Rice Prices Hit All-Time High
Posted on: Mar 28th, 2008 | By Contrarian Profits | Filed under Featured, Financial News, Gold Market
The latest crop to make headlines for sky-high prices is rice, raising fears of social unrest across Asia.
Yesterday, rice prices soared 30% after Egypt banned exports of the staple to keep domestic prices down. India has also restricted exports of rice.
Global rice stocks are at their lowest since 1976.
Tom Dyson, editor of the 12% Letter, says grain prices will triple.
“Grain markets are a little frothy right now, but the long-term argument is solid. If you’d like to invest in grains, PowerShares has a sugar, corn, soybean, and wheat ETF (DBA). In October, iPath created JJA, traded on the NYSE. It tracks corn, wheat, soybeans, sugar, coffee, cotton, and soybean oil. Elements has come out with an instrument that tracks the 20 commodities in the Rogers International Commodities Index (RJA). Finally, market Vectors has an ETF of agribusiness stocks (MOO).”