WORLD MARKETS AND TRADE:

COMMENTARY AND CURRENT DATA

International: Export prices in Thailand dropped sharply ($10) because of the uncertain political climate, the Government’s need to dispose of 3 million tons of intervention stocks, and the unease over the unannounced intervention support price. Indian prices are also down; 5% is currently quoted at $258 per ton, FOB, off $5 from last month.

Conversely, Viet 5% is currently quoted at $271 per ton, FOB, up $6 due to tightening supplies and loading delays, caused by the monsoon.

Domestic: U.S. #2/4 long grain milled rice is quoted at $428 per ton, FOB. The spread between comparable qualities of Thai and U.S. rice is $120 per ton compared to $25 per ton this time last year. Various traders have indicated that perhaps some U.S. producers are holding supplies for a number of reasons including expectation of even higher prices to help cover the increased costs of production and limited government support payments. Prices for U.S. medium grain rose with #1/4 medium grain milled rice from California quoted at $525 per ton, FOB, $50 more than last month. The California harvest continues with more than 58 percent complete.

• Australia is down 75 percent to only 150,000 tons as exportable supplies are predicted to shrink. Production is slashed 65 percent because of drought conditions.

• China is up 100,000 to 900,000 tons with a predicted good exportable supply and the likelihood that the strong 2006 pace will carry over.

• Pakistan is up 400,000 to 4.3 million tons in expectation of ample exportable supplies.

• Australia is down 150,000 to 350,000 tons due to the slower than expected export pace.

• China is up 100,000 to 900,000 tons based on a strong export pace.

• Cuba is down 150,000 tons to 600,000 tons due to slow arrivals from primary suppliers.

Return to Table of Contents

Last modified: Friday, October 13, 2006