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Rice Two Cents Away From "Limit Up" For Second Day In A Row, At Highest Price In Over A Year

Tyler Durden's picture




 

After for most of the day, grains traders were pretending they have no interest in gobbling up every available pound of rice, the end of trading was like an Ebay auction where everybody submitted their bid in the last possible instant, sending rice from $15.60 to $15.99 in seconds. And since Rice previously closed at $15.51, we were literally two cents away from a second limit up day in the world's most popular food. Since we speculated that rice is the next commodity bubble on Monday morning, the grain has surged nearly 7%. Incidentally, this is the highest price for rice in the last twelve month period. Lastly, if Hoenig is indeed telegraphing QE3 as we suspect, look for rice to double six months from now. It is now only a matter of time before some momo chasing idiot on CNBC "discovers" what a great investment rice is, and the thing trades limit up for the indefinite future.

 

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Tue, 02/01/2011 - 17:26 | 925174 Gubbmint Cheese
Gubbmint Cheese's picture

I'm long Uncle Ben's

Tue, 02/01/2011 - 17:33 | 925203 hedgeless_horseman
hedgeless_horseman's picture

Hmmmm.  Uncle Ben's.  Ben The Bernank.  Coincidence?

Tue, 02/01/2011 - 17:39 | 925220 Dr. Richard Head
Dr. Richard Head's picture

If history repeats then I would anticipate price controls on rice in China and a consumate shortage to seal the deal.  Wonder how China will cope?  Wonder how SNAP users will be able to compensate for the lose in the purchasing power of their virtual currency.

I'm going long surburbian hookers.

Tue, 02/01/2011 - 17:46 | 925260 DoChenRollingBearing
DoChenRollingBearing's picture

I'm long DBA (food ETF), closed up again today.

Dr. Dick, I would think that you would want to avoid diseases w/ hookers...

Tue, 02/01/2011 - 17:50 | 925274 Dr. Richard Head
Dr. Richard Head's picture

Oh these won't be just any hookers.  These will be the new class of hookers from the suburban jungle baby.  One's just trying to pay the bills during the ensuing turmoil.  Besides, I am doctor and can cure all ailments.  Bernanke Bucks can cure everything.  Just apply liberally.

Tue, 02/01/2011 - 17:52 | 925284 Cheesy Bastard
Cheesy Bastard's picture

+100%

Tue, 02/01/2011 - 20:35 | 925652 Mark McGoldrick
Mark McGoldrick's picture

Can someone explain this chart to me:

http://finviz.com/futures_charts.ashx?t=ZR&p=w1

Seems to me that quantitative easing has nothing to do with it.

Peak Rice?   

Tue, 02/01/2011 - 17:55 | 925292 EscapeKey
EscapeKey's picture

Be careful with that lot - they're used to screwing their husbands for all their worth.

Tue, 02/01/2011 - 17:57 | 925305 Dr. Richard Head
Dr. Richard Head's picture

Apparently you missed the whole hooker thing.  I would be looking to get screwed.  HAHA.

All hail the dollar.  All hail the dollar. 

Tue, 02/01/2011 - 18:03 | 925328 EscapeKey
EscapeKey's picture

Nah it was a play on words; screw, as in the unpleasant way in divorce court. Ah well, jokes are so much funnier when you have to explain them.

All hail the strong Dollar, and low inflation policies, and the masters making them possible.

Tue, 02/01/2011 - 18:14 | 925365 Cheesy Bastard
Cheesy Bastard's picture

Yeah, but then they blow it.

Tue, 02/01/2011 - 18:24 | 925414 Turd Ferguson
Turd Ferguson's picture

A new "movie" for the enjoyment of everyone:

http://www.youtube.com/watch?v=RBGqtOKmWHo

Tue, 02/01/2011 - 19:14 | 925591 DoChenRollingBearing
DoChenRollingBearing's picture

EXCELLENT Turd Ferguson!  

We LAUGH upon you despicable shorts, after we puke on you...

Tue, 02/01/2011 - 17:54 | 925289 Sudden Debt
Sudden Debt's picture

I THINK YOU JUST UNCOVERED THE BIGGEST CONSPIRACY IN THE DECADE!

http://images9.cpcache.com/product/politics+-+government-

 

Tue, 02/01/2011 - 18:48 | 925491 whatz that smell
whatz that smell's picture
The webpage cannot be found  HTTP 404   Most likely causes:
  • There might be a typing error in the address.
  • If you clicked on a link, it may be out of date.
  What you can try:   Retype the address.   Go back to the previous page.   Go to  and look for the information you want.   More information

dead link, spunkmeyer.

conspiracy 404, bitchez.

Tue, 02/01/2011 - 19:04 | 925560 EscapeKey
EscapeKey's picture

OMG IT WAS TAKEN DOWN

Tue, 02/01/2011 - 21:59 | 925844 slewie the pi-rat
slewie the pi-rat's picture

 

vietnam:  rice & all RE transacted in gold.

those commies really screwed THAT place up!

but, maybe we can do better if all the good poker players decide to go back home.

hmmm...do ya think the chinese would be stupid enuf to BUY these bull rallies when they kinda m/l control the best rice bowl on the planet?

