World Grain - October 2019 - 18

GRAINMARKET REVIEW

RICE

USDA crop forecast cuts
add bullish sentiment

Rice monthly price
(U.S. dollars per tonne)

500
400
300
200

by Chris Lyddon

0
Aug 2019

Jul 2019

Jun 2019

May 2019

Apr 2019

Mar 2019

18

100

Feb 2019

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6HSWHPEHU¶V 86 'HSDUWPHQW RI $JULFXOWXUH :RUOG $JULFXOWXUDO6XSSO\DQG'HPDQG(VWLPDWH:$6'(UHSRUWDGGHGWR
a positive tone for rice prices around the world, in a market alUHDG\EXR\HGE\FURSFRQFHUQVLQVRPHRIWKHPDMRUH[SRUWHUV
7KH86'$¶V6HSW:$6'(UHSRUWGHVFULEHGD86RXWlook for 2019-20 with "much lower supplies, reduced domestic use and exports, and lower ending stocks." In the report,
WKH86'$FXWLWV¿JXUHIRU86RSHQLQJVWRFNVWR
1.42 million tonnes from its previous estimate, made a month
earlier, of 1.61 million. It cut production to 5.95 million tonnes
from 6.52 million. Ending stocks are forecast at 1.14 million
WRQQHVFRPSDUHGZLWKWKHSUHYLRXVO\SUHGLFWHG¿JXUHRI
PLOOLRQ7KH6HSWHPEHU&URS3URGXFWLRQ5HSRUWVKRZHGORZer production area and yields. The reduced area is "the result
of excessive precipitation at planting time, especially in the
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20 to 494.22 million tonnes, down from August's prediction
of 497.86 million, with the main change being a 3-millionWRQQHFXWLQIRUHFDVW,QGLDQSURGXFWLRQ:RUOGH[SRUWVZHUH
cut to 45.12 million tonnes from 46.64 million, with India's
sales abroad down by 800,000 tonnes.
"Global consumption is cut 1.2 million tonnes, and world
ending stocks are lowered 1.9 million tonnes to 172.7 million,
EXWERWKUHPDLQUHFRUGODUJH´WKH86'$H[SODLQHG
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for Thailand and Vietnam diverged further.
"Thai quotes climbed to $422/tonne on tighter exportable
supplies, while Vietnam prices plunged to $321/tonne," the
86'$VDLG³0HDQZKLOH,QGLDQDQG3DNLVWDQLTXRWHVQHDUO\
converged in the middle of Thai and Viet values at $370/tonne
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$555/tonne on reduced prospects for new-crop supplies, and
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,QDFRPPHQWDU\WRWKH)$2¶V5LFH3ULFH8SGDWHIRU6HSWHPEHU  SXEOLVKHG 6HSW  WKH 81 RUJDQL]DWLRQ VDLG
that its price index for August was up by 1.1% from the same
month the previous year.
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Rice (Thailand), 5% broken, white rice (WR), milled, indicative price
based on weekly surveys of export transactions, government standard, f.o.b. Bangkok.
Source: U.S. Department of Agriculture; World Bank

price increase took place in the fragrant market during August, lifting the Aromatic sub-index by 3.8% month-on-month
to its highest since October 2014," the FAO said. "Prices of
higher and lower quality Indica rice also edged up by about
HDFKZKLOH-DSRQLFDTXRWDWLRQVOHYHOHGR൵
"Even though fresh demand remained limited during August, export quotations strengthened in most Asian origins
DQGVHJPHQWVUHÀHFWLQJWKLQQLQJDYDLODELOLWLHVDKHDGRIPDMRU
crop harvests. In Thailand, the seasonal tightness was exacerbated by concerns over the impact of rainfall shortfalls on
2019 crops.
³$OWKRXJKWKH¿UPQHVVD൵HFWHGPRVW7KDLTXDOLWLHVLWZDV
especially evident in the Thai glutinous market, where August
prices of 10% glutinous rice surged 34% over July levels to a
high of $1,424 per tonne."
7KH)$2DOVRGHVFULEHGD¿UPHUXQGHUWRQHLQWKH86ORQJ
grain market as harvesting started, noting "sentiment buoyed
E\SUHYLRXVVDOHVWR,UDTDQGRWKHUUHJXODUEX\HUV´,Q6RXWK
America, prices fell to four-month lows, "pressured by sluggish demand and currency movements."
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LQWHUQDWLRQDOULFHSULFHVLQWKH¿UVWHLJKWPRQWKVRIZHUH
2.1% down on their level in the same period in 2018.
The IGC's Grain Market Report, published Aug. 29, described international rice prices as mildly stronger on the
month, "amid crop concerns in key exporters, although gains
were pared by weak export demand, leaving the IGC's rice
price index broadly unchanged."
Chris Lyddon is World Grain's European correspondent.
He may be contacted at: chris.lyddon@ntlworld.com.
We want to hear from you - Send comments and inquiries to
worldgrain@sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.

