Weak demand sends Vietnamese rice prices to near 2-year low

Vietnamese rice export prices have hit a nearly two-year low due to weak global demand, with weak demand from Indonesia and the Philippines and India's resumption of rice exports contributing to the decline. Indian rice prices have remained near a 17-month low, despite the weaker rupee making Indian rice cheaper. Thai rice prices have also fallen to their lowest since May 2023. In contrast, soybean and corn futures on the Chicago Board of Trade have surged due to lower-than-expected US production because of unfavorable weather conditions, leading to tight supplies and high prices. Meanwhile, world coffee prices have fluctuated, with Robusta coffee prices seeing a slight decrease and Arabica coffee prices maintaining their upward trend due to increased inventories in London and less rain in Brazil's coffee-growing regions. However, coffee exports from Vietnam are expected to improve in January 2025, helping to prevent a significant price increase in the first quarter of 2025.

Asian rice market Vietnam's rice export prices have fallen to their lowest in nearly two years due to weak global demand, while Indian rates remained steady near a 17-month low. Vietnam's 5% broken rice prices fell to $460 a tonne from $481 a tonne last week, the lowest since late March 2023, according to the Vietnam Food Association. Trading activities were sluggish this week due to weak demand, a trader in Ho Chi Minh City said. The market is expected to remain subdued in the coming weeks as the Lunar New Year holiday ends early next month. Vietnam's Ministry of Industry and Trade said the decline in rice prices last week was due to lower demand from Indonesia and the Philippines, along with India's resumption of rice exports. Meanwhile, India's 5% broken parboiled rice prices were traded at $436-$442 a tonne, unchanged from last week. Indian rice prices held near 17-month lows on improving demand and a weaker rupee. India's benchmark 5% broken white rice was quoted at $440-$449 ...