OMfreakinG!!!  i'm typing this and there's an ad for CRAMER on the L side of the box!!!

tyler:  can you give him horns?  pullleeeeease???

i went to edit, and there he is on the right,  just begging for a dunce cap!

 

Tue, 02/01/2011 - 17:28 | 925175 Michael
Michael's picture

I found this amusing story on the web. Pass it around to other financial blogs if you like it.

How an Unemployed Machinist Pulled a Nathan Rothschild on Rothschild's Bank.
By,
Anonymous: A True Story

The sorted details begin when all hope was lost with the election of Barack H. Obama. The 2008 Presidential election failed to yield a candidate with the knowledge and will to fix the severe transgressions of the USA and our monetary system. On September 16, 2008, failures of large financial institutions in the United States, due to exposure of securities of packaged subprime to prime loans and credit default swaps issued to insure these loans and their issuers, rapidly devolved into a global crisis resulting in a number of bank failures in Europe and sharp reductions in the value of equities (stock) and commodities worldwide. The failure of banks in Iceland resulted in a devaluation of the Icelandic Krona and threatened the government with bankruptcy. Iceland decided to give the middle finger to the IMF and go it alone. They are now well on their way to a real robust recovery. In the United States, 15 banks failed in 2008, while several others were rescued through government intervention or acquisitions by other banks. On October 11, 2008, the head of the International Monetary Fund (IMF) warned that the world financial system was teetering on the "brink of systemic meltdown". Henry Paulson, head of the US Treasury threatened "martial law" if the Federal Government did not aqueous to his blackmail. What followed was privatizing the profits of banks and socializing their loses on the backs of the American tax payers to the tune of trillions of dollars. This was all the motivation I needed to do something really smart on my part.

Unemployed two years at the time living in my mothers basement, I had an 810 point credit score, $250,000 in available credit, zero debt, and a nest egg of $20,000 in the bank. Knowing I would never be able to secure meaningful employment with the way things were going, I could not accept I would be living in my mothers basement for the rest of my life. The banks began pulling my available credit at a rapid pace. My available credit dropped to $50k within the year 2009. I had credit card checks at 0% on the reaming cards when I made my move, maxing out all available unsecured credit in cash advances. Being an armature economist for 35 years and knowing the devastation of the housing market in Florida, I began shopping for a home of my own. After negotiating the original selling price from $100k to $33k, the home I purchased near the end of 2009 was a foreclosure built in 2005 and first purchased for $311k on March 3rd of the following year, incidentally the same exact day I lost my job back then.

It's a really nice home with 1900sf under air 2750sf total, 3 bedroom, two bath, with a man cave, a 2 car garage, and good size lanai. Turned out the home was a hydroponics grow house with minimal damage originally thought to be a Chinese drywall house. I really wanted to fly down Walstreetpro2 and have him smash up the drywall for me making a documentary of it called "The Chinese Drywall Syndrome", but those plans changed when I discovered after forensic analysis what the house really was and no need to go postal on that Chinese drywall shit. The well water system pumped directly into the house used in the grow operation had released moisture and sulfer making it appear as having Chines drywall.  No one ever lived in the house and was empty for two years prior to my purchase. Perhaps the man upstairs was smiling down upon me at the time, thus my good fortune.

That hopey changey thing the President promised me was a complete failure, but I learned well from the likes of JP Morgan, Goldman Sachs, and the rest of the International Banking Cartel bandits on how thy do the thing. The kicker is, I paid cash for the place and took advantage of the cash for house clunkers rebate bringing my opportunity cost down to $29,000. My monthly expenses with the Florida homestead exemption gives me $1,000 in property taxes and about $300 in monthly utility bills. Lowering my overhead costs at a time like this was of paramount importance to me given my continued unemployment and economic collapse to come. I feel no remorse for my financial shenanigans playing the system like a fiddle as I was taught by them how to do it. I stopped making the payments on the credit cards last March when my money ran out. So far the notices for payment have been few and far between. Perhaps that is because they know I will immediately file for bankruptcy if they get out of line.  One more thing; It is virtually impossible for the bank to take the house in bankruptcy court in Florida on a homestead that is 100% paid off. Non-collateralized debt is unsecured debt. What is it about unsecured debt that some people don't get? By the way, it's 75*F in South Florida today. Have a nice day.

The moral of the story;
There is no moral hazard anymore, all is fair in love and banking.

Tue, 02/01/2011 - 17:59 | 925313 william the bastard
william the bastard's picture

That story (with the dozen or more grammatical errors included) is dumber than a bag of boots.

Tue, 02/01/2011 - 18:11 | 925354 tmosley
tmosley's picture

"Hurr hurr, UR dum."

Nice analysis there, shit for brains.

