Rice prices in top exporting countries Thailand and Vietnam may fall more as the Philippines may not tender for new supplies until after national polls in May, sources said on Friday.
The absence of demand from the world’s biggest rice buyer, the Philippines, would further weigh on Asian rice prices, with benchmark Thai rice already $100 off a December peak of $630 a ton, which was boosted by several tenders in Manila in 2009.
The Philippines saw a net inflow of “hot money” in February, a reversal of the net outflow in the same month the previous year, as investor sentiment turns from bearish to bullish given projections of a global economic recovery in 2010.
The Bangko Sentral ng Pilipinas said foreign currency-denominated portfolio investments that were taken out of the country in February amounted to $361.8 million, but this was outweighed by the $500.4 million in inflows.
President Arroyo gave the go-ahead to local governments in Mindanao to use their calamity funds for cash and livelihood aid for farmers in areas severely affected by the El Niño phenomenon.
Mrs. Arroyo also told reporters here late Thursday that government financial institutions like the Land Bank of the Philippines and the Development Bank of the Philippines have offered to provide loan facilities of as much $100 million to private firms that need to lease generator sets to keep their businesses going.
