Vietnamese exporters renegotiate higher rice prices after Indian ban -traders

[Viet]

Men load rice bags to a ship for export at a rice processing factory in Vietnam's southern Mekong delta, Vietnam July 6, 2017. REUTERS/Kham/File Photo Acquire Licensing Rights

• Summary
• Around 500,000 T of Vietnamese rice prices renegotiated
• Buyers pay $30-$80/T more for Vietnamese fragrant rice
• Rising prices threaten consumers with food price inflation

SINGAPORE, Aug 16 (Reuters) - Vietnamese exporters have renegotiated higher prices for around half a million metric tons of rice, two trade sources said, as global prices climbed to 15-year highs following India's ban on overseas sales last month.

This is the first confirmation of rice prices climbing in the wake of India's surprise ban, with importers paying more for one of the world's most widely consumed staples amid tightening supplies.

Importers, including Indonesia and the Philippines, have paid between $30 and $80 a ton above deals signed at around $550 a ton for fragrant Vietnamese rice before India banned white rice exports in July, the Singapore-based traders said.

This gives sellers additional income of around $15 million to $40 million compared with prices agreed before India's curbs.

The export ban by India, which accounts for 40% of world rice supplies, has taken out 10 million tons of supplies from the international market.

Asian rice exporters had raised offered prices by around 20% since India banned non-basmati white rice exports last month, heightening food inflation risks for some of the most vulnerable consumers in Asia and Africa who are already struggling with lower supplies due to erratic weather and the war in Ukraine.

"Buyers have agreed to pay higher prices for some of (the) cargoes which they bought for August shipment," said one trader at an international trading company. He added that around 200,000 tons of rice have been shipped this month while 300,000 tons were yet to be loaded at Vietnamese ports.

"Renegotiations were primarily carried out for non-basmati white rice," said a Mumbai-based dealer with a global trading house.

"Both buyers and sellers absorbed a portion of the price increase due to the jump in local rice prices. Sellers did not raise prices to match the current market price."

Fragrant rice from Vietnam was being offered at as high as $700 a ton but prices were renegotiated around $580-$630 a ton, traders said.

Thailand's 5% broken rice prices are being offered at $650-$655 per ton, while the similar variety from Vietnam is offered at $620-$630 per ton.

Thai rice prices were quoted at $545 per ton and Vietnam at $515-$525 per ton before India decided to curb exports in July.

Exclusive: Vietnamese exporters renegotiate higher rice prices after Indian ban -traders

Vietnamese exporters have renegotiated higher prices for around half a million metric tons of rice, two trade sources said, as global prices climbed to 15-year highs following India's ban on overseas sales last month.

www.reuters.com

 

[Bilal9]

Men load rice bags to a ship for export at a rice processing factory in Vietnam's southern Mekong delta, Vietnam July 6, 2017. REUTERS/Kham/File Photo Acquire Licensing Rights

• Summary
• Around 500,000 T of Vietnamese rice prices renegotiated
• Buyers pay $30-$80/T more for Vietnamese fragrant rice
• Rising prices threaten consumers with food price inflation

SINGAPORE, Aug 16 (Reuters) - Vietnamese exporters have renegotiated higher prices for around half a million metric tons of rice, two trade sources said, as global prices climbed to 15-year highs following India's ban on overseas sales last month.

This is the first confirmation of rice prices climbing in the wake of India's surprise ban, with importers paying more for one of the world's most widely consumed staples amid tightening supplies.

Importers, including Indonesia and the Philippines, have paid between $30 and $80 a ton above deals signed at around $550 a ton for fragrant Vietnamese rice before India banned white rice exports in July, the Singapore-based traders said.

This gives sellers additional income of around $15 million to $40 million compared with prices agreed before India's curbs.

The export ban by India, which accounts for 40% of world rice supplies, has taken out 10 million tons of supplies from the international market.

Asian rice exporters had raised offered prices by around 20% since India banned non-basmati white rice exports last month, heightening food inflation risks for some of the most vulnerable consumers in Asia and Africa who are already struggling with lower supplies due to erratic weather and the war in Ukraine.

