Rice prices at 15-year high

Rice supply had been disrupted by comprehensive export restrictions implemented last year by leading rice supplier India and the impact of dry weather caused by El Niño. Now, devastating floods in southern Brazil have hindered traffic in rice trade.

According to a report on BloombergHT, Thai white rice prices, which rose by 5 percent in the Asian market, have increased by 71 dollars since the beginning of April to reach 649 dollars per ton.

FLOODS IN BRAZIL ARE A FACTOR

According to Charles Hart, a Commodities Analyst at Fitch Solutions' BMI unit, the severe floods in Brazil have caused the recent rise in prices. The Rio Grande do Sul state, which accounts for 70 percent of Brazil's rice production, is expected to be affected for the next few weeks. Hart added that this creates "significant concerns" regarding domestic production volume and the final exportable surplus.

According to data from the US Department of Agriculture, Brazil is the world's ninth-largest rice exporter.

On the other hand, Peter Clubb, a Commodities Market Analyst at the International Grains Council in London, said that the slowdown in new crop supply to Southeast Asia is also driving up prices.

News Source: 12punto