Salt-Resistant Rice a Great Hope for Islanders; Rice Futures

Rice futures continue their climb from late March lows as an organization in the East Indies helps rice farmers inhabiting disappearing islands with a salt-resistant rice variety. Rice futures closed up .035c yesterday trading at $12.145 per cwt at the Chicago Board of Trade. Farmers in a small disappearing island community called Ghoramara are being reintroduced to one of very few salt-resistant rice varieties that will help them retain their staple food as sea levels continue to rise around their homeland. When salt water would enter the farmers’ rice fields, it would destroy the entire crop and would take three to five years until a rice paddy could be planted again. “Five years ago I gave seeds for five of the six salt-water resistant varieties of rice to the struggling farmers and instructed them to grow them for seeds. Don’t eat the rice. Save them,” said Asish Ghosh, founder of an environmental organization called ENDEV, The Society for Environment and Development in West Bengal, India, sharing his fundamental assessment of the rice futures market. Ghosh added, “Now ‘countless’ farmers in the Sundarbans are now planting salt-resistant rice.” Rice futures trend remains “up” with no top yet in sight. Rice futures appears to be climbing to the $12.50 resistance area before a significant pullback could be expected. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Rice Futures Rally Little From Lows Despite Asian Drought

Rice futures have rallied only $1.50 from its lows just six weeks ago although severe drought reportedly threatens Asian rice production in SE Asia. Rice futures are up .185 cents today currently trading at $11.40 (per cwt) at the Chicago Board of Trade. Adverse dry weather is said to be affecting the rice production from SE Asia and west to India thanks to the El Nino phenomena. Some officials say that if it weren’t for last year’s overwhelming surplus, then rice prices would be impacted much more. “Despite El Nino hurting crops for the largest exporters of rice in the world, there has been little price increase,” said Nathan Childds, an agricultural economist with the US Department of Agriculture, sharing his fundamental assessment of the rice futures market. Childs added, “Unlike other grains, rice (futures) is not traded on a global exchange, and many purchases are between governments or private parties.” The trend for rice futures has turned “up” in the latter part of last month. I would expect rice futures to at least test its late March/early April lows before much higher prices potentially could be seen, but we are all enjoying low rice prices since its record highs (of near $33.30) in 2008. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...