China rice shortage

[Goods]

There's a rice shortage a brewin' across the sea. Just starting to get some press. Not many plays outside of SEED imo. Any other you can think of, please post em.

I took a pink sheet stock - CNOA. Good earnings, could catch on and run if the traders find it.

I don't trade many pinks but I see this one as low risk. In at $1.15

[Lukester]

Is that rice shortage mostly due to weather (flooded rice fields) or more exponential population growth?

[Goods]

Lukester, not sure what's happening to be honest. Only know it's there. Seems to be running with the grain and corn issues. Here's a quick article from the Wall Street Journal.com (need subscription to get the full article)

Rice Hoarding Pressures Supplies
By James Hookway
Word Count: 813
BANGKOK -- As rice prices hit new highs, farmers across Asia are hoarding their crops, raising the prospect of a shortage in Asia and Africa that could lead to widespread unrest.

Rice prices in Asia have doubled since the beginning of the year, driven higher by rising demand, a steady depletion of government stockpiles and a pest outbreak in Vietnam, the world's second-largest exporter after Thailand.

On Thursday, medium-grade rice exported from Thailand -- a de facto market benchmark -- reached $760 a metric ton, up from $360 a ton at the end of last year.

Governments around the region ...

[Lukester]

Originally Posted by Lukester

Is that rice shortage mostly due to weather (flooded rice fields) or more exponential population growth?

There is a big difference here...

The former is short term and will have to wait for next year's crop; the latter is crucial and for the survival of China as a nation for years to come.

[Goods]

I agree with you Lukester. I'm personally trading only short term with this. Looking for some momentum as the story builds. Please post if you look deeper into it for a longer term trade.

Here's another recent article:
http://www.irinnews.org/Report.aspx?ReportId=77608

CNOA is getting decent volume today. Chart shows a nice base at this level also. Looks decent enough for the risk imo.

[Goods]

Looks like CNOA's secret is out. Nice pop today and big volume. Look for follow through in the next couple days.