Super Typhoon Ragasa Threatens Northern Luzon as Region Braces for Severe Impact

Super Typhoon Ragasa is bearing down on northern Luzon in the Philippines, bringing destructive winds, heavy rain, and storm surges. Authorities have ordered mass evacuations, suspended flights and ferries, and mobilized disaster teams as the storm threatens lives and livelihoods. For markets, the potential hit to agricultural output is drawing attention, with rice (Zorrox: RICE-SEP25) and corn (Zorrox: CORN-SEP25) already flagged as vulnerable.

Strength, Path, and Immediate Threats

Ragasa is packing sustained winds of about 215 kilometers per hour with gusts up to 295 km/h as it brushes the Babuyan Islands and heads toward northern Luzon. Coastal communities face risks of storm surges exceeding three meters, particularly in Cagayan, Batanes, Ilocos Norte, and Ilocos Sur. Torrential rain threatens to trigger flooding and landslides.

The government has suspended work and classes across much of Luzon, including Metro Manila. Ferry services and domestic flights are canceled, with power outages reported in Calayan Island and Apayao. Weather agencies urged residents to avoid coastal and riverbank areas.

Disruption and Evacuations

More than 8,000 people have been evacuated in Cagayan alone, with over 1,200 housed in emergency shelters. The Babuyan Islands remain under high storm alerts. Dozens of domestic flights are grounded, ferry operations halted, and sea travel suspended.

Secondary hazards are a growing concern. Landslides pose risks in mountainous or deforested areas saturated by rainfall. Rivers may overflow, while key roads are likely to be blocked by floods or debris.

Economic and Market Impacts

Agricultural producers in northern Philippines face heavy losses, particularly in rice and corn. Damage to harvests or shipment delays could tighten supply and spark food price volatility. The fishing industry, port operations, and coastal trade are also exposed.

Energy infrastructure may suffer outages, driving up power restoration costs. Insurance claims are expected to spike, especially in coastal real estate and shipping assets exposed to storm surges. Tourism is also hit, with flights canceled, ferry routes shut, and widespread travel disruption weighing on hospitality revenues.

Regional Ripple Effects

Taiwan is bracing for torrential rain in its eastern and southern counties, with evacuations already under way. Southern China, especially Guangdong, has launched flood-control measures. Hong Kong and Macau remain on alert, with concerns about transport delays and supply chain disruptions if Ragasa’s remnants linger.

Tips for Traders

• Rice (Zorrox: RICE-SEP25) could see price spikes if crop damage in Luzon worsens.

• Corn (Zorrox: CORN-SEP25) may tighten if transport blockages delay exports.

• Watch shipping data from Philippine ports for signs of wider trade disruption.

• Look for reconstruction contracts that could benefit regional construction and utility firms.

• Insurance stocks with Asian coastal exposure may face fresh claim pressure.

• Peso sentiment could soften as storm recovery costs weigh on local finances.