October 2019 / World Grain / www.World-Grain.com


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World Grain - October 2019

Table of Contents for the Digital Edition of World Grain - October 2019

World Grain - October 2019
Contents
FROM THE EDITOR - ASF impact goes beyond pork industry
CALENDAR OF EVENTS
IPPE evolves to meet needs of attendees, exhibitors
News Review - ADM opens largest U.S. mill ever built
ForFarmers opens newly expanded feed mill
Scoular taps Gasparian for Asia-Pacific role
Chinese feed producer to build feed mill in Vietnam
P&H acquires 10 LDC grain elevators
Ardent Mills creates chief growth officer position
Grimaldi to head Gavilon do Brasil
ISU breaks ground on new feed mill and grain science complex
CHS increases soybean capabilities with expansion
Bunge buys stake in Brazilian grains and inputs company
Interflour receives loan from CBH, Salim Group
GRAIN MARKET REVIEW - Rice
COUNTRY FOCUS - Iran
FEATURE: MAASS SEEKS BOTH CHANGE AND GROWTH
Scoular’s pillars for growth
For new career chapter, Maass returns to his roots
FEATURE: SHIP LOADER, UNLOADER SUPPLIERS FOCUSING ON EFFICIENCY
FEATURE: CHINA ON THE MINDS OF AGIC ATTENDEES
GRAIN OPERATIONS - Grain elevator of the FUTURE
FEATURE: STUDY: U.S. WATERWAYS NEED UPGRADING
FEED OPERATIONS - PELLETING system points
FEATURE: BEWARE OF BEETLES
FEATURE: BÜHLER COLLABORATION NEEDED TO FEED WORLD SUSTAINABLY
SUPPLIER NEWS
PRODUCT SHOWCASE
WORLD GRAIN ARCHIVE
ADVERTISER INDEX
World Grain - October 2019 - World Grain - October 2019
World Grain - October 2019 - World Grain - October 2019
World Grain - October 2019 - 2
World Grain - October 2019 - 3
World Grain - October 2019 - 4
World Grain - October 2019 - Contents
World Grain - October 2019 - FROM THE EDITOR - ASF impact goes beyond pork industry
World Grain - October 2019 - 7
World Grain - October 2019 - IPPE evolves to meet needs of attendees, exhibitors
World Grain - October 2019 - 9
World Grain - October 2019 - News Review - ADM opens largest U.S. mill ever built
World Grain - October 2019 - ForFarmers opens newly expanded feed mill
World Grain - October 2019 - Chinese feed producer to build feed mill in Vietnam
World Grain - October 2019 - P&H acquires 10 LDC grain elevators
World Grain - October 2019 - Grimaldi to head Gavilon do Brasil
World Grain - October 2019 - ISU breaks ground on new feed mill and grain science complex
World Grain - October 2019 - Interflour receives loan from CBH, Salim Group
World Grain - October 2019 - GRAIN MARKET REVIEW - Rice
World Grain - October 2019 - 18
World Grain - October 2019 - 19
World Grain - October 2019 - COUNTRY FOCUS - Iran
World Grain - October 2019 - 21
World Grain - October 2019 - 22
World Grain - October 2019 - 23
World Grain - October 2019 - FEATURE: MAASS SEEKS BOTH CHANGE AND GROWTH
World Grain - October 2019 - 25
World Grain - October 2019 - Scoular’s pillars for growth
World Grain - October 2019 - 27
World Grain - October 2019 - For new career chapter, Maass returns to his roots
World Grain - October 2019 - 29
World Grain - October 2019 - 30
World Grain - October 2019 - 31
World Grain - October 2019 - FEATURE: SHIP LOADER, UNLOADER SUPPLIERS FOCUSING ON EFFICIENCY
World Grain - October 2019 - 33
World Grain - October 2019 - 34
World Grain - October 2019 - 35
World Grain - October 2019 - 36
World Grain - October 2019 - 37
World Grain - October 2019 - FEATURE: CHINA ON THE MINDS OF AGIC ATTENDEES
World Grain - October 2019 - 39
World Grain - October 2019 - 40
World Grain - October 2019 - 41
World Grain - October 2019 - 42
World Grain - October 2019 - 43
World Grain - October 2019 - 44
World Grain - October 2019 - 45
World Grain - October 2019 - GRAIN OPERATIONS - Grain elevator of the FUTURE
World Grain - October 2019 - 47
World Grain - October 2019 - 48
World Grain - October 2019 - 49
World Grain - October 2019 - 50
World Grain - October 2019 - 51
World Grain - October 2019 - FEATURE: STUDY: U.S. WATERWAYS NEED UPGRADING
World Grain - October 2019 - 53
World Grain - October 2019 - 54
World Grain - October 2019 - 55
World Grain - October 2019 - FEED OPERATIONS - PELLETING system points
World Grain - October 2019 - 57
World Grain - October 2019 - 58
World Grain - October 2019 - 59
World Grain - October 2019 - FEATURE: BEWARE OF BEETLES
World Grain - October 2019 - 61
World Grain - October 2019 - 62
World Grain - October 2019 - 63
World Grain - October 2019 - FEATURE: BÜHLER COLLABORATION NEEDED TO FEED WORLD SUSTAINABLY
World Grain - October 2019 - 65
World Grain - October 2019 - 66
World Grain - October 2019 - 67
World Grain - October 2019 - 68
World Grain - October 2019 - 69
World Grain - October 2019 - 70
World Grain - October 2019 - 71
World Grain - October 2019 - SUPPLIER NEWS
World Grain - October 2019 - 73
World Grain - October 2019 - 74
World Grain - October 2019 - 75
World Grain - October 2019 - 76
World Grain - October 2019 - 77
World Grain - October 2019 - PRODUCT SHOWCASE
World Grain - October 2019 - 79
World Grain - October 2019 - 80
World Grain - October 2019 - WORLD GRAIN ARCHIVE
World Grain - October 2019 - ADVERTISER INDEX
World Grain - October 2019 - 83
World Grain - October 2019 - 84
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