HANOI—Vietnam’s rice export prices are
expected to rise slightly in the rest of 2008, during the
interval between crops, boosted by fresh demand from the
Philippines and Africa, traders and the government said.
Vietnam projects rice exports this year of 4.5 million to 4.6
million tons, putting it on track to be the world’s second-largest rice
exporter, up from third place in 2007, after Thailand and India, when it shipped
4.5 million tons.
Domestic prices have already gained slightly this week in the
Mekong Delta food basket, where farmers have finished harvesting a bumper
summer-autumn crop.
"Prices are rising now after trading houses bought in about
200,000 tons recently," a state trader in Ho Chi Minh City said. Most of the
recent purchases were for Africa, he said.
Third crop paddy edged up to 3,800-3,900 dong (23-23.6 US
cents) per kg on Wednesday in the Delta, from 3,700 dong late last week. Farmers
in the Delta grow three crops a year.
"The Philippines may also arrive in the market soon for their
import plans next year," the state trader added.
The Philippines’ National Food Authority has recently
announced that it plans to import 1.5 million tons next year to bridge the gap
in local production. Last year, it imported a record 2.3 million tons.
Traders in Vietnam and Singapore said they had not heard of
any specific timing or quantity involved for the Philippines but a Vietnamese
industry source, who declined to be identified, said talks with Vietnam might
start in October.
"The Philippines may be now looking at delivery from
January," the source told Reuters, but gave no figures.
Vietnam starts its next harvest of the highest-yielding
winter-spring crop only from late February or March, so the grain for Manila
would cut into its current stocks, giving prices a chance to rise, traders said.
"There is also a large gap between Vietnamese rice and Thai
rice so Vietnamese rice prices have room to move up," the state trader said.
The price of Thai 5 percent broken rice stood unchanged on
Wednesday at $700 per ton, while Vietnam’s 5 percent broken rice was quoted at
$540-$550 a ton, on a free-on-board basis.
Vietnam’s rice exports are expected to have fallen 7.4
percent in the period between January and September, to 3.69 million tons, while
its earnings will nearly double, the government said on Wednesday.
Asian rice prices have stabilized after tripling to their
highest levels this year, pushing up Vietnam’s revenue from the grain in the
first nine months of the year by 89.7 percent, to $2.44 billion, the General
Statistics Office report showed.
Rice is a staple food of many of Vietnam’s 86.5 million
people, and also the largest cash earner among its agriculture exports.
The estimated nine-month shipment makes up about 80 percent of Vietnam’s
annual rice export target this year, 4.1 million tons of which had been
contracted, an Agriculture Ministry report said. – Reuters
