The United States growers are undecided about 2022 rice planting intentions

Rice

United States

Published Jan 23, 2022

Tridge summary

The cobwebs are officially cleared, and it would appear the new calendar year is developing an identity of its own. The 15% reduction in supply for this year’s crop is keeping upward pressure on paddy price, which is holding strong across all Southern states. Even milled rice, for the time being, is enjoying stable pricing with continued domestic business and strong purchases out of Haiti.

Original content

This is a temporal sentiment though, as it is expected that without Iraq purchases for more rice in the coming months, demand could wane to a point that is injurious to mills. Prices in Texas are in the $15-$15.10/cwt range, while they are holding firm at $13.90/cwt in Louisiana. Mississippi, Arkansas, and Missouri all remain in the $14.25/cwt range, with nothing in the short term looking to put downward pressure on pricing. This year supply was down 15%, and given the fertilizer costs, it’s possible to see another reduction again next year. We expect this dynamic is factoring into the stable pricing the market is currently experiencing, as the threat of supply glut is not on the horizon. But to be ever cautious, that could change if Iraq makes their 2022 purchases from our cheaper Asian competitors. Prices in Thailand actually increased slightly from last week this week, settling in at $417 pmt. Vietnam held steady at $400 pmt, and India steady at $355 pmt and Pakistan at ...

Source: Agfax