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Pricey rice hits East and West
18.04.08
Rice futures surged for a fifth day to a new record, as export restrictions bite and Aussie farmers shift out of the crop.
Rising prices are hurting food makers in the West and sparking social upheaval fears in developing countries.
Rice for May delivery rose by 93.5 cents, or 4%, to a record $24.235 per 100 pounds on the Chicago Board of Trade.
The contract has gained 16% this week and more than doubled over the past year.
China, Egypt, Vietnam and India have curbed rice sales to safeguard local supplies.
In Australia, a drought has seen farmers sell their water rights to wine makers, cutting that country's rice output by 98% from some 1.7 million tonnes just six years ago.
But price rises are not restricted to rice. Rising wheat costs have forced Premier Foods, maker of Hovis, and Associated British Foods, maker of Kingsmill and Ryvita, to put up bread prices.
Last month Uniq scrapped a final dividend as it battles rising raw materials prices, while Northern Foods' bakery division pushed up average prices by 7.5% to cope with rising costs.
