Saturday 10 May 2008

Rice/Wheat Surplus Coming Soon

According to Reuters "U.S. sees record world food crops easing crisis", the current rice/wheat crisis is expected to come to an end in a few months. The US Agriculture Department (USDA) said good weather this year will provide bountiful harvests. For the period 2008/2009, rice output is expected to increase to 432 million metric tonnes, up by 5 million metric tonnes from the previous period.

The current food shortage caused major increase in food prices, particularly in rice over here at Asia. Malaysia had just bought 500,000 metric tonnes of rice from Thailand. Many people that I have talked to have mentioned that controlled rice (here in Malaysia, prices of certain grades of rice is controlled by the government so traders would not be able to increase prices as they wish) have sold out in major hypermarkets, supermarkets and sundry shops.

With this announcement by the USDA, we consumers should be able to relax a little.

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