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Thursday, April 24, 2008
Wal-Mart Rations Rice, Warns of 'Supply and Demand' Concerns
Ken Sweet
FOXBusiness
Wal-Mart, the world’s largest retailer, said Wednesday that it would ration the amount of rice each customer can purchase at its Sam's Club warehouse stores because of recent “supply and demand trends.”
“We are limiting the sale of Jasmine, Basmati and Long Grain
White Rices to four bags per member visit,” the company said in a statement. “This
is effective immediately in all of our
Wal-Mart (WMT) is the second-major grocer to limit the purchasing of a commodity because of the recent run-up in prices. The company said it is not limiting the purchase of other basic food products like flour or oil.
The price of rice, which is the primary foodstuff for the majority of the human population around the world, rose to $894 a metric ton according to the Thai Rice Exporters Association. That’s compared to the $327.25 a ton average price in the same month last year.
In
The run up in price in rice is primarily related to poor
harvests and countries curbing exports.
The World Food Program called the recent run up in prices of
rice and other basic commodities a “silent famine.”
Wal-Mart did not say when the rationing would end, but it was “working with our suppliers to address this matter to ensure we are in stock, and we are asking for our members' cooperation and patience.”
Costco (COST), the nation's largest warehouse retailer, said yesterday that it had seen increased demand for basic food staples as well like rice and flour. The company had a two 50-lb limit on rice purchases as well to keep people from hoarding and reselling the rice.Jordan Mandelberg of FOX Business said a San Francisco-based Costco has basically sold completely out of its supply of rice. Only one pallet of white rice was left by the late morning in California.
Joe Morris of the California Rice Commission said the supply concerns stem from imported long-grain rice, not the domestic medium-grain rice grown here in the states.
FOX Translator
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Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.
The entire amount you invest in no-load funds goes to work for your returns. On the other hand, with load funds, right off the bat you're charged commission (not to mention other fees incurred over the life of the investment). Let's say, for example, you invest $25,000 into a load fund that charges a 5% commission. This costs you $1,250 off the top, bringing your actual investment down to only $23,750.
The often-cited horse race analogy argues against investing in load funds. Here's the logic behind it: Would you place a bet on a horse that had to start a race 200 yards behind the others? Well, maybe you would if you got a tip from a sketchy, trench coat-clad man in a dark alley. However, under most circumstances, it's not smart to put your money on that handicapped horse.
But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.
Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.
