HomeNewsInternational rice costs might surge increased as flood dangers loom over China...

International rice costs might surge increased as flood dangers loom over China Acquire US

Chinese language villagers rising rice seedlings in a paddy subject in Qiandongnan, Guizhou Province, China on April 2023.

Future Publishing | Future Publishing | Getty Photos

International rice markets might come underneath additional pressure because the world’s main rice producer China grapples with heavy rain and flood dangers. 

“Heavy rain in China’s grain-producing north-eastern area that can scale back yields is more likely to put upward stress on already excessive world rice costs,” Fitch Scores mentioned in a recent report.

China is the world’s largest producer of rice, and flood alert ranges have been raised for 3 provinces that account for 23% of the nation’s rice output: Inside Mongolia, Jilin and Heilongjiang, the report identified.

The world’s second largest economic system has been inundated by devastating floods in current weeks. Storm Doksuri was one of many worst storms to hit northern China in years, with capital Beijing battered by the heaviest rainfall in 140 years. 

Fitch identified that many key grain manufacturing areas in these three provinces have been affected by heavy rains and remnants of Storm Doksuri, they usually’re set to face “one other deluge as Storm Khanun strikes north.”

The ensuing soaked grain fields will scale back crop yields for the yr, the Fitch report acknowledged, though the complete extent of the harm just isn’t but clear.

“This may carry China’s home grain costs and sure drive increased imports in 2H23 to partially offset the potential yield loss,” the credit score scores agency mentioned, including the nation could have to look to import extra rice if its personal harvests fall brief, and that would drive world rice costs even increased.

International rice costs have surged to their highest in near 12 years, based on the Food and Agriculture Organization All Rice Price Index

Different market watchers are estimating increased rice costs forward after India banned non-basmati white rice exports final month, and Thailand urged farmers to plant much less rice in a bid to avoid wasting water because of low rainfall.

India, which accounts for greater than 40% of world rice commerce, banned exports of non-basmati white rice on July 20, as the federal government regarded to deal with hovering home meals costs.

Rice costs are hovering at decade highs, with tough rice futures final buying and selling at $15.98 per hundredweight (cwt).

Along with rice, the Fitch report additionally cited corn and soybean amongst main crops grown in Inside Mongolia, Jilin and Heilongjiang, which might be impacted by flood dangers. China is anticipated to import extra of each grains this yr in comparison with the final.

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