Due to Projected Decline in Harvested Area by 2.3 Million Hectares World Net Trade Expands by 650 Thousand MT Argentina Area Harvested Continues to Decline in 2001 to 97 thousand hectares. Exports are Projected to Decline to 104 thousand mt. in 2001. In 2000 lower acreage offsets the substantially higher yield. This is due to the combined effects of lower U.S. farm prices and the weakening of the Thai baht relative to the U.S. dollar. The price premium is largely the result of a combination of two factors the higher quality of U.S. rice and the dependability of U.S. rice suppliers.
Domestic use is driven by sustained growth in food use, particularly the processed food sector.
U.S. rice exports in 2000, 83.9 million cwt., are projected to be 5.3 million cwt. Population growth remains the driving force for growth in world rice consumption. Utilization is projected to remain strong in 2000 at 401 mmt, slightly higher than the 1999 level. A significant reduction in stocks by China were a result of higher exports, lower government procurement, harvested area and production. Weak demand continues to depress international prices.