As harvest season really sets in, there are a few changes in the Supply and Demand report and the project yield and acreage. Beginning stock, yield, and acres all decreased which lead to a decrease of 14 million cwt in total supply of long grain rice. Exports were decreased 9 million cwt of long grain rice. The August ending stocks projection was 29 million cwt of long grain rice left, however the September report showed that there is only 24 million cwt. 20 million cwt means that we are tight, therefore the closer that we are to 20 the higher the price could be. We will know Monday if we will get to sell rice to Iraq. If we get this agreement and then couple that with the new numbers from the new supply and demand report, we could be seeing long grain rice markets reach back into the six dollar range. If you want to learn more about this then check out the USDA's Supply and Demand report (Rice - Page 14) or the September's production and yield projections (Rice - Page 8).
Quote of the Day
"Those who are skilled in archery bend their bow only when they are preparing to use it; when they do not require it, they allow it to remain unbent, for otherwise it would remain unserviceable when the time for using it arrived. So it is with man. If he were to devote himself unceasingly to a dull round of business, without breaking the monotony by cheerful amusements, he would fall imperceptibly into idiocy, or be struck by paralysis."