Rice Advances for a Sixth Day on Speculation Weather May Limit Production

 Rice gained for a sixth day inChicago on speculation that adverse weather may curb productionin the U.S., the world’s third-biggest exporter of the grain,and the Philippines, the largest importer.

No rain has fallen in parts of Arkansas, the biggest U.S.rice producer, in the past 60 days, National Weather Servicedata show. Plants in the Philippines may have been “severelyaffected” by Typhoon Megi, the strongest to hit the countrythis year, the Department of Agriculture said today.

“The big story in rice is the extremely poor field yieldsin” U.S. growing regions, said Dennis DeLaughter, owner ofProgressive Farm Marketing and a rice grower based in Edna,Texas. “We are now hearing 20 percent loss and going up.”

Rice futures for January delivery advanced 9 cents, or 0.6percent, to $14.07 per hundred pounds at 11:21 a.m. London timeon the Chicago Board of Trade. Prices have climbed 12 percentthis month. a higher close today would mark the contract’slongest winning streak in more than two months.

The Philippines may lose 600,000 metric tons from its ricecrop, Agriculture Undersecretary Antonio Fleta said yesterday.Potential crop losses may boost the island archipelago’s importneeds by 500,000 tons, pushing prices higher in Chicago andThailand, Chookiat Ophaswongse, former president of the ThaiRice Exporters Association, said yesterday.

Thai rice prices may rise by as much as $20 a metric ton,Chookiat said.

Crop losses may widen in areas affected by the typhoon,potentially increasing import needs and pushing global priceshigher, said Kiattisak Kanlayasirivat, a director at NovelCommodities SA’s Thai office, which trades about $600 millionworth of rice every year.

To contact the reporter on this story:Tony C. Dreibus in London at tdreibus@bloomberg.net.

To contact the editor responsible for this story:Claudia Carpenter at ccarpenter2@bloomberg.net.

Rice Advances for a Sixth Day on Speculation Weather May Limit Production


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