Rice workers at a market in Bangalore, India. Photo: AFP/TTXVN
Asian Rice Market
The price of Indian 5% broken rice continues to rise for the fourth consecutive week, reaching a record high of 542-550 USD/ton for the week of February 5-9. According to observers, this is due to the limited supply of rice and continuous high demand.
An exporter based in Kolkata, India, stated that the milling operations for the new crop are being carried out, but the supply is still limited due to the government increasing its reserve purchases. There is a high probability that the export restriction order will be extended from now until the national elections in late November 2024 to control food prices.
In this context, buyers will turn to seek rice from Islamabad, potentially boosting Pakistan’s rice exports to a record high. Currently, the price of 5% broken rice from this country is being sold at the highest level in nearly 16 years, around 640 USD/ton, and the price of parboiled rice is about 680 USD/ton.
In Thailand, the price of 5% broken rice is being offered at 630 USD/ton, a decrease from the previous week’s price of 640 USD/ton, due to slower market activity.
A trader based in Bangkok revealed that there were no large orders placed in the past week. He also added that the current export shipments are primarily to fulfill previously signed orders.
On February 7, Vietnamese 5% broken rice was quoted at 635-640 USD/ton, unchanged from the previous week. A trader based in Ho Chi Minh City stated that trading activity has slowed down before the 2024 Lunar New Year holidays.
US Agricultural Market
On the Chicago Board of Trade (CBOT), soybean prices continued to fall, while corn prices traded near a three-year low in the previous session. Similarly, wheat prices fell for the first time after three sessions this week. According to traders, the decline in grain prices is due to improved weather conditions in Argentina and Brazil, which are boosting expectations of abundant supplies in the upcoming season.
Grain traders based in Sydney, Australia reported that improved weather forecasts in South America, mainly in Argentina, have raised hopes for a bountiful harvest.
Specifically, in the trading session on February 8, soybean prices reached 11.63 USD/bushel, slightly lower by 0.1% compared to the previous session. The price of corn decreased by 0.1% to 3.58 USD/bushel on Wednesday, and wheat prices dropped 0.5% to 5.99 USD/bushel (1 bushel of wheat/soybeans = 27.2 kg; 1 bushel of corn = 25.4 kg).
In recent weeks, the leading agricultural areas of Argentina have experienced drought conditions and high temperatures in the Southern Hemisphere summer. However, the Buenos Aires Grain Exchange reports that there will be a significant amount of rainfall in the coming days, boosting soybean and corn production in the country.
In Brazil, rain forecasts in major agricultural regions are also increasing, opening up expectations for abundant supplies of grains and oilseeds.
Global Coffee Market
Illustrative photo: AFP/TTXVN
At the close of trading on February 9, Robusta coffee prices on ICE Europe – London moved upward. Robusta coffee for the March 2024 delivery increased by an additional 104 USD to reach 3,349 USD/ton, and Robusta coffee for the May 2024 delivery rose by 108 USD to 3,217 USD/ton. Trading volume remained quite high above the average.
Similarly, Arabica coffee prices on ICE US – New York also moved upward. Arabica coffee for the March 2024 delivery increased by 7.50 US cents to reach 196.30 US cents/lb, and Arabica coffee for the May 2024 delivery rose by 5.65 US cents to 191.50 US cents/lb (1 lb = 0.4535 kg). Trading volume remained very high above the average.
