Southern japonica rice prices expected to keep falling; indica rice market remains stable

Since April, the volume of policy rice and reserve rice of all levels released from warehouses in the main southern japonica rice producing areas has increased markedly, boosting market supply; however, as temperatures rise, market demand for rice tends to weaken. At present, japonica rice prices in some southern regions have begun to decline, but since the main factors affecting southern rice prices have not changed, southern japonica rice prices are expected to continue falling.

Indica rice prices remain stable; as of May 5, southern indica rice prices remained stable. Monitoring shows that in Wuhan, Hubei, the factory-gate price of ordinary late indica rice is 1.42-1.45 yuan/jin, in Changde, Hunan, the factory-gate price of ordinary mid-late rice is 1.35-1.36 yuan/jin, and the ex-factory price of rice is 1.86-1.90 yuan/jin; in Fujian, the ex-factory price of local mid-late indica rice is 1.98-2.02 yuan/jin, all unchanged from before the holiday.

In the domestic indica rice market, because the volume of policy-based purchases is relatively large, the amount circulating in the market is limited, and farmers who still have grain are more willing to hold out for higher prices. Rice processing enterprises, long hit by low-priced imported rice and facing relatively high costs at present, are less willing to purchase rice. Entering May, consumer demand in the rice market declines and market activity decreases, and the indica rice market is expected to maintain its current pattern.