Tue, 02/01/2011 - 18:44 | 925440 Michael
Michael's picture

Yeah, who is dumber than a box of rocks now Bastard?

I ran that essay through an online paper grader.  It had no more then 2 grammatical errors. and 1 misused word.

Grade: 83* -> B
*based on college grading scale

http://www.paperrater.com/free_paper_grader

Tue, 02/01/2011 - 18:31 | 925444 whatz that smell
whatz that smell's picture

if you break the chain the chain will break you.

Tue, 02/01/2011 - 18:38 | 925464 MachoMan
MachoMan's picture

The problem with this approach is that although you get a free house out of the gig, you'll have a ceiling on the amount of money you can accumulate...  now, practically speaking, he may be able to simply settle the debt for pennies on the dollar without filing for bk...  of course, gotta watch out for the tax man on the difference...

unless of course, you're willing to lie under oath...

Tue, 02/01/2011 - 18:43 | 925403 Michael
Michael's picture

Deleted

Tue, 02/01/2011 - 18:04 | 925331 impending doom
impending doom's picture

When you put "the sorted details" in the 1st sentence, it kinda ruins it for me...

Tue, 02/01/2011 - 17:27 | 925179 gorillaonyourback
gorillaonyourback's picture

hamy says fuck the mass starvation agro stocks goin through the roof

Tue, 02/01/2011 - 17:28 | 925184 John McCloy
John McCloy's picture

Lord Bernanke: " Let them eat Snookis"

Tue, 02/01/2011 - 18:00 | 925315 william the bastard
william the bastard's picture

I'll take mine with pepper spray.

Tue, 02/01/2011 - 17:28 | 925185 kaiten
kaiten's picture

Deflation? o)

Tue, 02/01/2011 - 17:29 | 925188 Ragnarok
Ragnarok's picture

Tyler, clearly you are not factoring the wealth effect Bernanke is causing Mud Hut prices. 

Tue, 02/01/2011 - 17:34 | 925205 John Law Lives
John Law Lives's picture

Is The Ben Bernank a psychopath?

Tue, 02/01/2011 - 17:36 | 925214 SheepDog-One
SheepDog-One's picture

The crazier our 'leaders' act every day, the worse the underlying disaster theyre desperately trying to hide.

Tue, 02/01/2011 - 17:41 | 925233 John Law Lives
John Law Lives's picture

~$2.7 Trillion in federal deficit spending (cumulative) from FY2009 - FY 2010...

~$1.5 Trillion in federal deficit spending (projected) for FY2011...

The Fed has jacked up M2 Money supply like crazy...

http://research.stlouisfed.org/fred2/series/M2

This is obscene policy.

Tue, 02/01/2011 - 17:52 | 925207 plocequ1
plocequ1's picture

Fried rice indicator.. No change. Its all good. Still $3.00/ Pint. Im sorry to say though that Won Hung Lo and Suc Mi Pork went up in price

Tue, 02/01/2011 - 17:35 | 925210 ZippyBananaPants
ZippyBananaPants's picture

Hey, is Idol on tonight?

Tue, 02/01/2011 - 17:44 | 925247 Dr. Richard Head
Dr. Richard Head's picture

It is called American IDLE for Bernanke's sake.

Tue, 02/01/2011 - 17:36 | 925213 HarryWanger
HarryWanger's picture

Rice is still 33% lower than it was in 2008. I don't recall "food riots" in China or anywhere else for that matter when it was substantially higher. 

Tue, 02/01/2011 - 17:39 | 925216 SheepDog-One
SheepDog-One's picture

2008....AH YES and a great year it was indeed! I remember 'the good times' well...Collapsing equities, housing total meltdown, threats of martial law from stuttering Paulson unless he gets a free unlimited checkbook, and $150 oil, you freaking dumbass.

Tue, 02/01/2011 - 17:50 | 925273 oklaboy
oklaboy's picture

nice, very nice

Tue, 02/01/2011 - 17:41 | 925231 hedgeless_horseman
hedgeless_horseman's picture

Oil, too.

Tue, 02/01/2011 - 17:41 | 925234 Tyler Durden
Tyler Durden's picture

Where was wheat in 2008 when Tunisia did not depose its president?

Tue, 02/01/2011 - 18:36 | 925458 whatz that smell
Tue, 02/01/2011 - 18:51 | 925525 redarrow
redarrow's picture

IMHO we are close, the next round of QE will do the Fed in.

Tue, 02/01/2011 - 17:42 | 925240 faustian bargain
faustian bargain's picture

Ah, there's the solution then. Raise prices on rice, to stop the food riots. We're going in the right direction after all!

It's a good thing there's no unemployment problem.

Tue, 02/01/2011 - 18:03 | 925329 SPONGE
SPONGE's picture

Dangit! Wish there was a rice ETF. This was a no-brainer trade late last week.

