Rice futures to extend current rally; output may decline 10%

BEIJING - Rice futures are expected to extend a rally that began in early July as torrential rains across southern China may result in lower production levels of the grain.

Heavy rains combined with crop damage from insects are estimated to have cut rice output in China by 10 percent, with some major farming areas forecasting a 20 percent production decline, according to cngrain.com, a website owned by China Grain Reserves Corp, a State-owned entity that stockpiles grain.

The harvest of the early indica type rice may be delayed by seven to 15 days, the site reported.