Larger World Rice Harvest

WASHINGTON - Mar 11/08 - SNS -- Global 2007-08 rice production and stocks are increased from last month while consumption is lowered, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

The increase in world production to a forecast 422.94 million metric tons (MT) is due mostly to an increase in India (2.0 million MT) and the Philippines (0.4 million).

World rice ending stocks for 2007-08 are projected at 75.2 million MT, up 3.1 million MT from last month, and up 0.4 million from 2006-07. Global ending stocks are raised mostly due to increases in China, India, and the Philippines. China's ending stocks are raised based on information from the U.S. Agricultural Counselor in Beijing indicating that per capita consumption has been declining, particularly in the urban centers due to higher incomes. China's consumption for 2007-08 is lowered 2.1 million MT to 127 million MT.

Turning to the United States outlook, the USDA made no changes on the supply side of the 2007-08 rice supply and use balance. However, all rice exports for 2007-08 are raised 1 million cwt to 112 million cwt. Rough and combined milled-and- brown exports (on a rough-equivalent basis) are each raised 0.5 million cwt from a month ago. Combined medium- and short-grain exports are raised 1 million cwt to 26 million cwt, while long-grain exports are unchanged at 86 million cwt.

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