Voluntary Report - public distribution

**Date:** 07/12/2004

**GAIN Report Number:** VM4042

VM4018

**Vietnam**

**Grain and Feed**

###### Rice Weekly Update

**2004**

**Approved by:**

![](media/image1.wmf)Henry Schmick

U.S. Embassy

**Prepared by:**

Tran Quoc Quan

**Report Highlights:** Vietnamese domestic rice prices dropped by VND
300-400/kg (or about \$20-27/mt) due to the peak harvest of the
Summer-Autumn rice in the Mekong River Delta. Export prices, however,
changed very little from those of last week.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Hanoi \[VM1\]

\[VM\]

**Indicative price (Week ending July 09, 2004)**

Vietnam rice export prices (FOB basis) for various grades

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 11%" />
<col style="width: 17%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="2"><p>Grade</p>
<p>% Broken</p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2">Period Averages</td>
</tr>
<tr class="even">
<td>#1</td>
<td>#2</td>
<td>#3</td>
<td>#4</td>
<td>#5</td>
<td>#6</td>
<td>#7</td>
<td>Current Average</td>
<td><p>Previous</p>
<p>(July 02)</p></td>
</tr>
<tr class="odd">
<td>5</td>
<td>228</td>
<td>228</td>
<td>228</td>
<td>228</td>
<td>227</td>
<td>227</td>
<td>227</td>
<td>227.57</td>
<td>228.28</td>
</tr>
<tr class="even">
<td>10</td>
<td>224</td>
<td>225</td>
<td>225</td>
<td>225</td>
<td>224</td>
<td>224</td>
<td>224</td>
<td>224.43</td>
<td>224.71</td>
</tr>
<tr class="odd">
<td>15</td>
<td>220</td>
<td>220</td>
<td>219</td>
<td>219</td>
<td>218</td>
<td>219</td>
<td>220</td>
<td>219.29</td>
<td>220.00</td>
</tr>
<tr class="even">
<td>25</td>
<td>216</td>
<td>216</td>
<td>215</td>
<td>215</td>
<td>215</td>
<td>215</td>
<td>215</td>
<td>215.28</td>
<td>216.29</td>
</tr>
</tbody>
</table>

Source: Average indicative prices from exporters

Vietnamese domestic paddy prices dropped by VND 300-400/kg (approx.
\$20-27/mt) due to the peak harvest of the Summer-Autumn (S-A) rice in
the Mekong River Delta (MRD). However, export prices only declined a
little compared to the prices quoted last week.

Rice exporters are mainly offering 25% broken rice because the
early-harvest S-A rice is generally of low quality. According to
traders, export prices will probably decline, a little, over the coming
weeks. Reportedly, rich farmers are stockpiling rice, anticipating
higher prices in the long run, while cash-constricted farmers are in
hurry to sell their paddy before domestic prices drop any further.

**Exports**

######## The following are reported rice exports (metric tons) from June 26 to July 2, 2004.

+--------------+-----------+-----------+---------------+--------------+
| **Week       | **Q       | **4-WK    | **Year to     | **Year ago** |
| ending**     | uantity** | Avg.**    | date**        |              |
+--------------+-----------+-----------+---------------+--------------+
| ##           | 83,000    | 83,750    | 1,585,000     | 1,395,000    |
| ##### May 14 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ##           | 80,000    | 96,250    | 1,665,000     | 1,470,000    |
| ##### May 21 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ##           | 110,000   | 92,500    | 1,775,000     | 1,610,000    |
| ##### May 28 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 100,000   | 93,250    | 1,875,000     | 1,785,000    |
| #### June 04 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 31,000    | 80,250    | 1,906,000     | 1,857,000    |
| #### June 11 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 64,000    | 76,250    | 1,970,000     | 1,947,000    |
| #### June 18 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 61,000    | 64,000    | 2,031,000     | 2,156,000    |
| #### June 25 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+
| ###          | 131,000   | 71,750    | 2,162,000     | 2,250,000    |
| #### July 02 |           |           |               |              |
+--------------+-----------+-----------+---------------+--------------+

**Vietnam won rice tender in the Philippines.**

According to the Vietnam Food Association (Vietfood), the Southern Food
Company (Vinafood 2) has won a tender to supply 150,000 mt of rice to
the Philippines (out of the 200 tmt the Philippines is buying). The
prices (C&F) offered by Vinafood 2 were \$243/mt for prompt cash
payment, and \$248/mt for deferred payment of six months.

**Vietnam attending rice tender in South Korea.**

According to the Ministry of Trade, Vinafood 1, the other state-owned
rice exporting company, is representing Vietnam at a rice tender of
about 300-400 tmt by South Korea.

**Vietnam donates rice to North Korea**.

On June 23, 2004, Vietnam's Prime Minister signed a decision to donate
food aid of 1,000 mt of 20% broken rice to North Korea. The rice will be
taken from Vietnam's National Food Reserve.

End of Report