"Buyers have agreed to pay higher prices for some of (the) cargoes which they bought for August shipment," said one trader at an international trading company. He added that around 200,000 tons of rice have been shipped this month while 300,000 tons were yet to be loaded at Vietnamese ports.

"Renegotiations were primarily carried out for non-basmati white rice," said a Mumbai-based dealer with a global trading house.

"Both buyers and sellers absorbed a portion of the price increase due to the jump in local rice prices. Sellers did not raise prices to match the current market price."

Fragrant rice from Vietnam was being offered at as high as $700 a ton but prices were renegotiated around $580-$630 a ton, traders said.

Thailand's 5% broken rice prices are being offered at $650-$655 per ton, while the similar variety from Vietnam is offered at $620-$630 per ton.

Thai rice prices were quoted at $545 per ton and Vietnam at $515-$525 per ton before India decided to curb exports in July.

Exclusive: Vietnamese exporters renegotiate higher rice prices after Indian ban -traders

Vietnamese exporters have renegotiated higher prices for around half a million metric tons of rice, two trade sources said, as global prices climbed to 15-year highs following India's ban on overseas sales last month.

www.reuters.com

Am I blind or am I seeing a news article from 2017? That's what the image caption says.

 

[REhorror]

Here we go, about time we increase Vietnamese rice market share.

 

[Viet]

Am I blind or am I seeing a news article from 2017? That's what the image caption says.

Yes an old picture, but the news is new.
With India out of market, Vietnam and Thailand will control the global rice export market. Win win.

 

[Rollno21]

Yes an old picture, but the news is new.
With India out of market, Vietnam and Thailand will control the global rice export market. Win win.

India will still export to countries which are facing shortfall under government to government agreements.

 

[Cheepek]

The view from Thailand

"Thailand’s domestic milled rice prices jumped nearly 20% last week to 21,000 baht ($597) per tonne, up from around 17,000 baht over the pervious few weeks.

That has pushed up the Thai export price for benchmark white rice 5% — which includes 5% broken rice — to $610 per tonne, reflecting the rise in global prices, which surged to an 11-year high. Although the Thai government has no plans to limit rice exports, Thai exporters are still reluctant to sell due to uncertainty over supplies.

Thailand normally produces around 20 million tons of milled rice, half of which is consumed domestically. The other half is typically exported.

“Thailand has never had tight supplies [up to now], as we have plenty of rice surplus every year,” Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, told Nikkei Asia. “But this year, the Thai rice market is in chaos because exporters cannot offer any price quotations as they are concerned about price fluctuations and uncertainty about supply.”

India's rice export ban brings chaos to Thai market

Surging demand sparks speculative hoarding, undercuts export opportunity

asia.nikkei.com

 

[Viet]

India will still export to countries which are facing shortfall under government to government agreements.

Understandable. India restricts rice exports to keep the domestic price stable. The down side is India loses the market share, and the price increases higher because of tightening supplies.

 

[REhorror]

The view from Thailand

"Thailand’s domestic milled rice prices jumped nearly 20% last week to 21,000 baht ($597) per tonne, up from around 17,000 baht over the pervious few weeks.

That has pushed up the Thai export price for benchmark white rice 5% — which includes 5% broken rice — to $610 per tonne, reflecting the rise in global prices, which surged to an 11-year high. Although the Thai government has no plans to limit rice exports, Thai exporters are still reluctant to sell due to uncertainty over supplies.

Thailand normally produces around 20 million tons of milled rice, half of which is consumed domestically. The other half is typically exported.

“Thailand has never had tight supplies [up to now], as we have plenty of rice surplus every year,” Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, told Nikkei Asia. “But this year, the Thai rice market is in chaos because exporters cannot offer any price quotations as they are concerned about price fluctuations and uncertainty about supply.”

India's rice export ban brings chaos to Thai market

Surging demand sparks speculative hoarding, undercuts export opportunity

asia.nikkei.com

It seems Vietnam might have outmanueuvered Thailand on this.
Understandable, as Thailand is kind in a political crisis right now.