An ag economist says rice traders are reacting to the weather forecast in southeast Asia.
Alvaro Durand- Morat with the University of Arkansas tells Brownfield the El Nino weather pattern could weaken monsoon season in that region and potentially threaten the rice crop, which prompted India, the world’s largest rice exporter to halt exports of basmati rice earlier this month.
“International prices went up significantly, more than $100 per metric ton for Thai rice and Viet rice over the last three weeks.”
He says right now, reaction is based on the potential for less precipitation, but he doesn’t think below average rainfall will have a drastic impact on production.
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