Japan held another MA tender at the end of last week. The tender included 2 13,000 ton U.S. specific cargoes of medium grain rice. Japan does not reveal the pricing on MA tenders, or which companies sold the rice. However, reported pricing is slightly higher than the last Japan tender at around $890-$900 Per metric ton. Resultant paddy values are between $16.00 and $16.50 over loan. The delivery period for this rice ranges from July 10, 2018 to August 20, 2018. This brings the total cargoes sold on the MA system from California this year to 21.
This was likely the final Japan tender for this marketing year. California has sold over 50,000 tons of rice on the Japan SBS (Simultaneous Buy-Sell) system to date. The SBS tonnage combined with the sale of 21 Japan MA cargoes from CA brings CA to a normal level on total tonnage sold to Japan for the marketing year. Prices on the Japan tenders for the marketing year ranged from roughly $11.00-$16.50 over loan paddy value (Roughly $750 to $900 PMT).