Vietnamese domestic rice prices firmed this week on thinning stocks, even though a small volume of fresh grain arrived from a Mekong delta new crop harvest, traders said on Wednesday.
They said the stock from the winter-spring crop in Vietnam, the world's second-largest exporter after Thailand, was dwindling as vessels loaded up, including one near 55,000 tonne cargo of 5 percent-broken rice to Iraq.
The grain for Iraq being loaded onto two vessels at Vietnam's key Saigon Port this week belongs to a deal signed in March, traders said.
They also said several trading firms might be looking for Vietnamese rice to fill another demand from the Middle East country, which tendered in May to buy 100,000 tonnes of white rice for loading in June and July.
"We heard that Iraq was looking for rice but it's not clear if any foreign firms asking for Vietnamese rice now are those bidding in the tender," said a trader in Ho Chi Minh City.
Along with the vessels for Iraq, nine ships are loading a combined 116,000 tonnes for Africa, Japan, Turkey and the Philippines this week at Saigon Port. Four others have completed loading nearly 34,000 tonnes for the Philippines and Malaysia.
Harvesting of the Mekong delta's winter-spring crop ended late last month, and farmers have now started harvesting the summer-autumn crop on a limited area with a small volume, traders said. The harvesting often peaks in July.
A kilogram of unhooked rice edged up to 2,400-2,480 dong ($0.15-$0.16) this week in the key growing province of An Giang from 2,230-2,300 dong a month ago following May's busy loading schedule.
The 5 percent-broken rice was quoted this week for export at $255-$257 a tonne, free on board (FOB) Saigon Port, against $258-$260 last on Wednesday.
Traders said exporters have almost stopped quoting prices for lower-quality 25-percent broken rice after the Philippines awarded Vietnam a contract to supply 375,000 tonnes of the variety at $286.45 to $286.54 a tonne including cost and freight.
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