VIETNAM RICE NEWS AND SEA SHIPPING
THE WEEK OF JULY 22 - JULY 27
July 22, 2024 News
WORLD MARKET
Vietnam market
Vietnam's 5% broken rice price was quoted at $565-570/ton on Thursday,
unchanged from last week, when prices were near a one-year low. A trader
in the Mekong Delta said: "Activities slowed down this week due to low
supply due to rain, which has reduced the quality of new rice."
The whole country has harvested nearly 400,000 hectares of Summer-
Autumn rice with an estimated yield of 6.2 tons/ha. Abundant supply, while
the world's demand for rice imports is increasing, many businesses predict
that rice exports will flourish at the end of this year. Currently, the average
export price of 5% broken rice is 600 USD/ton and 25% broken rice is 544
USD/ton. Although lower than the price at the beginning of the year,
compared to the same period last year, it still increased by about 30 - 35%.
They predict the price will recover in the near future when at the end of the
year the demand for imported rice also increases from traditional Vietnamese
customers. In addition, according to the Ministry of Agriculture and Rural
Development, by early July, localities had harvested about 388,000 hectares
out of 1.46 million hectares sown in the summer-autumn crop, with an
estimated yield of 6.2 tons/ha. Source Abundant supply is always a support
to promote rice export activities in the coming time.
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VIETNAM RICE NEWS AND SEA SHIPPING
THE WEEK OF JULY 22 - JULY 27
July 22, 2024 News
WORLD MARKET
Indian market
According to Reuters: Indian rice export prices decreased because the
country may relax rice export restrictions. India's rice export prices continued
to fall this week due to expectations that New Delhi may relax export
restrictions after a record increase in inventories.
India's leading exporter of 5% brokens was quoted at 537-543 USD/ton this
week, down from 539-545 USD/ton last week. “Buyers are delaying
purchases due to higher freight rates and expectations that India may lift
some restrictions on imports,” said an exporter based at Kakinada in the
Indian state of Andhra Pradesh. rice exports, which is expected to cause rice
prices to decline globally.”
Government sources said that India may reduce the floor price for basmati
rice exports and replace the 20% export tax on parboiled rice with a fixed tax
on export shipments abroad, while reducing prices. Minimum export of
basmati rice (MEP) decreased to 800-850 USD/ton from 950 USD/ton due
to record high domestic rice inventories. The country has imposed many
export restrictions in 2023 and will continue to apply them in 2024 in an effort
to control domestic prices ahead of general elections held in April-May.
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VIETNAM RICE NEWS AND SEA SHIPPING
THE WEEK OF JULY 22 - JULY 27
July 22, 2024 News
WORLD MARKET
Thai market
In Thailand, the price of 5% broken rice was quoted at $570/ton on
Thursday, the lowest since early November 2023, compared with $570-
575/ton last week. Thai rice prices fell to an eight-month low due to weaker
demand and increased supply. A trader based in Bangkok said demand was
quiet this week, adding that new supplies were coming and output could be
good this year due to good water resources. Another trader said that
although the Philippines' import tax was reduced, there were no large orders
from the country and other regular customers such as Indonesia, adding that
the market is waiting for new supply next month.
Malaysian market
In early March this year, Malaysia asked to buy an additional 500 thousand
tons of white rice from India, supplementing the 170 thousand tons already
allocated for the year. The request highlights Malaysia's significant
dependence on rice imports, with annual consumption of 2.5 million tonnes
and an average import supply of 750 thousand tonnes, according to state rice
importer Bernas. In addition, in January, Malaysia also asked to buy 100
thousand tons of onions from India through a government-to-government
agreement. In related trade developments, Uttar Pradesh Chief Minister Yogi
Adityanath announced on July 19 that the state will export 40 tons of
mangoes to Japan and Malaysia this year. Notably, this is the first time in 160
years that Lucknow's Dussehri mangoes have been exported to the US,
showing a broader effort to diversify and expand agricultural exports.
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VIETNAM RICE NEWS AND SEA SHIPPING
THE WEEK OF JULY 15 - JULY 20
July 22, 2024 News
MAERSK SAYS RED SEA SHIPPING
DISRUPTION HAVING GLOBAL EFFECTS
Maersk warned on July the coming months will be challenging as disruptions
to shipping via the Red Sea continue.
"The cascading impact of these disruptions extends beyond the primary
affected routes, causing congestion at alternative routes and transshipment
hubs essential for trade with Far East Asia, West Central Asia, and Europe," it
said on Wednesday.
"Ports across Asia, including Singapore, Australia, and Shanghai, are
experiencing delays as ships reroute and schedules are enhanced, caused by
ripple effects from the Red Sea," it said in a statement.
Maersk said its Oceania network was hit by congestion in Southeast Asian
hubs caused by equipment shortages and capacity constraints due to the
Red Sea disruption.
"The delays in Southeast Asian hubs pose a risk of disruption at Australian
ports due to vessel bunching on arrival, resulting in longer waiting times and
other delays," it added.
"The congestion and disruption have extended beyond the hubs and into
Northeast Asia and Greater China ports, causing delays."
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VIETNAM RICE NEWS AND SEA SHIPPING
THE WEEK OF JULY 15 - JULY 20
July 22, 2024 News
CONTAINER FREIGHT RATES TAKE A
BREATHER
Maersk said ocean cargo demand remains robust globally, and the group was
working to limit disruptions to customers partly by securing additional
containers.
https://www.seatrade-maritime.com/containers/container-freight-rates-
take-breather
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