Monday, April 14, 2008

Commodities : Philippines Likely To Buy 60000 Mt Us Rice

The Philippine National Food Authority is expected to buy around 60,000 metric tons of rice from the U.S. based on offers made at a tender Tuesday, a senior official of the agency said Friday. The contract price hovered around $838/ton, free on board, said the official, declining to be named. The NFA, however, is still negotiating the freight cost.

The Philippines held a tender Tuesday to buy $75 million worth of rice from the U.S. under a commodity loan program of the U.S. Department of Agriculture. The NFA has been given an import quota to buy up to 2.1 million tons of rice this year. However, the total imports could reach up to 2.7 million tons following a commitment made by Vietnam last month to supply an additional 1.5 million tons. The NFA, which has so far contracted to buy 1.1 million tons of rice, mainly from Vietnam, will hold a tender April 17 to buy up to 500,000 tons. It is also planning to hold a tender in May to buy another 500,000 tons.

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