The U.S. cash rice market was somewhat active today as traders attempted to position themselves ahead of tomorrow’s USDA World Agriculture Supply and Demand Estimate. Most analysts expect the report to be bullish for rice prices, showing decreased carry over and reduced new crop field yields. However, this bias does not come without risk as market participants have expected bullish USDA reports in the past and have been disappointed.
As of today, offers from farmers that could be found today were slightly firmer today around $16.85-$17.25 per cwt fob farm (about $371-$380 per ton) for 50 pounds of whole rice or better for June shipment while offers from resellers continue to increase with the futures market to less attractive levels.
Bids from some mills increased to around $15.85 per cwt (about $349 per ton) for June delivery while bids from smaller mills and exporters increased to around $16.50 per cwt (about $364 per ton) for June delivery although several trades were reported to have occurred as high as $16.75 per cwt (about $369 per ton) for prompt delivery.