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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Ocean freight rates hit all-time record
WASHINGTON, D.C., U.S. — In its May 3 "Wheat Letter," the U.S. Wheat Associates (USW) noted that the Baltic Dry Freight Index set an all-time record on April 27. Prices are currently twice as high as last year and market observers anticipate the climb will continue in the foreseeable future, USW said.

As is often said, the cure for high prices is high prices, but with demand remaining robust, it appears the grain industry will have to wait for new vessels before freight rates cool down, USW noted.

"The ocean freight community has an old saying: ‘We don’t worry about profits — we can always build our way out of them,’" said Jay O’Neil, a commodity transportation expert and senior agricultural economist at the International Grains Program, Manhattan, Kansas, U.S. "In time, this will surely happen."

In fact, rates were nearly this high just a few years ago before falling back. And Bloomberg News reported this week that, according to futures contracts traded privately between banks, transportation companies and hedge funds, Japan, China and South Korea may produce enough new vessels to cut shipping costs 40% by 2010.

China’s voracious appetite for iron ore imports is, for the most part, driving ocean freight demand again. Reuters reports that first-quarter 2007 Chinese iron ore imports were 23% greater than in first-quarter 2006 and coal imports were up 60%. India imposed a 300 rupee (U.S.$7) per ton export duty in March to encourage domestic steel production, so China increased imports from Brazil. That’s a longer sail that significantly reduced global vessel availability for other industries.

Port congestion is also absorbing a lot of vessel capacity, USW said. Freight brokerage SSY’s port congestion index is close to a record of 20 days, compared to a peak of 14 days in December 2004. Last month, freight observers estimated that 100 of the 700 global Capesize fleet — vessels with capacity exceeding 150,000 tonnes — were anchored off the Australian port of Newcastle. The soaring rates for Capesize ships lifted rates for the Panamax vessels often used for split cargo grain shipments. Industry experts also expect congestion at Brazilian ports this summer to handle "huge" soybean and corn harvests.
MGR Archive 6.5.2007
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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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