Rice prices were stable, coffee prices recovered

The agricultural market last week (April 27 to May 1, 2020) was relatively stable; the domestic rice consumption market was quite favorable, rice prices were stable; while the domestic and global coffee markets recorded the rehibilitate.

Domestic agricultural market: Rice has good prices

Rice prices

Information that the Prime Minister agreed to return to normal rice export from May 1-5 makes businesses and people growing rice in the Mekong Delta very excited. During the week from 27-4 to 1-5, the price of rice is stable; typically some localities have sticky rice for early harvest of good prices.

Early Summer-Autumn Rice Tea has about 1 month left before harvesting; but this time traders have come to the fields to deposit and buy. According to the Center for Rural Agricultural Information and Development; last week, in An Giang, the price of ordinary rice was retail at 11,000 VND / kg, Nang Huong rice was 16,500 VND / kg, fresh sticky rice was 6,800 VND / kg, IR 50404 rice – Fresh rice were 5,600 VND / kg.

With stable rice prices of 5,000 – 5,600 VND / kg and traders boosting the purchasing; rice farmers in the Mekong Delta this Summer – Autumn crop will continue to be profitable. In particular, rice exporters are stabilizing their output, selling prices are 20% higher than the same period.

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Consumption market of sticky rice

In Dong Thap, the Summer-Autumn sticky rice crop of 2020 was harvested early, winning a good season, yielding from 7-8 tons / ha, priced from 6,500-7,000 VND / kg; higher than ordinary fragrant rice 1,000 VND / kg, sticky rice farmers earn more than VND 40 million / ha.

Many farmers in Dong Thap who used to grow low-grade rice have now turned to sticky rice for export because of higher value, with the commonly used varieties for sowing such as IR 4625, CK92, Thai sticky rice …Currently, traders have deposited in the field to buy fresh sticky rice from sticky rice farmers at 6700 VND / kg

This Summer-Autumn crop, Dong Thap province has grown more than 23,000 hectares of glutinous rice; the most concentrated of which is Tan Hong, Thap Muoi and Thanh Binh districts. People in Dong Thap are aiming to increase the glutinous rice production area; because the sticky rice market in foreign countries is still stable and there is a shortage of supplies.

Consumption market of sticky rice is quite favorable, especially the markets of Cambodia and Thailand are not enough to supply; estimation, each hectare of sticky rice has a profit of more than VND 40 million, while that of IR 50404 rice has a profit of VND 30 million / ha. .

Regarding rice export, according to the Vietnam Food Association, rice export price last week was at 458-462 USD / ton with 5% broken rice (compared to 468 – 472 USD / ton last week); 448-452 USD / ton with 25% broken rice (compared to 453 – 457 USD / ton last week), Jasmine is 573-577 USD / ton (compared with 578 – 582 USD / ton last week).

Coffee prices

Meanwhile, the price of green coffee in key areas of the Central Highlands also recovered strongly. With coffee, sources from the Forum of coffee makers show that; the price of buckets in key areas in the Central Highlands has recovered sharply compared to the previous week, at 30,400 – 30,700 VND / kg, increasing from 1,000 to 1,200 VND / kg compared to the previous week. At Ho Chi Minh City port, coffee exports stood at US $ 1,285 / ton (FOB).

The Robusta coffee region in the Central Highlands region continues to dry up, forcing farmers to increase investment in irrigation measures; so coffee at a low price today, farmers will not be easy to sell. This is probably one of the reasons for the slight increase in coffee prices in the past week.

Robusta coffee beas

Robusta coffee beas

World agricultural market: Decreasing trend dominates

Prices of agricultural products

Prices of agricultural products at the Chicago Commodity Exchange (CBOT) closed the weekend (1/5) amid a backdrop of new tensions in US-China trade relations.

Closing the session 1-5, US corn price delivered in July 2020 decreased 1.5 US cents to 3,185 USD / bushel. The price of wheat delivered in the same period also decreased by 7.75 US cents to US $ 5,165 / bushel; while US soybean price delivered in July 2020 decreased US $ 5.75 to US $ 8,495 / bushel (1 wheat / soybean bushel = 27.2 kg, 1 bushel of corn = 25.4 kg).

Earlier, in the session 30-4, soybean futures prices reached their highest level in a week with a 2% increase; after it was reported that Chinese importers have continued to buy more US soybeans. The US Department of Agriculture on May 1 confirmed selling 264,000 tons of oilseeds to China.

However, the export information has been “overshadowed” by new trade tensions between the two countries. US President Donald Trump said on April 30 that the Phase 1 trade agreement with China was currently a “second biggest” concern over the Covid-19 pandemic; threatening to impose new tariffs on Beijing in connection with the outbreak of this disease.

But for the whole week, US soybean prices for July delivery rose by 10 cents, or 1.2%; and ended the previous two-week losing streak. However, the price of corn and wheat delivered in the same period decreased by 1.4% and 2.6% respectively due to concerns about market demand.

US soybean prices for July delivery rose by 10 cents

US soybean prices for July delivery rose by 10 cents

The world rice price

As for the world rice market, the price of rice in India, the leading exporter of Asia; hit a 9-month high of the week on the back of increasing demand from African countries even with limited supplies due to preventive orders to cope with the acute respiratory tract epidemic Covid-19 and the drought situation in Thailand.

Accordingly, the price of 5% broken parboiled rice is traded at 378-383 USD / ton this week; the highest level since the first week of August 2019 and up from 374-379 USD / tons recorded in the last week.

In Thailand, traders said no new contracts were signed; while the ongoing drought constrained the supply of rice and caused prices to rise. 5% broken rice price of Thailand at 535-557 USD / ton in the past week; compared with 530-556 USD / ton in the previous week.

The world coffee price

Robusta coffee prices

With the world coffee market, limited supply pushes Robusta coffee prices. Over the weekend, on the London market, the price of Robusta coffee  for immediate delivery in July-2020 increased by 5.33% (USD 61) to USD 1,205 / ton. In New York market, the price of Arabica coffee delivered in the same period decreased 0.56% (0.65 US cents) to 106.1 US cents / lb (1 lb = 0.454 kg).

At the end of the week, the price of Robusta coffee has reached the high of 2 weeks when there are signs that the global supply is narrowing. The International Coffee Organization (ICO) on May 1 said global coffee exports in the period of October 2019 to March 2020 decreased by 3.9% over the same period last year to 61,959 million bags (type 60 kg).

The world coffee market

The world coffee market

Arabica coffee prices

Meanwhile, the price of Arabica coffee sometimes fell to a low of one and a half months; mainly due to the devaluation of the Brazilian real against the dollar, greatly affecting the price of this type of coffee.

Figures released by the Intercontinental Exchange (ICE) on May 1 show that US stockpiles of coffee have dropped to a 2-and-a-half-year low of 1.82 million bags.

However, the price of coffee is still under pressure from concerns that the global economic recession caused by the Covid-19 pandemic will reduce demand for this commodity. Coffee brokers in Brazil have reported that some international customers, mainly in Europe, are asking coffee shipments from Brazil to delay delivery time to 90 days because of coffee storage facilities their has been filled.

Earlier this month, ICOs said global coffee consumption this year could stagnate or even decrease instead of growing by 2 -3% according to the forecast before the pandemic.

Source: Vietnam News Agency

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