NEW YORK—Rice is the latest in a string of commodities to hit record highs, prompting at least two retailers this week to restrict how much customers can buy.
On Wednesday, rice futures hit a record high due to surging world demand, particularly in developing countries, and poor crop yields. The price of rice, which is eaten by almost half of the world's population, has climbed 70 percent so far this year. The price increase has led some to worry there won't be enough to go around.
The concerns led warehouse retail chains Costco Wholesale Corp. and Sam's Club, a division of Wal-Mart Stores Inc., to limit the amount of rice they sell in bulk to customers.
The Sam's Club limit affects 20-pund bags, not retail portions. It will only allow customers to buy four bags at a time of imported jasmine, basmati and long grain white rice.
Food companies did get some positive news Friday, as forecasts of more wet weather in the U.S. corn belt raised expectations that farmers may switch from corn to soybeans and boost supplies.
Cold and wet weather in corn-growing areas has slowed spring planting and led some farmers to consider planting soybeans instead.
A number of food companies use soybeans to make their goods. Meat producers may benefit the most from a bigger soybean supply -- and the falling prices that go along with it -- since they use the grain to make animal feed.
The price of soybean and corn feed has skyrocketed in the past year, cutting into profits at producers like Tyson Foods Inc. and Pilgrim's Pride Corp.
Soybeans prices dipped 2 percent for the week, settling at $13.325 a bushel Friday on the Chicago Board of Trade.
