A Detailed Look at Vietnam’s Wheat Import Market in Early 2024
The first half of 2024 has seen significant shifts in Vietnam’s wheat import market. According to preliminary statistics from the General Department of Customs, the country imported over 3.12 million tons of wheat, valued at nearly $862.33 million. This represents a 25.9% increase in volume but a 3.3% decrease in value compared to the first half of 2023, reflecting a complex interplay of market dynamics and pricing fluctuations.
Monthly Import Trends
In June 2024 alone, Vietnam imported 288,140 tons of wheat, equivalent to $81.45 million. The average price stood at $282.7 per ton. Compared to May 2024, this marks a significant 46% reduction in volume and a 42.3% decrease in value, though the price per ton increased by 6.9%. Year-on-year, June’s imports saw a sharp decline of 35.6% in volume, 45.8% in value, and a 15.9% decrease in price compared to June 2023.
Key Suppliers
Brazil: Brazil has emerged as the dominant supplier, contributing 36.8% of the total volume and 33.3% of the total value of Vietnam’s wheat imports in the first half of 2024. Despite a drastic 88.9% reduction in volume and an 88.7% reduction in value in June 2024 compared to May 2024, Brazil’s average price per ton saw a slight increase of 1.5%. Over the six-month period, Brazil supplied over 1.15 million tons, valued at $287.37 million, at an average price of $249.8 per ton. This represents a staggering 339.8% increase in volume and a 200% increase in value, albeit with a 31.8% decrease in price compared to the first half of 2023.
Australia: Australia was the second-largest supplier, accounting for 20.7% of the total volume and 23.3% of the total value of imports. Vietnam imported 646,844 tons from Australia, valued at over $201 million, at an average price of $310.8 per ton. This marks a 64% decrease in volume, a 68% decrease in value, and an 11.1% decrease in price compared to the first half of 2023.
Ukraine: Ukraine supplied 545,052 tons, valued at $141.52 million, at an average price of $259.6 per ton. This constituted 17.5% of the total volume and 16.4% of the total value of imports. The volume from Ukraine saw an astounding 901.9% increase, and the value surged by 681.2%, although the price per ton dropped by 22% compared to the first half of 2023.
United States: The U.S. contributed 226,157 tons of wheat, valued at $74.54 million, at an average price of $329.6 per ton. This represents a 31.8% increase in volume and a 6% increase in value, though the price per ton decreased by 19.5% compared to the first half of 2023.
Market Implications
The fluctuations in wheat import volumes, values, and prices highlight the volatility of the global grain market. Factors such as geopolitical tensions, trade policies, and climatic conditions significantly influence supply and pricing dynamics. For instance, the substantial increase in imports from Ukraine could be attributed to market adjustments following geopolitical developments in the region.
The first half of 2024 has been a period of significant change for Vietnam’s wheat import market. While the overall volume of imports has risen, the decrease in total value underscores the challenges of navigating global market conditions. Brazil’s dominance as a supplier, coupled with notable contributions from Australia, Ukraine, and the United States, reflects a diversified sourcing strategy. Moving forward, it will be crucial for stakeholders to monitor these trends and adapt their strategies to ensure stable and cost-effective wheat supplies.
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