Sunday, May 24, 2020

Agri Econ 31, Rising world rice prices, falling corn, poultry prices

This pandemic period showed big jump in world rice prices since last March. Peak price over the last five years was $18 per hundredweight (cwt) reached last  April 29, 2020. A cwt = 100 pounds in the US, = 112 pounds in UK.

The main reason is the rice production disruptions in Vietnam and India, agri workers on quarantine or lockdown, and expected rise in demand for Thailand rice.
See this report for instance,

Corn prices on the other hand are falling, now around $317/bushel.

The main reason perhaps is the drop in demand for biofuel, ethanol, along with drop in prices and demand for petroleum products. Another reason is that  world demand for poultry products are falling, prices now only $3.9/kilogram. Corn is the main ingredient for chicken feeds.

Milk (and cheese) also falling. People are getting poorer, they consume less milk, now only $12/cwt. Milk is highly perishable, cannot be stored for long.

The more reason that this lockdown dictatorship worldwide should end. Mobility of agri workers and entrepreneurs, traders, processors and shipping should no longer be hampered.

See also:

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