Improved World Rice Supply Outlook

WASHINGTON - Dec 11/08 - SNS -- Global production is raised slightly to 434.59 million metric tons (MT) because of small increases for South Korea and Uruguay, according to forecasts from the USDA's World Agricultural Outlook Board.

World imports are raised due to increases for Iran, Iraq, and Venezuela, which are partially offset by a reduction for the United States. Global ending stocks for 2008-09 are projected at 80.8 million MT, up slightly from last month, and 2.3 million MT above 2007-08. Stocks are raised for Iran, Iraq, Venezuela, and Uruguay; and lowered for Australia and the United States.

Although global rice prices have trended downward since the beginning of the marketing year, they are declining at a slower-than-expected rate.

Government policies in Thailand (intervention program) combined with continued export bans by India and Egypt are affecting global prices. Additionally, monthly farm prices reported by the National Agricultural Statistics Service through November (preliminary) indicate that the season- average price will be higher than projected a month ago, particularly for medium-grain rice. World 2008-09 rice supply and use are changed little from a month ago.

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