Soft commodities : Rice, Sugar

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SINGAPORE (Dow Jones)--A group representing one fourth of Singapore's bakers plans to raise bread prices up to 20% on Nov. 1, the first hike in about eight years, the group's chairman said Tuesday.

The move comes in response to rising costs of baking ingredients and other commodities across Asia, where fast-growing economies are increasing consumption levels and putting pressure on prices.

"I think 20% is reasonable," Liow Kian Huat, chairman of the Singapore Bakery and Confectionery Trade Association told Dow Jones Newswires. He said that the figure reflects "guidance" and some bakeries may select a smaller increment.

Butter costs have risen by 78% since 2006 and flour prices are also higher, Liow said.

Locally-listed BreadTalk Group Ltd. (5DA.SG) said it has no plans to raise prices at its Singapore outlets.

Joseph Tan, a senior strategist at Fortis in Singapore, said bread costs are not expected to be a key driver of consumer prices in months ahead, but the rise reflects a passthrough effect from rising expenses for raw materials.

"It goes to show that there is an impact, but I don't think bread will be a major source of inflationary pressure," he said.

"What's really sensitive are rental and transportation costs, and we may not see the property market stop."

Singapore's central bank issued a semiannual review Tuesday that highlighted the possibility for both residential and commercial property costs to feed into inflation in 2008.

The central bank expects inflation to average 1.5%-2% in 2007 before rising into a range of 2%-3% next year.

read via : edmw
*dreamer75

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the inflation figure seems alittle low. would have expect in excess of a 5% increase. hmm.

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read it via : http://forums.delphiforums.com/sammyboymod/messages?msg=173901.1

   
From:    halsey02     13-Apr 20:49
To:    ImperialArms     2 of 11
    173901.2 in reply to 173901.1

The price of 10kg Royal Umbrella brand Thai Fragrant rice had risen from S$18.90 to $20.40 withun a week @NTUC FAIRprice supermarket.,

If you  have a family of 5, with 3 kids, a 10kg of rice will last you for two weeks, if one, eat at home every day and three meals a day, not to forget the maid.

It is a 8% increase in the houshold grocery budget.

Some crybaby minister said recently, rice is avery small component of a household grocery bill, wonder, if that 'crybaby' does grocery shopping?

They are really out of touch, with REALITY!!!

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hmm, the charts dun make sense to me. production is on par if not higher than consumption. why would/should there be a sustained increase in rice prices?

[Vorsprung durch Technik]

not all production goes into local consumption. given that some are produced for exports, that's why a few governments are restricting rice exports.

anyway, now it's just commodity business exploiting for more profits, if not, same amount of profits but reduced quantity. imagine, when biofuel comes into picture, that's the time, human is vying against machine

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via : http://forums.vr-zone.com/showthread.php?t=267208

Rice price hits new high on global markets
Local traders to ease impact, but warn of increases ahead. The Government has also highlighted three measures to help the needy cope with increasing food costs. -ST



BANGKOK - THE prices of rice in Thailand, the world's top exporter, surged to a record high above US$1,000 (S$1,360) a tonne yesterday as fears of a global shortage spread as far as the United States.

Thai 100 per cent B grade white rice, the world's benchmark for global trade, was quoted in a range of US$1,000 to US$1,080 per tonne.

This week's 5 per cent jump takes prices to nearly three times their level at the start of the year.
 
Rice futures in Chicago also rose above US$25 per 45kg on Wednesday, but eased slightly in early trading yesterday.

The price surge, which started when India imposed export curbs last year and has since led to shortages and riots from Egypt to Haiti, has made its way to US shores.

Americans have been cleaning out the shelves at major retailers including Wal-Mart's Sam's Club and Costco Wholesale Corp.

On Wednesday, Sam's Club said customers could buy only four 9kg bags of jasmine, basmati and long-grain white rice per visit. Its rival Costco has already limited customers to two bags of rice a day at some of its stores.