Tue, 02/01/2011 - 17:43 | 925242 EscapeKey
EscapeKey's picture

http://en.wikipedia.org/wiki/2008_global_rice_shortage

Traditionally dependent upon rice as their main staple food, Asian nations such as IndiaChinaBangladeshPhilippines and Thailand were the first to "feel the pinch" of rising prices.Japan, which produces enough rice for its domestic needs, maintained a constant pricing and no consumer concern.[6]

Deadly riots over the rising price of food erupted in Haiti on April 4, 2008

http://en.wikipedia.org/wiki/2007%E2%80%932008_world_food_price_crisis

The price rises affected parts of Asia and Africa particularly severely with Burkina Faso,[93] CameroonSenegalMauritaniaCôte d'Ivoire,[94] Egypt[95] and Morocco seeing protests and riots in late 2007 and early 2008 over the unavailability of basic food staples


Tue, 02/01/2011 - 17:51 | 925279 oklaboy
oklaboy's picture

eascape, very well done, ht

Tue, 02/01/2011 - 17:43 | 925245 John Law Lives
John Law Lives's picture

Escalating food prices have been cited as one of several primary reasons for the demonstrations in Egypt.

Tue, 02/01/2011 - 17:44 | 925251 earnyermoney
earnyermoney's picture

Because Ben B. was not in the regime change business. That is the point of QE4Eva. Of course, you are witnessing some of the unintended consequences of these Ivy League meatheads.

Tue, 02/01/2011 - 17:49 | 925267 P Rankmug
P Rankmug's picture

Harry is now satirizing Hamy satirizing Harry.  It's getting confusing.  Pretty soon we'll need a scorecard.

Tue, 02/01/2011 - 18:13 | 925361 tmosley
tmosley's picture

So?  There weren't revolutions In the Middle East last time either.  They happened this time.

You are the DEFINITION of normalcy bias.  Enjoy your permabear experiment.

Tue, 02/01/2011 - 17:43 | 925238 Boilermaker
Boilermaker's picture

The Swiss Spaghetti harvest is OK.  So, if rice is unaffordable, there is always the option for a good and hearty plate of the 'sketti!

http://www.youtube.com/watch?v=OMNO2Kcvz2k&feature=related

Tue, 02/01/2011 - 17:46 | 925263 SheepDog-One
SheepDog-One's picture

Spaghetti farmin, bitchez.

Tue, 02/01/2011 - 17:42 | 925239 fedspeak
fedspeak's picture

http://chart.ly/7hu77os   Futures charts showing absolutely NO inflation ..hmmmm must be the wrong set of charts.  Give me those U.S. Gov't charts to look at..

Actually, not only rice...every other soft commodity is trading at fresh new contract hgihs.  I am sure glad that the U.S. Government is keeping an eye out for us by telling us that inflation is not a problem.  What happened to that ' shooting inflation before we "sees the whites of its eyes" speech by Alan Greenspan??

Tue, 02/01/2011 - 18:05 | 925337 EscapeKey
EscapeKey's picture

They don't want the sheeple to know. Only insiders are supposed to orderly find their way out.

Tue, 02/01/2011 - 17:44 | 925252 drink or die
drink or die's picture

If this keeps up I'll have to switch over to hemp paper when rolling my own cigarettes.

Tue, 02/01/2011 - 17:45 | 925253 hugovanderbubble
hugovanderbubble's picture

No more food into CUBA....

No more Frijoles Negros, Arroz con Pollo y pLátano...

Castro please resign¡¡¡¡¡¡¡

Tue, 02/01/2011 - 17:45 | 925255 t0mmyBerg
t0mmyBerg's picture

This started when Jim Rogers WAS on CNBC or it may have been Bloomberg the other day saying he would buy rice.  It was forming quite a nice wedge right before that and has now broken out the top side.  Have had orders in at 1435 basis March for days but it isnt coming back down there just yet.  So at this point 1500 basis May is the hope.

Tue, 02/01/2011 - 17:45 | 925256 cbtrice
cbtrice's picture

Limits today were 75 cent per hundred weight while the market was up nearly 50 cents in the h/k/n. There was active fund buying going into and through the close. There was also some h/k spreading for position rolling, when they roll months they often buy more on the close. mpw

Tue, 02/01/2011 - 17:45 | 925259 Caviar Emptor
Caviar Emptor's picture

Don't worry! We'll just engineer a few coups d'etat and put in pro-US puppets to sweep out the new democratic Islamist regimes. Just like Chile in 1973! We had such fun in those days

Tue, 02/01/2011 - 17:46 | 925261 DonutBoy
DonutBoy's picture

Don't confuse short-term volatility with inflation.  There is no inflation.  GDP is rising. Housing has bottomed out. Quantitative easing is not printing money.  Unemployment is under 10%.  43 million people on food stamps is an anomaly, they'll be OK once their banks offer them new HELOCs.  Look at the stock market for Christ's sake.  Check out one of these fine GM cars.

