Rice Jumps to Record, Corn Near High as Demand Outpaces Supply

[marmar]

from Bloomberg:



Rice Jumps to Record, Corn Near High as Demand Outpaces Supply

By Glenys Sim

April 3 (Bloomberg) -- Rice climbed to a record and corn traded near its highest ever on speculation the 3 percent annual increase in global demand for cereals will outstrip supply as governments curb exports to prevent protests.

Rice, the staple food for about 3 billion people, rose 2.4 percent in Chicago trading today after doubling in the past year. Soybeans advanced for the third day and wheat gained. Crop supply has been reduced by drought in countries including Canada and Australia and a U.S. freeze followed by excessive rain last year.

``A lot of what we're seeing at the moment is not related to production, but the fact that a number of countries are implementing trade restrictions,'' said Darren Cooper, a senior economist at the International Grains Council in London.

China, India and Vietnam have cut rice exports, and Indonesia has reduced import tariffs to protect food supplies and cool inflation. Rice in Chicago climbed 42 percent in the first quarter, more than all of last year's 33 percent gain. Record grain prices contributed to strikes in Argentina, riots in Ivory Coast and a crackdown on illicit exports in Pakistan.

Rough rice for May delivery advanced to $20.26 per 100 pounds on the Chicago Board of Trade today after the United Nations' Food and Agriculture Organization said global exports will drop 3.5 percent this year as nations curb sales. It was at $20.225 as of 11:38 a.m. London time.

The World Bank estimates ``that 33 countries around the world face potential social unrest because of the acute hike in food and energy prices,'' Robert Zoellick, the bank's president, said on the organization's Web site. For these countries ``there is no margin for survival,'' he said. .............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=acnqou1542Qs&refer=home

[DFW]

1. I have to drink more stuff with caffeine in it

"Rice jumps to record"

When I first saw this, I though our esteemed Secretary of State had
participated and excelled in a track meet.

[elizfeelinggreat]

2. Me too.

lol

[mondo joe]

3. Most corn grown isn't used for human consumption as corn to begin with. NT

[BlooInBloo]

5. Yah - they're predicting higher meat prices as a result.

[dysfunctional press]

4. how about if we go back to sugar, and stop subsidizing it as well...?

i try to avoid products that contain hfcs, but it isn't easy- and sometimes impossible.

[mondo joe]

6. Or at least stop subsidizing it in a way that makes it easier for corporations to

sell shit cheaper, and instead support food production by actual farmers.

[elizfeelinggreat]

7. I'm wondering

why we aren't being encouraged to start considering alternatives before some are left desperate.

( I know most of us can't grow our own rice or wheat but we can have gardens to help ease the price hike that's coming. I remember reading some cities are providing community gardening areas, isn't this is a great incentive for more? )

[lonestarnot]

8. Cities also tearing these gardens down. They are making sure the fake shortages work.

[elizfeelinggreat]

9. ugh

And on a related note: I still can't believe it when I drive past those restaurant "rows" and see all the parking lots full. How can so many people afford to eat out so often?

[lonestarnot]

11. Maybe they are just ordering water?

:shrug: or the one meal a dayers :shrug: but on edit, I have noticed a declining population at my local eateries.

[mondo joe]

10. Seattle has a great P-Patch program - lots of growing, right in the city.

In addition to the food benefit, it's nice to have these little living growing spots in the city.

[Robbien]

12. Hedge fund speculators have gamed the system with their bets

Most of all the price increase is due to speculators making Billions off of betting the commodities. Speculation is said to have doubled and trebled the real price of foods stuffs, along with energy and precious metals.

Of course we the average Joes of the world are on the losing end of those bets.