Rice prices edged up more than 2 percent this week in Vietnam after the Philippines announced its tender results with winning bids rising nearly 50 percent. Firming paddy prices have made it difficult for exporters to gather sufficient volume for loading, most of which is for the Philippines under previous tenders, traders said on Wednesday.
The Philippines bought 335,500 tonnes of rice at an average price of $708.04 per tonne cost and freight, 49 percent higher than what it paid in January. "Prices in Vietnam climbed every day and have now gained 100 dong per kg," a rice dealer in Ho Chi Minh City said.
Winter-spring grain in the Mekong Delta firmed to 4,500 dong (28 US cents) per kg on Wednesday, from 4,400-4,450 dong on Monday and 4,400 dong a week ago. Prices are now 64 percent higher than last March. "Farmers and rice mills raise prices based on the Philippine tender as they hope to sell to exporters who will be allocated part of the supply," another trader in Ho Chi Minh City said.
While the government banned the signing of new contracts between companies, which are often small deals of up to 10,000 tonnes each, large deals such as the supply for Manila should keep prices firm, traders said.
Vietnam has halted the signing of contracts for rice exports for loading in March and April as it extends a curb from last month to stabilise rising prices on domestic markets, an industry official said on Monday. Harvesting of the Mekong Delta's winter-spring rice crop, the highest yielding among its three crops a year, has been speeding up and farmers have picked about half of the crop, state media quoted Agriculture Minister Cao Duc Phat on Wednesday as saying.
While new export deals are halted, indicative prices of Vietnam's 5 percent broken rice firmed to $600-$620 a tonne, free-on-board Saigon Port, from $550 early this month. Thai rice of the same 5 percent broken grade was quoted at $570 a tonne.
Firming prices slowed loading at Saigon Port, traders said. Twelve vessels are loading nearly 195,000 tonnes for Africa, the Philippines, Iraq and Ukraine at the port, one of them has been there since the start of March to take 32,000 tonnes to Africa.
Six others have been there for nine days, compared with an usual loading time of five days to one week. Seven vessels have left the port with 41,000 tonnes for the Philippines and Africa. Vietnam should export up to 800,000 tonnes of rice in the first quarter of this year, part of the government plan to ship 4 million to 4.5 million tonnes this year.
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