WORLD MARKETS AND TRADE:

COMMENTARY AND CURRENT DATA

International: Asian prices are mixed this month. Thai prices continued to strengthen (up $3 with quotes currently at $309 per ton, FOB) on an announcement of the dry season intervention scheme at the current price level, currency fluctuations and stronger demand for high quality varieties. Meanwhile, Viet prices are down $17 to $247 per ton, FOB, due to normal seasonal harvest pressure of the Winter-Spring crop and the unusually strong internal demand for cash.

Domestic: U.S. long grain prices remain unchanged, with #2/4 currently quoted at $368 per ton, FOB. This brings the price spread between Thai and U.S. rice to $59 per ton. Meanwhile, U.S. medium grain prices remain unchanged at $515 per ton, FOB. (See PDF version for chart).

• China is raised 100,000 tons to 800,000 with renewed sales of medium grain and new parboiled rice export capacity.

• Burma is raised 50,000 tons to 200,000 based on expectations of improved private trade movement.

• Due to large carryin stocks and competitive prices, Brazil is raised 50,000 tons to 175,000 despite lower production. This still represents a 36 percent drop in exports year-to-year.

• Bangladesh is raised 200,000 tons to 700,000 to help replenish low (carryin) stocks.

• Peru is reduced 25,000 tons to 50,000 as a result of large stocks and strong production.

• Australia is reduced 25,000 tons again to 75,000 on continued weakness in the export pace.

• Burma is changed due to year-end data.

• Changes to Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Japan, Mexico, Nicaragua, Panama, Peru, Philippines are based on year-end data.

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Last modified: Tuesday, April 11, 2006