News

August 18, 2008

Rice Bucks The Trend Of Lower Prices For Commodities

By Sally White on her way back from Georgia

Commodities saw a sharp and board sell-off across the board led by energy and metals on fears of a global economic showdown and heavy switching by funds into the rising dollar. `We're taking our cue from the dollar,'' Phil Flynn senior trader at Alaron Trading Corp. in Chicago was reported as saying. ``People were buying commodities against risk in the dollar, war and the economy. The play has been coming off at the same time we're seeing dramatic signs of demand destruction across the globe.''

Among exceptions was rice, where futures prices showed a modest gain on Friday, September closed up four cents at US$16.16 a hundredweight. Earlier in the day the price has been 20 cents lower, and it is down four dollars on two months ago on fund liquidation and prospects of better crops. Rice often moves independently of other commodities when funds are active as it is not included in the main commodity indices. News from major growing areas was a retreat of the Mekong River in Laos, which...