RICE prices rose for a fifth day following the cyclone in Myanmar, which flooded 5,000 square kilometers of farmland, and Malaysia starting imports from Thailand.
Rice futures, which touched a record last month, rose as much as 3.5 percent to US$22.35 per 100 pounds on the Chicago Board of Trade, bringing this year's increase to 61 percent.
Cyclone Nargis struck Myanmar's main rice-growing area on May 3, worsening a food crisis that has triggered unrest from Haiti to Egypt, Bloomberg News said.
Surging food costs have raised the risk of malnutrition for 1 billion Asians, according to the Asian Development Bank as wheat, corn and soybeans have risen to records this year.
Thailand, the world's biggest exporter, is to sell 500,000 metric tons to Malaysia, according to Thai government spokesman Wichianchote Sukchotrat. He said that the sale had been agreed by Thai Prime Minister Samak Sundaravej. The shipment, sold at market prices, will begin to arrive within days.
Myanmar had been expected to export 600,000 tons of rice this year, including to Sri Lanka and Bangladesh, according to the Food and Agriculture Organization. The United Nations agency had forecast world exports at 29.9 million tons. The estimate of the submerged farmland came from Unicef, which said 1 million people "are in dire need of immediate supplies."
The Chicago rice contract, which touched a record US$25.07 per 100 pounds on April 24, has gained as much as 8.3 percent since May 1.
The benchmark export price of Thai 100 percent grade B white rice gained 10 percent to a record US$941 a metric ton this week, said the Thai Rice Exporters Association.
Stockpiles
The Philippines, the world's biggest rice importer, will seek shipments "aggressively" after the disaster in Myanmar, according to Agriculture Secretary Arthur Yap.
"Taking a cue from what happened to Myanmar, we have reports that rice demand is spiking," Yap said.
Global food prices will stay above 2004 levels through 2015, according to World Bank President Robert Zoellick. Droughts, low levels of food stockpiles, higher consumption in India and China and fuel prices are contributing to higher costs, he said.
Nigeria, the world's second-largest rice importer, dropped import levies yesterday for six months to ease prices.
Myanmar's government has declared a state of emergency in five provinces.