Thursday, April 24, 2008

Rice hits $25 for the first time

Rice prices in Chicago rose above US$25 per 100 pounds for the first time on speculation more countries may introduce export curbs, reducing supplies needed to combat shortages and cool inflation.- Jae Hur, Bloomberg
The Thai government triggered the recent run on rice by limiting it's export to stock pile it's reserves at home, amid concerns of global shortages and rising prices that can lead to civil unrest. Japan and other countries are following suit.

Rice is the #1 food staple across all of asia, north and south. This combined with rising corn and other comodity prices (largely due to the demand for bio-fuels) are signalling that food security is becoming a high priority world wide issue.

Costco Japan has annouced that it will now limit customers to a 4 bag purchase maximum on Rice which is sure to create a run on the rice by increasing the perception of a coming shortage. Keep you eyes on this one guys and gals. Sure to be an exciting month.