World Rice Stocks
The USDA recently reported that despite a pickup in the pace of rice consumption and sales, world ending stocks are at record highs globally. Here’s World Agricultural Outlook Board Mike Jekanowski.
Jekanowski… “India had been carrying massive rice stocks. And since the start of COVID, they implemented some pretty aggressive, generous food assistance programs. So they've been distributing a lot of that rice to their population. That draws down their supplies quite a bit. That's reflected in the lower beginning stocks. And they've also had near record exports. So that tightened up the global supplies for the back here quite a bit. And that's reflected in lower beginning stocks and tightening up the overall supply.”
Jekanowski said increased trade out of India was largely offset by reductions from Thailand and Pakistan. He also said imports to the U.S. are forecasted to be higher.
Jekanowski… “We've increased this import forecast several times over the course of the past several months. And it just reflects increased demand, especially for aromatic rices. Most of these rices, aren't what you would consider as directly competing with typical U.S. rice. These are fragrant rices, aromatic rices, from Southeast Asia, and that demand continues to increase.”
Overall though, both U.S. stocks and global stocks are well above last year’s levels.