Rising global demand following natural disasters, such as floods and droughts, around the world not only boosted rice prices, but also encouraged Asian buyers to stock up on the grain.
Workers at a rice mill in Hyderabad, India. Photo: AFP/VNA
In India, the price of 5% broken parboiled rice was unchanged from last week, at $362-368 per tonne, as weak demand offset supply concerns persisted by low rainfall.
Agriculture ministry figures last week showed farmers planted rice on 34.37 million hectares, down 8.3% from the same period a year ago.
An exporter based in Kakinada in the southern Indian state of Andhra Pradesh said demand for all grains increased as “erratic” weather encouraged Asian buyers to stock up.
Bangladesh is preparing to finalize an agreement with India to import 100,000 tons of rice under a contract between the two governments.
In Vietnam, the price of 5% broken rice was unchanged from last week, trading at 390-393 USD/ton.
A trader based in Ho Chi Minh City said slow sales and weak demand, plus prices are unlikely to fall due to the end of the summer-autumn harvest, so supply will decrease.
Meanwhile, in Thailand, the price of 5% broken rice increased slightly to $415-422/ton this week.
“Prices could be boosted by increased global demand following natural disasters, such as floods and droughts, around the world,” said a Bangkok-based trader.
US agricultural market
Farmers harvest corn in Hastings, Minnesota, USA. Photo: AFP/VNA
In the trading session of August 26, the price of agricultural commodities futures on the Chicago Mercantile Exchange, the US all increased, with the price of corn rising.
Closing this session, the price of corn delivered in December 2022 increased by 14.25 US cents (equivalent to 2.19%) to 6,6425 USD/bushel. Wheat for December delivery rose 16.25 US cents (2.06%) to $8.0525/bushel. The price of soybeans for November delivery increased by 30 US cents (2.1 percent) to $14,6125 per bushel (1 bushel of wheat/soybean, 2 kg; 1 bushel of corn = 25.4 kg).
Russian wheat and Ukrainian corn supplies are particularly weak compared to exporters in the Gulf of Mexico (USA) and Northern Brazil.
Federal Reserve Chairman Jerome Powell indicated that the central bank will remain uncompromising in its fight against inflation and is determined to bring inflation back to its 2% target. This will have a negative impact on US and world grain demand.
The United States Department of Agriculture (USDA) confirmed the sale of 146,000 tons of soybeans to an unidentified customer.
World coffee market
In the coffee trading session on August 27, world coffee futures prices on both exchanges dropped due to heightened risk concerns about the possibility that the Fed will be strong in fighting inflation even though it will cause difficulties for people. and companies.
At the end of the last trading session of the week, the price of Robusta coffee on the ICE Europe – London floor continued to decline. The November 2022 spot term decreased by 33 USD to 2,279 USD/ton and the January 2023 delivery term decreased by 34 USD to 2,260 USD/ton, the reductions are quite strong. Trading volume is below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York reversed to decline. December 2022 spot futures fell 1.40 US cents to 238.10 US cents/lb, and March 2023 delivery fell 1.35 US cents to 231.65 US cents/lb, levels significantly reduced (1.4535 kg). Trading volume is average.
Meanwhile, the price of green coffee beans in the Central Highlands provinces decreased by 600-700 dong, down to the range of 48,200-48,800 dong/kg.
Coffee futures prices continued to decline as expected after a hot session due to concerns about supply shortages in both the short and medium term. ICE’s coffee inventories continued to decline because futures prices lacked attractiveness and were not competitive enough with the outside market. Moreover, the cost for traders to bring coffee to the two floors for auction is currently quite expensive and expensive, so importers directly go to the source to buy goods to reduce intermediary costs.
