Commodity markets are heading into a reflationary period that should lead to bull markets across the agricultural sector, but no market is as poised for an upward breakout as rough rice appears to be. The fundamentals keep getting more bullish by the day. A money flow buy signal remains in place suggesting an imminent surge in speculative buying activity, and the technical back drop for spot rice prices are approaching a boiling point that should peak by mid-December.
Rarely does one have such clarity in markets like rice. The speculative shorts have provided a rare opportunity to buy rice at an incredible discount to fair value. They know not what they do, and that is a blessing for contrarian value commodity investors. The bullish case for rice is made in detail in the charts below, and the detailed comments at the end of this report should bring the whole bullish outlook together.