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USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed


14 January 2014

USDA GAIN: Republic of Korea 2013 MMA Rice Tendering ResultsUSDA GAIN: Republic of Korea 2013 MMA Rice Tendering Results

Korea purchased a total of 388,353 metric tons (MT) of rice from the United States, China, Thailand, Australia, Vietnam and India under the 2013 MMA. The U.S. share was 30 percent, with contracts totaling 114,600 MT (milled) worth US$89 million. U.S. contracts of roughly 52,425 MT were brown rice (equivalent to 47,183 MT on milled basis) for food processing purpose with deliveries from August through December 2013, while the remaining 67,417 MT was milled table rice with delivery dates from March through December 2013.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

General Information:

Overview:

The Korea Agro-Fisheries and Food Trade Corporation (aT) completed the tendering process for the 2013 Minimum Market Access (MMA) commitments for rice on December 13, 2013. Korea purchased a total of 388,353 metric tons (MT) of rice from the United States, China, Thailand, Australia, Vietnam and India (see table 1). The U.S. share was 30 percent, with contracts totaling 114,600 MT (milled) worth US$89 million. U.S. contracts of roughly 52,425 MT, were brown rice (equivalent to 47,183 MT on milled basis) for food processing purpose with deliveries from August through December 2013, while the remaining 67,417 MT was milled table rice with delivery dates from March through December 2013 (see table 2).

Global Quota: The United States contracted 64,524 MT or 34.3 percent of the total Global Quota (GQ) of 188,251 MT, followed by China with 35,280 MT or 18.7 percent, India with 30,000 MT or 15.9 percent, Thailand with 25,200 MT or 13.3 percent, Australia with 19,447 MT or 10.3 percent and Vietnam with 13,800 MT or 7.3 percent on a milled basis (see table 4). U.S. contracts of 64,524 MT under the global quota were comprised of 39,398 MT for food processing and 25,126 MT for table purpose (see table 1).

Country Specific Quotas: The United States successfully contracted 50,076 MT under the 2013 U.S. CSQ, consisting of 42,291 MT of table rice and 7,785 MT of food processing rice. U.S. table rice contracts increased by 5.6 percent to 42,291 MT compared to 40,056 MT in 2012 while U.S. CSQ contracts of processing purpose decreased by 22 percent to 7,785 MT in 2013 from 10,020 MT in 2012 (see table 5).

Table Rice: The Korean government allocated 20,000 MT of optional variety between medium and short grain milled rice for table purpose under the 2013 global quota for the first time, which offset the decrease in table rice under the Chinese CSQ. As U.S. bidders won contracts of 20,000 MT of medium grain milled rice for table purpose under the global quota of optional variety, U.S rice exporters successfully sold 67,417 MT of U.S. medium grain milled rice for table purpose, or 58 percent of total table rice of 116,505 MT, which also included 5,126 MT of Australian CSQ. The Australian CSQ was converted to global quota after three unsuccessful bids. As a result, the total supply of U.S. table rice increased to 58 percent from 36 percent of total table rice quota under the 2012 MMA, reflecting higher Korean consumer confidence in U.S. rice quality (see table 2 & 10).

In general, the increased U.S. table rice allocation is attributed to a redistribution of Chinese and Thai rice for table purpose, reflecting Korean consumers’ response to imported rice. The pace of auctioning of table rice imported from China and Thailand has been very slow due to a lack of demand from Korean consumers.

The average contracted price for U.S. #1 table rice was $765.22/MT, down approximately 0.7 percent from the previous year. Meanwhile, U.S. #3 table rice averaged $746.24/MT, up 7.5 percent from the previous year’s contracted price. Chinese #1 table rice prices remained unchanged at $928/MT on average from the previous year, while Thai #1 table rice prices decreased to $636.28/MT, down 5 percent from the previous year respectively (see table 7).

January 2014

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