Thursday, 29 October 2009

RP rice imports hike world market prices

The Philippines is likely to go back to the global rice market after a 250,000 tonnes import tender on Nov. 4 as it seeks to lock in supply for its 2010 needs before prices start rising, a senior state official said on Monday.

"We're going to most likely buy again," Ludovico Jarina, deputy administrator at the National Food Authority, told reporters when asked if there would be more rice import tenders this year.

But it may be too late.

Rice prices have already risen in the world market as traders anticipate more demand from the world's largest rice importer.

Bloomberg said rice for November delivery was up 0.3% in the Chicago Board of Trade at 4 p.m. on Monday, reversing a loss of 0.5%.

Trading prices for the rice commodity was already at its highest level since January.

The Philippines has been buying imported rice either through a government tender or via government-to-government deals with countries such as Thailand and Vietnam.

Major rice producing regions were hit by back-to-back typhoons Ondoy and Pepeng (international code names Ketsana and Parma), damaging billion pesos-worth of crops and infrastructure 

Meanwhile, the NFA is also planning to sell some P27 billion worth of 10-year domestic bonds on October 26 to fund its operations and pay its maturing debt.

The NFA added that the offering may be divided into several tranches depending on the market.

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