THE WORLD INCREASED BUYING, EXPORT RICE PRICE HIGHEST IN 10 YEARS

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In the first quarter of the year, the average export price of rice was estimated at 531 USD/ton, up 9.2% over the same period in 2022. This is the highest average export price of rice in 10 years.

( Source: asl-corp.com.vn )

Exported rice price increased

According to data of the Ministry of Agriculture and Rural Development,  rice exports  in March 2023 reached 900 thousand tons, worth $ 480 million, bringing the results of rice exports in the first 3 months of 2023 reaching 1.79 million tons and 952 million dollars. Rice exports in the first quarter of 2023 decreased by 19.3% in volume but increased by 30.2% in value over the same period in 2022.

The average export price of rice in the first three months of 2023 is estimated at $531/ton, up 9.2% over the same period in 2022. This is the highest average export price of rice in the past 10 years.

Regarding the market, in the first quarter of 2023, the Philippines, China, and Indonesia were the three largest export markets. Notably, Indonesia has become the market with the highest increase in rice export value in the first quarter of 2023, increasing 3.06 times compared to the first quarter of 2022.

For the Chinese market, in the first quarter of the year, rice exports to China increased by 86% in volume and 120% in value over the same period in 2022. Especially, the average price of rice exported to China in the first three months of the year. an average of 589 USD/ton, an increase of more than 18% compared to the same period last year.

Explaining the positive growth of rice exports, Mr. Do Ha Nam, Vice President of the Vietnam Food Association (VFA), said that the world rice industry is in a period of insufficient supply and demand, so rice prices have increased.

With the Chinese market, Mr. Nam said, this is a good market. Previously, the amount of rice exported to China reached about 2.5-3 million tons. However, in recent years, the export output has decreased to about 1 million tons, even in some periods down to 500,000 tons. From the end of 2021 to now, the Chinese market has been more stable, so it is forecasted that rice exports in 2023 to this market can reach about 1 million tons. In which, the main types of rice are glutinous rice and fragrant rice.

"After opening the economy, the Chinese market's demand for rice is very strong. In particular, Indonesia has a need to import up to 2 million tons of rice, Vietnam's purchasing power accounts for 50% of the total output, so the output is very high. Meanwhile, at the end of 2022, rice exports have grown well and businesses have cleared inventory to sell, so the supply of enterprises is not much," said Mr. Do Ha Nam.

Bright Prospects in Quarter II

Rice exports are expected to be more active in the coming months due to the additional supply from the winter-spring harvest, while the demand in traditional markets such as the Philippines, Indonesia, China... is increasing.

According to Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Production - Trading Co., Ltd., up to this point, the winter-spring rice crop has harvested about 90% of the area. Compared to the previous crop, the amount of commodity rice is quite abundant.

For more information about the market, Mr. Thanh said, the Philippine market is very fond of rice varieties OM18, OM5451 and DT8. The prices of these types of rice are ranging from 480-500 USD/ton depending on the type and export standards. Meanwhile, China prefers ST rice; In this year's winter-spring crop, many people grow ST25 rice. Currently, there are many  Chinese customers looking to buy ST25 rice.

The Vietnam Food Association (VFA) forecasts that Vietnam's rice exports in the second quarter will be more positive than in the first quarter of 2023. The export price of rice is forecast to remain at a high level, due to the impact of economic and political uncertainties and the increased demand for food reserves of countries.

In fact, at the beginning of April, Vietnam's export rice price increased the most in Asia, reaching $473-453/ton depending on the type, an increase of about $10/ton compared to the end of March 2022.

Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association (VFA) shared that rice exports will continue to be favorable in the coming time. In the short term, rice prices are still at a good level due to global economic and political uncertainties that increase the need for food reserves. This is a factor that helps rice businesses benefit in the coming time.

“Currently, the demand for rice imports in African countries is increasing. It is forecasted that the Chinese market will also start to increase reserve imports. Meanwhile, rice supply from India and Pakistan continues to be limited; Thai rice prices increased due to the appreciation of the baht. The upcoming trend of the rice market will continue to be "busy", export prices will increase", a representative of VFA informed.

Miley