In central Vietnam:
-The price of Vietnamese cassavas before the Lunar New Year in Qui Nhon province at 4,100 VND / kg has increased to 4,600 VND / kg.
- The price of Cambodian cassavas increased from 4,200 VND / kg to 4770 VND / kg.
In southern Vietnam:
Prices are gradually rising, in Hoa Lu prince from 4,100 VND / kg to 4,450 VND / kg.
So, on January / 2013, the price of cassavas has increased by 500 $ / kg (approximately 24 USD / MT), cassava prices of Cambodia has nearly 570 VND / kg (equivalent to 27 USD / MT ).
At the moment before Lunar New Year, some exporters have signed a large number of contracts with Chinese partners with low price, so now those are rushing to collect cassavas to export in time. High cassava prices have caused many difficulties for the companies. Difficult chain spreadsto the whole system when happening buying phenomenon push prices higher. The higher prices are getting , the more speculators push on purchasing.
In our opinions, though the output reduced pretty much this year, exports from Vietnam are not considerable (total of the season so far only about 400,000 tons), so there are still very large number of cassavas in dealers and exporters's stores; large number of cassavas have not been harvested and some in the stores of farmers are all being held back to wait for better prices.
In difficulty, output is very few, especially that of exports to China, while ethanol prices in China are falling, so maybe in the coming March, April exports to China will certainly be delayed.
Rising prices and no output, can easily lead to the collapse of prices in a short term. If output prices does not increase, as cost of storage and loans last everday, it's required that companies have to discharge goods and this causes prices to fall.
Phenomenon of speculators of cassavas this year, purchasers will very easily fall into a "virtual price" trap together.
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