Rice: futures traded around $16 per hundredweight, not far from its 20-month high of $16.5 hit on March 4th, amid strong demand in the animal feed industry.
Rice has become a cheap alternative to wheat and corn especially in China, the world’s largest feed market after Russia’s invasion of Ukraine stopped grain shipments from these two countries. Russia and Ukraine together account for around 25% of world wheat and 16% of world corn exports.
Meanwhile, the USDA sees world 2021/22 rice ending stocks at a record 190.5 million, up 4.2 million tons from February, as increased supplies from India and Thailand are set to offset a rise in global consumption. However, inventories are set to deplete soon resulting in further surge in prices, if India, the second largest user after China switches to rice due to record high domestic wheat price