Businessweek: rice soaring mostly due to government intervention and speculation

[atreyu42]

http://www.businessweek.com/print/globalbiz/content/apr2008/gb20080428_894449.htm


If this is mostly speculation and government interference in trade, will prices fall eventually?

Up to a point. Once the price spikes, speculators and hoarders will try to unload their stocks, pushing prices down, but there is a lot of pent-up demand from major importers such as Iran and Indonesia that have not purchased any international rice in 2008.
So grain will go down soon.

Anybody disagrees?

[touchring]

Rice is substituting wheat in many asian societies - rice even at a higher price is still much cheaper than wheat. Noodles and bread cost more.

So i think even if prices come down, it will still be much higher than previously.