Rice prices at a high level

According to data from the Vietnam Food Association, in the trading session on August 19, the price of Vietnam's rice exports exceeded the price of Thai rice and was the most expensive in the world.

Vietnam's export rice price is the most expensive in the world, happy or worried? (Photo: Nguyen Hanh)

Specifically, the price of 5% broken rice for Vietnam's exports is at $628/ton, while Thai rice is priced at $618/ton. The price of 25% broken rice in Vietnam is 618 USD / ton, while this type of rice in Thailand is 561 USD / ton.

Thus, Vietnam's 5% broken rice price today is 10 USD/ton higher than Thailand's, while Vietnam's 25% broken rice is 57 USD/ton higher. Accordingly, the export price of Vietnamese rice is at the highest level in the world.

Vietnam rice price trading session 18/8 (Source of Vietnam Food Association)

Previously, on August 16, the rice offering price of Vietnamese enterprises recorded a decrease of 15 USD/ton compared to 10/8, standing at 623-627 USD/ton for 5% broken rice and 603 - $607/ton for 25% broken rice.

Meanwhile, for Thailand, after dropping $28/ton on August 16 compared to August 10 with both 5% and 25% broken rice, the price on August 17 compared to the previous day continues. further reduction of 10 USD/ton for 5% broken rice and 7 USD/ton for 25% broken rice.

Thus, the price of 5% broken rice in Thailand on August 17 was only 613 - 617 USD/ton, while the 25% rice price was 561 - 565 USD/ton. With the new price level established on August 17, Vietnam's 5% broken rice is 15 USD/ton higher than Thailand's and 25% broken rice is 47 USD/ton higher.

The move to reduce Vietnam's rice export offer on August 16 compared with August 10 was explained by the "psychology" of the news that India may soon reopen to sell rice. However, businesses also do not dare to sign for sale at that price because it is not effective compared to the current buying price from the domestic market. Some businesses said that the domestic rice price is at the same level as the export offer price.

The rice market has been constantly fluctuating in the past month (Photo: Nguyen Hanh)

After some markets banned rice exports, the news of floods that devastated China's rice crop is said to be a factor adding "fire" to the global rice market. Days of heavy rain caused severe flooding in China's top grain-producing region in the northeast, killing 14 people and raising food security concerns as floodwaters swept in. agricultural fields, CNN information.

Happy or worried?

Vietnam's export rice price is the most expensive in the world, should you be happy or worried? According to rice exporters, the high price of Vietnamese rice compared to the world average is not entirely an advantage, not to mention a disadvantage.

Because if businesses sell at too high a price, customers can look for new sources of supply at a more reasonable price, then they may lose the market or spend a lot of time and effort to negotiate to buy back. On the other hand, the high export price of rice also pushes up the domestic raw material price, businesses do not dare to buy because of large capital sources and high risks.

"With other agricultural products, usually businesses will sell goods to customers who pay high prices. However, with the rice industry, it is a bit different," said Mr. Phan Van Co - Marketing Director of Vrice Co., Ltd. shared and said that, in Vietnam, it is only about 3.5 months/rice crop, which means that the supply is continuously filled. Therefore, rice exporters often consider long distance.

Accordingly, exporters often give priority to selling goods to the traditional market with stability, quick payment and similar selling prices to other suppliers. After providing enough for long-term partners, new rice enterprises consider new markets, high prices.

"The customers who pay high prices can also be customers who buy only once, the new market will come with risks of payment and trade fraud ," said Mr. Pham Van Co.

According to data from the General Department of Customs , in the first seven months of the year, Vietnam's rice exports to China reached nearly 719,000 tons, equivalent to $413 million, up 54% in volume and 70% in value over the same period. in 2022. Currently, China is Vietnam's second largest rice consuming market, accounting for 15% of the total volume and 16% of the total rice export turnover.

Experts recommend that when Vietnamese rice faces more and more opportunities, Vietnamese businesses need to calm down. Because, all problems can arise if we do not manage well, only looking at one side, one aspect.

In the structure of the industry, the price is determined by the supply-demand factor, when demand increases, supply does not change, the price will go up, this we cannot intervene. However, the rice industry is still affected by external factors. Therefore, farmers and businesses must respect and share the opportunity so that everyone can cooperate with each other in the next crop. Businesses and traders also need to be alert in buying and selling today. Keeping the word "credibility" is also a top priority at this time.