Enterprises collect goods, rice market is bustling; Coffee prices increase sharply compared to last week

The rice market is bustling

Rice prices today, May 8, in the Mekong Delta region remained stable in the first session of the week. Accordingly, at An Giang warehouse, Dai Thom 8 rice is being purchased by traders at 6,600 - 6,800 VND/kg, OM 5451 rice at 6,400 - 6,500 VND/kg; IR 504 rice is being purchased by traders at 6,200 - 6,400 VND/kg; OM 18 rice is being purchased by traders at 6,400 - 6,500 VND/kg; Nang Hoa 9 price fluctuates at 6,600 - 6,750 VND/kg; Nhat rice is 7,800 - 8,000 VND/kg; Long An dried sticky rice is 8,600 - 8,800 VND/kg, An Giang dried sticky rice fluctuates at 8,000 - 8,200 VND/kg and IR 504 dried rice remains at 6,500 VND/kg.

Regarding rice, the price of raw rice and finished rice products tends to move sideways. Accordingly, the price of raw rice is at 9,750 VND/kg; the price of finished rice products remains stable at around 10,850 - 10,950 VND/kg.

Businesses continue to buy goods, the market is bustling. Photo: Viet Phuong

Regarding by-products, the price of by-products remains stable. Accordingly, IR 504 sheet is at 9,200 VND/kg; dry bran fluctuates around 7,350 - 7,450 VND/kg.

At the retail market, rice prices remained stable after the adjustment session. Accordingly, regular rice is 11,000 - 12,000 VND/kg; Jasmine fragrant rice is 14,000 - 15,000 VND/kg; Soc regular rice is 15,000 VND/kg; glutinous rice is 16,000 - 18,000 VND/kg; Nang Nhen rice is 22,000 VND/kg; Common white rice is 14,500 VND/kg; Nang Hoa is 18,500 VND/kg; Soc Thai is 18,000 VND/kg; Taiwanese fragrant rice is 20,000 VND/kg; Japanese rice is 22,000 VND/kg; Bran is 7,500 - 8,000 VND/kg; Long grain Thai fragrant rice remains at 18,000 - 19,000 VND/kg and Jasmine rice at 19,000 VND/kg.

According to businesses, today the amount of raw rice imported is low, the price of rice of all kinds is stable. Rice transactions are more active thanks to businesses increasing their purchases. Traders are proactively offering more dry rice for sale.

In the export market, according to the Vietnam Food Association, the export price of 5% broken rice from Vietnam fluctuates around 483-487 USD/ton; 25% broken rice is at 463 USD/ton; and Jasmine rice is at 553-557 USD/ton.

Many businesses in the Mekong Delta region said that the severe heat in many places and weather warnings about the approaching El Nino phenomenon are likely to seriously affect agricultural production in many countries. Therefore, countries are currently actively purchasing to serve domestic consumption and long-term reserves to avoid being passive.

PriceCoffee increased sharply compared to last week.

Today's coffee price, May 8, in the domestic market is highest at 53,900 VND/kg, a sharp increase of 2,400 VND/kg compared to the same period last week (May 1).

Specifically, green coffee beans in Lam Dong province were purchased at VND53,200/kg. Coffee prices in Gia Lai and Dak Nong provinces ranged from VND53,700 to VND53,800/kg and coffee prices in Dak Lak province generally reached VND53,900/kg.

Compared to the same period last week (May 1), coffee prices have increased sharply by 2,300 - 2,400 VND/kg. Especially on the last day of last week (May 6), coffee prices "jumped" up to 1,500 VND/kg.

Domestic coffee prices are high, coffee growers are excited.

Similarly, contrary to forecasts of downward pressure on prices, at the end of last week's session, world coffee prices continued to increase.

In the most recent trading session before the opening on May 8, Robusta coffee prices on the London (UK) floor fluctuated from 2,381 - 2,471 USD/ton depending on the delivery period. Of which, coffee for delivery in July 2023 reached 2,471 USD/ton; delivery in September 2023 reached 2,446 USD/ton; coffee for delivery in November 2023 reached 2,408 USD/ton and coffee for delivery in January 2024 reached 2,381 USD/ton.

