WORLD MARKETS AND TRADE:

COMMENTARY AND CURRENT DATA

International: Asian prices are slightly weaker this month. Thai prices dropped $3 from last month to $306 per ton, FOB, mainly due to currency fluctuations. Despite government efforts to bolster sagging export prices, Viet prices dropped $4 to $243 per ton, FOB.

Domestic: U.S. long grain prices strengthened $5, with #2/4 currently quoted at $373 per ton, FOB. This brings the price spread between Thai and U.S. rice to $67 per ton. Meanwhile, U.S. medium grain prices have slipped $40 to $475 per ton, FOB, as most of the business to East Asia has been completed (See PDF version for chart).

• Cambodia is raised 250,000 tons to 350,000 based on a sharp increase in production after the 04/05 crop was affected by dry weather and the expectation of increased border trade with Vietnam and Thailand.

• India is raised 300,000 tons to 3.8 million on a jump in production and a price advantage in key parboiled markets in Africa.

• Thailand is raised 300,000 to 7.3 million due to improved exports to high quality markets such as Iran and Iraq.

• Indonesia is reduced 300,000 tons to 700,000 based on a slightly stronger production outlook and the expectation that the level of stocks will curtail import demand.

• Iran is increased 150,000 tons to 1.1 million as stock building continues in light of regional insecurity.

Return to Table of Contents

Last modified: Tuesday, April 11, 2006