Rice prices may stay elevated in 2024 amid global market tightness, says BMI

Published 2024년 4월 12일

Tridge summary

Global rice prices are expected to remain elevated through 2024, as market tightness persists due to adverse weather conditions and export restrictions, particularly from India, as reported by BMI, a Fitch Solutions unit. The high prices are attributed to factors such as India's 2023 export ban and drought concerns in Thailand, which have significantly affected supply. Although the average price for rough rice futures is projected to be slightly lower in 2024 than in 2023, the situation might see improvement by 2025 if La Nina weather conditions bring increased rainfall and boost rice production. However, BMI warns that India's export restrictions might continue beyond the general election due to food inflation concerns, potentially keeping prices high.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

KUALA LUMPUR (April 12): Global rice prices are expected to stay elevated throughout 2024 amid sustained market tightness due to unfavourable weather and export restrictions from India, BMI said on Friday. The second-month rough rice futures listed on the Chicago Board of Trade are expected to average US$16.50 (RM78.69) per hundredweight (cwt) in 2024 versus US$16.69 in 2023, BMI, a unit of Fitch Solutions, said in a note. The contracts were at US$16.32 per cwt as of the end-of-session bell on April 5. “It is our belief that international rice export quotations will remain elevated while India’s rice export restrictions remain in effect, which we expect will be the case until at least after the Indian general election,” BMI said. Rice prices have surged as the 2023 export ban by India, the world’s largest rice supplier, stoked concerns over supply. Prices peaked in February at US$19.08 per cwt, their highest level since September 2008, and have averaged US$17.96 per cwt so far ...

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