Rice: were trading above the $17-per-hundredweight mark, a level not seen since June 2020, supported by a combination of strong demand in various Asian exporters, purchases by Near Eastern and Chinese buyers, and weather setbacks in America.
Rice has become a cheap alternative to wheat and corn, especially in China, the world’s largest feed market, after Russia’s invasion of Ukraine stopped grain shipments from these two countries.
At the same time, soaring fertilizer costs are driving farmers across Asia to reduce their use, which could mean lower crop yields and higher rice prices.
Meanwhile, the latest WASDE report showed that the global rice outlook for 2022/23 is for record production and consumption. More significant output is expected from China, India, and Bangladesh, the world’s three largest producers, while most of the increase in demand will come from India and China.