US rice prices hop on Pakistan flooding

26.08.2010 11:59 "Agro Perspectiva" (Kyiv) — Relentless flood in Pakistan caused for a rise rice prices in US as the prices climbed two-and-a-half-week high. Pakistan, the third largest rice supplier in the world, has been experiencing historic flooding that washed away about 15% to 20% of its summer rice crop since the onset of monsoon rains. Pakistan Agricultural Farms Association said the country could not meet its production estimation of six million tons as the output was already down by 10% from the last year. The United Nations’ Food and Agriculture Organization said flood damage was likely to worsen in the coming days. Flooding has already ravaged 772,000 hectares of farmland across Pakistan, according to the group. Pakistan typically exports about half its rice crop, making it the world’s third-largest exporter of the grain after Thailand and Vietnam. There’s a chance that demand for U.S. rice will increase if Pakistan’s output falls short, but most of the business will probably stay overseas, said Jack Scoville, vice president of Price Futures Group, a brokerage firm in Chicago.

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