The market continues to be under pressure at the end of the auction

It is understood that on October 13, 2015, China once again launched the auction of pre-storage early indica rice, and launched the auction of pre-storage early indica rice when the purchase of the new season early indica rice support market has just ended and the new season mid-late indica rice is on the market.

The recent auction of early indica rice in China was held once a week from October 21, 2014 to July 14, 2015. the weekly auction volume was about 500000 tons, but the transaction was not ideal, and most of them failed to sell. In addition to the relatively active sale of the auction linked to the imported rice quota, there were only 18 transactions, and the transaction rate was very low.

After July 14, due to the listing of new season early indica rice, the state suspended the auction of pre-storage early indica rice. In 2015, the new season early indica rice started to support the market acquisition, the market purchase price basically maintained around 135 yuan / 100 jin, the market purchase and sale was relatively deserted, and the market purchase price ended on September 30, 2015. On October 10, 2015, the state announced that it planned to hold another auction of pre-storage early indica rice on October 13, with a plan to sell 497000 tons of early indica rice. On the one hand, because there is almost no food source of new season early indica rice in the market, in order to regulate the market, the state puts temporary storage of early indica rice into the market; on the other hand, early indica rice is still in urgent need of consumption inventory.

According to the remote sensing monitoring of China Grain Network, the output of early indica rice in China in 2015 was about 29.8846 million tons, a decrease of 3.81 percent over the previous year. Although the output has decreased slightly from year to year, the output is still relatively large.

It can be seen that early indica rice in China has basically maintained a fluctuating trend in the past two years, and the price fluctuation is small. Mainly in recent years, the impact of low-price imported rice on the domestic market, coupled with the increasing pressure on the supply of early indica rice in China, the demand has not been improved, resulting in a situation that supply far exceeds demand.

According to customs data, between January and August 2015, China imported 1.96 million tons of rice, an increase of about 18 percent from 1.65 million tons in the same period last year.

At present, when the middle and late indica rice of the new season in the south is on the market, the northern and southern japonica rice are also on the market one after another, and the supply of raw grain in the market is further increasing; towards the end of the year, the utilization rate of quota increases, and the quantity of imported rice is likely to further increase. It is expected that the transaction of early indica rice in the auction market will not be very active, and there is a relatively high chance of failing to auction, and the price of early indica rice is expected to maintain a weak and fluctuating pattern before the end of the year.