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The USA Rice World Market Price Subcommittee held its May meeting by videoconference due to COVID-19 precautions. Members agreed USDA planting projections were on target and that the industry expects a larger 2020 crop than in 2019.
The group also discussed COVID-19 effects on global rice trade with USDA's Foreign Agricultural Service.
Expectations of a larger US rice crop point to more supply, which is mildly bearish for rough rice prices. The impact on feed markets is limited.
usarice.comMay 14, 2020After 87 past bearish report events, Rough Rice moved a median +0.0% over 5 sessions (53% higher; middle half -2.1% to +2.4%), and +1.1% 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.
Industry expectation of a larger 2020 US crop than in 2019 signals more supply ahead, which is bearish for futures.
