What’s so Important About Rice?
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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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Tags: , agriculture, Asia, Bull Run, Dba, etf, food crisis, peak food, price of rice, resources, Stock PilesAbout the Author
Charles Delvalle is a self-taught market-timing professional and value analyst who uses a combination of technical indicators and fundamental research to achieve consistent gains on stocks, commodities and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering great companies on the cheap. He questions government reports and the status quo. In addition to swing trading options, Charles is also Co-Editor of the monthly advisory service - INCOME.
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