Rice price forecast to rise following lower crop yield

Since the start of July, Vietnam’s rice export price has increased slightly due to the increasing global demand for rice and the shortage of rice supply from Thailand.
On July 6, Vietnam’s rice export was offered at US$265 a tonne of 5% broken rice and US$250 a tonne of 25% broken rice.
Market analysts said Vietnam’s rice price could increase slightly in the next few weeks because the country’s summer-autumn crop is forecast to produce an output which is less than that of winter-spring crop.
This year, Vietnam targets to export five million tonnes of rice, a decrease of 200,000 tonnes over last year. In the first half of 2006, Vietnam’s rice exporters have signed contracts to export four million tonnes, of which 2.9 million tonnes was shipped to many countries and another 700,000 tonnes is estimated to deliver in this July.
As forecasted, Vietnam will produce 38-39 million tonnes of rice, rising 15.2-18.2% year-on-year, of which over five million tonnes will be shipped in 2006.

 

Category: Business