Japan held another MA tender at the end of last week. The tender included 1 13,000 ton U.S. specific cargo of medium grain rice and 1 global origin cargo of medium grain rice. Japan does not reveal the pricing on MA tenders, or which companies sold the rice. However, reported pricing is higher than the last Japan tender held on March 2 at around $880-$890 Per metric ton. Resultant paddy values are between $16.00 and $16.50 over loan. Australia sold the global origin cargo. We have not received pricing information on their cargo. The delivery period for this rice ranges from June 20, 2018 to July 31, 2018. This brings the total cargoes sold from California this year to 19. California normally sells 22-25 cargoes to Japan each year.
Another Japan MA tender is scheduled for March 16. It calls for 2 U.S. specific cargoes of medium grain rice with a delivery period of July 10- August 20, 2018. It is expected this will be 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 will bring CA to a normal level on total tonnage sold to Japan for the marketing year.