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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (64524)	5/8/2008 9:16:53 PM
From: Katelew	Read Replies (1) \| Respond to of 541933

Shortages of something generally cause the price to rise, and all year that has been the explanation for the rising prices of ag commodities. But this spring, announcements were made that actually there was adequate supplies of rice and wheat....the two for which shortages were claimed. Don't know if the damage in Myanmar will now cause shortages. Interestingly, this evening I discovered that India has outlawed/stopped futures trading in wheat and rice on its own young commodities exchanges. Also that SE Asia is considering the forming of a "rice cartel" that would set prices independent of our exhanges.....prices more reflective of regional costs of production. Apparently some pushback is in play. The world may end up with bifurcated markets for ag commodities just as we have in oil. Very interesting, I thought.