A lack of fresh rice deals in recent weeks and low stocks in Vietnam have prompted exporters to focus on results of a Philippine rice tender before making new offers, traders said.
"We expect the tender results later today. If Vietnam wins, prices will rise as stocks are low now," a trader in Ho Chi Minh City said on Wednesday. Manila is seeking to buy 190,000 tonnes of rice from Vietnam, Thailand, China or the United States for May/July delivery.
Vietnam is the world's second-largest exporter of rice, after Thailand.
The National Food Authority, the rice importing arm of the Philippine government, said on Tuesday it had bought 30,000 tonnes of 15 percent broken rice from two Thai firms. Full tender results were expected later on Wednesday.
Traders in Vietnam said they expected state-run Vietnam Southern Food Corporation (Vinafood 2) to be awarded around 100,000 tonnes in the tender, after which export prices in Vietnam would be decided based on Vinafood 2's winning price.
They said quotations for 25 percent broken grain had already been raised at par with those bid at the tender. Vinafood 2 offered $257.50 per tonne cost-and-freight if paid in cash for the 25 percent broken grain, which is equivalent to $230 on free-on-abroad basis.
On Wednesday the grain was offered at $225 to $226 per tonne, FOB Saigon Port, from $223 to $225 last week, even though there have been no fresh deals. Vietnam has been offering the rice from its highest quality winter-spring crop, which produces less broken grain, including the 25 percent broken grade.
"Delivery required is for the May-July period, when we can have the fresh grain from the summer-autumn crop, so there should be no problems with prices or loading," said Nguyen Thai Nugget, general secretary of the rice industry body.
But traders said prices would rise in the next few months, as Vietnam had been executing various commitments, including loading for Manila under a contract awarded in February.
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