Domestic coffee prices continue to increase sharply; summer-autumn crop prices remain high

Domestic coffee prices continue to increase sharply

Domestic coffee prices today (May 18) increased sharply compared to yesterday, currently fluctuating from 56,300 - 56,700 VND/kg.

Specifically, the price of green coffee beans (coffee beans, fresh coffee beans) in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at a price of 56,200 - 56,300 VND/kg.

Coffee prices in Gia Lai and Kon Tum provinces increased by VND300/kg, standing at VND56,500/kg.

In the first quarter of 2023, Switzerland increased coffee imports from Vietnam.

In Dak Nong province, coffee was purchased at 56,700 VND/kg, an increase of 400 VND/kg.

Today's coffee price in Dak Lak province in Cu M'gar district is currently at 56,600 VND/kg. In Ea H'leo district, Buon Ho town, the price is also 56,700 VND/kg.

For world coffee prices, coffee prices on the two exchanges are in opposite trends.

Specifically, at the end of the trading session, Robusta coffee prices on the London floor continued to increase. The July spot futures increased by 23 USD, to 2,511 USD/ton, and the September futures increased by 20 USD, to 2,484 USD/ton, both very significant increases. Trading volume remained at an average level. The inverse price structure widened the gap.

In contrast, Arabica coffee prices on the New York floor continued to decline. The July spot futures fell 2.60 cents to 186.80 cents/lb and the September futures fell 2.30 cents to 184.45 cents/lb, both increases were also significant. Trading volume was quite high above average.

The Import-Export Department (Ministry of Industry and Trade) cited statistics from the International Trade Commission, saying that in the first 3 months of 2023, Switzerland imported 52.56 thousand tons of coffee from the world, worth 310.92 million USD, down 4.2% in volume, but up 9.0% in value compared to the same period in 2022.

Rice prices continue to increase by 50 VND/kg

Rice prices today (May 18) in the Mekong Delta increased by 50 VND/kg for rice. Summer-autumn sticky rice prices are at a high level.

Accordingly, at An Giang warehouse, traders are purchasing Dai Thom 8 rice at 6,800 - 7,000 VND/kg; OM 18 fluctuates around 6,600 - 6,800 VND; IR 504 rice is being purchased by traders at 6,200 - 6,400 VND/kg; OM 5451 rice at 6,300 - 6,400 VND/kg; Nang Hoa 9 6,600 - 6,750 VND/kg; Nhat rice 7,800 - 8,000 VND/kg; Long An dried sticky rice 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.

Rice prices continue to increase by 50 VND/kg.

Regarding rice, the price of raw rice increased, while the price of finished rice remained stable. Accordingly, the price of raw rice was VND9,800/kg, an increase of VND50/kg; the price of finished rice remained stable at VND11,200/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 traders, today the amount of raw rice has been low, the price of all types of rice is stable. The price of summer-autumn rice is relatively stable, new rice transactions are regular. The price of winter-spring sticky rice has increased sharply compared to the same period last year. The price is high at the beginning of the summer-autumn crop.

In the export market, according to the Vietnam Food Association, the export price of 5% broken rice from Vietnam is at 488 USD/ton; 25% broken rice is at 468 USD/ton; and Jasmine rice is at 553-557 USD/ton.

According to the USDA May 2023 report, the Philippines' rice imports in 2023 are forecast to increase slightly while Indonesia's imports will remain unchanged from the previous estimate. In addition, USDA revised up its estimate of Cambodia's rice exports in 2023 and down its estimate of Myanmar's exports from the previous estimate.

Statistics show that rice exports to the EU market increased sharply, reaching 94,510 tons in 2022, exceeding the annual quota of 80,000 tons of rice that the EU gives to Vietnam according to the commitment from the EVFTA Agreement.

Steel prices increase, steel industry profits forecast to remain unstable

Steel prices today (May 18) recorded continued increases on the trading floor. Steel industry profits are forecast to remain unstable from now until the end of the year.

Experts say that the market is currently "slowing down" to re-examine the real prospects of the steel industry. Especially when the price of steel raw materials remains high, causing production costs to increase, profit margins of businesses to narrow, while weak demand for steel leads to continuous downward adjustments in steel prices.

The Vietnam Steel Association (VSA) has just announced that in April, construction steel production reached 711,205 tons, down 22.09% compared to the previous month and down 37.2% compared to April 2022. Sales reached 735,759 tons, down 17.38% compared to the previous month and down 15.2% compared to the same period in 2022. Of which, construction steel exports reached only 95,100 tons, only 54.5% compared to the previous month.

For finished steel products of all kinds, production reached 2.17 million tons, down 9.66% compared to March 2023 and down 26.3% compared to the same period in 2022. Steel sales reached more than 2.03 million tons, down 8.32% compared to the previous month and down 15.1% compared to the same period.

Steel industry profits are forecast to remain volatile from now until the end of the year.

VSA explained that the stagnant real estate market and the banking system tightening credit have resulted in low construction steel usage compared to expectations in the post-Tet construction season.

In addition, weak steel demand in most regions of the world and negative sentiment have impacted finished steel prices. The downward trend in steel prices globally has been further reinforced as Chinese steel companies seek to boost exports at a rapid pace of price reduction to compete.

Commenting further on the market, VSA believes that the steel industry will face many obstacles and continue to have unpredictable developments in the context of increasing challenges not only in terms of competition in the domestic market, but also from tightening monetary policies. At the same time, increasing interest rates and escalating exchange rates can also negatively affect the demand and production and business activities of units in the industry.

According to Vietcombank Securities Company Limited (VCBS), in the second quarter, the strong adjustment in input material prices will continue to put pressure on the cost of provisioning for price reductions for leading steel enterprises. Therefore, HPG's business results in the second quarter will face many difficulties.

With concerns about low steel consumption and no signs of recovery in prices, the performance of steel stocks in the past two sessions shows that the market is re-evaluating steel stocks more carefully. Many current factors also predict that steel industry profits may become unstable again.

Domestic and foreign USD continue to increase

USD exchange rate today (May 18), USD exchange rate in the world and in the country increased simultaneously.

The State Bank of Vietnam announced the central exchange rate with the US Dollar at 23,656 VND.

Yesterday's USD exchange rate developments showed that the Dollar Index (DXY), measuring the USD against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF) stopped at 102.859 points with an increase of 0.25% at the close of the session on May 17.

Currently 1 Euro is worth 1.0841 USD. 1 British Pound is worth 1.2489 USD. 1 USD is worth 137,590 Yen. 1 USD is worth 1.3454 Canadian Dollar. 1 Australian Dollar is worth 0.6659 USD.

The dollar closed at a seven-week high on Thursday, buoyed by optimism that a deal to extend the debt ceiling and avoid a default in the United States will be reached, while solid economic data suggested that a rate cut from the Federal Reserve could be a long time coming.

The DXY index rose 0.3% to 102.85. Meanwhile, the euro fell 0.2%, currently at $1.0838 to the dollar.

Data on Wednesday showed U.S. homebuilding increased in April, although data for the previous month was revised down significantly.

Meanwhile, the dollar rose 0.9% against the yen to 137.59 yen. Interest rate futures markets have not priced in the possibility of a rate cut from the Federal Reserve Bank (Fed) in June.

Separately, the Chinese yuan fell against the dollar for the first time in five months amid geopolitical tensions and other signs that China's recovery from the COVID-19 pandemic is slowing.

Domestic market foreign exchange rates: Reference exchange rates for US Dollars at the State Bank's exchange office for buying and selling are: Buying 23,450 VND - selling 24,784 VND.