Price Spikes in Global Rice Markets Benefit U.S. Growers, at Least in the Short Term

摘要

Because only a small share of production enters the global market, the world rice market remains susceptible to substantial price volatility. Price volatility is exacerbated by trade policies of importers and exporters seeking to protect their consumers from high prices and ensure adequate supplies. For the U.S., this price and trade volatility can translate into short-term export opportunities. Global rice trade has nearly tripled since the mid-1980s, largely due to market liberalization policies implemented under the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). However, the rice trade remains small relative to other commodities. Rice is one of the top food grains consumed worldwide, but just 6-7 percent of global production, on average, is currently traded in international markets, well below the 20 percent of wheat traded, 11 percent of corn, and 35 percent of soybeans.