Rice prices may gain on tightening wheat market: IRRI

Rice prices may gain as the tightening wheat market spurs increases in grain costs and prompts farmers to switch crops, the International Rice Research Institute said in April-June Newsletter. The ongoing drought in northern China could also spark another round of grain price rally, Samarendu Mohanty, IRRI’s senior economist, said in the report. “If the drought persists for the next few months, it could affect rice planting and boost rice prices.” Still, “on the positive side, the comfortable supply situation in major exporters such as India, Thailand, and Vietnam should provide some cushion to the market,” Mohanty said.