Wednesday will be rainy over most of the Midwest, with some freezing precipitation in the eastern Dakotas, and snow from western Nebraska north through the northwestern Plains. » More DTN Weather Commentary
Old crop rice has had a nice run up over the last few months and has then corrected down over the last few days. The key to the runup has been the need to import and the fact that they have imported by the Phillipines, and the threat that India could import alot in the coming months. The Phillipines is normally a importer who has now had to import a much larger quantity than normal and India is normally a exporter that is now possibly going to have to import. These above facts are due to weather affecting rice production. This is a summary of what drove prices higher since harvest in the US. It also should be noted that the US situation has not been very bullish during this time even though production was cut at the end of the harvest due to cold weather the yields during the first part of the harvest were good enough to give the US an ample supply, also the US has had alot of trouble exporting milled rice. The US is not moving the crop out at an acceptable rate.
1 12 10 USDA crop report was bearish for rice beans, and corn. At 11 oclock today all are lower. Rice has worked its way off of it's limit down lows. There was some pretty good support at $14.50 in the march and the market has traded lower. Stocks as of dec 30th were higher than expected is thereason for todays drop in prices. It would be very easy to rally from these levels if some good demand comes along and if the market does rally rice needs to be sold.
