Rice export prices slightly decrease, coffee prices continue to increase strongly

Vietnam's rice export prices fell slightly due to concerns about import demand from Indonesia and slow trading, while in the domestic market, coffee prices hit their highest level since the beginning of the season.

Rice products for export at a factory. (Photo: Vu Sinh/VNA)

Rice and paddy prices in the Mekong Delta region did not fluctuate much last week after increasing quite a bit the week before.

Vietnam's rice export prices fell slightly due to concerns about import demand from Indonesia and slow trading market.

According to the update of the Department of Agriculture and Rural Development of An Giang, the price of some types of rice purchased by traders such as IR 50404 is from 7,400-7,500 VND/kg; OM 5451 rice is from 7,500-7,600 VND/kg, an increase of 100-200 VND/kg; OM 380 is 6,800-7,000 VND/kg; Dai Thom 8 (fresh) is from 8,200-8,400 VND/kg and OM 18 (fresh) is from 8,400-8,600 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 20,000 - 22,000 VND/kg; Jasmine rice from 17,000 - 18,000 VND/kg; common white rice 17,500 VND/kg, Nang Hoa rice 21,500 VND/kg...

IR 504 Summer-Autumn raw rice is at 10,300-10,500 VND/kg; IR 504 finished rice is stable at 12,300-12,500 VND/kg.

For by-products, the price of by-products of all kinds fluctuates between 6,050-9,400 VND/kg. Currently, the price of OM 5451 broken rice is stable at 9,200-9,400 VND/kg; the price of dry bran is at 6,000-6,100 VND/kg.

On the export side, Vietnam's 5% broken rice was offered at $515-$520 a tonne, the lowest since July 2023. This was down from $520-$525 a tonne last week.

Vietnam's rice export prices fell on concerns about Indonesia's import demand next year, while Indian rates held steady near a 15-month low on rising supplies.

Indonesia is the second largest market for Vietnamese rice after the Philippines. During the period from January to October 2024, Indonesia imported 1.1 million tons of rice from Vietnam, accounting for 14.2% of total rice exports.

However, a trader in An Giang province believes that Indonesia will continue to import rice from Vietnam next year. Meanwhile, the Philippines, which previously said it would reduce rice imports, ended up importing more.

Last week, India's 5% broken parboiled rice prices were steady at $440-$447 per tonne, near their lowest since July 2023. India's 5% broken white rice was quoted at $440-$450 per tonne.

A Kolkata-based trader said supplies from the new crop are likely to increase in the coming weeks.

India's rice stocks rose to a record high in November 2024, nearly three times the government's target, sources said last week.

In the US agricultural market, soybean futures rose in the session on November 15 at the Chicago Mercantile Exchange, after China said it would cut export incentives for used cooking oil, a move that could limit imports into the US.

Meanwhile, corn and wheat futures also rose on buying activity.

In the final session of the week, soybean prices increased by 11 cents, to 9.98 USD/bushel, wheat prices increased by 6 cents, to 5.36 USD/bushel and corn prices increased by 5 cents, to 4.24 USD/bushel (1 bushel of soybeans/wheat = 27.2 kg, 1 bushel of corn = 25.4 kg).

The surge in used cooking oil imports in the U.S. biofuel market has hampered demand for soybean oil in the country, but a drop in used cooking oil exports from China could boost that demand, analysts say.

Soybean and corn futures fell sharply earlier in the week on news that Republican President-elect Donald Trump had nominated biofuel-hawk Lee Zeldin to head the U.S. Environmental Protection Agency, raising concerns about the impact on both domestic and export demand for grains and oilseeds.

Coffee at harvest time in Vietnam. (Photo: Hoai Thu/VNA)

Corn prices rose sharply in the last session of the week after four sessions of decline. For the whole week, the price of this agricultural product decreased by about 1.62%.

Meanwhile, wheat prices were pressured by a dollar that rose to a one-year high this week, as Trump’s victory in the presidential election, U.S. inflation data and comments from Federal Reserve Chairman Jerome Powell raised the possibility of a slower pace of interest rate cuts.

Regarding the world coffee market, on November 16, coffee prices increased on both the London and New York exchanges, thanks to high demand from major import markets, while supply from producing countries encountered difficulties due to weather and increased production costs.

Robusta coffee prices on the ICE Futures Europe (London) exchange for November 2024 delivery increased by 6 USD to 4,783 USD/ton, and for January 2025 delivery increased by 11 USD to 4,706 USD/ton.

Arabica coffee price on ICE Futures US (New York) for December 2024 delivery increased by 0.7 cents to 279.65 cents/lb, and for March 2025 delivery increased by 0.95 cents to 280.35 cents/lb (1 lb = 0.4535 kg).

In the domestic market, coffee prices continued to increase sharply in key provinces, reaching the highest level since the beginning of the season.

In general, purchasing prices in the Central Highlands provinces fluctuated between VND113,500 - 114,000/kg, reflecting high demand from exporters and the improvement of the international market.

In Lam Dong, coffee prices in Di Linh, Lam Ha and Bao Loc reached 113,500 VND/kg.

In Dak Lak, Cu M'gar area recorded a price of 113,800 VND/kg, while Ea H'leo and Buon Ho both reached 113,700 VND/kg.

In Dak Nong, the price in Gia Nghia peaked at 114,000 VND/kg, the highest in the country, while Dak R'lap recorded 113,900 VND/kg.

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