Vietnam sells 200 000 tonnes rice to Africa

HO CHI MINH CITY – Vietnam, the world’s second-largest rice exporter, has signed an agreement to export 200 000 tonnes of rice to Africa for delivery in 2007, traders said yesterday.

“The agreement has been reached for shipment next year, but both sides have not finalised the deal as Vietnamese prices are too high now,” a state trader familiar with the deal told Reuters on the sidelines of an international rice conference. He declined to give any more details.Traders said Angola might be the buyer of the grain.News of the deal will increase pressure on prices in early 2007, as industry officials said stocks held at the end of this year for loading in the first quarter of 2007 would fall 40 per cent compared with the end of 2005 to 150 000 tonnes.Dwindling domestic stocks, coupled with demand to complete loading of 210 000 tonnes for Indonesia within the next month, have raised export quotes for the grain.Vietnam’s five per cent broken rice rose to US$272 to US$274 a tonne yesterday, free-on-board Saigon Port, from US$272-US$273 last week.The 25 per cent broken grade edged up to US$254 a tonne from US$251-US$252 a week ago.Rains in recent days have slowed loading at Saigon Port, including the rice for Indonesia.Nampa-ReutersHe declined to give any more details.Traders said Angola might be the buyer of the grain.News of the deal will increase pressure on prices in early 2007, as industry officials said stocks held at the end of this year for loading in the first quarter of 2007 would fall 40 per cent compared with the end of 2005 to 150 000 tonnes.Dwindling domestic stocks, coupled with demand to complete loading of 210 000 tonnes for Indonesia within the next month, have raised export quotes for the grain.Vietnam’s five per cent broken rice rose to US$272 to US$274 a tonne yesterday, free-on-board Saigon Port, from US$272-US$273 last week.The 25 per cent broken grade edged up to US$254 a tonne from US$251-US$252 a week ago.Rains in recent days have slowed loading at Saigon Port, including the rice for Indonesia.Nampa-Reuters