Rice falls to 34-month low as US output gains, demand slows
Monday, 28 June 2010
CHICAGO, June 27 (Bloomberg): Rice futures fell to the lowest price in 34 months on signs that global output is rising faster than demand.
The Philippines, the biggest importer, has enough reserves to meet demand until the end of the year, the National Food Authority said today. Farmers in the US, the fourth-largest exporter, planted 8.6 per cent more rice this year, the government said June 10. Prices are down more than 12 per cent in June, heading for the biggest monthly drop since January 2009.
Rice futures for September delivery fell 13 cents, or 1.3 per cent, to $10.21 per 100 pounds on the Chicago Board of Trade, after touching $10.195, the lowest level for a most-active contract since August 16, 2007. Rice has plunged 31 per cent this year, partly because of rising production.
Global rice output will jump 4.3 per cent in the year that starts August 1, to 459.44 million metric tonnes, after dropping an estimated 1.6 per cent in the current period, the USDA said in a report June 10. Consumption will increase 2.5 per cent to 452.79 million tonnes, the department estimated.
US farmers will plant 3.41 million acres, up from 3.14 million a year earlier, the USDA said in a report. Thailand and Vietnam are the biggest exporters, and both are expected to boost output in the next marketing year, the department said. Production in Pakistan, the No 3 shipper, will be unchanged, though its exports may jump 9.1 per cent, the USDA said.
In the Philippines, the inventory stands at 3.56 million tonnes, of which 2 million tonnes, or 56 per cent, is held by state agency National Food Authority, its Administrator Jessup Navarro said in a statement. The agency and private importers bought a combined 2.5 million tonnes of rice, a record, for this year's supply. Of this, more than 2.2 million tonnes has arrived.
The Philippines, the biggest importer, has enough reserves to meet demand until the end of the year, the National Food Authority said today. Farmers in the US, the fourth-largest exporter, planted 8.6 per cent more rice this year, the government said June 10. Prices are down more than 12 per cent in June, heading for the biggest monthly drop since January 2009.
Rice futures for September delivery fell 13 cents, or 1.3 per cent, to $10.21 per 100 pounds on the Chicago Board of Trade, after touching $10.195, the lowest level for a most-active contract since August 16, 2007. Rice has plunged 31 per cent this year, partly because of rising production.
Global rice output will jump 4.3 per cent in the year that starts August 1, to 459.44 million metric tonnes, after dropping an estimated 1.6 per cent in the current period, the USDA said in a report June 10. Consumption will increase 2.5 per cent to 452.79 million tonnes, the department estimated.
US farmers will plant 3.41 million acres, up from 3.14 million a year earlier, the USDA said in a report. Thailand and Vietnam are the biggest exporters, and both are expected to boost output in the next marketing year, the department said. Production in Pakistan, the No 3 shipper, will be unchanged, though its exports may jump 9.1 per cent, the USDA said.
In the Philippines, the inventory stands at 3.56 million tonnes, of which 2 million tonnes, or 56 per cent, is held by state agency National Food Authority, its Administrator Jessup Navarro said in a statement. The agency and private importers bought a combined 2.5 million tonnes of rice, a record, for this year's supply. Of this, more than 2.2 million tonnes has arrived.