Vietnamese Rice Export Prices Hit Year's High
The Ministry of Industry and Trade said that export prices of Vietnamese rice hit year’s record due to weak supply on high demand.
The ministry said on its website that high demand from the Philippines, the world’s biggest rice buyer, at the end of Vietnam’s crop is a major reason for the price rises.
Local traders said 5% broken rice was offered at US$500/ton, FOB, up by US$40/ton from a week earlier and by 30% from the beginning of the year.
Prices of 25% broken rice also rose to US$470/ton, FOB, from US$420/ton against a week ago; and US$330/ton from Jan, 2009.
“Vietnamese rice export prices will continue surging by the first quarter of 2010 thanks to high demand,” a trader in HCM City forecast.
The Vietnam Food Association said that rice prices have been increasing at the domestic market. Unhusked rice prices rose to VND4,800-VND5,200/kg, from VND4,200-VND4,400/kg a week earlier.
Export prices of Vietnamese rice have rocketed since the Philippines decided to buy 150,000 tons of 25% broken rice from Vinafood 2 at US$480/ton.
Vietnam is the world’s second rice exporter after Thailand. So far this year, the country signed contracts to export 6.45 million tons of rice, up 55% from the same period of 2008.
Minister of Industry and Trade Vu Huy Hoang earlier told lawmakers at a National Assembly Question and Answer session that the country will deliver 6 million-6.2 million tons this year. (Vinanet)
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