Rice futures contracts are the benchmark for the rice market. Rice is a plant of the grass family. Rice provides 25 to 80 percent of the calories in the daily diet of 2.7 billion Asian, more than half of the world's human population. Rice is the world's third largest crop, behind corn and wheat. The two main varieties of rice are: long grain (such as jasmine and basmati), and short grain (such as Valencia, and sushi).
Rice is grown in partially submerged fields, also called paddies. After the rice grain is harvested it must be dried before it can be milled. Normally this is done by leaving it on racks out in the fields to be dried by sunshine. The dried rice grain is called rough rice. Five different types of rice can be produced from rough rice: hulls, bran, brown rice, whole-kernel milled rice, and brokens (broken-kernel milled rice).
This section on the rice market contains a wealth of information. You can read about the history of the rice market, the fundamentals that make it move, and the futures and options specifications. You can also view quotes, charts, current margins requirements, and news that is affecting the rice market.
Learn everything you need to know about how futures allow you to control a large amount of rough rice with a minimal investment of capital. However, if you are new to the commodities markets you should consult with a licensed broker before starting to trade.
Start trading rice futures and options today! Click here to contact a licensed commodities broker with experience in the rice market. We are happy to answer all of your questions about rice futures and options.