News

July 21, 2008

Late Arrival Of Monsoon Rain Delays Planting

By Sally White

Monsoon rainfall, which accounts for four-fifths of the annual rainfall of countries such as India, was giving concern last week as it was below average for the second week running. This is delaying planting of a number of crops, including rice and cotton as well as oilseeds. Farmers in India and its neighbours depend on the timing of the monsoon to decide which crops to grow. A normal monsoon will encourage them to increase production. The Indian Meteorological Department said that the nation received 53.9 millimetres of rain last week, 19 per cent below the average for the period.

The rice crisis is retreating as more and more rice comes onto the market and the price continues to ease. September dropped three cents on Friday to US$17.80 per hundredweight and November was down 15 cents at US$17.94.

World sugar prices are tightening, according to Swiss research group Kinsman. Three factors are named: poor Brazilian yields, lower US beet production and reduce Indian cane plantings. However, a large surplus is still expected, with analysts Licht forecasting...