Developing Countries Will Lead Global Rice Import Growth in 2013-22, Says USDA Rice growers positive California MG prices are UP Russia MG Harvest coming to end Egypt open rice exports Vietnam’s rice export in tough competition with India Thai rice exports in May Rise Above Target This Year Viet-Nam Rice exports likely to fall this year
Australia Medium Grain Rice #1 $ N/A    Egypt 101 #2 $760    Egypt 178 #2 Rice $730    EU Prices Baldo €660    EU Prices LG-A Ariete 5% €550    EU Prices MG Lotto 5% €500    EU Prices RG Balilla 5% €500    Russia Rapan $ 700    USA Jupiter Paddy $375    USA Calrose #1 Paddy $480    USA Jupiter Rice $630    USA Calrose #1 $830   

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Rice prices will depend on 2006 acres
"U.S. prices for medium and long grain rice have run up about as high as they’re going to go for now."
Speaking at the Mid-South Farm and Gin Show in Memphis, Mr. Brothers said where prices go from here will depend on how much rice is planted in the United States in 2006.

Acreage estimates for 2006 are still sketchy, although Brothers agrees there will be less rice planted this year than last.

Early estimates were that California would drop its plantings to 510,000 acres while Arkansas plantings would decline by 6 percent.

However, Brothers believes Louisiana rice acres could be down significantly, as much as 15 percent, with Mississippi down 8 percent. Texas rice acres could drop a lot more, maybe 25 percent, to around 150,000 acres. “They have water problems, they’re not as competitive and they’re struggling to stay in the rice business. Missouri is a very competitive area for rice production although acres could drop by about 7 percent.”

There is still significant divergence between long grain and medium grain prices, Brothers points out. “USDA has a projection of a $3.51 cash price per bushel for rice but high prices for medium grain rice in California are pushing up that price. If you took out the price of medium grain, USDA would be showing a lower number for long grain rice.”

Brothers noted that a 26 percent reduction in medium grain production in 2005 is behind higher medium grain prices. “We came off a year (2004) where California planted about 600,000 acres, going fence row to fence row because of higher prices. That effectively destroyed the market for the Californians. Prices declined and we dropped back to roughly 540,000 acres in 2005.

At the same time that happened, Australia was going through its third year of drought. All these factors have made medium grain quite bullish. Carryout in medium grain rice is down 61 percent from the previous year.

If you’re thinking about increasing medium grain acres in response to higher prices, beware, says Brothers. “Australia is expected to have a normal crop in 2006, and they will place more medium grain on the market. This will put more pressure on California and the South.

While we need to grow medium grain in the United States, “if we overdo it, we have a problem. We have a limited number of markets and we can get in trouble quickly.”
MGR Archive 10.3.2006
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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