Tightening global grain supplies and rapidly escalating prices are forcing previously grain exporters to legislatively restrict movement of grain out of their borders to in effect try and stop food inflation running out of control.
-------------------------------------------------------- Egypt to ban rice exports as food prices soar - USDA Tue 15 Jan 2008, 6:41 GMT
By Lisa Shumaker
CHICAGO () - Egypt will ban rice exports indefinitely beginning January 19 because consumers have seen prices rise 30 percent recently, said the U.S. Agriculture Department attache in a report released on Monday.
Egypt is a major exporter of medium- and short-grain rice, with annual exports of about 1 million tonnes, mostly to Middle Eastern countries.
The steep rise in prices has led to allegations that traders are speculating and storing rice awaiting further price increases, the report said.
Egypt's government hopes the ban will prompt traders to sell the rice domestically and lower prices.
No time-frame has been set for the duration of the export ban.
Consumers were paying 4 Egyptian pounds per kilogram of rice (33 U.S. cents per lb), about 30 percent higher than traditional levels. The increase reflects the high prices for rough rice, which are at $325 per tonne, up from $220 last year, the report said.
Prices for a variety of grains have soared in the last year as investment funds poured billion of dollars into the markets amid global geopolitical tension and the weak dollar making dollar-back commodities an attractive investment.
U.S. rough rice futures on the Chicago Board of Trade hit an all-time high of more than $15 per hundredweight on Friday before closing lower. Rice futures rose 34 percent in 2007.
On Monday, March rice was down 1-1/2 cents at $14.56 per cwt.
Egypt is not the only country curtailing rice exports. China announced it will impose a 5 percent tariff on rice exports in 2008.
