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Several rice-exporting countries including Myanmar and Cambodia are easing COVID-related export restrictions, and global rice prices have fallen from their early-May peak, according to a University of Arkansas report. Prices in India and Thailand have returned to pre-pandemic levels, while Vietnam remains about $100 above them.
Easing export curbs add supply to world markets and make Asian rice cheaper relative to US rice, which is tied to tight domestic supplies. Lower global offers should cap international rice prices even as US prices stay elevated.
pbcommercial.comNewsMay 29, 2020After 141 past bearish trade events, Rough Rice moved a median +0.6% over 5 sessions (57% higher; middle half -2.3% to +2.4%), and -0.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Easing export restrictions and falling global rice prices from early-May peak reduced the tight-supply premium and pressured US futures.
Easing of export restrictions by Myanmar and Cambodia and falling global rice prices from early-May peak reduce supply-scarcity premium, plausibly pressuring US rough rice futures.
