The most international rice price for rice and wheat spreads in two years is expected to increase by 30% within the year

Following the doubled wheat prices, international rice prices may usher in a wave of compensatory growth. As wheat in the northern hemisphere is affected by natural disasters such as heat waves, forest fires, and floods, yields are damaged, and consumers and investors are turning to alternative staple foods. Analysts believe that rice will undoubtedly be the ideal substitute and may rise by more than 30% by the end of the year. Data show that the Chicago Mercantile Exchange rice futures price fell to 9.55 US dollars per 100 pounds on June 30 this year, which is the lowest level in the past four years, and less than half of the record high of 25.07 US dollars in April 2008. This year, such futures prices have fallen by about 25%. In contrast, the wheat futures price on August 6 rose sharply from $4.255 to $8.68 per bushel on June 9, an increase of up to double. U.S. wheat futures continued to rise 0.2% at the beginning of the 23rd. Overseas media reported on the same day that the last time such a big price difference between rice and wheat was in February 2008, when the price of rice rose to a record high. Analysts believe that although the price of food tracked by the U.S. government climbed to a five-month high in July, the position is still about 22% lower than at the peak of 2008. According to the data from the International Monetary Fund (IMF), different from 2008, the global economy will grow at a rate of 4.6% this year, which is the fastest economic growth since 2007. Therefore, rice prices have some room for growth. Jonathan Barrett, managing director of pan-Asian commodity brokerage company, said, “We are very much watching the multi-price rice and we have a chance to soar this year.” He used his warrants to bet that rice prices will rise by 34% in December this year. It rose to $15 per 100 pounds at $11.175. He had previously stated that the price of rice is relatively cheap because wheat has now risen by 51% and corn has also risen by 21%. According to the statistics of the United States Department of Agriculture, up to 21% of wheat crops have been damaged due to drought and excessive rainfall in Russia, Kazakhstan, Ukraine, and Canada. The department predicts that the price of rice may rise by about 4% between 2010 and 2011. “Wheat itself is not one of the particularly important food components of food-consuming countries. Rice and other types of food are also welcome,” said Wayne Gordon, an agricultural product analyst at Rabobank. The recent surge in wheat may trigger a market outlook. The second round of gains in agricultural products, but the main rise in prices is concentrated in other markets such as rice. Mamadu Cisse, CEO of Hermes Private Investment Ltd., believes that Thailand's rice Bangkok's FOB price (Asian benchmark rice price) will climb by 15% to US$550 per ton by October of this year. He had successfully predicted in 2006 that the price of rice would double. According to a Bloomberg survey, the above FOB price will climb by 9.6% to US$525 per ton in two weeks, reaching its highest level since March. Thailand's 100% Class B rice Bangkok FOB price (international benchmark rice price) soared 3.7% to US$479 per tonne on the 18th. Since the beginning of the year, this price has dropped by more than 20%.