Vietnam has signed
contracts to export a total of 500,000 tonnes of rice to the Philippines, which
could lift prices if loadings set to start next month coincide with shipments
to other destinations, traders said on Wednesday.
The sale is Vietnam's biggest deal this year as it aims to maintain
2011's record level of 7.2 million tonnes of rice shipments, which could help
it displace Thailand as the world's top exporter of the grain.
The sale also indicates that the Philippines, the world's biggest rice
importer in 2010, could import more rice this year than its initial target of
500,000 tonnes, Vietnamese rice traders said.
The Philippines usually buys two-thirds of its non-private sector
annual rice requirements from Vietnam and small volumes from Thailand. Private
sector buyers already purchase rice from Cambodian suppliers.
All the deals were signed by Vinafood 2, Vietnam's top rice exporter,
for supplying 5 percent, 15 percent and 25 percent broken varieties, with
loading to start from mid-April, three traders at foreign firms in HCM City
said.
Vinafood 2, based in HCM City, has been appointed the sole contractor
to supply rice to the Philippines and Malaysia.
"Prices did not move much because companies joining the loading
are those which participate in the stockpiling scheme and they have stock
ready," an executive of an export company in HCM City said.
"But export prices could rise (next month) if loading for the
Philippines is executed at the same time with other shipments," she said.
Buyers uncertain
The deal for Manila would make up a sixth of the projected 3 million
tonnes that Vietnam plans to export in the first half of 2012, Chair Truong
Thanh Phong of the Vietnam Food Association told the Vietnam Economic Times
newspaper.
"The contract term for loading is that the seller will ship
between now and June 2012, but it is possible that (Vietnamese) companies will
complete the shipment earlier," Phong said in an interview. He gave no
pricing details.
Traders said Vietnam sold 210,000 tonnes of 5 percent broken grain at
$433 a tonne, free-on-board (FOB) basis, and 50,000 tonnes of 15 percent broken
rice at $412 a tonne, with the remaining 240,000 tonnes of 25 percent broken
grade priced at $397 a tonne.
Vietnamese traders were uncertain about the buyers in the Philippines,
with one naming the National Food Authority (NFA) as the buyer, although the
country's stated policy is to allow private firms to import most of its rice
needs this year.
The Philippines, which said it would limit 2012 rice purchases to
500,000 tonnes from 860,000 tonnes last year and a record 2.45 million in 2010,
has allowed private firms to import 380,000 tonnes.
It plans to further trim purchases to 100,000 tonnes next year as it
aims to become selfsufficient in the national staple by the end of 2013.
This month a Vietnamese exporter said the Philippines would buy more
than 500,000 tonnes, estimating the annual import demand at between 1.5 million
and 2 million tonnes.
The NFA could buy another 120,000 tonnes under a government deal with
Thailand, Vietnam or Cambodia.
"The Philippines is not clear in its rice policy, but they will
import more than 500,000 tonnes," a Vietnamese trader said.
Black Sea Grain
VietBiz24
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