Voluntary Report - public distribution

**Date:** 5/25/2004

**GAIN Report Number:** JA4050

JA4050

**Japan**

**Grain and Feed**

**Results of the 1st SBS Rice Tender**

**2004**

**Approved by:**

![](media/image1.wmf)Clay Hamilton

U.S. Embassy

**Prepared by:**

Hisao Fukuda

**Report Highlights:**

U.S. rice, accounting for 2,724 MT, or 13% of the total (20,764 MT) was
contracted under the first JFY 04 Simultaneous Buy and Sell (SBS) rice
tender on May 21. Despite early speculations that China may not have
enough supplies to offer, contracts for Chinese rice reached 13,286 MT,
or 64% of the total. Price mark-ups have returned to 2002 levels,
reflecting a sharp decline in the price of Japanese domestic rice.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo \[JA1\]

\[JA\]

On May 21, the Ministry of Agriculture, Forestry and Fisheries (MAFF)
conducted its first Simultaneous Buy and Sell (SBS) rice tender under
the Uruguay Round minimum access commitment for Japan Fiscal Year 2004
(April 2004-March 2005). A total of 20,764 metric tons (MT) of foreign
rice was contracted, falling short of the total allocation of 25,000 MT.
This reflects the current situation of adequate supplies of domestic
rice despite a significantly below-average harvest last fall.

A total of 2,724 MT of U.S. rice was contracted, accounting for 13% of
the total. Despite early speculations that China may not have enough
supplies to offer, contracts for Chinese rice reached 13,286 MT, or 64%
of the total.

Mark-ups that soared in the 3^rd^ and 4^th^ tenders last fiscal year
returned to the 2002 level, reflecting a sharp decline in prices for
Japanese domestic rice.

Table 1. Total Contracted Amount and Share by Country

  -------------- -------- ------- ---------- ----------- --------- ---------- ------- ------- --------
                 China    U.S.    Thailand   Australia   Vietnam   Pakistan   India   Italy   Total

  Quantity(MT)   13,286   2,724   216        4,324       40        139        18      17      20,764

  Share          64.0%    13.1%   1.0%       20.8%       0.2%      0.7%       0.1%    0.1%    100%
  -------------- -------- ------- ---------- ----------- --------- ---------- ------- ------- --------

Table 2. Detailed Results

  ----------- -------------------- ------------ ------------ ---------- ---------- ----------
  Country     Type                 Quantity     Quantity     MAFF       MAFF       Mark-up

                                   Applied (MT) Awarded (MT) Buy Price  Sell Price (\$/MT)
                                                             (\$/MT)    (\$/MT)    

  U.S.A.      Short/Brown          210          110          1,226      2,186      960

              Short/Milled         472          252          1,325      2,284      959

              Medium/Milled        60           60           735        1,991      1,256

              Glut./Short/Brown    18           18           1,221      2,221      1,000

              Glut./Short/Milled   1,074        1,020        1,428      2,242      814

              Broken/Milled        3,186        1,264        604        1,124      520

              Total                5,020        2,724                               

  Italy       Medium/Milled        17           17           1,954      2,788      834

  Australia   Short/Brown          42           0                                   

              Short/Milled         4,190        3,992        1,424      2,384      960

              Broken/Milled        588          332          622        1,245      623

              Total                4,820        4,324                               

  India       Long/Milled          18           18           2,080      3,416      1,336

  Pakistan    Long/Milled          139          139          1,497      2,474      977

  Thailand    Long/Milled          294          196          792        2,103      1,311

              Glut./Long/Milled    60           20           690        2,062      1,372

              Total                354          216                                 

  China       Medium/Brown         100          100          1,156      2,632      1,476

              Short/Milled         11,942       10,454       1,085      2,207      1,122

              Glut./Short/Milled   1,900        1,828        1,023      2,168      1,145

              Broken/Milled        964          904          579        1,107      528

              Total                14,906       13,286                              

  Vietnam     Short/Milled         80           40           796        1,920      1,124

  **Grand     ** **                **25,354**   **20,764**                          
  Total**                                                                          
  ----------- -------------------- ------------ ------------ ---------- ---------- ----------

Chart 1. Movements in Buy Price and Sell Price

![](media/image2.wmf)