In W23 in the rice landscape, the USDA reports that in the week ending June 1st, global rice sales reached 11.4 thousand mt, up 32% WoW and unchanged from the 4-week average, with sales mainly destined for Saudi Arabia (8.6 thousand mt), and Honduras (1.5 thousand mt). Meanwhile, global rice exports amounted to 1.889 million mt, down 30% YoY, with shipments for 2023/24 delivery mainly destined for Honduras (16 thousand mt). In the global market, rice prices increased in May-2023. For instance, in the US, the average rice export price registered an increase of 0.81%, reaching USD 760/mt. In Thailand, rice export prices rose 2.1%, closing at USD 495.77/mt, while in Vietnam there was an increase of 2.76%, quoted at USD 492.95/mt. In Pakistan, there was a significant increase of 10.57%, from USD 497.22/mt to USD 549.77/mt. In India, prices increased by 2.84%, from USD 443.61 to USD 456.23. This upward trend in global rice prices can be attributed to strong demand from Asia and Africa, while exportable supplies are limited. This upward movement in rice prices will probably continue at least until the beginning of the new rice crop in June. In addition, global rice harvest forecasts for 2023/24 may be revised downwards due to the risk of drought in the main producing regions of Asia, due to the El Niño meteorological phenomenon.
The USDA reports that as of June 5th, 88% of US rice was planted, up compared to 87% on average, with 70% of the rice crop rated as good to excellent, down 2% WoW. The Myanmar Rice and Rice Federation indicates that the export of rice and broken rice in May-2023 amounted to 110.71 thousand mt, valued at USD 48 Million, an increase following a decline since Feb-2023. Myanmar rice exports were mainly destined for Turkey (11.38 thousand mt), while broken rice shipments were mainly destined for Belgium (25.93 thousand mt). At the beginning of 2023, when there were a lot of rice purchases from China, the export of rice and broken rice reached 268.84 thousand mt in Jan-2023, and then gradually decreased. In particular, rice exports to China have decreased significantly, and in May-2023, it is no longer even among the top 5 rice exporting countries. In the past two months, the export of rice and broken rice was only 198.35 thousand mt, valued at only USD 84 million. In the 2022/23 season, from Apr-2022 to Mar-2023, Myanmar rice, and broken rice exports amounted to 2.261 million mt, valued at USD 853.47 million, up 4.3% in volume and 5.5% in value compared to MY 2021/22. For the 2023/24 season, the Myanmar Rice and Rice Federation expects rice and broken rice revenue to reach USD 1 billion, up 17% YoY.
Rice prices in the state of Rio Grande do Sul in Brazil, the leading national reference, registered practically daily drops throughout May-2023, resulting in a slow pace of commercialization. In the Fronteira Oeste Gaúcha region, the average rice sack (58/62% of whole grains and payment in cash) dropped from USD 17.99 to USD 17.50, a decrease of 2.7%. In the Campaign region, the drop was 1.85%, with the average price going from USD 17.54/sack to USD 17.21/sack. In the southern zone of Rio Grande do Sul, prices closed the month at USD 18.19/sack, a drop of 3.06% MoM. According to SAFRAS & Mercado, the declining prices in the Brazilian rice market are directly associated with the urgency of producers to obtain resources to face the upcoming cost payments. Also, the devaluation of the US Dollar against the Brazilian Real in recent weeks, coupled with the downward pressure exerted by other commodities, such as soy and corn, have contributed to this unfavorable situation. In addition, the lower export parity, which results in a lower attractiveness of Brazilian rice in the global market, reinforces this downward scenario.
MGAP reports that Uruguayan rice production in the 2022/23 campaign reached 1.372 million mt, with a yield of 9,336kg/ha. The areas of the Central and Northwest Coast had the highest harvest yields, with production close to 9,500kg/ha of dry and clean grain in the husk. On the other hand, in the East zone, which has the greatest weight in national production, it reached 9,296kg/ha, down 3% YoY. Lastly, in the Jan-May period, Cambodia’s milled rice - high-quality flavored rice, fragrant rice, long-grain white rice, parboiled rice, and organic rice - exports amounted to 278.18 thousand mt, valued at USD 191.6 million, destined for 50 countries. Cambodia’s milled rice shipments were mainly destined for China, with exports amounting to 118.04 thousand mt, valued at USD 77.4 million, indicating a market share of 42.43%. The Cambodia Rice Federation (CRF) expects to increase annual sales of milled rice to China to over 400 thousand mt each year. Also, the first large-volume rice batch of 2,575mt was exported to the Philippines in May-2023.