Back to Library

Speculators, Storage, and the Price of Rice

Published by:
Document
Download
Publication date
10/06/2010
Number of Pages
4
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Global
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk assessment
Commodity:
Crops
Author
Brian Wright
Organization
Giannini Foundation of Agricultural Economics

Recent experience in the world rice market does not reveal irrational speculation, greedy manipulation, or disruption due to soaring Asian incomes or recent biofuels mandates. The real lesson is that, without serious steps to ensure collaboration in maintaining market access when supplies are tight, the market could collapse into autarky if stocks appear to be low and aggregate harvests fail to increase as expected.