Tue, 02/01/2011 - 23:52 | 926238 Milestones
Milestones's picture

Hell, ya sold me--I'll take 3 ah each!!! Good laugh.      Milestones

Tue, 02/01/2011 - 17:48 | 925264 hugovanderbubble
hugovanderbubble's picture

Long Nickel.....Till my hand hurts¡

Short  Diamonds¡

Tue, 02/01/2011 - 19:18 | 925607 DoChenRollingBearing
DoChenRollingBearing's picture

Long nickels (worth $0.068 in metal value)!

coinflation.com

Wed, 02/02/2011 - 11:26 | 927303 TheMerryPrankster
TheMerryPrankster's picture

Pre 1983 pennies are a much better investment - metal content value makes a penny worth2.98 cents - so 5 pennies are worth nearly 15 cents versus a nickel worth 7 cents.

Tue, 02/01/2011 - 17:49 | 925270 oklaboy
oklaboy's picture

nice, very nice

Tue, 02/01/2011 - 17:51 | 925280 What a mess_man
What a mess_man's picture

Might need to make room in the garden for rice this year... wait, rice???

Tue, 02/01/2011 - 17:53 | 925287 Josh Randall
Josh Randall's picture

When will Rice dip so I can buy some ?

Tue, 02/01/2011 - 18:33 | 925450 VisualCSharp
VisualCSharp's picture

Or maybe, when can you buy some rice dip?

Tue, 02/01/2011 - 17:57 | 925302 Sudden Debt
Sudden Debt's picture

There where food riots in Egypt in 2008 and in 2009 the goverment of Yemen also got sacked because of the food prices. Idia had turmolts and in China there where riots in the north in 2008 and in Venezuela there where also riots. The more I think about it, there where a lot of riots to in 2007, 2006...

 

Tue, 02/01/2011 - 17:57 | 925304 chet
chet's picture

I'm following all these inflation stories, and I get why they are noteworthy, but it seems like most of them have a line like this:

"Incidentally, this is the highest price for rice in the last twelve month period."

This doesn't seem that breathtaking to me.  "Highest since before the recession" seems a good benchmark.  Or "highest since 2000". 

But "highest since.... 2010"?  Doesn't seem earthshattering to me.

Tell me why I'm wrong.

 

Tue, 02/01/2011 - 18:15 | 925369 impending doom
impending doom's picture

I don't know that you are wrong, but i'd guess that many of us come here in order to front-run the various markets. So, an insignificant happenstance to one is a coalmine canary to another.

Tue, 02/01/2011 - 18:50 | 925504 MachoMan
MachoMan's picture

Because the ancillary conditions that otherwise mitigated the effect of higher prices have changed, e.g. political structures....  credit...  less cumulative dollar printing...  etc.  In other words, our ability to tolerate price increases has diminished.

Wed, 02/02/2011 - 11:33 | 927329 TheMerryPrankster
TheMerryPrankster's picture

Prices represent a trend - underlying conditions can amplify or mitigate that trend. Rice production by U.S. farmers appears to be 33% less this year. This will decrease supplies and help  to increase prices.

Sugar is up and the Australia farming district of Queensland is getting hit with a cat 5 typhoon -Australia is the 3rd largest producer of sugar, guess which way sugar futures will move?

Trends and context, together they are knowledge, separately they are merely data.

 

Tue, 02/01/2011 - 17:58 | 925310 Caviar Emptor
Caviar Emptor's picture

I smell rice revolutions to add to Islamic revolutions. 

Tue, 02/01/2011 - 18:04 | 925321 Sudden Debt
Sudden Debt's picture

Here's a overview of the 2008 food shortage:

 

Relationship with 2008 Chinese milk scandal

As grain prices increased, China's large number small-holding milk farmers, as well as producers of feed for cattle, were unable to exist economically. As a result, they turned to putting additives into the feed and milk, including melamine, in order to boost the measured level of protein. Hundreds of thousands of children became ill, China's milk exports virtually ended, executives and officials were arrested and some executed, and companies went bankrupt.[92]

Unrest and government actions in individual countries and regions

The price rises affected parts of Asia and Africa particularly severely with Burkina Faso,[93] Cameroon, Senegal, Mauritania, Côte d'Ivoire,[94] Egypt[95] and Morocco seeing protests and riots in late 2007 and early 2008 over the unavailability of basic food staples. Other countries that have seen food riots or are facing related unrest are: Mexico, Bolivia, Yemen, Uzbekistan, Bangladesh,[96] Pakistan,[97] Sri Lanka,[98] and South Africa.[99]

Bangladesh

10,000 workers rioted close to the Bangladeshi capital Dhaka, smashing cars and buses and vandalising factories in anger at high food prices and low wages. Dozens of people, including at least 20 police officials, were injured in the violence. Ironically, the country achieved food self-sufficiency in 2002, but food prices increased drastically due to the reliance of agriculture on oil and fossil fuels.[100]

Economists estimate 30 million of the country's 150 million people could go hungry.[101]

