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More than 20 inches of rain fell in southwest Louisiana, causing historic flooding that affected a large number of parishes, with 29 requesting disaster declarations. An LSU specialist provided an early, speculative estimate of about $14.3 million in losses to the rice crop, excluding ratoon losses.
Losses in Louisiana rice are small relative to the global market, but the flooding adds modest upward pressure on US rough rice prices by tightening domestic supply.
usarice.comAug 16, 2016After 179 past bullish weather events, Rough Rice moved a median +0.4% over 5 sessions (55% higher; middle half -1.4% to +2.5%), and +2.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Historic Louisiana flooding threatened the US rough rice crop (supply shock), a plausible driver of a sharp rally in US rough rice futures, though the report is dated one day after the move and likely reflects flooding news already building (floods began ~Aug 12-14).
