Whats next for the global economy and demand for commodities?
The task at hand for policymakers and decision makers around the world is to transition from a recovery which achieved strong global growth and strong global demand for most commodities to a sustained level of robust global economic activity with strong demand for rice and commodities in general. Why the pull back in rice prices? U.S. rice price weakness is at least in part coming as a result of the following: first, a reduced demand for long grain rough rice in the Western Hemisphere with emphasis on Brazil; second, with global rice stocks at dangerously low levels many major rice producing countries are re-emphasizing food security and promoting production; thirdly, the transitioning of the global economy from one of recovery with dependence on vast amounts of financial stimulus to one with a self sustaining expansion reducing available global liquidity and allowing for the correction in many commodity prices; and fourth, with global weather remaining fairly normal, our global compet