'It is like a run on the bank. We don't think there is a shortage; it is just increased shopping by customers who think there is,' said Costco's chief financial officer, Mr Richard Galanti.

But the upward surge of rice prices shows no sign of abating. In Bangkok, some traders said Thai 100 per cent B grade white rice could hit US$1,300 a tonne due to unsated demand from the No. 1 importer, the Philippines.

Pressure on supplies and prices increased on Wednesday, when Brazil became the latest country to suspend rice exports, following in the footsteps of India and Vietnam.

But Thailand, which accounts for nearly a third of all rice traded globally, has said it will not impose any curbs. Yesterday, a Thai government spokesman reiterated that the country will meet all export commitments.

Mr Wichianchot Sukchotrat was speaking in Kuala Lumpur, where Thai Prime Minister Samak Sundaravej met Malaysian leaders, during which food security was a key topic of discussion.

'We don't need to restrict Thai exports because in the next few months, a new crop will come out,' the spokesman said.

In Singapore, where most rice imports come from Thailand, importers say it is getting more difficult to hold back on price increases given the more frequent, and steeper, price jumps in global markets.

Singapore's biggest supermarket chain, NTUC FairPrice, said it will moderate price increases and stagger them to soften the impact on consumers.

Said its spokesman: 'Our current rice stockpile was secured at a lower price a few months ago. Going forward, we have to import rice at prevailing market rates which have increased by more than 100 per cent since March last year.'

The Government has highlighted three measures to help the needy: bigger and earlier payouts for those on the Public Assistance Scheme; two instalments of Growth Dividends; and targeted help from the citizens consultative committees (CCCs).

Most of the CCCs that spoke to The Straits Times said there was an increase in the number of people approaching them for help.

REUTERS, ASSOCIATED PRESS, LOS ANGELES TIMES

Source: http://www.asiaone.com/News/The%2BStraits%2BTimes/Story/A1Story20080425-61701.html

[Vorsprung durch Technik]

time to eat potatoes..

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By STEVENSON JACOBS – 1 day ago

NEW YORK (AP) — Rice prices retreated further Wednesday, hitting a two-month low on expectations that easing export bans in Asia and a robust crop in Vietnam will boost supplies of the staple food consumed by half the world's population.

Other commodities traded mixed, with crude oil rising back above $131 a barrel and gold, silver and copper futures falling.

The latest fall in rice prices comes as the government of Cambodia this week lifted a rice export ban imposed in March to stabilize rising domestic prices. Pakistan lifted its own export ban earlier this month, and Vietnam is expected to ease its export ban in July.

Vietnam, the world's No. 2 rice exporter after Thailand, is also forecast to produce a large rice crop this year, which will likely put downward pressure on prices, said Jack Scoville, rice analyst with Price Futures Group in Chicago.

"Prices have corrected quite a bit in the last week, so buyers are taking a wait-and-see approach," Scoville said. "Vietnam's crop is being harvested now and so far it seems to be above last year's by about 6 percent. It's going to hit the market pretty soon."

Rough rice futures for July delivery fell $1.15 to settle at $18.45 per 100 pounds on the Chicago Board of Trade, the lowest level since March 20. The contract is down 26 percent from an all-time high of $25.07 on April 24.

Scoville said the steep decline may signal the start of a correction for rice prices, which have surged 80 percent in the last year amid fears of a global shortage. High prices have sparked food riots in poor countries around the globe and prompted some vendors earlier this year to limit sales to discourage hoarding.

Rice has "run up a lot in the last couple of years, so to have some type of correction is expected sooner or later, and it seems like we're getting into that area," Scoville said.

Other agriculture futures traded mixed Wednesday. Wheat futures for July delivery traded flat to settle at $7.595 a bushel on the CBOT, and July soybeans jumped 25 cents to settle at $13.7275 a bushel. July corn, meanwhile, fell 5.5 cents to settle at $5.925 a bushel.

