{"id":98567,"date":"2016-11-22T07:15:20","date_gmt":"2016-11-22T12:15:20","guid":{"rendered":"http:\/\/countingpips.com\/?p=98567"},"modified":"2016-11-22T07:15:20","modified_gmt":"2016-11-22T12:15:20","slug":"rice-technical-analysis-drought-may-push-rice-prices-up","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/11\/rice-technical-analysis-drought-may-push-rice-prices-up\/","title":{"rendered":"RICE: Technical Analysis – Drought may push rice prices up"},"content":{"rendered":"
November 22, 2016<\/div>
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By IFCMarkets<\/a><\/p>\n

Drought may push rice prices up<\/strong><\/p>\n

Vietnam and Thailand raised the lower boundary of price range for their 5% broken rice from $347 and $345 per tonne to $350 per tonne. Will global rice prices<\/a> advance?<\/p>\n

The volume of global rice market is less than 8% of global rice production. Major producers (China, Indonesia, India, Bangladesh and others) are at the same time the major consumers. India the the world leading exporter as it accounts for 27% of the market with Thailand and Vietnam ranking 2nd and 3rd (18% and 14% of global exports). They are followed by US (10%) and Pakistan (9%). Major rice consumer is China where dietary intake of 65% of population depends on rice. TOP-5 global rice exportes account for 78% of global market. Thus, changes in rice prices in these countries may have a significant effect on soft futures prices. Previously, the Thai officials said there was a lack of water supplies in Lam Takhong water storage. As a possible outcome, farmers from 5 agricultural regions may not be able to harvest 2rd rice crop in current season.<\/p>\n

\"Rice\"<\/p>\n

On the daily chart, Rice: D1<\/b> has failed to break down throught the support of the sideways channel for yet another time. Now it is correcting towards the upper boundary. Further price increase is possible in case of worse weather conditions in Asian countries.<\/p>\n