Ample World Rice Supplies To Cushion Impact Of Pakistan, China Crop Losses.
Abundant rice supplies in key exporters may largely offset an expected drop in output after floods in Pakistan and severe heatwave in China damaged crops, capping any gains in prices from steady Asian demand.
Pakistan, the world s fourth-largest rice exporter, suffered extensive damage to agriculture, including rice, as floods ravaged large swathes of its farmland, while extremely high temperatures in parts of China at the end of August have taken a toll on rice output in the world s biggest importer of the staple.
However, global rice stockpiles are pretty comfortable and an improving Indian crop outlook should quell any supply concerns and limit any price increases from recent strong demand that has emerged from Bangladesh, said a Singapore-based trader at one of the world s top rice trading companies.
Pakistan is forecast to have lost around 10% of its 2022 estimated rice production of around 8.7 million tonnes, while China has suffered some damage, although the extent of crop losses is not clear, traders said.
Food prices have soared in markets across Pakistan as devastating rains ruin crops and disrupt supplies, an early sign of how the worst floods in decades are creating food shortages at a time of financial crisis.
'Pakistan s rice output has been really good over recent seasons,' Peter Clubb, a market analyst at the International Grains Council said. 'While any large production loss is obviously bad, that improvement in production over recent seasons gives a bit of leeway.'
China s Agriculture Minister Tang Renjian expressed concern that high temperatures and drought have hit rice production in the eastern provinces of Jiangsu and Anhui.
'It is too early to say exactly how poor yields (in China) may be,' Clubb said. 'A general point, stocks in China are still very ample.'
Monsoon rains, which were delayed in parts of India s northern and eastern rice producing regions, have improved over the last couple of weeks, boosting crop prospects...
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