HANOI (Dow Jones)--Vietnamese traders raised prices quoted for rice exports by 5.9% Monday as demand from foreign buyers is increasing and local supply is shrinking, traders said.

  In Ho Chi Minh City and the Mekong Delta, traders quoted indicative prices for high-quality 5% broken rice at $540 a metric ton, compared with $510/ton last week.

  "Fresh demand from African countries and Cuba is pushing up prices," said a trader with the state-owned Vinh Long Food Co.

He said prices are also rising because farmers in the Mekong delta region have sold almost all of their stock, and there will be no harvesting in the region for the next five months.

  Traders the with Vietnam Food Association said local companies are raising export prices because they have had to borrow funds at high interest rates from banks in the recent months.

  However, some traders said prices may not have much more room to rise. 

  "Though prices have gone up slightly, I don't expect they will rise further in the coming weeks," said a trader based in Ho Chi Minh City.

  Vietnam is estimated to have exported 400,000 tons of rice valued at $250 million in September, down 7% on year in volume terms but up 71.2% in value terms, according to government statistics released Monday.

  Between January and September, the country will export 3.69 million tons valued at $2.44 billion, down 7.4% on year in volume terms but up 89.7% in value terms. 
  
  -By Nguyen Pham Muoi, Dow Jones Newswires, 84-913-220-614; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it