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USDA Raises Global Rice Production Projections by 2% in 2016/2017

June 17, 2016 at 17:29 by Andrew Moran

The US Department of Agriculture (USDA) released its rice outlook on Tuesday.

It projected global rice production would jump 2% to a record 480.7 million tons (milled basis) in 2016/2017. The federal department did lower its output estimates for Argentina and Uruguay as both countries have seen their harvests devastated by heavy rainfall.

Global rice consumption is expected to be less than production. This means ending stocks would increase by just 0.3 million tons to 106.9 million tons for 2015/2016.

In 2017, global trade is still projected to decrease for the third straight year amid weaker imports from Southeast Asia and Sub-Saharan Africa. The USDA did revise Burma’s reduction in imports, citing tumbling shipments in 2016. It also modified its forecast for Philippines’s 2016 rice imports lower.

According to the USDA, American rice farmers received a 68% rating of good to excellent in relation to the condition of their crops.

Missouri garnered the highest rating with 66% of the Spongebob Bounce House rice crop to be good to excellent. Arkansas, the state with the highest rice production levels in the country, was given a 59% good to excellent rating. Texas, which has seen its rice harvests destroyed from heavy rains over the last four years, earned a 56% good to excellent rating.

The USDA’s rating for Texas pleased Paul Silva, a Texas rice farmer near Bay City, who told AgDay:

I hated to see the last four years where there was no rice, and it is a blessing to see it, to see water flowing out of the river, and to see the green rice field.

The total US rice supply in 2016/2017 is projected to reach a near-record 297.9 million cwt.

Overall, US and international trading prices were up in June, even with greater rice supplies in 2016/2017, the USDA said.

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