Global Rice Prices to Surge by Year-end as El Nino Hits Asian Supply
Prices are likely to surge by 10% to 20% in the next few months
Global rice prices are likely to surge by 10% to 20% in the next few months as an El Nino weather pattern grips top producers in Asia, baking the region’s croplands and whittling down stocks of the grain to multi-year lows.
While higher prices of a key staple would be bad news for impoverished countries in Asia and Africa, lower output will help No.2 exporter Thailand offload its bulging stockpiles that have weighed on the rice market and pushed benchmark prices RI-THBKN5-P1 down to 7-1/2-year lows of $367.50 per tonne in June.
Below-average rainfall linked to El Nino has already disrupted rice transplantation in India, led to a drought in seven out of 67 Thai provinces during what should be the wet season and cut Vietnam’s output expectations. To read more click here.