Vietnamese companies have won seven rice export bids for 185,000 tons of 5% broken rice auctioned by Indonesia's National Logistics Agency (Bulog).
Bulog had auctioned a total of 12 contracts for 320,000 tons of rice last month.
According to Vietnam Customs, Vietnam's rice exports in H1/2024 totaled over 290,000 tons worth $177.6 million, down 15.9% and up 30.5%, respectively. Photo courtesy of Trung An High-Tech Agriculture JSC.
The Vietnamese bid winners are Northern Food Corporation (VINAFOOD 1), Southern Food Corporation (VINAFOOD 2), Gia International JSC, and An Vi Import-Export JSC.
VINAFOOD 1 was the top performer, securing four contracts for a total of 104,000 tons. The remaining three companies won 27,000 tons each.
According to results published on the rice market website Ssricenews (www.ssricenews.com), the winning bid price for both Vietnamese and Myanmar rice was $563 per ton, equal to the price at which Vietnamese companies had won bids in May 2024.
Prices offered by VINAFOOD 1 ranged from $567.50 to $577.50 per ton, while that of VINAFOOD 2 ranged from $579.50 to $598 per ton.
Thai and Pakistani companies also participated in the auction, but their prices were higher at $584 to $592 per ton.
Indonesia's National Logistics Agency's (Bulog) tender results. Source: Ssricenews.
The success of Vietnamese firms is expected to drive up domestic rice prices. According to the Vietnam Food Association (VFA), export rice prices have remained "sluggish" this week because of weak demand.
Prices may also be influenced by the amount of rice imported by Bulog and potential changes related to India's rice export restrictions. Currently, the average export price of 5% broken rice from Vietnam stands at $559 per ton, compared to $563 per ton for Thai rice and $566 per ton for rice from Pakistan.
According to Vietnam Customs, Vietnam's rice exports in H1/2024 totaled over 290,000 tons valued at $177.6 million, a 15.9% fall in volume, but a 30.5% increase in value compared to the same period last year.
Cumulative rice exports up to July 15, 2024, reached 4.84 million tons valued at $3.1 billion, up 7.9% in volume and 28.3%in value year-over-year, respectively.
Source: The Investor
