this year's flooding disaster, driving the price of rice at exorbitant amount.
Thailand announces major crop losses by the worst floods in 50 years.
In Thailand, the world's largest exporter of rice on the world market, due to severe weather damaged the crop more than previously estimated. The worst flooding in five decades have destroyed fields. It is expected to continue rising prices for basic foods. Since July storms and flooding have also in the other two major exporting countries Vietnam and Pakistan destroyed the rice harvest. On the Commodity Exchange Chicago Board of Trade futures contracts for rice were temporarily increased to an annual high of $ 15.59 per 100 pounds. "This is the most damage to rice crop could be since the floods of 2006," warned the Thai agriculture minister Theera Wongsamut. Compared with the previous year, the rice harvest by an estimated seven percent or 1.6 million tons will be lower and are about 21.7 million tons. On the main harvest, which began in October, there is no 70 percent of Thailand's production.
The weather phenomenon La Nina has this year to above average rainfall out in parts of Asia. Two-thirds of Thailand are currently flooded. The floods have spread to official figures, since October to 51 provinces of the country, there were 241 dead and at least 8.7 million residents are affected. The disaster will growth by 0.3 percent to 7.9 percent press, said the state planning agency National Economic and Social Development Board.
the first volume of the second rice harvest, which begins in April, will help ensure that the entire rice crop in Thailand to 31 million tons still rising - to 31.5 million tonnes last year, said Minister Theera. This will be sufficient for consumption in the country and for export. Thailand used up annually about 18 million tons of rice. Another small consolation: The Thai export prices, the benchmark for Asia, fell by 0.2 percent to 551 dollars per tonne, because the local currency traded weaker and the price was cheaper for foreign buyers because, as the Association of Thai Rice Exporters announced. The rice broker Hermes Investments
in Singapore expects a price increase up to 600 dollars per tonne of rice for the high demand from China. "I would not be surprised if we wake up in a month and find that China has purchased one million tons," said Hermes chief Mamadou Ciss, "in the fall, the price to rise to 650 dollars or $ 700."
The U.S. Department of Agriculture (USDA) has set back its forecast for global rice production to 452.5 million tonnes. This is 171 000 tonnes below the expected demand. This loophole - it is the first in four years - but is expected to be greater because typhoons and floods that ravaged Southeast Asia just days after the USDA forecast. Samarendu Mohanty, Senior Economist at the International Rice Research Institute, is based on a harvest of 450 million tonnes for the crop year. That's ten million tons below the previous estimate. "The offer this year and is undoubtedly very close," he said.
Vietnam, the world's second largest Rice exporter, could export this year, however, a larger volume of 6.1 million tons of rice because stocks fell back to the previous year. This was announced by the Vietnam Food Association with now. In 2009 the country had exported 6.05 million tons of rice. The world food prices, according to the Food and Agriculture Organization of the United Nations in October rose to its highest level in over two years. Mainly due to higher prices for sugar, cereals and vegetable cooking oil. SOURCE: Bloomberg
a film by ARTE TV shows impressive background to the trade in rice
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