The fallen rice price

It was in the news. After a few months of surge, the rice price has started to go down now. Actually, there was no shortage of supply. But because of the kiasu-ism of some countries which wants to stock up the rice, it cause the temporary demand surge. Once they have stocked up enough rice and new season harvest going into market, those restrictions have been removed slowly. We shall see the continuous fall of the rice price, which is a good news to the investor. Because we need Asia to remain socially stable.

Day would come for commodities. There would be an end to the commodity bull, the only million dollar question is when? If the following factors which driving up the price start to wane, then we shall see rationale return to the market.

1. Speculative buying by hedge fund and investor
2. Increase demand all over the world
3. The bio fuel madness
4. Shortage of farm land

All these could be summarized to only one factor - demand. If the inflation goes out of hand, there won't be long when demand would reduce drastically.