Page:Rice - annual market summary, 1959 (IA riceannualmarket27unit 0).pdf/8

 1959-60 Season

Rough rice prices in the South at the start of the 1959-60 season were lower than a year earlier. Most varieties also were below support rates. September rough rice prices averaged $4.50 per cwt., f.o.b. mills, or 27₵ under the start of the 1958-59 season. This reflects in part the larger rice supplies in this country, lower government support prices, and moderate to slow foreign demand.

Milled rice prices were generally lower in the South "but higher in California. At the end of September, New Orleans quoted Bluebonnet milled rice 45-50₵ per cwt. under a year earlier; Century Patna, 75₵-$1.00 lower; medium-grain rice (Zenith, Magnolia and Nato), $1.00-1.25 lower; and Rexoro, California new-crop milled rice, however, was 500 higher than unchanged. the previous year as harvest was just getting under way and supplies were limited. Southern broken rice markets firmed up, reflecting the high head rice milling yield of the new crop. Second heads were unchanged to 25₵ per cwt. lower in the South but 25₵ higher in California. Screenings ruled 25₵ higher in both areas. Brewers' rice was 25-50₵ lower in the South but unchanged in California.

SUPPLY AND DISTRIBUTION

Rough Rice

Disappearance of rough rice in the United States during 1958-59 totaled 46.3 million cwt. -- slightly more than in 1957-58 but the second smallest since 1949-50. Disappearance of 31.5 million cwt. in the South was down 16 percent, reflecting smaller millings. Seed requirements in the South increased along with plantings, but exports and feed use were both small. California rough rice disappearance in 1958-59 was a record. This was largely the result of heavy millings since exports were only minor and seed and feed usage was about normal. Although California millings during the first two months of 1958-59 were smaller than a year earlier, late season millings were much heavier than in 1957-58. As a result, total rough rice millings in California reached 14.2 million cwt., adjusted to an August basis, or nearly twice those of the previous season.

Supplies of rough rice for 1959-60 total 59.6 million cwt. on the basis of October estimates. This is about 2 million cwt. more than a year earlier but around 7 million below the average of the high supplies for the 1954, 1955 and 1956 seasons. An increase of 5.5 million cwt. in the 1959 crop more than offset the 3.4 million cwt. reduction in carryover stocks. The South, with a carryover of .3 million cwt. -- about the same as the previous year -accounted for all of the increase in U. S. supplies. California, with a much lower carryover, had smaller supplies for the 1959-60 season.

Milled Rice U. S. milled rice distribution in 1958-59 totaled 29.9 million cwt., - 6 -