Weather slams grain production

Global rice paddy production for 2012 is forecast to drop by 7.8 million tonnes due to lower than normal rainfall in India.

However, world output will still be slightly above levels achieved in 2011, according to the July 2012 issue of the Rice Market Monitor released by the Food and Agriculture Organisation of the United Nations.

Global paddy production should reach 724.5 million tonnes (483.1 million tonnes milled), compared with the original forecast in April of 732.3 million tonnes (488.2 million tonnes milled).  The downward revision was mainly due to a 22 percent lower-than-average monsoon rainfall in India through mid-July, which is likely to reduce output in the country this season. Production forecasts were also lowered for Cambodia, Taiwan, North and South Korea and Nepal, all of which may see lower production in 2012.

In sharp contrast with trends observed in the maize and wheat markets, which have been rocked by widespread drought in the US, rice prices have remained surprisingly stable after gaining 2 percent in May. Amid abundant rice supplies and stocks , the likelihood of a strong price rebound in coming months is low, but the future of rice prices remains uncertain. Meanwhile, corn, wheat and similar grains have soared in price as the US drought maintains its grip.

Improved grain resource online

The U.S. Grains Council, which develops export markets for U.S. barley, corn, sorghum and related products, has launched a significantly enhanced website at grains.org.

The website, a component of the Council’s branding and communications initiative, presents the latest news and data relating to the U.S. and global grain trade. The site includes charts that present current FOB reference prices and market spreads for several commodities at port, as well as top U.S. export customers and additional information that is helpful for foreign buyers and those monitoring grain markets and exports.

“The U.S. Grains Council gathers a significant amount of information every week, and this new website helps us present that information to members and interested parties in a more timely and more organized fashion,” said Don Fast, USGC vice chairman and barley farmer from Glasgow, Mont. “We also highlight key issues and policy positions taken by the Council to make it clear what the Council and its members believe —  that open, liberalized trade of all goods and services is vital to the prosperity of the world economy.”
Included on the site are details from each of the Council’s 10 foreign offices, as well as a market overview, supply and demand information and market growth potential for more than 25 countries.