Vietnam rice prices hit low Asian rice prices fell significantly

2013/9/23 11:43:00 New Rural Network

content Summary: Global rice production will rise to a record 0.497 billion tonnes in 2013/14, up 1.3 per cent from 0.491 billion tonnes in 2012/13. Most of the increase in production was concentrated in Asia. Rice prices in Vietnam have hit a three-month low due to weak demand and increased supply. The price advantage of low-cost imported rice is obvious, which has caused a great impact on China's processing enterprises.

Rice prices in Vietnam have hit a three-month low due to weak demand and increased supply. In addition, since 2013, the "high import" of grain varieties has become the norm in China's grain market, especially the "high import" of rice industry has caused an impact on China's domestic rice industry. Low prices in the international market will undoubtedly intensify the impact on the Chinese market.

From a fundamental point of view, both domestic and foreign rice production increased in 2013. According to the latest report released by the Food and Agriculture Organization of the United Nations (FAO) on September 9, 2013, global rice production will increase to a record 0.497 billion tons in 2013/14, up 1.3 percent from 0.491 billion tons in 2012/13. Most of the increase in production was concentrated in Asia. Global rice ending stocks may be 0.181 billion tons, up 4%.

Domestically, due to the lack of early drought and high temperature weather, early indica rice continued to increase production and go on the market in 2013. In addition, the stock of old rice is abundant, and the domestic supply of early indica rice is relatively loose. According to the latest early rice output released by the National Bureau of Statistics, the total output of early rice in 2013 reached 34.073 million tons (68.15 billion jin), an increase of 783000 tons (1.57 billion jin) over 2012, an increase of 2.4 percent. In 2013, the sown area of early rice nationwide was 5791.9 thousand hectares (86.878 million mu), an increase of 27.1 thousand hectares (406000 mu) over 2012, an increase of 0.5.

It is understood that the price advantage of low-priced imported rice is obvious, which has caused a great impact on Chinese processing enterprises. The FOB price of Vietnamese rice with a crushing rate of 5% is only 380 US dollars/ton, which is equivalent to only 1.17 yuan/kg. The FOB price of rice with a crushing rate of 5% in Thailand is 442 US dollars/ton, equivalent to only 1.36 yuan/kg. The price of smuggled rice in border trade is only between 1.5 and 1.7 yuan/kg, which is quite obvious compared with the price of domestic indica rice (above 1.8 yuan/kg).

It is reported that in 2012, China became the world's second largest rice importer, while in 2011, China only ranked 18th among global rice importers. In 2013, the "high import" of grain varieties has become the norm in China's grain market, especially in the rice industry. The "high import" has caused a huge impact on the domestic rice industry. According to customs data, as of July 2013, China imported 46.13 million tons of grain and 1.472299 million tons of rice (not including smuggled rice). Among them, a total of 144019 tons of rice and rice were imported in July 2013, a slight decrease from June 2013. The market expects that China's rice imports will reach 3 million tons in 2013. In the second half of the year, the import of rice and rice will continue to be high and continue to impact the domestic rice market.

Citation from Science and Technology World Network http://www.twwtn.com/Agriculture/58_202909.html

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