Rice prices are still high. The high price of rice due to high grain prices.
Based on the information gathered, the price of rice quality I've reached Rp8.600/kg, rice quality for Rp8.400/kg II and III grade rice valued USD 8.200/kg.
While the retail price for quality rice at this time I had reached Rp 9.000/kg. This price has increased approximately Rp600/kg of the price a month ago.
A rice trader in New Market Indramayu, Wahyudi, explained if the rising price of rice has always occurred every transition from one season to the next growing season. This is because the stock of rice at the farm level is low. "Later in rice prices will fall after the harvest comes," he said.
Currently, more Wahyudi, the price of grain at the farm level has been reached Rp5.500/kg. This price is far above the government purchase prices for grain dry milling where (MPD) is only appreciated Rp3.300/kg. The high price of grain is what ultimately caused the price of rice also increased.
Based on the information gathered, the price of rice quality I've reached Rp8.600/kg, rice quality for Rp8.400/kg II and III grade rice valued USD 8.200/kg.
While the retail price for quality rice at this time I had reached Rp 9.000/kg. This price has increased approximately Rp600/kg of the price a month ago.
A rice trader in New Market Indramayu, Wahyudi, explained if the rising price of rice has always occurred every transition from one season to the next growing season. This is because the stock of rice at the farm level is low. "Later in rice prices will fall after the harvest comes," he said.
Currently, more Wahyudi, the price of grain at the farm level has been reached Rp5.500/kg. This price is far above the government purchase prices for grain dry milling where (MPD) is only appreciated Rp3.300/kg. The high price of grain is what ultimately caused the price of rice also increased.
Grain prices have been highly volatile – but quite strong – during most of 2011, with a fairly significant decline in corn and soybean prices during the last three months of the year. On Dec. 16, nearby CBOT corn futures closed at $5.83/bu., compared to $5.96 a year ago.
January CBOT soybean futures closed at $11.30/bu., compared to $12.98 in mid-December 2010. The near-term CBOT prices on Sept. 12 were $7.45/bu. for December corn futures and $13.96 for November soybean futures. The rise in corn and soybean prices during the first nine months of 2011 were driven by steady domestic grain demand for the renewable fuel industry and for livestock feed needs, along with very strong export demand. The fairly sharp decline in grain prices since mid-September is due to slightly increasing grain stocks, financial uncertainty in the U.S. and abroad and a softening of export markets.
Local cash bid prices for corn in southern Minnesota were near or above $6 at many locations throughout much of 2011, until the past couple of months, reaching $7 on several occasions during the summer months. However, local corn prices have now declined to near $5.60/bu., as of Dec. 16. Cash soybean prices stayed near or above $13/bu. until mid-September, and have declined ever since down to the current level of about $10.85. By comparison, at this same time in recent years, local cash corn prices were near $5.50 in 2010, $3.50 in 2009 and 2008, and around $4 in 2007. Local cash soybean prices were about $12.70 in mid-December 2010, $9.80 in 2009, $8.25 in 2008, and $10.85 in 2007.
The higher level of grain prices during much of 2011 has helped most crop producers have a fairly profitable year in 2011. Many producers forward priced a significant portion of their 2011 corn and soybean crop prior to the price drop this past fall. Grain farmers were also able to capture some very favorable prices on their remaining 2010 corn and soybeans that were stored after harvest, and sold during 2011.
January CBOT soybean futures closed at $11.30/bu., compared to $12.98 in mid-December 2010. The near-term CBOT prices on Sept. 12 were $7.45/bu. for December corn futures and $13.96 for November soybean futures. The rise in corn and soybean prices during the first nine months of 2011 were driven by steady domestic grain demand for the renewable fuel industry and for livestock feed needs, along with very strong export demand. The fairly sharp decline in grain prices since mid-September is due to slightly increasing grain stocks, financial uncertainty in the U.S. and abroad and a softening of export markets.
Local cash bid prices for corn in southern Minnesota were near or above $6 at many locations throughout much of 2011, until the past couple of months, reaching $7 on several occasions during the summer months. However, local corn prices have now declined to near $5.60/bu., as of Dec. 16. Cash soybean prices stayed near or above $13/bu. until mid-September, and have declined ever since down to the current level of about $10.85. By comparison, at this same time in recent years, local cash corn prices were near $5.50 in 2010, $3.50 in 2009 and 2008, and around $4 in 2007. Local cash soybean prices were about $12.70 in mid-December 2010, $9.80 in 2009, $8.25 in 2008, and $10.85 in 2007.
The higher level of grain prices during much of 2011 has helped most crop producers have a fairly profitable year in 2011. Many producers forward priced a significant portion of their 2011 corn and soybean crop prior to the price drop this past fall. Grain farmers were also able to capture some very favorable prices on their remaining 2010 corn and soybeans that were stored after harvest, and sold during 2011.
