Week 14 / 9-18 / 9: lowest export price of 5 years, domestic prices continue to fall

On the Asian market, Vietnam rice prices almost unchanged from the previous week, while Thai rice continued volatility fell before the auction of Philippine rice imports in the context of the baht weakened.

5% broken rice of Vietnam in the week stood at $ 320-330 / tonne (FOB Saigon Port), down 5 USD compared to the 325-335 USD / ton last week, but has rebounded this level on October 16 / 9. Rice same type of Thailand dropped steadily, from 345-355 USD / ton (FOB Bangkok) down to 340-350 USD / ton, and now only 335-345 USD / ton.

Philippines expected to buy more rice, the maximum level set out initial plan of 750,000 tons imported through a tender in 17/9 days to replenish rice stocks in anticipation of El Nino will affect Quantity. Job
The Philippines continues to import rice expected to limit the decline in the price of rice in Vietnam.

25% broken rice of Vietnam, Philippinestim buy rice which fell to lows in the past week, only 315 USD / ton, the lowest since March 7/2010. Vietnam was awarded for 450 thousand tons of 25% broken to give the Philippines. 25% broken rice of Thailand last week dropped to 325-335 USD / ton, compared to the 335-345 USD / ton last week. The baht continued to weaken against the dollar has made the FOB price in dollars fell, while air transport services market remains quiet.

According to estimates by the Office of Agricultural Economics Thailand (OAE), rice production of Thailand crop year 2015/16 may be reduced to 22.98 million tons, down 30% compared with 32.62 million tonnes last season and recorded its lowest level for 19 years, mainly due to drought conditions and water shortages. The government may prohibit farmers from rice cultivation to 30.04.2016 01.11.2015 due to water shortages. Output of rice from Thailand and some other Asian countries reduced by dry weather for El Nino, global rice supplies will be tight, adversely affect the price of rice.

In Industry Overview report 9/2015 at Rice month, US Department of Agriculture (USDA) forecasts global rice trade in 2015 reached 42.5 million tonnes, down 2% compared with 43.4 million tons in 2014. In which estimates Thailand's rice exports in 2015 decreased by 18%, conversely, raise export forecasts of India and Pakistan. Forecasts of Indian rice exports rose thanks to the abundant, however, Vietnam's rice exports and the US may fall.
In the domestic market, the price of rice in the Mekong Delta last week fell slightly, despite Vietnam's information has been invited to participate in the bidding Philippine rice imports.

Unlike last time, when there is information Philippine rice import tender with participation of Vietnam, rice prices in the Mekong Delta was immediately increased by 100 VND / kg. However, this information did not improve much in the Mekong Delta rice prices. Traders and enterprises providing rice hardly expect this bidding round should not promote grain purchasing.

On the other hand, world rice prices are low making Vietnam's rice prices have dropped considerably, 5% broken rice now only about 330 USD / ton, but still difficult to sell, while the storage volume of businesses' as exports of rice from this year only reached nearly 4 million tons. Overall, Vietnam's rice exports have yet to escape the predicament, bleak.

Under System provides local price, rice price movements in some Mekong Delta provinces last week as follows: in An Giang, IR50404 rice decreased from 4,350 VND / kg to 4,250 VND / kg (paddy); Bac Lieu, summer rice decreased from 4,600 VND / kg to 4,500 VND / kg; IR50404 spring rice decreased from 5,100 VND / kg to 4,800 VND / kg.

According to the Vietnam Food Association (VFA), export of rice from 01/7 to 31/8/2015 reached 517 060 tonnes days, FOB value reached 224.299 million, CIF value reached 230.508 million. Calculated from 01/1 to 31/8/2015 reached 3.818 million tons day, FOB value reached 1.591 billion dollars, CIF value reached 1.641 billion US dollars.