World Grain - June 2019 - 20

GRAINMARKET REVIEW

RICE

Prices stable in hand-to-mouth trading

by Chris Lyddon

150,000

100,000

50,000

0
2019-20*

2018-19*

2017-18

2016-17

2015-16

Source: U.S. Department of Agriculture

2014-15

2013-14

2012-13

20

(in 1,000 tonnes)

200,000

2011-12

World prices for rice have changed little overall in recent
PRQWKVDOWKRXJKWKH\UHPDLQGRZQFRPSDUHGWRWKH¿UVWIHZ
PRQWKVRI'HPDQGKDVUHPDLQHGVXEGXHGZLWKDIRUHcast 2019-20 crop that is down slightly from last year's record.
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months amid plentiful supplies and more competitive prices,"
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from Asian suppliers."
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tonne, although a strong baht meant they were higher than for
other Asian exporters.
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million the year before.
"The largest projected reductions are for the two largest
producing countries, China and India, with both area and yield
IRUHFDVWGRZQ´WKH)$6VDLG³7KH8QLWHG6WDWHVLVDOVRSURjected to have smaller planted area and production."
The biggest increases were for Thailand and Laos, with sigQL¿FDQWSURGXFWLRQJURZWKDOVRIRUHFDVWIRU%DQJODGHVK,QGRnesia, Burma and Vietnam.
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Association described the trade as having "trudged forward
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that the purchasing of overseas buyers is becoming more cyFOLFDO RU KDQGWRPRXWK´ 86 5LFH VDLG ³86'$ VHHPV WR
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both classes of rice."
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Index at 222.2 points in April, almost unchanged from March.
"The most notable development in April concerned the

Rice global ending stocks

*Estimated **Projected

Aromatic Index," the FAO said. "It rose by 2.7% to an eightPRQWKKLJKRISRLQWVEXR\HGE\¿UPLQJEDVPDWLTXRWDWLRQV LQ WKH FRQWH[W RI LQÀDWLRQDU\ SUHVVXUH LQ 3DNLVWDQ DQG
preparatory purchases ahead of Ramadan."
In contrast, "the Japonica Index subsided by 1%, following
the retreat of Japan and the Republic of Korea from the marNHWDQGDWXUQRIZHDWKHUWKDWUDLVHGSODQWLQJH[SHFWDWLRQVLQ
California," the FAO noted.
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much of Asia, except in India and Myanmar, where prices
dipped on poor buying interest and pressure from offseason
harvests, the FAO said.
"In Thailand, concerns over water supplies for irrigation
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and China," the FAO said.
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months, world rice prices from January to April 2019 were
2.2% below their level in the same period a year earlier.
The International Grains Council's (IGC) April 25 Grain
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with the IGC's rice price index unchanged from a month earlier.
"In Thailand, support from concerns that drought may curWDLORIIVHDVRQSURGXFWLRQRIIVHWSUHVVXUHIURPZHDNEX\LQJ
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%DQJNRNZLWKWUDGHVDLGWREHTXLHWGXHWRWKH6RQJNUDQIHVtival," the IGC said.
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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.

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

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