USDA Outlook: 2012/2013 season-average farm price for U.S. long-grain rice forecast at US$14.50-US$15.50/cwt.; U.S. medium- and short-grain prices projected at US$17.25-US$18.25/cwt. amid tight domestic supplies

WASHINGTON , June 13, 2012 (press release) – The following article is excerpted from the June Rice Outlook published by the Economic Research Service of the USDA.

U.S. Rough-Rice Prices Are Projected To Be Higher in 2012/13

The 2012/13 season-average farm price (SAFP) for U.S. long-grain rice remains projected at $14.50-$15.50 per cwt, up from $13.30-$13.50 per cwt a year earlier. The midpoint of the 2012/13 long-grain SAFP would be the highest on record. The combined medium- and short-grain 2012/13 U.S. SAFP remains projected at $17.25- $18.25 per cwt, compared with $15.60-$15.70 a year earlier. Despite the expected increase, the medium- and short-grain 2012/13 SAFP is well below the 2008/09 record. The higher expected prices for both classes of rice are largely due to much tighter U.S. supplies. The midpoints of the 2011/12 SAFP projections are unchanged from last month, but the range was narrowed 10 cents on both the high and low ends from last month’s forecast for both classes of rice.

In late May, NASS reported a mid-May U.S. long-grain rough-rice price of $13.10 per cwt, down 10 cents from the revised April estimate. The April price was lowered 10 cents from the mid-month estimate to $13.20. For combined medium- and short-grain rice, the mid-May NASS price was reported at $16.00 per cwt, up 70 cents from the revised April price. The April medium- and short-grain rough-rice cash price estimate was lowered $0.60 to $15.30 per cwt.

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