Vietnam’s export rice price increases $20 per tonne

Vietnam’s export rice price may increase thanks to the possibility that Thailand’s customers will switch to buy Vietnamese rice.
According to data compiled by Bloomberg, 100% B grain rice of Thailand is offered at $627 per tonne (FOB price), higher than $619 per tonne in previous week. This type of rice has ever reached 3-year high of $629 per tonne on September 7.

Thai 25% broken grain rice this week reached $559 per tonne, up $5 per tonne from previous week.

On October 7, Thailand will start its program of buying ordinary paddy at the price of nearly $500 per tonne and the program will last till December, 2012.

As calculated by exporters, with this ordinary paddy price, the rice price will jump to $870 per tonne and the risk of global inflation is becoming more and more serious because Thailand accounts for 30% of the total rice export volume worldwide.

Currently, Thailand is experiencing severe floods, adversely affecting crops. This country has recently also reduced its forecast on rice output of main crops to 24.5 million tonnes, lower than 2.4% over the previous forecast.

In Vietnam market, the price of rice and paddy also increased this week due to lower reserve and because Thailand’s rice buyers may switch to purchase Vietnamese rice in the upcoming time.

Vietnam’s 5% broken grain rice price this week reached $560-570 per tonne (FOB price), up $20 per tonne from previous week, while the price of 25% broken grain rice increased by $15 per tonne to $510-515 per tonne.

Few days ago, Thailand’s Commerce Minister, Kittiratt Na Ranong, Thailand had canceled its plan to sell 300,000 tonnes of rice to Indonesia because of low price.

Indonesian State logistics agency or Bulog said that if Thailand does not perform its commitment of selling rice according to signed contracts, this country will have to seek other alternative suppliers that may be Vietnam, India or Pakistan. – Vietbiz24.com

Tags: Vietnam rice, Vietnam rice exports, Vietnam rice exports 2011