Japan’s Rice Price Outlook Index Remains High in Sept.

Tokyo, Oct. 6 (Jiji Press)–A diffusion index showing the outlook for rice prices in Japan remained above the bullish-or-bearish dividing line of 50 in September, an industry group said Monday. The index stood at 57 in September, down from the previous month’s 69, according to the group for stable rice supplies, whose members include the National Federation of Agricultural Cooperative Associations, or Zen-Noh, a key body in the Japan Agricultural Cooperatives, or JA, group. When the index reads 50, rice prices are expected to be at “roughly the same level” as current prices. The outlook gets more bullish as the index nears 100. The index stayed above 50 as JA cooperatives increased advance payments for rice they plan to buy from farmers. Some cooperatives even made additional advance payments. Meanwhile, the index was lower than in August after the agriculture ministry said that this year’s rice production was in a good state as of Aug. 15 and that the private sector’s rice inventories will be expanded considerably. The index is based on a survey of 180 respondents, including rice producers, buyers, wholesalers and retailers, who are asked about their outlooks for rice prices over the next three months. For the September survey, valid responses totaled 128. END [Copyright The Jiji Press, Ltd.]