Huge Indica Rice Supply, Market Prices Expected to Face Pressure

Currently, the domestic indica rice market supply is basically sufficient, while demand from rice processing enterprises is insufficient and terminal consumption growth is slowing. Therefore, in addition to the relatively sluggish trading of policy-based paddy rice, the proportion of failed auctions in the rotation bidding transactions of local reserve paddy rice is also relatively high. In the short term, the possibility of changes in the supply and demand situation of the indica rice market is relatively small, and indica rice market prices will still face downward pressure.

Indica rice market prices have generally remained stable; monitoring shows that as of June 9, the factory-gate price of ordinary late indica rice in the Wuhan area of Hubei was 1.42-1.45 yuan/jin, the factory-gate price of ordinary mid-to-late rice in the Changde area of Hunan was 1.35-1.36 yuan/jin, and the rice factory-gate price was 1.86-1.90 yuan/jin; the factory-gate price of local mid-to-late indica rice in Fujian was 1.98-2.02 yuan/jin, all unchanged from last week.

Rice prices in sales-area markets have generally been stable; as of June 9, the wholesale price of Northeast round-grain rice in the Beijing market was 4460-4640 yuan/ton, the wholesale price of round-grain rice produced in Heilongjiang in the Hangzhou area was about 5000 yuan/ton, the wholesale price of japonica rice produced in Jiangsu was about 4560 yuan/ton, the wholesale price of ordinary Jiangsu japonica rice in the Fuzhou market was 4800 yuan/ton, and the wholesale price of ordinary early indica rice in the Guangzhou market was 3800-3900 yuan/ton, basically unchanged from last week.