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Rice History

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Contract History

If you are interested in trading Rice futures it is helpful to become familiar with the history of the Rice market. The CBOT Rough Rice Contract is the global benchmark for the pricing of rough rice. The size of the rough rice contract translates into a relatively small underlying value per contract, making it attractive for hedgers and speculators alike, providing easy market access for global participants small and large.

Rice originated in Asia. Asian farmers account for over 90% of the world's total rice production. The largest producers are: India, China, Japan, Indonesia, Thailand, Burma, and Bangladesh. 

The United States has been producing rice for more than 300 years. In the Unitied States direct consumption of cooked rice accounts for more than half of the consumption of rice. The use of rice in beer production accounts for about 12% of its use. Since the 1980s the use of in processed foods has been growing rapidly. Rice also widely used for pet food.

Together the Unites States and Thailand produce 6% of the world’s rice, but account for over 45% of the total exports. India and Vietnam are two of the other major exporters. In early 2008 these countries announced export controls that sent rice prices sharply higher.

A large set of commercial market participants, including farmers, exporters and a diverse set of institutional participants underscores the importance of rough rice futures and options markets ensuring highly efficient pricing and continuous liquidity.

Grain and Soybean Futures and Options

Click on the link above to download a very informative .pdf brochure entitled "Grain and Soybean Futures and Options". It was published by the Chicago Board of Trade. This is a must read guide for any speculator or hedger considering an trade in the corn futures or corn options.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Van Commodities, Inc. Research Department. Please view our Risk Disclosure.

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