For Arabica coffee, in the most recent trading session, on the New York Stock Exchange (USA), coffee prices ranged from 183.65 - 188.05 cents/lb. Of which, for the July 2023 coffee delivery period, the matching price was 188.05 cents/lb. The remaining terms were matched at 185.6 cents/lb for September 2023 delivery; 183.75 cents/lb for December 2023 coffee delivery and 183.65 cents/lb for March 2024 delivery.

Highest pepper price 74,000 VND/kg

Pepper prices today, May 8, in the domestic market have stagnated and tended to move sideways after 4 consecutive increases in key growing areas last week. Currently, pepper prices in key areas have exceeded 70,000 VND/kg and fluctuated around 71,000 - 74,000 VND/kg.

Accordingly, in the Central Highlands region, pepper prices today fluctuate around 71,000 - 72,000 VND/kg. Specifically, in Gia Lai, pepper prices today are purchased by traders at 71,000 VND/kg. In Dak Lak and Dak Nong provinces, pepper prices today also remain stable around 72,000 VND/kg.

Similarly, in the Southeast, pepper prices today have not fluctuated. Currently, pepper prices today in Ba Ria Vung Tau are being purchased by traders at 74,000 VND/kg. In Dong Nai, pepper prices are at 73,000 VND/kg; in Binh Phuoc, pepper prices today are at 73,000 VND/kg.

Pepper price today is highest in Ba Ria Vung Tau.

Thus, today's pepper price is unchanged compared to the last session of the week. Compared to the beginning of May, domestic pepper price has increased by 4,500 VND/kg compared to last week and exceeded 70,000 VND/kg in all localities. Pepper market transactions are bustling.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 3,506 USD/ton; Muntok white pepper price at 6,076 USD/ton. The price of Brazilian black pepper ASTA 570 was at 2,950 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton; the price of Malaysian white pepper ASTA remained at 7,300 USD/ton.

Vietnam black pepper price is traded at 3,500 USD/ton for 500 g/l; 550 g/l at 3,600 USD/ton; white pepper price at 5,000 USD/ton.

According to experts, concerns about bad weather this year causing a reduction in crop yields for the next crop helped pepper prices rise right after the holiday. Thanks to domestic pressure, Vietnam’s pepper export prices were also listed to increase sharply.

Fertilizer industry will have a year of negative growth due to "double impact"?

It is forecasted that in 2023, the fertilizer industry will face many difficulties due to the double impact of price reduction and no VAT deduction.

In 2022, fertilizer companies recorded big wins due to price benefits. However, since the beginning of 2023, fertilizer prices have reversed. World urea prices have continuously decreased sharply. In early April, urea prices even dropped to 307.5 USD/ton, the lowest level in 27 months since the beginning of 2021. Compared to the peak in mid-April last year, the price of this commodity has decreased by 70% and shows no signs of stopping.

Fertilizer production line at Binh Dien Fertilizer Company (Long An).

The main reason is that European manufacturers are expanding production thanks to lower input prices of raw materials and fuels due to increased natural gas resources and abundant LNG imports. In addition, the supply trend tends to increase again after China lifted its export ban, which also affects the price movements of fertilizers.

In the first quarter of this year, many large domestic fertilizer companies recorded a decline in profit targets. For example, Binh Dien Fertilizer, for the first time since 2008, recorded negative revenue and losses in the first quarter of 2023. Two large enterprises, Phu My Fertilizer and Ca Mau Fertilizer, recorded a sharp decrease in revenue and profit compared to the first quarter of 2022. Specifically, the after-tax and consolidated profits of Ca Mau Fertilizer's parent company decreased by more than 84%; Phu My Fertilizer's pre-tax profits were also estimated to decrease by 88% compared to the same period last year. In the first quarter of 2023, Ha Bac Fertilizer also lost money after 6 consecutive quarters of profit.

SSI Research also has an unfavorable assessment for the fertilizer industry this year. Because fertilizer prices depend heavily on oil prices, while oil prices are currently on a downward trend. In addition, Russia and China's loosening of global urea exports will reduce pressure on supply, and the decline in fertilizer prices may continue in the near future.

In addition to the objective difficulties of the market, domestic fertilizer enterprises are also suffering from other difficulties and disadvantages from the fertilizer Value Added Tax policy in Tax Law 71.