In energy markets, oil futures rebounded as threats against Nigerian oil facilities fed concerns about global supplies. A Nigerian rebel group, The Movement for the Emancipation of the Niger Delta, threatened attacks on oil installations beginning Thursday to mark the one-year anniversary of President Umaru Yar'Adua's inauguration.

Light, sweet crude for July delivery rose $2.18 to settle at $131.03 a barrel on the New York Mercantile Exchange, after fluctuating between gains and losses for most of the morning. Crude fell $3.34 on Tuesday. The contract passed $135 for the first time last Thursday.

Other energy futures also rose Wednesday. June gasoline futures rose 6.46 cents to settle at $3.4476 a gallon, and June heating oil futures rose 2.51 cents to settle at $3.8243 a gallon.

In precious metals, gold futures dipped Wednesday as the dollar gained against the euro, prompting investors to sell the metal as a hedge against inflation.

Gold for June delivery fell $7.40 to settle at $900.50 an ounce on the Nymex, after earlier falling as low as $888.30.

Other precious metals also fell. July silver fell 5 cents to settle at $17.415 an ounce on the Nymex, while July copper lost 2.1 cents to settle at $3.695 a pound.

via : http://ap.google.com/article/ALeqM5jND4r3B-VBZu2Ogg2_yzjYnPIP8gD90USHEG0

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via : http://asiasentinel.com/index.php?option=com_content&task=view&id=1227&Itemid=35
29 May 2008
The world’s rice crisis seems to have come and gone

Whatever happened to the rice crisis? In April, reports of a global food crisis and exorbitant spikes in food prices hogged headlines after major-rice exporting countries announced export restrictions and importing countries — the Philippines in particular — scrambled to secure rice supplies from neighboring countries.

Just a month later, however, prices have begun to fall, the export ban has been lifted in Cambodia and both Vietnam and India, two other rice-exporting nations, have suggested they may lift restrictions as well amid a growing realization by governments that there is no immediate rice shortage after all. The price fell Wednesday to the lowest in more than two months and has fallen by nearly 30 percent. Mentions of rice shortage in the news now have the words “alleged” and “perceived” attached to them — but not before the global panic over rice supplies caused prices to shoot up to around $1,000 per metric ton in the global market.

[Cobra]

Logically, I think all commodities ... like crude oil, gas, gold, coffee, sugar, rice, etc ... supply constrains are man made .... due to speculations most of the time ....  unless the world is coming to an end .... kekeke.

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rice to taper to $1000 per tonne.

main jest in the article today.

something to do with Rice. art n charity - killing two birds with one stone.

[klumpkeTT]

Sians +++
Everything go up $$$. wagers never go up $$$

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rice should be quiet stable now.

i was behind a worker buying rice. his pack of rice was $9. i recall at the height, the price was over $10++.

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Rice prices down an average of 20% since June 2008 peak



SINGAPORE : The overall price of rice has fallen by about 20 per cent since prices peaked in June this year, but it may not drop much further.

According to the Singapore General Rice Importers Association, rice prices are stabilising because storage costs are still at a high.

And with most rice trading done in US dollars, the rise of the greenback in recent months is also affecting prices.

Elsewhere in Asia, prices of rice have fallen to less than half of peak prices.

In Thailand, the benchmark 100% B grade white rice fell to about US$798 per tonne, which is less than half of the record price reached in April.

More supplies are expected to come from the world’s biggest exporter.

The Thai government has said it will buy some eight million tonnes to support prices.

A similar price drop was also seen in Vietnam, the world’s second biggest exporter.

Indonesia, a major rice importer, said it is now able to export rice for the first time in 16 years, due to higher domestic production. — CNA /ls

http://sg.news.yahoo.com/cna/20081113/tap-399-rice-prices-average-20-june2008-231650b.html

via : http://forums.vr-zone.com/showthread.php?t=351654

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just about correct. was at those small supermart. the price of rice caught my attention. 5kg for $7.

