Vietnam Expects to Sign Philippine Rice Contracts After Storms

By Nguyen Dieu Tu Uyen

Oct. 20 (Bloomberg) -- Vietnam expects to start signing rice-export contracts with the Philippines earlier than usual this year after storms damaged harvests in the world’s largest buyer, boosting prices for the staple.

Agreements for 250,000 metric tons will be signed from the end of this month, about two months earlier than usual, according a statement posted late yesterday on the Vietnamese government’s Web site. Vietnam is the world’s second-largest shipper after Thailand.

The Philippines has advanced tenders for next-year supplies after the storms cut output, bolstering futures in Chicago. The National Food Authority will hold a tender for 250,000 tons on Nov. 4 after initially planning the purchase for Oct. 30.

The Philippine purchases will boost the price of Vietnam’s 25 percent broken-grain variety, the most common type bought by the nation, the government statement said, without giving a precise forecast. Philippine imports in 2010 from all states may gain 13 percent from about 1.8 million tons this year, it said.

Vietnamese exporters have contracted to ship 6 million tons of rice so far this year, the statement said, citing the Vietnam Food Association. Exporters have shipped 5 million tons in the first nine months, according to government figures.

Shipments to African countries reached 1.4 million tons between January and September, 98 percent more than a year earlier, the statement said. Exports to the Middle East rose 65 percent to 250,000 tons in the same period, it said.

To contact the reporter on this story: Nguyen Dieu Tu Uyen in Hanoi at uyen1@bloomberg.net