Thursday, April 3, 2008

Rice Hikes To Record Price

by Rohan Parker

Due to Asian governments restricting how much rice and corn is exported in an effort to ensure enough for the domestic market, international speculation has arisen which points to global demand being higher than supply in the months ahead. Subsequently, the price of rice is up to a record high and corn is almost breaking its former high.

Recent unusual weather has raised warnings for many about the global wheat stockpile, which haven’t been so low in 26 years, becoming even lower if this years harvest isn’t a good one. This has led to investors buying up wheat and agricultural commodities, and soybeans are also rising steadily as a result of this.

A strategist from Interes Capital Management, Kazuhiko Saito, has said that their is a view to gain a very sound base for corn at the moment, and when combined with the likelihood of the U.S. planting late, there is many head butting over buying corn.

Concerns over the prices of foodstuffs and fuel are igniting inflation rates which has forced countries with growing economies, like China and India, to look at building localised food supplies to avoid social stress. Prices for grain have reach worldwide highs, with corn and soybeans reaching new records, and rice doubling in price in the last year.

The Chicago Food and Agriculture Organization has said that they are expecting the world export of food to drop by 3.5% this year, a figure which is contributing to rough rice rising to $20.26 for 100 pounds in May, doubling its price from a year ago.

A senior economist from the Food and Agriculture Organization, Concepcion Calpe, said that demand being higher than supply, and the continued rises in prices, are going to leave the international rice market in a difficult situation.

 

 

 

Stories related to: Rice Hikes To Record Price

 

 

Visited 532 times, 1 so far today