Brazil

In April 2008, the Brazilian government announced a temporary ban on the export of rice. The ban is intended to protect domestic consumers.[102][103]

[edit] Burkina Faso

One of the earlier food riots took place in Burkina Faso, on February 22, when rioting broke out in the country's second and third largest cities over soaring food prices (up to a 65 percent increase), sparing the capital, Ouagadougou, where soldiers were mobilized throughout strategic points. The government promised to lower taxes on food and to release food stocks. Over 100 people were arrested in one of the towns.[104] Related policy actions of the Burkinabe government included:

  • The removal of customs duty on rice, salt, dairy-based products and baby foods
  • The removal of value added tax on durum wheat, baby foods, soap and edible oils
  • Establishing negotiated prices with wholesalers for sugar, oil and rice
  • Releasing food stocks
  • Strengthening of community grain banks
  • Food distribution in-kind
  • Reduction of electricity cost, partial payment of utility bills for the poor
  • Enacting special programs for schools and hospitals
  • Fertilizer distribution and production support.

A ban was also imposed on exportation of cereals.[105]

Cameroon Main article: 2008 Cameroonian anti-government protests

Cameroon, the world's fourth largest cocoa producer, saw large scale rioting in late February 2008, in protest against inflating food and fuel prices, as well as the attempt by President Paul Biya to extend his 25-year rule. At least seven people were killed in the worst unrest seen in the country in over fifteen years.[106] This figure was later increased to 24.[85] Part of the government response to the protests was a reduction in import taxes on foods including rice, flour, and fish. The government reached an agreement with retailers by which prices would be lowered in exchange for the reduced import taxes. As of late April 2008, however, reports suggested that prices had not eased and in some cases had even increased.[107]

On April 24, 2008, the government of Cameroon announced a two-year emergency program designed to double Cameroon's food production and achieve food self-sufficiency.[108]

Côte d'Ivoire

On March 31, Côte d'Ivoire's capital Abidjan saw police use tear gas and a dozen protesters injured following food riots that gripped the city. The riots followed dramatic hikes in the price of food and fuel, with the price of beef rising from US$1.68 to $2.16 per kilogram, and the price of gasoline rising from $1.44 to $2.04 per liter, in only three days.[109]

[edit] Egypt

In Egypt, a boy was killed from a gunshot to the head after Egyptian police intervened in violent demonstrations over rising food prices that gripped the industrial city of Mahalla on April 8. Large swathes of the population have been hit as food prices, and particularly the price of bread, have doubled over the last several months as a result of producers exploiting a shortage that has existed since 2006.[110][111]

[edit] Ethiopia This section requires expansion.

Drought and the food price crisis threatened thousands in Ethiopia.[112]

Haiti

On April 12, 2008, the Haitian Senate voted to dismiss Prime Minister Jacques-Édouard Alexis after violent food riots hit the country.[113] The food riots caused the death of 5 people.[85] Prices for food items such as rice, beans, fruit and condensed milk have gone up 50 percent in Haiti since late 2007 while the price of fuel has tripled in only two months.[114] Riots broke out in April due to the high prices, and the government had been attempting to restore order by subsidizing a 15 percent reduction in the price of rice.[115] As of February 2010, post-earthquake Port-au-Prince is almost entirely reliant on foreign food aid, some of which ends up in the black markets.[116]

[edit] India

Food riots were reported in the Indian state of West Bengal in 2007 over shortages of food. India has banned the export of rice except for Basmati types of rice, which attract a premium price.[117]

[edit] Indonesia

Street protests over the price of food took place in Indonesia[118] where food staples and gasoline have nearly doubled in price since January 2008.[119]

[edit] Latin America

In April 2008, the Latin American members of the United Nations' Food and Agriculture Organization (FAO) met in Brasília to confront the issues of high food prices, scarcities and violence that affect the region. [120]

[edit] Mexico

The President of Mexico, Felipe Calderón, with industry representatives and members of the Confederation of Industrial Chambers (Concamin), agreed to freeze prices of more than 150 consumer staples, such as coffee, sardines, tuna, oil, soup or tea, among others, until the end of December 2008. The measure was carried out in an attempt to control inflation, which stood at an annual rate of 4.95%, the highest increase since December 2004.

Mexican baking company Grupo Bimbo, agreed to maintain stable prices of their products, despite of the 20% raise of the production costs.[121] Daniel Servitje, CEO of this company, announced in the 19th Plenary Meeting of the Mexico–China Business Committee. Bimbo is one of the most important baking companies worldwide, with the recent expansion to China. Bimbo also recently has acquired five bakeries in the United States and Canada.[122] Servitje also said that their investment plans of this year will be done, but the long term projects, can be changed.

