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Rice prices are at their highest in years, with old-crop long-grain futures reaching a 12-year high in April and the May contract trading near $18.70/cwt. Long-grain 2019/20 ending stocks are tight at 14.7 million cwt, the lowest since 2003, and export sales are running 14% ahead of last year.
Southeast Asian export restrictions tightened supply in March and April but are now being relaxed.
Tight old-crop long-grain stocks and strong export demand support rough rice prices, while easing Asian export curbs may limit further upside. Feed buyers should expect firm but volatile rice-related feed input costs.
farmprogress.comRon SmithMay 14, 2020Not enough comparable past events yet for a historical read.
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.
Futures were at multi-year highs with tight old-crop stocks, and Southeast Asian export restrictions were being relaxed, which removes a supply-tightness premium and leaves prices exposed to a sharp correction.
Futures had hit a 12-year high in April on tight old-crop stocks and Southeast Asian export restrictions that are now being relaxed, so easing supply fears plausibly triggered a pullback from elevated levels.
Futures were at multi-year highs near $18.70/cwt with Southeast Asian export restrictions being relaxed, so easing supply concerns left the market vulnerable to a sharp correction and volatility.
