Anhui and Jiangxi provinces launched the minimum purchase price plan for medium and late rice on October 23 and October 28 respectively, and recently Heilongjiang, Henan and other provinces are also carrying out preparatory work before the start of the city, the scope of the middle and late rice market will be further expanded, and the bottom space of the market price will be gradually consolidated.
At the end of October, domestic rice prices maintained a narrow range. The increase in the market volume of medium and late rice in the main production areas, the supply continued to be loose, and the terminal demand was weak, resulting in the price of middle and late rice in some production areas has fallen back below the market price, since October 23, Anhui Province took the lead in launching the minimum purchase price policy of middle and late rice, Jiangxi Province also launched the purchase of the middle and late rice on October 28, boosting the market situation of middle and late rice. Recently, Heilongjiang, Henan and other provinces are also carrying out preparatory work before the start of the city, the scope of the middle and late rice to the city will be further expanded, the market price bottom space is gradually consolidated.
The scope of the city may be expanded
Rice price support has been strengthened
Following the launch of the purchase policy of The Middle and Late Daotuo City in Anhui Province and Jiangxi Province, Heilongjiang Province and Henan Province have also successively begun the preparatory work for the start of the acquisition of the city, and it is expected that the acquisition of the two provinces will be launched in November. The scope of acquisition in the entrusted city has further expanded the impact, and the bottom of rice prices in the main producing areas has gradually been consolidated, and the support has been further enhanced. The decline in rice prices in the spot market has narrowed, maintaining a narrow range trend in the short term.
Statistics from the State Grain and Material Reserve Bureau show that as of October 25, various grain enterprises in the main producing areas have purchased a total of 8.52 million tons of medium and late indica rice, of which 2.7 million tons have been purchased by state-owned enterprises, and the overall acquisition progress is slightly faster than the same period last year.
Jiangxi: The market volume of mid- and late-stage indica rice in the new season has gradually increased, the market supply is loose, rice factories, traders and other entities are cautious in entering the market, and the rice market is weak. As of October 28, the purchase price of ordinary medium and late indica rice: 2660 yuan / ton in Ganzhou area, 2580 yuan / ton in Yichun area, 2560 yuan / ton in Nanchang area, 2560 yuan / ton in Ji'an area, and 2560 yuan / ton in Jiujiang area, all the same as last week.
Hunan: The inventory of old rice is sufficient, the sales continue to be light, and the overall purchase price of new rice is mainly stable. As of October 28, the purchase price of ordinary mid-to-late indica rice in the new season: 2620 yuan / ton in Changsha, up 20 yuan / ton from last week; 2660 yuan / ton in Yongzhou area and 2620 yuan / ton in Xiangtan area, all flat. In Changsha, the price of Chen late indica rice is 2280 yuan / ton, and the wholesale price of late indica rice is 3760 yuan / ton, which is the same as last week.
Anhui: Supported by the launch of the entrusted city's acquisition policy, the price of medium and late rice in the province fluctuated narrowly this week, and the price in some areas rose significantly. Most market players turned to the purchase of medium and late rice in the new season, and the market price of old rice continued to be weak. As of October 28, the purchase price of ordinary third-class medium and late indica rice: 2560 yuan / ton in Lu'an area, down 40 yuan / ton from last week; 2600 yuan / ton in Chuzhou area, flat; 2600 yuan / ton in Bengbu area, up 80 yuan / ton. The price of Chen Wan indica rice in Lu'an area was 2460 yuan / ton, unchanged from last week. In 2021, the new season japonica rice is sporadically listed, and the mainstream purchase price has not yet formed. The purchase price of japonica rice produced in Chaohu Lake in 2020 is 2620 yuan / ton, and the price of Chen Japonica rice is 2520 yuan / ton, which is the same as last week.
Hubei: The price of mid-to-late indica rice in the new season is stable and weak, and the price in some areas is still below the market price, and the market for old rice is further depressed. As of October 28, the purchase price of ordinary third-class mid-todica rice: 2600 yuan / ton in Jingzhou area, 2620 yuan / ton in Xiangyang area, 2580 yuan / ton in Huanggang area, all the same as last week; Yichang area 2580 yuan / ton, down 20 yuan / ton. The price of Chen wan indica rice in Jingzhou was 2440 yuan / ton, the same as last week.
