Export prices in Asia's leading rice exporting countries all fell this week as traders from Vietnam and Thailand struggled to compete with relatively low offers from India.
Asian rice market:
Export prices in Asia's leading rice exporting countries all fell this week as traders from Vietnam and Thailand struggled to compete with relatively low offers from India. Meanwhile, the COVID-19 lockdown in Bangladesh has increased rice prices in the country.
In India, 5% broken parboiled rice prices fell to $367-$371 per tonne, the lowest since November 2020, compared with $369-$373 per tonne last week. In Vietnam, the price of 5% broken rice decreased to 470 - 475 USD/ton from 478 - 482 USD/ton a week earlier.
Good news for Vietnamese rice is that recently the Vietnam Commodity Exchange (MXV) has officially listed rough rice (ZRE) trading in connection with the Chicago Mercantile Exchange. This is the first time that rice has been listed for trading on a centralized commodity trading market in Vietnam.
MXV's listing of rice trading is expected to create an information channel and a panoramic view of the world rice market. From there, rice prices will be made public and updated quickly. Farmers will avoid price manipulation, while rice exporting enterprises in Vietnam will also accurately assess the supply and demand of this commodity, giving them an advantage when participating in negotiations to close export prices with foreign partners.
Meanwhile, Thailand's benchmark 5% broken rice prices also fell to $420-$422 a tonne, down from $420-$430 a week ago, the lowest since late 2019.
Rice traders said global demand remained steady as Thai seed prices remained higher than those of competitors. Freight rates also remained high. A Bangkok-based trader said it was difficult to find vessels and freight rates had doubled in recent months, making it harder for exporters to sell.
US agricultural markets:
Prices of agricultural products traded on the Chicago Board of Trade (USA) fluctuated in opposite directions in the trading session on July 2, with corn and wheat prices decreasing, while soybean prices increased.
At the end of this session, corn prices for December 2021 delivery decreased by 9.25 US cents (1.57%) to 5.7975 USD/bushel. Meanwhile, wheat prices for September 2021 delivery decreased by 12.75 US cents (1.57%) to 6.5275 USD/bushel. However, soybean prices for November 2021 delivery increased by 3.5 US cents (0.25%) to 13.99 USD/bushel (1 bushel of wheat/soybean = 27.2 kg; 1 bushel of corn = 25.4 kg).
Chicago-based research firm AgResource noted that trading volumes were lower than usual as traders knew that futures prices for agricultural commodities would rise or fall sharply on July 6, depending on the latest weather forecast.
China is expected to import 20 million tons of corn from the world in 2021-2022. However, a US agriculture official raised his estimate of China's old-crop corn imports to 28 million tons, up 2 million tons from the previous estimate, as the pace of imports continued to be strong.
China imported 11.5 million to 12 million tons of US corn and at least 6 million tons of corn from Ukraine, out of a total of about 17.5 million tons to 19.5 million tons of corn imported from countries around the world.
US soybean exports in May 2021 reached 46.6 million bushels, 8.3 million bushels higher than the Federal Grain Inspection Service (FGIS) data.
Weather forecasts show that the air in Iowa (USA) will be slightly wetter, but drought conditions may continue from July 12 in the North American Plains, Midwest and Canadian Prairies.
In its quarterly stocks report, the US Department of Agriculture (USDA) said that the country's corn supply is currently at 4.122 billion bushels, the lowest level since 2014. Soybean stocks are at a six-year low of 767 million bushels and wheat stocks are at 844 million bushels, also a six-year low.
The data is raising concerns about global supply as inventories are low and growing regions in North and South America struggle with adverse weather.
World coffee prices:
At the end of the weekend trading session, Robusta coffee prices on the ICE Europe - London (UK) exchange fluctuated in opposite directions. Robusta coffee prices for September 2021 delivery increased by 6 USD, to 1,707 USD/ton, while futures prices for November 2021 delivery decreased by 6 USD, to 1,699 USD/ton. Trading volume remained above average.
In contrast, coffee prices on the ICE US - New York (USA) exchange had their fourth consecutive decline. Arabica coffee prices for September 2021 delivery fell 3.35 US cents to 153.05 US cents/pound and Arabica coffee prices for December delivery also fell 3.35 US cents to 155.95 US cents/pound (1 pound = 0.454 kg). Trading volume was average.
Coffee prices in the New York market have continuously decreased recently when many sources said that the cold air in late June in southern Brazil did not cause significant damage to Arabica coffee plants, which have been moved to the warmer North. Meanwhile, the market is still under pressure to sell new crops from leading producers.
In Vietnam, green coffee prices in the Central Highlands provinces increased and fluctuated in the range of 35,600 - 36,200 VND/kg.
According to Baotintuc.vn