Due to rise in rice market by 12 cents this week, both long grain and medium/short grain has given hopes for positive future with two of the times that saw prices in the top band. Mar contract closed nearby at 15.585, which was down by 12.5 on the day, but up 28.5 over last Friday.
But USDA further increased domestic grain usage by 1 million cwts, which lowered the ending stocks figure, taking down to 16.3 million cwts. The other long grain change was in the projected farm price which moved from $14.80 – $15.80 to $15.10-$15.70. The domestic use of medium/short grain decreased to 1 million cwts and exports increased by 1 million cwts on the other hand.
Long grain milled and brown totaled a scant of 1,900 tons and Mexico was the only major buyer this week. Whereas on the medium/short grain was bought by Turkey for about 14,800 tons and 31,000 tons of milled respectively. Some additional was sold to Japan – 26,000 tons, Jordan- 22,00 tons, Canada- 1,000 tons and Israel- 600 tons for all in medium/short milled at 61,6000 tons.
Hence the total shipments for the week were 65,200 tons , with maximum of 11,600 tons to Mexico of milled and brown to Haiti- 73,000 tons, Canada – 1,100 tons of milled & 200 tons of brown. Turkey stacked 27,800 tons for medium/short brown and 7,400 tons for medium/short milled. Also 2000 tons to Turkey, 1,300 tons to Jordon, 1,100 tons to Canada and 6,000 tons to Israel.
Other Cities of US – Texas, Louisiana and California
There was only private trading this week in Texas at 9.50 per cwt for conventionals and $9.25 for hybrids. Last week estimate of less than 25% of the old crop has not changed. In next coming days the weather forecast predicts dry conditions allowing the crops in Texas to have full crop but there is no information on the new crop prices on the long grain. Medium grain has already been booked for next year at $16.00 per cwt fob farm level. Buying interest on long grain will remain at $25.00 per bbl fob farm. But maximum grain is already sold out.
In South Louisiana the contracting of medium grain is priced at $25.00 per bbl fob farm level, but no information has been provided on the long grain. Also there is no support from Washington in the unexplored territory which dangers the farmers and the bankers.
South America- Arkansas, Mississippi, Missouri
The delta region of America is currently freezing and is good market for old crop and continues buying at $16.10 to $16.25 per cwt level delivered mill and export buying interest at $15.56 level. The new crop is expected to be priced at around $6.00 per bu delivered. But the waiting harvest can be expensive in the coming year. In Arkansas due to coldest weather in last 30 years only limited selling of old crop is reported at $7.00 number fob farm. Only in August/September new crop will be available to be contracted at $6.10 per bu fob farm for long grain and $6.50 to $ 6.55 per bu fob farm for medium grain. Whereas in Missouri the bid for old crop is about $7.05 per bu level for the medium grain of next year.
In view of the political distress n Thailand, the farmers are looking forward for the payments promised by the government which may cause dumping of rice on the world market which will in turn crash the old crop as well as the new crop.
At the week’s end, Thai 100% Grade B was at $400 per ton fob for 2012-13 crop and $455 per ton fob for 2013-14. Long grain Viet closed at $395 per ton. Pakistan and India 5% long grain milled rice closed at $400 and $419 per ton respectively.