices to attract customers at the end of the year, and at the same time negotiate contracts for delivery in early 2024. This reduction may also be due to countries' fear that India may reopen rice exports after October 15, thereby taking advantage of the opportunity to release inventories.

Also expressing his opinion on the current rice price, Mr. Pham Thai Binh, Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company, said: The world and Vietnamese rice prices have cooled down compared to the end of August, but it will be difficult to decrease deeply because the market demand is very large. In addition, the fact that the rice prices of other countries are much lower than those of Vietnam is partly due to the high quality of Vietnamese rice. Therefore, from now until the end of the year, the price of Vietnamese rice may remain high and not decrease further.

“Recently, when Indonesia opened a bid to import 300,000 tons of rice, Vietnamese enterprises won the bid for 50,000 tons at a price of 650 USD/ton - higher than competitors. This shows that although Vietnam's rice price is higher, it is still accepted by consumers because of its guaranteed quality and convenient transportation location,” Mr. Binh analyzed.

Regarding future orders, Mr. Binh said that in October and November 2023, Trung An plans to deliver about 20,000 tons of high-quality rice to importers. Because it is high-quality rice, the price is still quite stable, in which brown rice alone is being sold at 674 USD/ton, while white rice is about 700 USD/ton.

Similarly, according to Mr. Nguyen Duy Thuan, General Director of Loc Troi, the company has signed export orders until the end of the year. At the same time, it is expected that in October or early November 2023, Loc Troi will organize sales for the whole next year.

According to an update from the Ministry of Agriculture and Rural Development, in September 2023, Vietnam's rice exports reached a value of 490 million USD, bringing the total export turnover in 9 months to a record high of 3.66 billion USD. Export output in 9 months of 2023 reached 6.6 million tons.

Rice exports achieved this result thanks to taking advantage of market opportunities in August and September 2023. Specifically, in August, the volume of exported rice is estimated at 950,000 tons with a value of 553 million USD. In September, Vietnam continued to export about 800,000 tons of rice with a value of about 490,000 USD. Vietnam became the world's largest rice supplier in these two months.

During the above period, the price of Vietnam's standard 5% broken rice fluctuated between 620 - 645 USD/ton, in addition, the lower quality 25% broken rice also reached 623 USD/ton.

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