Rice Trading

Rice Trading

Rice has been being farmed for over 8,000 years in China. Since then, it has slowly spread to other reasons across the world and has become a dietary staple for billions of people, particularly those in Asia and Latin America.

Today, rice is the third most produced grain in the world. Each year, worldwide production reaches over 480 million metric tons.

The overwhelming majority of rice is produced for human consumption – 95% of the total global yields – but it’s also used in beverages such as sake and, increasingly, in the production of biofuels.

Different Types of Rice

Rice primarily comes from a species of grass known as Oryza sativa. There are thousands of different varieties of this species however, Japonica and Indica are the most recognised globally.

Japonica rice is grown in temperate climates in countries such as the US, Japan, and Spain, whilst Indica rice is grown in regions with hot, tropical climates like Southern Asia. Japonica rice grains are shorter and rounder and become sticky when cooked, whereas Indica grains are longer and won’t stick together when cooked.

Indica and Japonica are the two major types of rice traded on the global market. Product characteristics, production zones, consumer preferences, and government policies influence Indica and Japonica rice market structures. Using the Rice Economy Climate Change (RECC) model, which covers these rice markets in 24 countries and the global rice market, the international Japonica rice price is found to be more volatile than that for Indica rice under possible climate change scenarios. The simulation results also suggest that agricultural investments in major countries producing Indica and Japonica rice will contribute to their price stability over the medium and long term under climate change.

There is a further subcategory of rice which is known as ‘aromatic rice’, which includes speciality, premium-rate varieties such as jasmine rice and basmati rice.

Rice Market Overview

Global warming and population growth in the regions of Asia and the Middle East have increased the price of rice as weakening supplies and bolstering demand continue. Both of these trends look set to continue into the future. If you are a grain trader or a buyer of rice, Gloabl Trading is uniquely postion to offer a competitive price.