Rice production to rise to record this year
Tuesday, 11 May 2010
NEW DELHI, May 10 (Bloomberg): Global production of rough rice, the staple for half the world's population, will rise to a record 710 million metric tons this year, as harvests in India and the rest of Asia recover from drought, the United Nations said.
Output will expand 4 per cent from 680 million tons in 2009, as production in India, the world's second-largest grower and consumer, is forecast to increase 15 per cent to 151 million tons, the UN Food and Agriculture Organization said in a report e- mailed today.
"The chances of El Nino conditions dissipating over the coming months have improved, which would support a return to more normal weather conditions, to the benefit of still-to-be- planted crops," FAO said. "India is anticipated to drive much of the production upturn in the region."
Higher global output may help extend a slump in prices, as it eliminates the risk that India may turn to the overseas market to meet domestic demand. Rough rice futures jumped to last year's high of $16.27 per 100 pounds in Chicago partly because of speculation that India may become a net importer this year for the first time in more than two decades.
Rice for July delivery gained 0.5 per cent to $11.855 per 100 pounds in after-hours electronic trading on the Chicago Board of Trade at 11 a.m. Singapore time.
Output will expand 4 per cent from 680 million tons in 2009, as production in India, the world's second-largest grower and consumer, is forecast to increase 15 per cent to 151 million tons, the UN Food and Agriculture Organization said in a report e- mailed today.
"The chances of El Nino conditions dissipating over the coming months have improved, which would support a return to more normal weather conditions, to the benefit of still-to-be- planted crops," FAO said. "India is anticipated to drive much of the production upturn in the region."
Higher global output may help extend a slump in prices, as it eliminates the risk that India may turn to the overseas market to meet domestic demand. Rough rice futures jumped to last year's high of $16.27 per 100 pounds in Chicago partly because of speculation that India may become a net importer this year for the first time in more than two decades.
Rice for July delivery gained 0.5 per cent to $11.855 per 100 pounds in after-hours electronic trading on the Chicago Board of Trade at 11 a.m. Singapore time.