Italian Indica rice prices hit record highs on poor weather, low stocks

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.

Platts, part of S&P Global Commodity Insights, assessed Italy White Rice Indica 5% Broken ex-works Northern Italy up Eur100/mt in the week to May 31 to Eur1,000/mt, a record high. The last time the market approached Eur1,000 was in May 2022 when dry weather made the approaching harvest uncertain, prompting farmers to hold onto their crops.

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.