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USDA boosts rice price outlook
The USDA tightened the balance sheet for U.S. rice following a couple of key revisions to the supply and demand table.
New crop rice stocks were down 11.4 million hundredweight on the month at 35.8 million because of lower beginning stocks and a much lower than a month ago production estimate, cancelling out some of the impact of lower use projections. The USDA lowered both the domestic & residual use and export demand guesses. That pushed the average estimated farm price to $13.20 per hundredweight, up $1 from August and potentially $1.20 higher than last marketing year.
Cotton ending stocks were unchanged at 7.2 million bales, with lower production and beginning stocks cancelling out slower expected demand. The average farm price is now seen at $.58 per pound, compared to $.60 in August and $.705 for 2018/19.
The current marketing year for cotton and rice started August 1st.
The USDA’s next set of supply and demand estimates is out October 10th.
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