India bans rice exports, rice prices in July continue to increase; World gold prices decrease
(Baonghean.vn) - India bans rice exports, rice prices in July continuously increase; World gold decreases when FED meets to raise interest rates; Domestic coffee prices reach 67,500 VND/kg... are information about the market situation today.
India bans rice exports, rice prices continue to increase in July
India - a rice exporting powerhouse has stopped exporting, many countries have turned to food storage to cope with EL Nino, the continuous increase in rice prices in July is bringing a rare opportunity for Vietnamese rice.
A few days after India’s ban on rice exports, rice prices in the Mekong Delta have increased by VND100-200/kg. This is a challenge for businesses with signed orders. However, besides the challenges, businesses still see this as an opportunity to help Vietnamese rice accelerate exports.
Currently, China, the Philippines, Malaysia, and Indonesia are increasing their purchases of Vietnamese rice by dozens of times compared to last year. However, with food shortages due to increasing droughts in the world and major rice exporting countries becoming more cautious, ensuring food security is a priority.
According to calculations, each year, 100 million Vietnamese people consume 10 million tons of rice, equivalent to 15 million tons of paddy. The amount of paddy used for processing and raising livestock is about 12 million tons. If drought or crop failure occurs, national food security is still guaranteed, but the amount of rice exported needs to be adjusted.
The Ministry of Industry and Trade has recommended that the Vietnam Food Association balance exports and domestic consumption, contributing to stabilizing rice prices in the domestic market. The Ministry of Finance is submitting to the Government for approval the inventory reserve level from 220,000 tons to 250,000 tons, enough to ensure domestic food security if drought occurs.
Vietnam is enjoying favorable weather conditions, so it can produce more than 43 million tons of rice. Increasing production and reserves is the foundation for Vietnamese rice to both achieve export targets and ensure domestic food security.
World gold falls as FED meets to raise interest rates
On the morning of July 26 (Vietnam time), the world spot gold price in the Asian market was at 1,963.50 USD/oz, down 0.05% or 1 USD/oz compared to the spot gold price closing on July 25 in the New York market. Meanwhile, the gold futures contract price for August delivery increased by 3.5 USD/oz to 1,965.90 USD/oz.
Converting the world spot gold price according to the exchange rate at Vietcombank on July 26, 1 USD = 23,830 VND, the world gold price is at 56.36 million VND/tael, lower than the SJC gold price at the end of June 25 at 10.89 million VND/tael.
Gold prices have not seen much change during the two-day monetary policy meeting of the US Federal Reserve (FED), which began on Tuesday morning (July 25) and ended on Wednesday afternoon (July 26). Most market watchers believe that the Fed will raise the US key interest rate, the Fed funds rate, by 0.25%, bringing the interest rate to a range of 5.25% - 5.5%, the highest level since 2001.
In the domestic market, at the end of the trading session on July 25, Saigon Jewelry Company listed the gold buying price at VND66.65 million/tael; selling price at VND67.25 million/tael, an increase of VND100,000/tael in both buying and selling prices compared to the opening time of the morning session of the same day. The difference between the buying and selling prices of SJC gold remained at VND600,000/tael.
At the same time, DOJI Group listed the buying and selling price of gold at 66.55 - 67.25 million VND/tael. Compared to early this morning, gold at DOJI remained the same in both buying and selling directions, so the difference between the buying price and selling price was still 700,000 VND/tael.
Domestic coffee price reaches 67,500 VND/kg
Domestic coffee prices on July 26 in the Central Highlands provinces increased by 600 - 700 VND/kg, the highest at 67,500 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 66,700 - 66,800 VND/kg, an increase of 600 VND/kg.
Coffee prices in Gia Lai and Kon Tum provinces stood at VND67,200/kg, an increase of VND700/kg.
Coffee prices in Dak Lak province today in Cu M'gar district are currently at 67,200 VND/kg. In Ea H'leo district, Buon Ho town, the price is also 67,300 VND/kg, an increase of 600 VND/kg.
Regarding world coffee prices, coffee prices on the two exchanges fell due to liquidation pressure.
In Vietnam, the world's number 1 Robusta producer, the General Department of Vietnam Customs recently announced that the country transported 31,607 tons of coffee in the first half of July, only 46% of the amount of coffee exported in the same period last month and 46% lower than the amount transported in the same period last year.
Cumulative coffee exports from the beginning of the year to July 15 were 1.04 million tons, down 3.78% from 1.08 million tons in the same period in 2022. This has raised concerns about low coffee supply.
Reasons why pepper prices are unlikely to increase
Pepper prices today (July 26) in the domestic market stagnated and moved sideways after a downward adjustment session. Accordingly, pepper prices in the Central Highlands provinces were purchased by traders at around 66,500 - 67,500 VND/kg.
Specifically, Chu Se pepper price (Gia Lai) is being purchased by traders at 66,500 VND/kg. Dak Lak pepper price today and pepper price in Dak Nong is 67,500 VND/kg.
In the Southeast region, pepper prices today also did not fluctuate. Currently, pepper prices in this region are being purchased around the mark of 68,000 - 69,500 VND/kg.
Accordingly, in Dong Nai, pepper price is at 68,000 VND/kg. Pepper price in Binh Phuoc is at 68,500 VND/kg. Pepper price in Ba Ria Vung Tau is still the highest and today is purchased by traders at 69,500 VND/kg.
Explaining the reason for the continuous decrease in pepper prices, many businesses said that currently, export companies have no new contracts signed, while the demand of the Chinese market has not changed dramatically. The gloomy market has prevented domestic pepper prices from increasing. The domestic market has officially lost the 70,000 VND/kg mark in Ba Ria - Vung Tau.
At the end of yesterday's trading session, the International Pepper Community (IPC) listed a decrease in prices for Indonesian pepper. Vietnamese black pepper was traded at 3,500 USD/ton for 500 g/l, 3,600 USD/ton for 550 g/l; white pepper was at 5,000 USD/ton.
The international pepper price has been adjusted down due to the recovery of the USD, and importantly, Indonesia and Brazil are entering the harvest season. New crops from the two countries are about to hit the market, expected to significantly supplement the supply.