Italian Indica rice prices hit record highs on poor weather, low stocks
Indica white rice prices in Italy have surged by more than 10% to reach record highs due to unfavorable weather conditions and limited stock availability. Continuous rain and below-average temperatures have delayed sowing, with 30% still to be completed, pushing harvesting to October. Farmers are withholding sales, leading to a 10% increase in harvested paddy market prices. Red Sea disruptions have caused further delays in imports, exacerbating the situation.
Indica white rice prices in Italy surged more than 10% to record highs over the past week, with Italian traders citing unfavorable weather conditions and limited stock availability.
The price had hovered around the Eur900 mark over the previous four weeks.
In recent weeks, continuous rain and below-average temperatures have disrupted the sowing process, with “still 30% of the sowing to be completed,” an Italy-based broker said. A three-four-week delay in sowing will consequently push harvesting from September to October, the broker said. As a result, farmers are storing paddy in their silos for an additional month and postponing sales. Farmers are unwilling to sell paddy at lower prices, and these factors have led to an increase in the harvested paddy market price sold to millers from Eur550 to Eur600/mt.
Due to reduced farmer selling, millers are facing shortages and have started storing the paddy they already purchased from farmers, which has ultimately increased the price of Indica by 10% in past five weeks.
Furthermore, ongoing Red Sea disruption has caused delays in goods arriving from Pakistan, Myanmar, Thailand and Vietnam.
“Vessels are not arriving from overseas,” a second Italian trader said. Increased freight prices have also put upward pressure on Indica prices.
prices for Italy Arborio 5% WR ex-works have also increased amid delayed sowing due to the unfavorable weather. Platts assessed the price at Eur1,100/mt on May 31, up Eur100/mt week on week.
