The U.S. cash rice market was quiet today despite surprisingly strong export sales numbers, albeit roughly half of it was medium grain rice. Analysts insist that cash price will remain firm going into next year’s planting as farmers with rice left to sell will remain set on their price ideas, waiting for buyers to come to them. Others contend that most buyers cannot make sales at these higher levels and that one side is going to have to budge if any business is going to get done.
As of today, offers from farmers could still be found around $15.55 per cwt fob farm (about $343 per ton) for 50 pounds of whole rice for March shipment which generated very limited interest while offers from resellers increased slightly with the futures market, but were still more attractive than offers from farmers.
Bids from some mills held could still be found around $14.30 per cwt (about $315 per ton) for March shipment which generated zero selling interest while bids from smaller mills are reported to be as high as $15.55 per cwt (about $343 per ton) for March delivery of 55 pounds of whole rice or better however most sellers continue to wait for higher prices.
Bids from exporters were could still be found around $14.75-$15.00 per cwt (about $325-$331 per ton) for March-April delivery of 50 pounds of whole rice or better however there is no selling interest at this level.
In the meantime, today the USDA reported that for the week ending on February 28th, U.S. rice exporters sold 107,400 tons, which was more than double last week and 37% higher than the prior 4-week average, with the primary destinations including: 51,800 tons to Japan, 33,200 tons to unknown destinations, 7,500 tons to Haiti, 4,600 tons to Mexico, and 4,000 tons to Jordan.
U.S. rice exporters shipped 64,900 tons, which was 91% higher than last week but 11% lower than the prior 4-week average. The primary destinations included: 24,600 tons to South Korea, 19,300 tons to Haiti, 6,600 tons to Nicaragua, 4,300 tons to Mexico, and 2,400 tons to Taiwan.
oryza.com