July 7, 2010

 

La Nina floods may hurt Philippine crops

The Philippines is expected to have as much as 60% more rainfall than average in Q4 2010, possibly causing similar damage to crops as in 2009, said Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA) administrator Prisco Nilo.

 

The Philippines rushed to secure imports after floods cut crops, making futures surge to last year's high in December.

 

According to Nilo, La Nina's full impact may not be felt until Q4. There is potential for losses in rice and corn growing areas including the Cagayan Valley, Bicol, Eastern Visayas and Surigao.

 

La Nina, characterised by colder-than-normal sea surface temperatures in the Pacific Ocean, can cause wetter-than-usual weather in Asia and below-average rainfall in parts of the US, Argentina and southern Brazil.

 

This year, futures went down 34% as the Philippines ended its import tenders and India drew down state stockpiles to meet domestic demand, instead of seeking supplies from the global market.

 

September-delivery contract rose 0.6% to US$9.87 per 100 pounds in after-hours electronic trading in Chicago at 11:18 a.m. Singapore time.