Vietnam Prices Rise Thursday On High Demand

In Vietnam, rice export prices are expected to rise in the coming weeks on
higher demand even though the crop harvest will peak in July, traders and
industry officials said.
 
  "India does not have much 5% broken rice and Pakistan is also out of the
market, so buyers are expected to come to Vietnam for the grain," a trader with
a foreign firm in Ho Chi Minh City said.
 
  Vietnam's winter-spring crop harvest provides the biggest volume of 5% broken
rice for exports ended in April, while the summer-autumn crop mainly produces
lower quality varieties such as 15% and 25% broken rice.
 
  "Prices are going to firm up when this buying demand arrives," the trader
added.
 
  Weather and production factors, coupled with a 7% hike in gasoline prices
early May, would keep rice prices firm next month despite the upcoming harvest
peak, traders said.
 
  Vietnam still has a large stock of rice that it sold to the Philippines
earlier this year, but which hasn't been loaded after freight costs to Asian
countries nearly doubled to $30 a ton the past two months, traders said.
 
  Meanwhile, five vessels are loading 61,600 tons of rice this week at Saigon
Port for Africa and the Philippines. Seven others have left with 94,000 tons
for Iran, Africa and the Philippines.
 
  Vietnam's 5% broken rice was offered steady Thursday at $305/ton, FOB Ho Chi
Minh City, while its 10% broken grade was offered unchanged at $300/ton.