Rice famine on the horizon.

http://www.bloomberg.com/apps/news?pid=20601087&sid=abXcOZzew7GI&refer=home

Rice, the worlds staple, is now going through a hoarding phase in the market. The fear of a short supply in the world market has countries as well as individuals scrambling.

If Thai land curbs its sales of rice we could see price double again. It is unfortunate that this hoarding actually does cause the market to react with high prices which knock out some countries like Bangladesh from the purchasing market. This is what will turn the "starvation curve" around and put more at risk-below poverty line families closer to starvation. This is the same pattern seen in previous rice famines........

Grains and Food around the world

Thailand and India (the number 1 and 2 rice exporters in the world) have banned most rice exports

China and Vietnam have implemented food export controls

Rice prices have soared by up to 70% in world markets

Philippines must now import rice to feed its growing population

The Wall Street Journal recently reported the worst case of food inflation in the US in 17 years

There have been food riots in Mexico City, food strikes in Italy, and violent protests in many areas of Africa, South America, and Haiti

UN representatives are encouraging the EU to relax their opposition to genetically modified foods

Millions of people in the emerging middle class of China and other Asian nations are demanding more meat in their diets, as they associate meat-eating with prosperity

Grains are experiencing record demand for use as animal feedstock

In the United States this year, nearly a third of the corn output will be used to make an estimated 9.3 billion gallons of ethanol (a lower priced oil alternative)