Cambodia's decision to lift ban on rice export impacts rice futures on Chicago Board of Trade

Rice Slumps by Limit as Cambodia Lifts Ban on Overseas Sales

By Jae Hur

May 27 (Bloomberg) -- Rice futures tumbled by their daily limit for a
second straight session as producers lifted or eased export bans,
alleviating concerns that global supplies may not meet demand.

Cambodia will lift a ban on exports as the country has enough supplies
to meet domestic demand, the Financial Times reported today, citing
Prime Minister Hun Sen. Vietnam and India said earlier this month they
may remove or ease export curbs.

The staple for half the world, which reached a record $25.07 on the
Chicago Board of Trade on April 24, fell as much 50 cents. The record
prices, including palm oil and wheat, have stoked concern about
shortages and caused riots from Haiti to Egypt.

``The Cambodian news has dampened market sentiment,'' Takaki
Shigemoto, an analyst with Tokyo-based commodity broker Okachi & Co.,
said by phone today. ``With major producers in Southeast Asia bracing
for harvesting bumper crops in the next couple of months, the global
market see more supplies.''

Rough rice for July delivery fell as much as 2.5 percent to $19.85 per
100 pounds, and traded at that level at 10:00 a.m. Singapore time. The
price is still 88 percent higher than a year ago. The Chicago market,
which fell 50 cents on May 23, was closed yesterday for a public
holiday.

To contact the reporter for this story: Jae Hur in Singapore at
jhur1@xxxxxxxxxxxxx

Last Updated: May 26, 2008 23:34 EDT
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