Global rice markets could come under further pressure as China, the world's leading rice producer, responds to the risk of heavy rains and flooding.
According to a recent report, heavy rains in China's grain-producing regions will lead to lower production, potentially putting upward pressure on already high global rice prices.
China is the world's largest rice producer, with three provinces accounting for 23 percent of China's rice production raising flood alert levels, the report said. Inner Mongolia, Heilongjiang and Jilin.
In recent weeks, the world's second-largest economy has been inundated by devastating floods. Typhoon Doxuri was one of the worst storms to hit northern China in years, with the capital Beijing suffering its worst rainfall in 140 years.
The report notes that many of the main food-producing areas in the three provinces have been affected by torrential rains and the aftermath of Typhoon Docsuri. As Typhoon Khanom moves north, these areas will face a flood.
The resulting flooding of wheat fields will lead to a drop in crop yields this year, but the extent of the damage is unpredictable, the report said.
Lack of food
A credit rating company said this will push up domestic food prices and may boost imports in the second half of 2023. to partially eliminate potential production losses. It is said that if the harvest is insufficient at home, China may need to import more rice, and you may push up the national rice price!
Imported rice
According to the Food and Agriculture Organization All Rice Price Index, global rice prices have soared to their highest level in 12 years.
Other market watchers expect rice prices to rise after India banned non-Indian basmati rice exports last month and Thailand urged farmers to reduce rice planting to save water due to low precipitation.
India, which accounts for more than 40 percent of global rice trade, banned exports of non-Indian basmati rice on July 20 in response to soaring domestic food prices.
Rice prices hovered at decade-high levels, with crude rice futures last trading at $15.98 ($24.63)
Corn and soybeans, the main crops grown in Inner Mongolia, Heilongjiang and Jilin, will also be affected by flood risk. China is expected to import these two cereals this year compared to last year.