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