[edit] Mozambique

In mid February, rioting that started in the Mozambican rural town of Chokwe and then spread to the capital, Maputo, has resulted in at least four deaths. The riots were reported in the media to have been, at least in part, over food prices and were termed "food riots." A biofuel advocacy publication, however, claimed that these were, in fact, "fuel riots", limited to the rise in the cost of diesel, and argued that the "food riot" characterization worked to fan "anti-biofuels sentiment."[123]

[edit] Pakistan

The Pakistan Army has been deployed to avoid the seizure of food from fields and warehouses. This hasn't stopped the food prices from increasing. The new government has been blamed for not managing the countries food stockpiles properly.[124]

[edit] Myanmar

Once the world's top rice producer, Myanmar has produced enough rice to feed itself until now. Rice exports dropped over four decades from nearly 4 million tons to only about 40,000 tons last year, mostly due to neglect by Myanmar's ruling generals of infrastructure, including irrigation and warehousing. On 3 May 2008 Cyclone Nargis stripped Myanmar's rice-growing districts, ruining large areas with salt water. U.N. Food and Agriculture Organization estimates that these areas produce 65 percent of the Southeast Asian country's rice. Worries of long-term food shortages and rationing are rife. The military regime says nothing about the rice crisis, but continues to export rice at the same rate. "...at least the next two harvests are going to be greatly affected and there’ll be virtually no output from those areas during that time. So we’re likely to see considerable food and rice shortages for the next couple of years. The damage to the economy is going to be profound." said economist and Myanmar expert Sean Turnell, of Australia's Macquarie University. (interviewed in "The Irriwaddy", Tuesday, May 27, 2008)

[edit] Panama

In Panama, in response to higher rice prices the government began buying rice at the high market price and selling rice to the public at a lower subsidized price at food kiosks.

[edit] Philippines

In the Philippines, the Arroyo government insisted on April 13 that there would be no food riots in the country and that there could be no comparison with Haiti's situation.[125] Chief Presidential Legal Counsel, Sergio Apostol stated that: "Haiti is not trying to solve the problem, while we are doing something to address the issue. We don't have a food shortage. So, no comparison..."[126] Comments by the Justice Secretary, Raul Gonzalez, the following day, that food riots are not far fetched, were quickly rebuked by the rest of the government.[127]

On April 15, the Philippines, the world's largest rice importer, urged China, Japan, and other key Asian nations, to convene an emergency meeting, especially taking issue with those countries' rice export bans. "Free trade should be flowing", Philippine Agriculture Secretary Arthur Yap stated.[128] In late April 2008, the Philippines government requested that the World Bank exert pressure on rice exporting countries to end export restrictions.[129]

[edit] Russia

The Russian government pressured retailers to freeze food prices before key elections for fear of a public backlash against the rising cost of food in October 2007.[130] The freeze ended on May 1, 2008.[131]

[edit] Senegal

On 31 March 2008, Senegal had riots in response to the rise in the price of food and fuel. Twenty-four people were arrested and detained in a response that one local human rights group claimed included "torture" and other "unspeakable acts" on the part of the security forces.[132] Further protests took place in Dakar on 26 April 2008.[133]

[edit] Somalia

Riots in Somalia occurred on May 5, 2008 over the price of food, in which five protesters were killed.[134] The protests occurred amid a serious humanitarian emergency due to the Ethiopian war in Somalia.

[edit] Tajikistan

The Christian Science Monitor, neweurasia, and other media observers are predicting that a nascent hunger crisis will erupt into a full famine as a consequence of the energy shortages.[135] UN experts announced on 10 October that almost one-third of Tajikistan's 6.7 million inhabitants may not have enough to eat for the winter of 2008-09.[136]

[edit] Yemen

Food riots in southern Yemen that began in late March and continued through early April, saw police stations torched, and roadblocks were set up by armed protesters. The army has deployed tanks and other military vehicles. Although the riots involved thousands of demonstrators over several days and over 100 arrests, officials claimed no fatalities; residents, however, claimed that at least one of the fourteen wounded people has died.[137]

[edit] Projections

The UN (FAO) released a study in December 2007 projecting a 49 percent increase in African cereal prices, and 53 percent in European prices, through July 2008.[138] In April 2008, the World Bank, in combination with the International Monetary Fund, announced a series of measures aimed at mitigating the crisis, including increased loans to African farmers and emergency monetary aid to badly affected areas such as Haiti.[139] According to FAO director Jacques Diouf, however, the World Food Programme needs an immediate cash injection of at least $1700 million,[4] far more than the tens of million-worth in measures already pledged. On 28 April 2008, the United Nations Secretary-General Ban Ki-moon established a Task Force on the Global Food Security Crisis [4] under his chairmanship and composed of the heads of the United Nations specialized agencies, funds and programmes, Bretton Woods institutions and relevant parts of the UN Secretariat to co-ordinate efforts to alleviate the crisis.[140]

Tue, 02/01/2011 - 18:06 | 925339 william the bastard
william the bastard's picture

That story is a waste of time.

You need slaves for rice farming.

Tue, 02/01/2011 - 18:57 | 925543 Silversinner
Silversinner's picture

Your presence is a waste of time.

You need to be a slave to puke the

kind of nonsense you are trowing up

daily.

