Rice prices on May 25th: OM 18 and Dai Thom 8 rice remained at 6,700 VND/kg.
The rice market in the Mekong Delta maintains stable prices for high-quality rice varieties; however, domestic trading activity is currently sluggish.
On May 25th, the rice market in the Mekong Delta continued its stable trend with high prices for high-quality rice varieties. According to reports, the two main rice varieties, OM 18 and Dai Thom 8, are currently being purchased by traders at around 6,500 - 6,700 VND/kg. This price reflects stable demand from processing businesses for export, despite limited actual supply in some localities.
The domestic market maintained a slow pace of trading.
Despite high rice prices, trading activity in key rice-producing regions such as An Giang, Dong Thap, Can Tho, Ca Mau, and Vinh Long remains relatively slow. Market sentiment is currently in a wait-and-see mode, with farmers tending to hold onto their stock while awaiting better prices. Conversely, traders and purchasing businesses are maintaining a cautious attitude, prioritizing observing market developments rather than initiating large-scale transactions.
In Tay Ninh province, purchasing power has also seen a similar decline, with no significant signs of improvement. For the raw rice segment, prices generally remain stable due to the limited supply arriving at the ports. Purchasing warehouses in Sa Dec and An Cu commune, Dong Thap province, are currently operating at a reduced capacity, mainly processing existing orders.
Advantages from export rice prices
The stability of domestic rice prices is significantly supported by Vietnam's export rice prices. Currently, Vietnam's fragrant rice and high-quality rice varieties maintain a competitive price advantage over major regional competitors. This provides a solid foundation for businesses to maintain stable rice purchase prices for farmers, even when domestic consumption has not seen a breakthrough.
In addition, the prices of by-products and retail rice on the market remained stable. Specialty rice varieties maintained high prices due to stable domestic consumer demand, unaffected by fluctuations in the export market.
Short-term market trend forecast
Analysts believe that, in the short term, rice varieties such as OM 18 and Dai Thom 8 are likely to continue trading sideways at their current high prices. The main factor preventing a downward adjustment in rice prices is the limited supply. However, due to weak domestic demand, the market is unlikely to experience widespread and significant price increases in the coming days.
The clear differentiation between rice varieties intended for export and those for the general market is expected to continue. Export businesses may continue to prioritize collecting high-quality rice to fulfill existing international contracts, while the market for general-purpose rice will depend more heavily on domestic consumer demand.
