Japan’s rice prices likely to fall in coming months

The diffusion index for the outlook on rice prices over the next three months fell 4 points in June from the previous month to 19, equaling the lowest level on record marked in August 2014 and remaining below 50 for the ninth consecutive month, said a group that includes the National Federation of Agricultural Cooperative Associations.

If rice prices are expected to be roughly at the same level, the index stands at 50. The stronger the expectations for lower rice prices, the closer it draws to zero.

The supply-demand outlook index edged up 1 point to 20, highlighting growing expectations for sufficient supply.

A record 58% of rice industry members surveyed said that they took account of inventory levels when judging rice prices and the supply-demand situation, indicating that they paid much attention to high inventory levels.

The June report was based on a monthly survey of rice producers, wholesalers, retailers and others, with valid responses coming from 135 respondents.