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Vietnamese Rice Matches Thai in Price, More Excess Demand Seen

Vietnamese rice-export prices now equal those for Thai rice for the first time ever, Vietnam Food Association (Vietfood) Chairman Truong Thanh Phong told the Nguoi Lao Dong newspaper. As rice exporters enter negotiations for 2008 export contracts, they no longer worry about the price-quality competitiveness of Vietnamese rice. Now, there is simply no rice left for export after the year’s exports to date and domestic consumption, Mr. Truong Thanh Phong said. Over the last year, rice exports earned US$1.3 billion for 4.2 million tons, up 13 percent in terms of value while down 0.9 percent in terms of quantity.   To year’s end, 4.3 million tons of rice exports are expected to earn US$1.4 billion, keeping Viet Nam second in world rice exports after Thailand.   “This year marks a milestone for Vietnamese rice,” Phong noted, “Our 25-percent broken rice has never exceeded US$300 per ton, but it is now trading at US$313 per ton, equal to Thai rice. Previously, Vietnamese rice had always been US$40-45 per ton cheaper than Thai.”   “Unfortunately, we are now out of extra rice to sell,” lamented Phong, “Otherwise, the price of 25-percent broken rice would likely reach US$320-325 a ton.”   Also notable, Phong added, Vietnamese exports of glutinous rice reached some 230,000 tons at a rather high price of US$400 per ton this year, boosting the nation’s rice exports significantly.   Vietfood forecasts see rice demand on an uptrend. Many nations worldwide are shifting to rice from other grains due to shortages, especially of wheat, for which crop failures have been widespread. Such shortages are expected to last into next year, at least.   Due to poor wheat harvests, Phong said, the Indian and Pakistani governments have ordered halts to their rice exports, causing a shortfall in world rice supplies of over 4 million tons while other Asian nations are expected to want to import even more rice in 2008.   “The world market now holds many opportunities for Vietnamese exporters,” noted Phong, “Our prices will likely increase again next year, with 25-percent broken rice trading at some US$320 per ton and 5-percent broken at over US$340.” (By Du Thuyen (Nguoi Lao Dong) – Translated by Hoang Yen)

 

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