[zuoom]

certain soft commodities are on a quick step (as i call it) again.

spikes in prices with no real actual demand.
 
Sugar.

http://seekingalpha.com/article/26724-sugar-the-forgotten-commodity

The other day I was reading through Ethanol Producer Magazine. While perusing the latest stories on the site, I found an article about developing ethanol from sugar. While this is nothing new or revolutionary, it is interesting that people have basically forgotten that ethanol can come from sugar. Perhaps it's because of the costs involved with the plants or the euphoria that corn farmers have created for their product. In any event, it has become a forgone conclusion that sugar cannot be used efficiently to produce ethanol.

One thing that the technological revaluation has brought to your world is efficiency in process. In many cases, the cost to do business has fallen thanks to the Internet and new technological processes that have touched every industry. The major oil find in the Gulf of Mexico a few months back would not have been possible with technology of 10 years ago. The cost to trade securities has fallen as transparency, spurred on by new technology, has removed the middle man (mainly the broker) in the process. In manufacturing, many industries have seen the relative cost per unit fall dramatically (computers, autos). All told, technology has been a driving and deflationary force in our economy.

So I wonder why nobody is even thinking about creating new technologies for sugar-based ethanol production. The Ethanol Producer article puts much of the problems with sugar research on the back of the industry which, in effect, protects the industry from everyone. This protection gives little incentive to the industry to move into ethanol. Further, one major point being made it this: Currently there is more demand for sugar as a confectionary item than sugar for ethanol. But I wonder if some research were done into the sugar/ethanol combination, the industry would all of a sudden see potential profits from creating ethanol.

So Is There a Future for Sugar?
I have to admit that I have had a very tough time with sugar over the past few months. The contract has been trading so erratically that my stops get hit easy and the losses and gains effectively net each other out. The contract has been in steady freefall for the better part of a year now and the current respite around the 10 level has at least created stability. At the same time, this commodity is trading like it has been forgotten which makes me wonder if this is the time that things perk up for sugar?

Over the short term, that does not appear to be the case as the contract appears to be setting up a date with the previous lows from 2005. If you look at the chart, you get the feeling you are looking the Nasdaq of 2000 through 2003 where it basically just went down and then finally found support before moving higher over the past four years. Sugar, over the short term, looks like it wants to head lower. Longer term though, perhaps we are setting up for some stability and if the ethanol story pans out and technological advances occur in the development of ethanol via sugar (currently 2x the cost versus the use of corn to produce ethanol), sugar will find some stability and head higher.

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http://news.bbc.co.uk/2/hi/business/8193390.stm

Sugar price reaches 28-year high

Historical price

The price of raw sugar has increased to its highest level since 1981, as supply concerns grow.

Raw sugar futures added 3% on Monday, to finish the day at 22 cents a pound.

"The main problem is a deficit in sugar supplies," said Nick Penney, a trader with Sucden Financial, a firm that focuses on sugar trading.

Growing demand in Brazil for sugar to be turned into ethanol, coupled with a sharp fall in Indian production, have both prompted worries, he explained.

Sugar production in India for 2008-09 fell 45% year-on-year, according to a report by Sucden.

And a "drastic fall" is expected for the coming Indian crop, it said.

India had less rain in the monsoon season and it was also uneven, damaging a number of agricultural crops.

There are concerns that the pending sugar crop, which will be ready around November, will be inadequate.

"This [sugar market] train is running express," said Alex Oliveira, senior sugar analyst for Newedge USA in New York.

"It's feeding on itself."

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wow, what's happening?

[tags] soft commodities commodity sugar rice

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http://en.wikipedia.org/wiki/Soft_commodity

A soft commodity is a commodity such as coffee, cocoa, sugar, corn, wheat, soybean and fruit. This term generally refers to commodities that are grown, rather than mined. Soft commodities play a major part in the futures market. They are used both by farmers wishing to lock-in the future prices of their crops, and by speculative investors seeking a profit