The export price of Vietnam’s rice has risen this week.
Thanks to re-opened trade routes with China, along with the reason by some traders saying that many people have a need to find alternative sources of goods due to the Ukraine crisis.
(Vietnamese Rice is being exported to Africa, China, Phillipines, etc)
The price of Vietnam’s rice 5% broken was traded at 400 USD per ton on March 3, compared to 395-400 USD per ton in the previous week.
A trader in Ho Chi Minh City said that shipments to China are expected to increase since this country is opening its border with Vietnam after removing COVID-19 precaution measures.
This trader also added that the ongoing crisis in Ukraine may push some customers to import more rice from Asian countries, including Vietnam.
Meanwhile, a trader in Bangkok said that the situation in Ukraine could cause shipping costs to increase.
The price of Thailand’s rice 5% broken rose slightly to 400-403 USD/ton compared to 400 USD/ton last week. This is partly due to the volatility in the currency market when the baht was traded at 32.60 baht/USD on March 3.
However, another trader said that the crisis did not affect Thailand’s rice export since both Russia and Ukraine were not its main trading partners.
The Ukrainian military has recently stopped commercial shipping at the country’s ports, threatening the export of grain and oilseeds.
The demand for rice from India – the leading exporter has improved, but the price of rice 5% broken of this country is unchanged at 370-376 USD/ton due to the weakening of the rupee.
An exporter based in Kakinada, Andhra Pradesh, said the demand for broken rice has improved due to the rising price of corn. Some buyers are looking for alternatives to corn. Indian farmers can harvest 127.93 million tons as a record compared to 124.37 million tons of the previous year.
Meanwhile, the domestic price of Bangladesh’s rice remains high, despite good reserves.
Shipping costs have risen slightly due to the Ukraine crisis, which causes greater costs for grain imports.
The US agricultural market
Prices of agricultural goods at the Chicago Exchange (USA) were up and down in contrast during the weekend trading session on March 4. In particular, the prices of corn and wheat rose, while soybean prices fell.
(The price of US Corn increased in first week of March 2022)
Specifically, at the end of this session, the price of corn delivered in May 2022 increased by 6.5 US cents (0.87%) to 7.5425 USD/bushel. The price of wheat delivered in July 2022 increased 59 cents (5.29%) to 11.7525 USD/bushel. Meanwhile, the price of soybean delivered in May 2022 fell 7.25 US cents (0.43%) to 16.605 USD/bushel. (1 bushel of wheat/soybean = 27.2kg; 1 bushel of corn = 25.4kg).
The US becomes Vietnam’s largest agricultural import market
AgResource – a commodity research firm based in Chicago recognizes that the trend of increasing price will last in the long term. However, we should be cautious because of the strong volatility of the market, high levels of option volatility, and increasing margin requirements.
The U.S. Department of Agriculture (USDA) announced that about 106,000 tons of soybeans had been sold to China, 108,860 tons sold to Mexico, and 125,000 tons to an unknown destination. The total goods sold are from crop 2021-2022.
Global coffee market
At the end of the weekend trading session, the price of Robusta coffee on the ICE Europe-London floor improved. The price of Robusta coffee delivered in May 2022 increased by 25 USD to 2,038 USD per ton. The price of Robusta coffee delivered in July 2022 increased by 22 USD to 2,013 USD per ton. The trading volume is at an average level.
(Coffee beans harvest on a farm in Forquilha do Rio, Espirito Santo, Brazil)
The price of Arabica coffee on the ICE US-New York floor improved. The price of Arabica coffee delivered in May 2022 increased by 1.35 US cents, to 224.25 US cents per lb. The price of Arabica coffee delivered in July 2022 increased by 1.35 US cents, to 223 US cents per lb (1 lb = 0.4535kg). The trading volume remained very high.
The price of green coffee in the Central Highlands increased by 400-500 VND, up to the range of 38,400-39,000 VND/kg.
The coffee price in the world has just recovered over the weekend session as predicted along with agricultural goods in general. Meanwhile, the prices of gold and raw oil continue to rise and US stocks continue to fall due to concerns about the Russia-Ukraine crisis.
The Brazilian government reported an increase of 290,200 bags in green coffee export in February 2022 to 3,475,183 bags, up 9.11% compared to the same period in 2021. According to observers, the amount of green coffee exported in February 2022 is due to low production in crop 2021 of Brazil. The increase in export is due to the significant improvement in prices in the domestic market.
Meanwhile, the National Coffee Federation (FNC) in Colombia reported that coffee exports in February 2022 decreased by 295,000 bags to only 928,000 bags, down 23.14% compared to the same period last year. This figure brings the total cumulative export volume in the first five months of the current coffee crop 2021/2022 to 5,341,000 bags, down 627,000 bags ( equivalent to 10.51%) compared to the same period last year.