Fundamental Reports – Rice is included in the crops reviewed in the monthly WASDE
report and Crop Production and the USDA also releases a monthly report entitled “The
Rice Outlook”.
Weather – Besides the basic agricultural concerns regarding temperature and rainfall, rice
production areas across the globe may also experience extreme weather issues like
cyclones and hurricanes which may impact prices. Notably, the possible damage from
Cyclone Nargis, which hit Burma (Myanmar) in 2008 was widely cited as a contributing
factor to the following fear of rice shortage and jump in prices.
Disease and Pests – Rice crops can be at risk for any number of fungal or bacterial
diseases. Stink bugs and weevils are major pest concerns.Other diseases can be related to
factors like zinc deficiency or salt water damage.
Geopolitical Issues – Attention should also be paid to international issues including the
foundation of the Organisation of Rice Exporting Countries (OREC). If the founded in its
entirety by 2012, as proposed by Thailand’s former Prime Minister, it is unclear whether
this union of 21 rice exporting nations (including original member nations Cambodia,
Laos, Myanmar, Thailand, and Vietnam) would aim to fix prices similar to actions by
OPEC. The proposed purpose is to stabilize food production.
Environmental Impact – Concern exists regarding the high water input needs of rice
crops. However, rice growing is often viewed as a positive force providing habitats for
waterfowl and wetland dependant organisms in the United States. Flooded rice fields are
often cited as a significant source of methane emissions.
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