25 Aug 2020 | 16:05 UTC — London

US rice exporters brace for Hurricane Laura after Tropical Storm Marco

Highlights

Dryers in Texas, South Louisiana full as farmers seek extra storage

Flooding of up to 9-12 feet in rice silos possible in Texas, South Louisiana

Crops in Arkansas threatened as harvesting is only 1% complete

London — US rice exporters are bracing themselves for the impact of Tropical Storm Laura, which has the potential to become a major hurricane and make landfall along the Gulf Coast on Aug. 26.

This would immediately follow Tropical Storm Marco, which made landfall near the mouth of the Mississippi River on Aug. 24. This would be the first time in almost 100 years for two tropical storms to be headed to the Gulf Coast in such quick succession.

The potential impact of Hurricane Laura on the rice industry is expected to be far more severe than Tropical Storm Marco. While Marco brought rain to parts of Texas and halted the harvest, an exporter said that there was only a "light breeze" in south Louisiana. The rice harvest is approximately 90% complete in south Louisiana and Texas and dryers are all full, market participants said. Farmers are desperately seeking additional storage for the remaining crop ahead of Hurricane Laura, which could bring rain and flooding. A Louisiana-based exporter expects 9-12 feet of water in the silos.

The path of Hurricane Laura is still "questionable," a Mississippi-based market participant said, adding that winds could blow the storm west and avoid the Delta. However, a Louisiana-based exporter said that the storm was expected to "punch us right in the mouth tomorrow night" and that it could "go through the very heart of the US rice industry in Arkansas" by the morning of Aug. 29.

With the rice harvest only 1% complete in Arkansas as of Aug. 24, according to the United States Department of Agriculture, the exporter said "this would be the worst possible time" for Hurricane Laura to arrive. An Arkansas-based exporter said farmers would be harvesting all day for as long as possible on Aug. 25-26 ahead of the storm, which is expected to arrive on Aug. 27-28. There are concerns that high winds and rain could cause severe lodging of the rice crops.

Tropical Storm Laura was initially projected to be a Category 1 hurricane and bring 2-4 inches of rainfall and up to 40 miles an hour winds in Arkansas but is now projected to strengthen to a Category 3 hurricane, fueled by the warm waters in the Gulf of Mexico. As a result of the uncertainty about Hurricane Laura's impact, exporters were reluctant to provide firm offers on Aug. 25.


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