Rice prices in Vietnam, the world's No 2 exporter, are expected to rise further over the next few days on strong overseas demand, traders said on Wednesday.
Vietnamese five percent broken rice grade was at $220 per tonne, free on board (FOB) Saigon Port, up from $215-217 last week.
Foreign buyers, including from Iran, have clinched deals at undisclosed prices to buy about 200,000 tonnes of 15 percent and 25 percent broken grade in the past week, traders said.
"Overseas buyers who were on the sidelines when the government imposed the export ban, have returned to the market," said one Vietnamese trader. In late July, Vietnam banned rice sales after export contracts reached 3.5 million tonnes, the limit for 2004.
The ban was lifted in September and the export target was raised to 3.8 million tonnes.
Demand from China has emerged over the past week, traders said. Four vessels are loading 50,000 tonnes of rice at Saigon Port for African countries, Madagascar and Malaysia this week, while a few other vessels have completed loading 40,700 tonnes bound for African countries, traders said.
Vietnamese exporters are estimated to have about 600,000 tonnes of rice in stocks, traders said. There was talk in the market that South Korea might cancel its plan to buy up to 100,000 tonnes of rice from Vietnam to give as aid for North Korea, traders said.
Between January 1 and September 30, Vietnam shipped 3.33 million tonnes of rice, down 0.6 percent from the same period last year. The country exported 3.82 million tonnes in 2003.