About 85 percent of all U.S. rice was collected as of Oct. 25, behind the five-year average of 96 percent, government data show. In Arkansas, the biggest producing state, 80 percent was harvested, compared with the average of 97 percent. Excessive rain made fields too muddy for farming equipment in the past month.
“Arkansas yields are going to be off,” said Dennis DeLaughter, a rice farmer and the owner of Progressive Farm Marketing Inc. in Edna, Texas. “The world demand is going to increase, especially in importing countries such as the Philippines. We’re going to see increased demand and less supply because of production issues.”
Rice futures for January delivery rose 23 cents, or 1.6 percent, to $14.41 per 100 pounds (45 kilograms) on the Chicago Board of Trade. Earlier, the price reached $14.47, the highest level for a most-active contract since Jan. 12. The commodity has dropped 6.1 percent this year.
As much as six times the normal amount of rain fell in Arkansas, Louisiana and Texas in the past month, National Weather Service data show.
India, the second-largest rice grower, may become a net importer for the first time in 21 years in 2010, potentially sparking shortfalls that sent prices to a record high in 2008, said Samarendu Mohanty, a senior economist at the International Rice Research Institute.
India may import as much as 3 million metric tons next year following adverse weather, Mohanty said this week in an interview in Cebu in the central Philippines.
“India is going to wipe out its reserves and can’t have a bad crop next year,” DeLaughter of Progressive Farm Marketing said. “Indonesia needs rice too.”
Thailand is the biggest rice shipper, followed by Vietnam and Pakistan, according the U.S. Department of Agriculture. China is the top producer
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