By IFCMarkets
Higher demand on supply disruption concerns bullish for rice price
One of the effects of coronavirus lockdown measures has been a spike in demand for food staples as consumers worry about supply disruptions. Rice price particularly recorded a third straight monthly increase. As a result, export prices for rice from Thailand, the world’s second-biggest shipper, are at a six-year high. Higher demand is bullish for rice prices. However, experts estimate export availability for crops like wheat, rice, maize and soybean are “more than adequate to meet the anticipated demand”, according to the Agricultural Market Information System (AMIS) comprised of ten international organizations including the Food and Agriculture Organization of UN, OECD and World Bank. And AMIS estimates global rice reserves at their second highest on record and sufficient to cover over 4 months of projected world consumption.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 14.53 |
| Stop loss | Below 13.8 |
Market Analysis provided by IFCMarkets
