RICE: U.S. 2016/17 all rice supplies are reduced 0.6 million cwt due to a lower production forecast that is mostly offset by increased beginning stocks. Imports are also lowered 0.5 million cwt. All rice beginning stocks for 2016/17 are raised 7.1 million cwt from last month based on USDA’s August Rice Stocks report. All rice production is lowered 7.2 million tons on both lower area and yield. The production estimate reflects excessive rain and flooding that has taken place in several areas of the Southern production region. The long-grain crop is lowered 4.8 million cwt to 177.9 million, but is 44.9 million cwt above the previous year and the largest crop since the 2010/11 record. Medium- and short-grain production is lowered 2.3 million cwt to 59.3 million. Total rice exports are unchanged, but domestic and residual use is lowered 5.0 million cwt to 133.0. Ending stocks are raised 4.4 million cwt and the all rice season-average farm price is lowered $0.20 per cwt at the midpoint to a projected range of $10.20 to $11.20.
Global rice supplies for 2016/17 are raised 1.8 million tons on higher beginning stocks and production. Production is raised 0.7 million tons and remains record large. India production for 2016/17 is raised 1.5 million tons on an increase in projected harvested area; however, this is partially offset by a 0.7-million-ton reduction for Vietnam. Global exports for 2016/17 are raised 0.3 million tons with stronger shipments from India partially offset by reduced Vietnam exports. Global consumption for 2016/17 is lowered fractionally. With total supplies rising and total use declining, world ending stocks are raised 1.8 million tons to 115.6 million.
Source : USDA WASDE