AgFax Rice Review: Heavy Storm Damage in Philippines, India; Indian Exports Unaffected by Damages
- Oliver Teves of the Associated Press reports on ABC News that Typhoon Nari made landfall in the Philippines late Friday, blocking roads, causing power outages, and flooding rice fields. Initial estimates are that 37,000 acres of rice were damaged or destroyed by the high winds and flooding.
- Bibhudatta Pradhan reports for Bloomberg that Cyclone Phailin killed at least 17 people in India, with winds as high as 210 kmh lashing the Odisha region and heavy rains flooding roads and fields. Odisha produces about 10% of India’s annual rice production, and estimates are that 15% of the region’s rice crop was destroyed, or an estimated one million tons of grain. The winter-sewn crop may also be affected by inundation of saline water from the sea following the cyclone.
- The Arkansas Farm Bureau reports that U.S. rice futures made small gains in the two nearby contracts Monday, though pressure continues to loom over the market.
- The U.S. Rice Producers’ Association reports in their The Rice Advocate newsletter that Iraq purchased U.S. rice for the first time since 2010, buying 40,000 tons at a quality premium and putting a heart beat back into the rice market.
- The Rice Advocate also reports that the Arkansas/Delta rice harvest continues to move slowly, while Midsouth and Texas rice sales have stalled with 30-65% of the new harvest already contracted and offering little incentive to make cash sales or purchases.
- According to a press release from the California Rice Exchange, the Exchange has been bought by Farm & Trade, Inc. to help move the California rice industry forward towards being recognized as a high quality premium product.
- Oryza.com reports that India’s Food Minister has announced that despite damages to this year’s rice crop from Cyclone Phailin, Indian rice exports will continue undisrupted due to more than adequate rice stocks.
- Reuters reports that Thailand’s Prime Minister has announced an agreement between Thailand and China in which China would buy one million tons of Thai rice a year for an indefinite period, revising a previous agreement in which China would buy one million tons over 5 years. “Traders said the pact was unlikely to have a major impact on the global rice market.”
- California rice grower Mike DeWit comments for CalRice.org on the progress of this season’s relatively smooth rice harvest.
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,