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


22 January 2015

USDA GAIN: Korea Grain and Feed Update January 2015USDA GAIN: Korea Grain and Feed Update January 2015

The United States won contracts totaling 60,067 MT (milled) of rice, worth $62 million, under the 2014 Minimum Market Access agreement. The U.S. share of 15 percent of the MMA represents only half of the previous year’s share due to higher prices caused by drought conditions in California.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

The Korea Agro-Fisheries and Food Trade Corporation (aT) completed the tendering process for the 2014 Minimum Market Access (MMA) commitments for rice on December 10, 2014. Korea purchased a total of 408,700 metric tons (MT) of rice (milled basis) from the United States, China, Thailand, Australia, Vietnam and India (see table 1). The U.S. share was 15 percent, half of the previous year due to less competitive pricing caused by drought in California, with contracts totaling 60,067 MT (milled) worth US$ 62 million. U.S. contracts of roughly 17,299 MT were brown rice (equivalent to 15,569 MT on milled basis) for food processing purpose, while the remaining 44,507 MT was milled rice for table purpose (see table 2).

Global Quota: The United States contracted just 10,000 MT or 5 percent of the total Global Quota (GQ) of 203,472 MT, while China sold 89,746 MT or 44 percent, Vietnam 41,000 MT or 20 percent, Thailand 32,500 MT or 16 percent, Australia 21,226 MT or 10 percent and India 9,000 MT or 4 percent, respectively, on a milled basis (see table 4). Chinese contracts of 89,746 MT under the global quota were comprised of 68,656 MT for food processing and 21,090 MT for table purpose (see table 1). 68,656 MT for food processing consists of 43,270 MT of Chinese medium grain and 25,386 MT of Chinese short grain rice, respectively.

Country Specific Quotas: The United States successfully contracted 50,076 MT under the 2014 U.S. CSQ, consisting of 44,507 MT of table rice and 5,569 MT of food processing rice. U.S. table rice contracts increased 5.2 percent to 44,507 MT from 42,291 MT in 2013 while U.S. CSQ contracts of processing purpose decreased 28 percent to 5,569 MT in 2013 from 7,785 MT in 2013 (see table 5 & 6).

Table Rice: The Korean government allocated 21,090 MT of optional variety between medium and short grain milled rice for table purpose under the 2014 global quota again, which offset the decrease in table rice under the Chinese CSQ. Because of less competitive U.S. prices compared to Chinese rice, the U.S. failed to win tenders of medium grain milled rice for table purpose under the optional variety global quota. U.S rice exporters sold just 44,507 MT of U.S. medium grain milled rice for table purpose under U.S. CSQ, or 36 percent of total table rice of 122,610 MT. As a result, the total supply of U.S. table rice decreased to 36 percent from 58 percent of total table rice quota under the 2013 MMA.

The average contracted price for U.S. #1 table rice was $1,055.27/MT, up 27 percent from the previous year. Meanwhile, U.S. #3 table rice averaged $1,009.80/MT, up 26 percent from the previous year’s contracted price. Chinese #1 table rice prices ranged from $978/MT to $1,007/MT, up 5 to 8 percent from the previous average, however Thai #1 table rice prices decreased to $589.89/MT, down 7 percent from the previous year respectively (see table 2 & 7).

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