Thursday, March 11th, 2010

What’s so Important About Rice?

Posted on: Apr 9th, 2008 | By Charles Delvalle | Filed under Gold Market

When I was growing up, it never mattered how bad my day went or which concert I might have missed, because there would always be rice, beans, and meat on the table every night.

As a member of a Puerto Rican household, rice was a staple food (as were beans and meat). And according to Bloomberg, rice is a staple for 50% of the world. But the world’s love for rice is introducing yet another bullish scenario for the agriculture bull-run.

Thanks to soaring demand from Asia, the price of rice has rocketed five times higher over the past five years. And things are now set to get worse.

You see, nations are starting to cease exporting rice as stock piles shrink. And to them, they have to do this to try and stop prices from going any higher and causing domestic upheaval. The thing is, it hasn’t been working.

In just the past year, the price of rice has doubled. And as nations continue to hold back exports, other nations will continue to flood the markets with buy orders in an attempt to secure rice at any price.

You can expect to see this for the next few years. And it definitely helps the case for a bull run in agriculture. The perfect way to play such a run would be to buy the DBA Proshares Agriculture ETF (DBA), which lets you make money as the agriculture bull-run charges ahead.

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Charles DelvalleCharles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options. Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".

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Abundance is your guide to surviving and prospering in the coming 21st century depression. Learn the secrets of wealth protection and "emergency investing" from fiancial crisis guru James Dale Davidson.

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