USDA Boosts World Rice Price Estimate

WASHINGTON - May 14/02 - SNS -- The USDA's Commodity Credit Corporation office here increased its estimate of the prevailing market for rice, resulting in a reduction in the marketing loan gain (MLG) and loan deficiency payment (LDP) rates.

In making the announcement, the CCC lowered the LDP for long grain rice from U.S. $3.11 per 100 pounds (cwt) to $3.03 after boosting the prevailing world price for milled product from $5.69 to $5.82 cwt and from $3.54 to $3.62 cwt for rough long grain rice.

Following are the details of the latest announcement:

                         ---------World Price--------         MLG/LDP Rate
                         Milled Value          Rough             Rough
                            ($/cwt)           ($/cwt)           ($/cwt)
     Long Grain               5.82             3.62               3.03
     Medium Grain             5.26             3.34               2.81
     Short Grain              5.27             3.38               2.83
     Brokens                  2.91             ----               ----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates.

                          U.S. Milling Yields         Loan Rate
                             Whole/Broken
                               (lbs/cwt)               ($/cwt)
     Long Grain               56.54/11.29                6.65
     Medium Grain             57.17/11.35                6.15
     Short Grain              58.38/10.38                6.21