Agfax Buzz:
    May 2, 2014
    rice-freshly-harvested-03172014-featured

    Rice Market: Futures Show Strength but Exports Weak

    AgFax.Com - Your Online Ag News Source

    From The Rice Advocate, USRPA

    USDA raised World Market Price factors this week. The on-farm value of long grain rough rose 20 cents to $11.83 per cwt.

    This Week

    Rice futures showed some strength this week, making a high on Thursday, and closing today near the high for the day after selling off in the morning. We noted this week that the settlement price one year ago was within one cent of the current market — a true definition of a sideways market.

    Dips are being met with buying interest, and not generating big selling. The May contract has gone into delivery this week, and so far 178 contracts have been tendered, with the open interest falling to double digits — another sign that futures prices are too low to attract big selling, and that the cash market remains too high to play the delivery game on large quantities.

    The market remains wary of new crop, feeling that prices will fall quite a bit from current levels. Given the delays in planting in the Delta, this is increasingly unlikely, although September futures remain $1.00 below July futures. If trading futures, be very wary of the short side – this is our opinion.

    Exports

    It was a below-average week for export sales, with only 11,800 tons registered with USDA. Missing were any large sale of long grain rough rice, with the minor exception of 500 tons sold to Honduras. Long grain milled and brown sales totaled 8,100 tons, with the majority going to Haiti (6,300 tons), Plus Mexico and Canada.

    The Medium/short brown sand milled categories combined for an underwhelming total of 3,100 tons to Canada, South Korea, Japan, and Jordan. Easter Week, and a mid-week holiday (international Labor Day) this week provided some excuse for low levels of trading.

    This week’s export loadings totaled 56,000 tons, with long grain rough in the lead with a total of 23,100 tons split among Honduras, Guatemala, Costa Rica, and Mexico. Long grain milled and brown shipped out 8,100 tons, including 6,300 tons to Haiti.

    Canada, Mexico, and Yemen received most of the balance. Medium/short shipments were 17,600 tons, with 2,000 tons of brown leaving for Taiwan and 13,000 tons sailing for Japan — both from California. Exports to Jordan totaled 1,700 tons this week.

    Asia

    For yet another week, there have been only minor negative changes in Asian prices. Thai 100% Grade B finished the week at $390 for old crop and $400 for new crop, with parboiled at $420 per ton – all fob vessel. Vietnam’s 5% milled was called $390 per ton. Pakistan’s quotes were $420 for 5% milled and $440 for parboiled. And Indian rounds out the area quotes with $420 for 5% long grain and $400 for parboiled.

    Full report.

    Tags: , , , ,

    Leave a Reply

    Name and Email Address are required fields. Your email will not be published or shared with third parties.

    Agfax Rice News

    Keith Good: Iowa Farmland Values Drop, but Leveling Off Expected12-22

    Missouri: Crop Budgets For Southeast Counties12-20

    Mississippi Crop Values to Top $7B for 3rd Straight Year12-19

    AFB Rice Close: Strong Gains to End the Week12-19

    Texas Ag Benefits from Normalized U.S.-Cuba Relations, Says Expert12-19

    Louisiana: Rice School Slated Jan. 9 at Abbeville12-19

    Keith Good: New Cuba Policy Could Open Huge Market for U.S. Wheat12-19

    Nitrogen Fertilizer: Oversupply, Geopolitical Risk Overshadow Strong Global Demand – DTN12-18

    AFB Rice Close: Mixed as Consolidation Continues12-18

    China Holds Grain Import Quotas Steady, Revises Application Process – DTN12-18

    Japan Elections Won’t Soften Trade Issues — DTN12-18

    Updated ARC-CO and PLC Payment Indicator for 2014 Crop Year12-18

    U.S. Drought Outlook: Improvement Expected Across California12-18

    Ag Trade Should Benefit from Thaw in U.S.-Cuba Relations12-18

    U.S. Energy: Heating Oil Expenditures Expected to Drop This Winter12-18

    Gasoline Prices: Decline in All Regions12-18

    Propane Stocks: Decrease by 0.8M Barrels12-18

    Diesel Prices: Average Drops 12 Cents12-18

    Keith Good: Viptera Corn Ban Lifted by China; Wheat Prices Soaring12-18

    AFB Rice Close: Higher in Narrow Range12-17

    Senate Passes Tax Extenders Bill with Key Provisions for Ag — DTN12-17

    Keith Good: EPA Moving Ahead with Plans to Finalize Clean Water Rule12-17

    DTN Fertilizer Outlook: Global Phosphorous Demand to Increase12-16

    Keith Good: Ag Industry Preparing to Launch New Biotech Seeds12-16

    Cash Rent Rates Key to Cropland Prices 2015 – DTN12-15

    AFB Rice Close: Higher but Within Friday’s Range12-15

    Keith Good: U.S. Hay Exports to China Take Hit from GMO Crops Ban12-15

    AFB Rice Close: Futures Explode Upwards12-12

    Rice: California’s Drought Opens Opportunities In The South12-12

    Keith Good: World Cereal Production May Reach Record 2.5B Tonnes12-12

    AFB Rice Close: Futures Look to Re-Test Support12-11