Floods Destroy Corn and Rice Crops in China

Traders and analysts indicated today, Friday, that "the floods have damaged corn and rice crops in the main grain-producing belt in northern China, with forecasts of more rainfall as a new storm approaches, raising concerns about further pressure on global food price inflation." Two sources in the trade sector stated that "preliminary estimates suggest that around four to five million metric tons of corn, or about two percent of local production, have been affected by the floods." The floods are also likely to cause a decline in rice production. Meanwhile, Fitch Ratings reported that "heavy rainfall in China's grain-producing areas could exert pressure on global rice prices. Rice prices have already jumped 20 percent since India's announcement of a ban on exports of non-basmati white rice."