Record Food Stocks May Cushion El Nino Shock as Rice Reserves Hit 196 Million Tons
Updated
Updated · Reuters · Jun 19
Record Food Stocks May Cushion El Nino Shock as Rice Reserves Hit 196 Million Tons
3 articles · Updated · Reuters · Jun 19
Summary
Near-record global inventories of rice, wheat, corn and soybeans are expected to blunt a strengthening El Nino's threat to food supplies in 2026/27, easing fears of the kind of crop damage seen in past super events.
196.16 million tons of world rice reserves and 279.95 million tons of wheat stocks, plus projected corn inventories of 303.4 million tons, give importers a buffer even as El Nino raises drought and flood risks.
China, the Black Sea region and Europe are forecast to face less severe El Nino weather, while Indonesia and Thailand have built stocks, planted early and improved water management to reduce disruption.
Chicago corn has fallen to a nine-month low, soybeans to a four-month low and wheat to a two-month low, with favorable U.S. weather and weaker oil reinforcing the view that supplies are not yet tight.
Export curbs remain the main wild card: India holds rice stocks at about five times its target, but any panic restrictions by major exporters could still squeeze buyers even without a global shortage.