Rice

The staple grain of half the world, thinly traded and heavily managed by governments.

Overview

Over 500 million tonnes milled yearly are produced, China, India, Bangladesh, Indonesia, Vietnam, and Thailand growing and mostly consuming at home, so only about a tenth crosses borders, supplied by India, Thailand, Vietnam, and Pakistan. Indian export bans and duties, as in 2008 and 2023, spike world prices within weeks, since the trade is small relative to the stomachs it feeds. Flooded paddies and monsoon rains set the crop, El Nino cuts Asian yields, and public stocks in India and China buffer their populations from the world market, making rice the most political of grains. US rough rice futures exist but trade thin.