By IFCMarkets
Export restrictions may be removed with the end of quarantine
Earlier, consumer fears that farmers in a number of countries would not be able to produce enough rice against the backdrop of the Covid-19 pandemic have contributed to the increase in rice prices. In addition, some countries, such as Vietnam, have limited their rice exports. The quarantine in Bangladesh will last until April 25, and in India and Pakistan until the end of April. After the quarantine, rice exports from Southeast Asian countries may resume. The US Department of Agriculture (USDA) estimated exports reduction in April from Burma, Cambodia and Vietnam by 1.7 million tons, or 15%, and from India by another 0.3 million tons. Against this background, rice quotes recently updated their 6-year high. Meanwhile, according to the USDA, the reduction in world rice stocks in April will be insignificant – 0.7 million tons. At the same time, world stocks will remain at a record level of 181.6 million tons. 65% of this volume was accumulated by China.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Sell | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Buy |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 13.85 |
| Stop loss | Above 14.55 |
Market Analysis provided by IFCMarkets