Jiangsu: In the new season, the middle and late rice has been harvested and listed, the supply of raw grain market has been further relaxed, and rice enterprises and traders are more cautious in purchasing new rice, resulting in the purchase price of new rice continuing to be stable and declining. As of October 28, the purchase price of japonica rice in the ordinary new season: Lianyungang 2900 yuan / ton, unchanged from last week; Yancheng area 2800 yuan / ton, down 20 yuan / ton. The price of Chen Japonica rice in Yancheng area was 2640 yuan / ton, down 80 yuan / ton week-on-week.
Heilongjiang: The qualification of the minimum purchase price rice collection and storage point has been carried out successively, and it is expected that the purchase work in The rice storage site of Heilongjiang Province will start in November. At present, the market volume of japonica rice is gradually increasing, rice enterprises, traders and grain depots and other parties are more cautious in purchasing new rice, farmers do not recognize the current market price, the reluctance to sell sentiment is also more serious, the rice market is in a deadlock stage of purchase and sales, waiting for the purchase of the market to boost the market. As of October 28, the purchase price of ordinary new season japonica rice: 2620 yuan / ton in Harbin area, 2620 yuan / ton in Jiamusi area, 2600 yuan / ton in Jixi area, all the same as last week; 2660 yuan / ton in Suihua area, up 40 yuan / ton; Heihe area 2500 yuan / ton, Daqing area 2580 yuan / ton, and prices in some areas are still running below the market price. It is expected that after the start of the acquisition of the provincial trust city in November, it will boost the enthusiasm of market players to purchase new rice.
Fujian: Due to the recent continuous low volatility of the price of new Chen rice, the slow movement of rice, the price is suppressed, and the supply of new Chen rice is sufficient, the market is still in a state of oversupply, the price of rice will still be weak, and the volume of goods will be limited. As of October 28, the wholesale price of early indica rice in Fuzhou was 3620 yuan / ton, the wholesale price of medium and late indica rice was 4150 yuan / ton, and the wholesale price of round grain japonica rice in the northeast of The Fuzhou market was 4720 yuan / ton, all of which were the same as last week.
Guangxi: The number of indica rice in the new season has increased, coupled with the continuous release of old rice reserves, the supply of rice market is loose, the demand for terminal rice lacks an effective boost, and the overall price of medium and late rice market is weak under the loose supply and demand. As of October 28, the purchase price of ordinary medium and late indica rice: Guilin area 2800 yuan / ton, Wuzhou area 2900 yuan / ton, Beihai region 2880 yuan / ton, Qinzhou area 2880 yuan / ton, all the same as last week. The price of Vietnamese rice port is 3500 yuan / ton, which is flat.
Guangdong: With the harvesting and listing of mid-to-late indica rice, the superimposed local reserves of old rice are put on the market, the supply of grain sources in the market has increased, and the sales of terminal rice are still sluggish, and the rice market continues to fluctuate slightly. As of October 28, the purchase price of ordinary medium and late indica rice: 2860 yuan / ton in Yangjiang area, up 20 yuan / ton from last week; Zhaoqing area 2780 yuan / ton, down 20 yuan / ton; Qingyuan area 2800 yuan / ton, flat. In Qingyuan area, the price of Chen Wan's indica rice was 2440 yuan / ton, down 20 yuan / ton week-on-week. The wholesale price of early indica rice in Guangzhou was 3560 yuan / ton, unchanged from last week; the wholesale price of late indica rice was 3600 yuan / ton, down 20 yuan / ton.
The epidemic situation in many countries in Southeast Asia has slowed down
Rice export prices rose steadily
At the end of October, the COVID-19 epidemic in many southeast Asian countries tended to ease, and as the COVID-19 vaccination rate further increased, the growth rate of new cases slowed down, and the rice export trade gradually returned to normal. With the further strengthening of overseas demand, the export price of Southeast Asian rice in the short term has risen steadily.
As of October 28, Thailand's 100% B-grade rice FOB was quoted at $419/ton, up $2/ton from last week; boiled rice FOB was quoted at $406/ton, up $1/ton; and basmati fob was quoted at $702/ton, up $2/ton. Vietnam's 5% crushing rate rice FOB quoted $435/ton, unchanged from last week; basmati fob quoted $585/ton, up $10/ton. (Originally published on October 30, 2021, grain and oil market newspaper A03 edition)
Source丨grain and oil market report
Total Duty 丨 Liu Xinhuan Coordinator 丨 Liu Chao Editor 丨 Congshen