Uncertainty over the level of demand from the Philippines pushed some Asian rice prices down this week, especially with supply and stocks high because of harvests in top exporters Thailand and Vietnam. Prices in Vietnam, the world's second biggest rice exporter, are falling because harvesting of its biggest crop is expected to pick up from next month and major buyers have shown little interest of late, traders said.
The Philippines did not finalise its 2011 import plans at a meeting last Friday and the head of the state grain agency said purchases were unlikely to exceed 1 million tonnes. Traders said harvesting of the winter-spring crop was now under way and farmers were selling grain quickly to get cash for spending before the Tet, or Lunar New Year, festival.
That helped push down domestic rice prices, and export quotations for the 5 percent broken rice fell to $470 a tonne, free on board, from $480 last week. Even so, the Vietnam Food Association has maintained its export price floor at $520 .
The 25-percent broken rice dropped to $435 a tonne from $470 last week, far below the floor of $495. Grain coming in from Cambodia has also pushed up supply in Vietnam, so foreign buyers see no urgency to strike deals, another trader said.
Vietnam's rice exports this year are expected to ease 10 to 15 percent from 2010 to between 5.5 million and 6.1 million tonnes, an online website said. In Thailand, the world's biggest rice exporter, trade was fairly thin but prices managed to hold up thanks to steady demand from traditional buyers in Africa.
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