A benchmark price for rice in Asia has reached its highest point in almost two years, as El Niño-related dry conditions pose a challenge to production of the staple grain and could add to food inflation pressures.
Farmers across much of Asia are currently harvesting rice. Drier-than-usual weather has hindered crops in producing countries including India, the world’s leading rice exporter.
The US Department of Agriculture forecasts that global rice production will fall this season for the first time in more than a decade.
Sources: Bloomberg Markets.