Centralized rotation of rice will increase market pressure

Since March, many southern provinces have begun to clear their warehouses, and the period of concentrated rotation of rice is coming. As the domestic rice stock is sufficient and imported rice continues to flow into the domestic market, the rotation of aged rice into the market is bound to increase the supply pressure on the rice market, especially in the southern indica rice market. At present, the price of new rice produced in 2014 in the southern market is relatively stable, but the price of Chen Daocheng, who has been rotated recently, is lower because the policy purchase period has ended. It is expected that there will be some downward pressure on the market price of indica rice in the later stage.

The production conditions of indica rice in southern China are generally suitable; since March, the work of sowing and raising seedlings of early rice in southern China has been carried out one after another. At present, early rice in northern South China and southern Fujian and one-cropping rice in central and northern Yunnan, eastern and southern Sichuan Basin have begun to sow and raise seedlings; early rice in southern China and southern Yunnan are in the stage of emergence to three leaves, and most of the early rice in Hainan has entered the stage of tillering and jointing. The Central Meteorological Observatory predicts that the heat conditions in most parts of South China in mid-late March are favorable for sowing and raising seedlings of early rice, while heavy rain in the northern part of South China is slightly disadvantageous to early rice sowing.

Policy rice trading continued this week. The total amount of policy rice put on the market this week is about 1.8 million tons, including about 500000 tons of early indica rice and 1.3 million tons of medium and late indica rice in 2013. In the end, all the early indica rice failed to auction, and the turnover of middle and late indica rice was only more than 10,000 tons, less than last week. With the approaching of the period of concentrated rotation of rice, the low turnover of policy-oriented rice will continue.

Up to now, the transaction volume of indica rice produced by conventional auction in 2013 has reached 2.67 million tons, of which the turnover of early indica rice is about 130000 tons and that of middle and late indica rice is about 2.55 million tons. Coupled with the transaction volume of special bidding sales in January, the total transaction volume of early indica rice in 2013 was about 810000 tons, and that of middle and late indica rice was 3.26 million tons.