NEW YORK (Commodity Online): Floods in Thailand, top exporter of rice, has keyed the fear about tightening global supplies of the grain. The major grain buyers like China are seeking new options for continued supply.
The floods in Thailand had wiped out 14% of the paddy of the country, weakening the global outlook for a record production of 461.4 million tons. Thai accounts for 31% of all exports. According to analysts, the demand for the rice can be shifted towards India, US, Vietnam and other top producers of rice.
On account of the floods, The Thai export price may climb 21% to $750 a metric ton by December.
The fears of tightening global grain supplies have caused upward movement in US rice futures. At CBOT, the November rice traded up 0.075% to $16.960 on 27th October
