Floods that hit north China this summer damaged rice and maize crops in grain-producing provinces, traders and analysts said, as more rain and typhoons were expected, threatening food prices. These floods come against a tense global backdrop between the end of Indian white rice exports last month and Russia’s suspension of Ukraine’s grain deal in the Black Sea.
“We will have a clearer picture of the damage when the water recedes,” he added. River and river levels in northern China remain very high, two weeks after Typhoon Doksuri passed and as Tropical Storm Khanun approaches. The northeastern province of Hebei issued its highest alert level on Thursday after record flooding last week.
Sharp rise in corn imports, large rice stocks
Early estimates suggest that between 4 and 5 million metric tons of corn, or 2% of the country’s reserves, have been affected by the waters, according to two traders. “We cannot confirm how much will be lost or damaged in the end,” said one. Corn prices on the Dalian local commodity market fell 1.4 percent to 2,579 yuan (346 euros). Rice production could also be affected by flooding.
Fitch Ratings said on Friday that torrential rains in China could lead to higher food prices globally. Rice prices have already risen 20% since the decision by India, the world’s largest exporter, to stop exporting its non-basmati white rice.
Chinese corn imports are expected to reach a new record with 23 million tons in 2023-2024 up from 18 million tons the previous year, according to the United States Department of Agriculture. However, China can count on large reserves of rice so that it does not have to buy it on the international market, according to analysts. China should not resort to large imports of rice as the country is self-sufficient in the sector, said Rosa Wang, an analyst at JC Intelligence in Shanghai.
Source: BFM TV