Tue, 02/01/2011 - 19:37 | 925664 ColonelCooper
ColonelCooper's picture

Now now. Be nice to poor William.  This is the second thread in a row where he has actually typed in thooughts that came from his own head, rather than cutting and pasting irrelevant biased shit. 

Bear with him as he evolves.  It is difficult for him, but we should make the effort as long as he does.

Wed, 02/02/2011 - 06:31 | 926624 slewie the pi-rat
slewie the pi-rat's picture

 

slaves? for rice farming?

BULLSHIT!!!!!

not in california, ya don't!

but, you DO need a helluva LOT of WATER!!!!

is that ok w/ you, colonel?

if not, please permit me to annoint you w/ the words of the immor(t)al Blutarsky:

EAT ME!!!

Tue, 02/01/2011 - 18:42 | 925477 whatz that smell
whatz that smell's picture

43.6 million americans on food stamps, bitchez.

Wed, 02/02/2011 - 06:59 | 926637 slewie the pi-rat
slewie the pi-rat's picture

 

works for me, too, whatz.

banksters lose EVERYTHING and get trillion$.

next time i go into hallucinations at the Casino and lose EVERYTHING, is it ok w/you if i just swing by the Post Office on the way home, let them swipe my Players' Club Card, then hand them my Debit Card so they can give me a re-load for tomorrow?

far as i'm concerned, after that shit, anybody even NEAR the poverty line can double down in food stamps TODAY!

people who were tryin to make ends meet in '08, just decided in '09-'10, to 'loot the Treasury' a bit themselves, too. 

besides, if food stamps can help prevent a civil war in america, why not?

the ass this saves may be my own...

 

Tue, 02/01/2011 - 18:37 | 925457 chump666
chump666's picture

Sugar should spike on this (for all you Australians)

go here http://www.bom.gov.au/cyclone/satellite/sequadrant.shtml for rader updates...this is gonna be bad.

Tue, 02/01/2011 - 18:46 | 925499 huckman
huckman's picture

 

Great explanation on the multinational grain companies.

http://www.eutimes.net/2011/01/rampant-speculation-inflated-food-price-bubble/

 

 

Tue, 02/01/2011 - 18:51 | 925527 Bill Lumbergh
Bill Lumbergh's picture

The Bernank has turned the markets into a full-fledged casino where even the necessities of life are now just a means for a banker to make a few extra bucks...I am all for making money but this is becoming sickening.

Tue, 02/01/2011 - 23:31 | 926198 rosiescenario
rosiescenario's picture

There appears to be a direct correlation between the rise in food stamps and the price of food...obviously we need to get rid of food stamps to correct the inflationary impact they are having on food prices.....

Wed, 02/02/2011 - 00:14 | 926279 bullet357
bullet357's picture

Two words to live by in 2011  Food & Ammo.  If you don't have both then you will live to regret it very soon.

Wed, 02/02/2011 - 00:46 | 926331 ak_khanna
ak_khanna's picture

The only thing driving up commodity prices worldwide are speculators armed with cheap money provided by central bankers and super fast computers. This is causing a havoc in the lives of rest of the population and pushing them towards poverty as they can no longer afford the basic necessities of life.

Regulators are either hand in glove with the banksters or are too slow to react and take ages to identify and take measures to solve the problems.

Total ban on speculation and the reinforcement of Glass Steagall Act is strictly required to bring relief to the man on the street.

http://www.marketoracle.co.uk/Article24581.html

Wed, 02/02/2011 - 02:06 | 926445 bob_dabolina
bob_dabolina's picture

uhm....what?

Am I still living on planet Earth?

 

Wed, 02/02/2011 - 07:16 | 926655 slewie the pi-rat
slewie the pi-rat's picture

 

ak----excellent take on speculative excesses fueled by central bankerS (plural:  ALL of them that are print, print, printing), as you say.

however Glass-Steagall can never again BE enforced.  clinton, rubin, and the congo, bought and paid for by the financial lobbyists, REPEALED it, over a decade ago.

the sold our dumbasses out, totally, in one the greatest charades of "bipartisanship" since god was a little girl; right up there with the "bailout", 9 years later. and yep, they ARE connected.

follow the m-o-n-e-y.

who got it?  you and i, riiiight???

Wed, 02/02/2011 - 04:42 | 926592 Quaderratic Probing
Quaderratic Probing's picture

Inflation substitute for rice is dirt. Let them eat dirt..... there is lots of dirt

Wed, 02/02/2011 - 11:43 | 927369 TheMerryPrankster
TheMerryPrankster's picture

When the peasant class runs out of rice, the ruling class ususally ends up eating dirt.

every year brings more people on this planet, more hungry mouths to feed and the same amount or less of arable land. The slender thread from which we dangle becomes thinner while the weight it supports grows larger. We know what the ultimate outcome will be, the only thing we don't know is the time line.

Do NOT follow this link or you will be banned from the site!