LOWER U.S. RICE STOCKS, STRONG EXPORTS - USDA

  Rising demand for U.S. rice may
  gradually reduce surpluses while a marketing loan should help
  increase the U.S. share of the world rice market despite
  sluggish trade this year, the U.S. Agriculture Department said.
      In its quarterly rice outlook and situation summary, the
  department said U.S. rice use may surpass production during the
  1986/87 marketing year, causing stocks to fall about 10 mln
  hundredweight from a year earlier to an estimated 67 mln cwt on
  July 31.
      Long grain acreage as a percentage of total acreage is
  expected to decline this year, the report said.
      USDA said factors once supportive of increased long grain
  acreage have turned around. Domestic prices of medium grain
  relative to long grain have increased, the loan differential
  has been greatly reduced and increases in long grain yields
  relative to those of other classes have leveled off.
      With the drop in domestic prices resulting from the
  marketing loan, domestic rice use is expected to grow at a
  faster rate, USDA said.
      "Development of new products and increased promotion have
  helped make rice more available and visible to a wider range of
  consumers," USDA said.
      USDA said world trade is expected to fall in 1987 because
  of large production and stocks but a weaker market should
  affect competing exporters more than the U.S.
      "The United States has already recovered a substantial share
  of the European Community market and made inroads into markets
  in the Middle East and Africa," the report said.
      World rice consumption is projected to reach record levels
  in 1986/87, the report said, as higher per capita incomes,
  increased domestic production and low import prices have
  allowed people in many countries to substitute rice for coarse
  grains.
      China, India and South Korea have increased output, while
  the Middle East and Africa have doubled imports since the
  mid-1970s, the report said.
  

