High food prices

I saw a media report that the price of wheat and corn increased by 60% over the past 12 months. The price of rice increased by more than 100%.

The large increase in food prices is partly due to reduced supply and higher real demand. But the large increase is exaggerated considerly by speculation by the hedge funds. Ordinary people now start to hoard the grains, contributing to the speculative fever.

Like all speculation of this kind, the bubble will burst and the prices will come down to the correct market level. It will be higher than 12 months ago, but should not be at the high levels today.

My advice: buy enough rice to meet your family needs. Do not engage in the speculation and hoarding. If you do, be prepared to suffer a loss when the market drops.