Wal-Mart & Sam's Club Limiting Rice Purchases By Grocery Shoppers - Reuters

[hatrack]

NEW YORK, April 23 (Reuters) - Wal-Mart Stores Inc's (WMT.N: Quote, Profile, Research) Sam's Club warehouse division said on Wednesday it is limiting sales of Jasmine, Basmati and long grain white rice "due to recent supply and demand trends." The news came as rice prices surged, with U.S. rice futures hitting an all-time high Wednesday on worries about supply shortages.

On Tuesday, Costco Wholesale Corp (COST.O: Quote, Profile, Research), the largest U.S. warehouse club operator, said it has seen increased demand for items like rice and flour as customers, worried about global food shortages and rising prices, stock up.

Sam's Club, the No. 2 U.S. warehouse club operator, is limiting sales of rice to four bags per customer per visit, and is working with suppliers to ensure the products remain in stock. Warehouse clubs cater to individual shoppers as well as small businesses and restaurant owners looking to buy cheaper, bulk-sized goods.

With prices for basic food items surging, customers have been going to the clubs to try to save money on bulk sizes of everything from pasta to cooking oil and rice. Sam's Club said is not limiting sales of flour or cooking oil at this time. Costco said some of its stores have put limits on sales of items such as rice and flour, but it was trying to modify those restrictions to meet customer demand.

Ed. - emphasis above added.

EDIT

http://www.reuters.com/article/marketsNews/idUSN2323679120080423

[Rosemary2205]

1. Other articles were pointing out this is not a shortage but hoarding

My local Costco had to do this because one or two were coming in and buying 100 or more Fifty pound bags of rice at a shot. These couple of asswipes were speculating the predators running the commodities market would make it so much more expensive within the next couple of months that they could turn around and sell the rice for huge profits. And if there are enough hoarders then it WILL affect the supply and push the price up even more. These people are renting warehouses to store it all while they wait for the price to shoot up.

In fact, every case of this I've heard about is similarly NOT people concerned about going hungry but asswipes wanting to profit off other people's pain.

[phantom power]

7. On the other hand, I think there is a *reason* that...

we are seeing all this hoarding and speculation, now as opposed to 10 years ago, etc. And that reason is because people can see that it is becoming scarce, in the sense that reserves are dropping to zero. Likewise for oil, and other commodities.

I think effects like hoarding or speculation lead the "real" shortages, but not by a lot.

[Warpy]

2. Rising prices and shortages are small problems

What's making it into a big problem is hoarding, both by individuals and by distributors.

They're throwing hoarders into prison in the Philippines. Maybe we need to consider that here.

Most hoarded foodstuffs are just going to end up feeding the bugs because most people don't have freezers dedicated to storing large quantities of grain.

[DainBramaged]

3. So, can we throw Booshe in prison for hoarding oil (filling the strategic reserve)???

:shrug:

[Warpy]

4. We certainly should

because the strategic reserve was intended to be used to force prices on the spot market lower. It's how Carter broke OPEC and got prices down for a couple of decades. Just the threat of releasing that oil was enough to keep futures traders and the cartel honest.

Unfortunately, this gang apparently intends hoarding it so they can use it in one of their next wars. Don't expect a drop of it to get to the American people while these goons are in power.

[madrchsod]

5. long grain rice production in the usa 2007

"Reduced 2007 all rice production is due to the added cost of production, lack of long grain pricing opportunities, crop alternatives for Mississippi River Valley Delta producers, trade barriers, and the biotech rice issues.

On imports: The 2007 marketing period all rice imports are expected to continue problematic with a record 21.0 million cwt projected to be imported. This is up 2 percent from the previous marketing period and up 23 percent from the 2005 marketing period. Rice imports in the 2007 marketing period will represent 8.7 percent of our U.S. total rice supply."


http://www.aragriculture.org/agfoodpolicy/radio/may2007/044_05222007_audio.htm
USDA’s initial assessment of U.S. rice crop supply and demand prospects released. - Audio - May 22, 2007

[Freddie Stubbs]

6. 4 Twenty pound bags per customer?

How is a family supposed to survive on only 80 pounds of rice?