Rice is a type of agricultural product that has seen a sharp increase in imports in the first month of the year. According to preliminary statistics from the General Department of Customs, Vietnam imported 535,349 tons of rice in January 2024, equivalent to 156.37 million USD, a decrease of 23.6% in volume and a decrease of 20.4% in value compared to the previous month. However, compared to the same period last year, the volume has increased significantly by 126.4% and the value has increased by 80.7%. The average import price reached 292 USD per ton, an increase of 4.2% compared to the previous month.
In terms of market, Australia is still the leading supplier to Vietnam in January with 215,823 tons, equivalent to nearly 69.39 million USD, an increase of 144.6% in volume and a strong increase of 137.9% in value compared to the previous month. The average price reached 321 USD per ton, a decrease of 3% compared to the previous month and a decrease of up to 11.6% compared to the same period.
Notably, the Brazilian market is experiencing a strong increase in exports of this commodity to Vietnam with 139,621 tons of rice, equivalent to nearly 36.06 million USD, an increase of 28,106% in volume and an increase of 28,536% in value compared to the previous month. The average import price is 258.3 USD per ton, a slight increase of 1.5% compared to December 2023.
In addition to Brazil, the United States is also experiencing a sharp increase in exports to Vietnam with 48,397 tons, equivalent to over 16.18 million USD, an increase of 2,135% in volume and an increase of 2,102% in value compared to December 2023. The average price reaches 334.3 USD per ton.
Russia has dominated the global wheat market in 2023, surpassing the United States. According to the US Department of Agriculture (USDA), Russia is the leading exporter of wheat in the 2022-2023 season with 46 million tons, accounting for 1/4 of the global wheat exports in 2023.
Notably in recent months, Russia has increased wheat exports to Vietnam after a long period of not recording imports. In January, it reached 16,900 tons, worth over 4 million USD. Besides Russia, Ukraine is also increasing its export of this commodity to Vietnam.
High grain prices in recent years have prompted farmers worldwide to grow more cereals and oilseeds. However, consumers will face tighter supplies in 2024 amid unfavorable El Nino weather conditions, export restrictions, and increased demand for biofuels.
The International Grains Council (IGC), which includes major wheat-producing and importing countries, forecasts global wheat production for the 2023-2024 season at 784 million tons, a decrease of 2.4% compared to the previous season.
“The current wheat supply situation in the 2023-2024 season may be worse than the previous season. This is because wheat exports from major producing countries may be significantly lower,” a report from Commerzbank stated.
World wheat consumption in 2023/24 has been forecasted to increase compared to the December 2023 forecast, mostly due to increased use for animal feed in the EU, which is projected to increase by 2% compared to 2022/23.
