|
|
|
Wal-Mart's warehouse chain Sam's Club limits rice purchasesBENTONVILLE, Arkansas (AP)--Sam's Club, the membership warehouse division of Wal-Mart Stores Inc., is limiting how much rice U.S. customers can buy because of what it calls "recent supply and demand trends," the company said April 23. The broader chain of Wal-Mart stores has no plans to limit food purchases, however. Sam's Club said it will limit customers to four bags at a time of Jasmine, Basmati and long grain white rice. Rice prices have been hitting record highs recently on worries about tight supplies as part of broader global inflation in food costs. The warehouse chain caters heavily to small businesses, including restaurants. Spokeswoman Kristy Reed said she could not comment on whether the problem was caused by short supplies or by customers stocking up in anticipation of higher prices. Sam's Club's restriction is effective immediately at all locations where quantity restrictions are allowed by law. It does not apply to other staples such as flour or oil. "We are working with our suppliers to address this matter to ensure we are in stock, and we are asking for our Members' cooperation and patience," Reed said in an statement. Sam's Club has 593 stores compared to 2,523 Wal-Mart Supercenters that combine a full grocery section with general merchandise. Wal-Mart spokeswoman Deisha Galberth said Wal-Mart stores have no plans for restrictions similar to those at Sam's Club. "We are not seeing any signs of concern in the supply chain that would cause us to limit the sales of any items," Galberth said. U.S. rice futures soared to an all-time high April 23 as investors bet that surging world demand will continue to pressure already dwindling stockpiles. Rice for the most actively traded July contracted jumped 62 cents to $24.820 per 100 pounds on the Chicago Board of Trade, after earlier rising to a record $24.85. Relentless demand from developing countries and poor crop yields have pushed rice prices up 70 percent so far this year, raising concerns of severe shortages of the staple food consumed by almost half the world's population. The steep increases have followed similar jumps in the price of wheat, corn and soybeans that have added to Americans' growing grocery bill and led to violent food riots in poor countries including Haiti, Senegal and Pakistan. Most of the rice eaten in the world is consumed within 60 miles (100 kilometers) of where it was grown, said Nathan Childs, an economist and rice expert with the U.S. Department of Agriculture. Traditionally very little of it was traded in the world market. But as populations crossed borders, the taste for specialty rices such as the Indian basmati, or Thai jasmine rice, which grow only in their areas of origin, spread. U.S. production of long grain and medium grain rice is strong, and the global crop is larger than ever, Childs said. But with some of the principal exporters of the higher-priced rices, such as India and Vietnam, shunning foreign sales to control prices at home and the cost of food generally going up, the price of rice has been climbing to new heights. What adds to the price spike--and the run on specialty products like basmati--is that rice consumers tend to be very loyal. The market is highly segmented by type of rice and quality, and buyers will generally not take a substitute, Childs said. "California's had a pretty good crop, but basmati and jasmine consumers have a history of not switching," he said. "They could always have bought cheaper Calrose. But they don't." 5/5/08 Date: 4/29/08 Advertisement
Copyright/Privacy
Copyright 1995-2009. High Plains Publishers, Inc. All rights reserved. Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com |
Market Snapshot Inside Futures |
