The October flooding in Thailand could affect the rice market and may hold it in an uptrend into early 2012

The October flooding in Thailand could affect the rice market and may hold it in an uptrend into early 2012. 

Thailand is currently facing its worst flooding in 60 years; the Thai government estimates the nation may lose 25% of the main rice crop to flood waters. 

 The flooding has also affected the rice crops of their neighboring countries; this year flooding has damaged 6% in the Philippines, 12% in Cambodia and 7.5% in Laos, according to the UN Food & Agriculture Organization.

In addition dry weather in the U.S. has cut production there, U.S. rice production normally accounts for more than 10% of the global rice trade. 

Global rice prices may move up further in the next few months as flooding in Thailand continues to affect crop production and damage existing inventories.