Vietnamese Prices Steady On Firm Domestic Market

Jun 01,2007 00:00 by dailynews
Asian physical rice export prices were offered steady
Thursday in Vietnam despite thin trade, with offers supported by strong
domestic prices, exporters said.

There were no offers in Thailand, which was closed for a public holiday.

Rice supply from Vietnam has increased substantially in recent weeks as
farmers have just completed harvesting the main crop, exporters said.

However, exportable supply is beginning to thin as most exporters are
aggressively buying paddy to fulfill outstanding contracts, they said, which
has prevented export prices from falling.

"There are no buyers because prices are too high," said one trader based in
Ho Chi Minh City.

As strong demand in the local market is likely to persist, Vietnamese rice
prices could rise in the weeks ahead, exporters said.

Fresh supply of paddy will arrive in the market around August as farmers
should start harvesting the second crop by July, they said.

"We expect the local market to be strong until around end July," a second
exporter said.

Vietnam's 5% broken rice grade was offered unchanged Thursday at $305/ton,
FOB, Ho Chi Minh City, while its 10% broken grade was offered at $300/ton.