Sunday October 11, 2009

El Nino may force Indonesia to shelve rice exports plan

This article belongs to the Global food crisis story arc.

bloomberg.com :

Indonesia may shelve plans for the country's biggest rice exports in half a century next year if dry weather caused by El Nino causes production to miss forecasts. The world's third-biggest grower had planned to ship up to 2 million metric tons of milled rice next year, based on a production forecast of 40 million tons this year. El Nino can prolong the dry season in parts of Asia, delaying rains, leading to lower agricultural output. Global rice production may fall 3% to 668 million tons this year, the UN FAO reported.

Rice, the staple food for half the world's population, surged to a record $25.07 per 100 pounds in April 2008 in Chicago as global inventories declined, sparking a global food crisis that prompted exporters including India and Vietnam to curb shipments to secure domestic supplies and cool inflation. Rice futures prices have plunged by almost half since then as growers rushed to expand production. Rough rice for Nov 2009 delivery was recently trading at $13.125 on the Chicago Board of Trade [CBOT].

- Right, it's not the first time that Indonesia is going to limit its rice exports, but couple that with the huge flood in the Philippines that destroyed a portion of their rice crop, throw in rising crude oil prices and all-time record high gold prices and we just might end up with a recipe for rice supply issues and price inflation. I'd say it's probably best for us to stock up on a couple extra bags of rice. You know. Just in case.

See also :

1. Soaring rice prices hurting Asia's neediest nations
2. High food prices seen leading to strikes, protests in Asia
3. Global food crisis looms as Asia's rice bowl empties and world price soars
4. Thai rice price at new record high of US$1000 a tonne as Asian food crisis worsens
5. Large swathes of Myanmar completely flooded after cyclone, rice exports to be affected

(2009-10-11 22:17:30 SGT) [Env] Permalink

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