“If prices are good,” the country’s National Food Authority may order as much as 312,500 metric tons of rice to lock in prices from the winning bidders in the tender, NFA Spokesman Rex Estoperez said today. The tender requested offers for 250,000 tons of 25 percent broken white rice for delivery between January and April.
“It makes sense to reorder,” Estoperez said in a phone interview from Manila.
Rice futures jumped 11 percent in the past eight days in Chicago on concern crop losses from storms in the Philippines and drought in India, the world’s second-biggest grower, will curb global supply and boost demand for imports.
“If the NFA decides to exercise their right to increase their quantity by 25 percent,” it will tighten global supply, Rakesh Singh, a trader at New Delhi-based Emmsons International Ltd., said today. “Definitely that will push up prices. Prices are moving upward at the moment because of the NFA tender and news India will enter the import market.”
Rice for January delivery added 1 cent to $15.23 per 100 pounds at 5:40 p.m. Singapore time. Futures reached a record $25.07 in April 2008 after India and Vietnam curbed rice exports and the Philippines boosted imports, fueling concerns of a rice shortage that sparked food protests around the globe.
India Buying
The State Trading Corp. of India Ltd. is seeking bids from overseas suppliers for about 10,000 metric tons of 25 percent broken rice for delivery by December at a tender on Nov. 9, according to a notice sent to traders on Oct. 30.
That will be the first time India has imported rice since 2005-2006, according to U.S. Department of Agriculture data.
The notice was issued after Farm Secretary T. Nanda Kumar said the country had no plans to import grain. Farm Minister Sharad Pawar said Nov. 4 the South Asian nation has adequate stocks of food grains to meet demand and won’t import.
Daewoo International Ltd. submitted the lowest bid at the Philippine tender yesterday, offering to sell 100,000 tons of rice from either Vietnam or Thailand for at least $468.50 a ton for delivery in January.
State-run Vietnam Southern Food Corp. gave the second- lowest bid at $480 a ton for 150,000 tons for delivery in January, according to the state-run Philippine food agency. The contracts will be awarded to winning suppliers next week, the agency said.
Thai Exports
The export price for Thai 25 percent broken white rice increased 3.1 percent to $429 a ton yesterday, from $416 a week earlier, the Thai Rice Exporters Association said. Thai 100 percent grade-B white rice, the regional benchmark, increased 3 percent to $541 a ton. The price climbed to a record $1,038 a ton in May 2008.
“We want to make sure we will not be late in the market,” Agriculture Secretary Arthur Yap said Oct. 30. Yesterday’s tender, the first for 2010 supplies, was held a month earlier than usual.
Vietnam Southern, known as Vinafood, was seeking to sell 50,000 tons of rice to the Philippines for at least $537 a ton for delivery in February, about 12 percent more than its offer for January delivery.
Other offers ranged from $534.99 a ton to $600 for rice for delivery through April, according to NFA data, a signal exporters may expect supplies to tighten, driving prices higher.
Prices at the tender were “quite good,” said National Food Deputy Administrator Vic Jarina, chairman of the committee tasked to evaluate the bids. Another tender may be held in December if an assessment of the country’s rice supply after the storms shows a need for more imports, he said yesterday.
A notice needs to be issued by next week if the country wants to hold a tender in December, to meet the requirements of the procurement law, Estoperez said today.
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