Rough Rice May '19 (ZRK19)
|Tick Size||1/2 cent per cwt ($10.00 per contract)|
|Daily Limit||$0.90 per cwt ($1,800 per contract) Expanded limit $1.35|
|Contract Size||2,000 cwt|
|Trading Months||Jan, Mar, May, Jul, Sep, Nov (F, H, K, N, U, X)|
|Trading Hours||7:00p.m. - 9:00p.m. and 8:30a.m. - 1:20p.m. (Settles 1:15p.m.) (Sun-Fri) CST|
|Value of One Futures Unit||$2,000|
|Value of One Options Unit||$2,000|
|Last Trading Day||The business day prior to the 15th calendar day of the contract month|
Rice is a grain that is cultivated on every continent except Antarctica and is the primary food for half the people in the world. Rice cultivation probably originated as early as 10,000 BC in Asia. Rice is grown at varying altitudes (sea level to about 3,000 meters), in varying climates (tropical to temperate), and on dry to flooded land. The growth duration of rice plants is 3-6 months, depending on variety and growing conditions. Rice is harvested by hand in developing countries or by combines in industrialized countries. Asian countries produce about 90% of rice grown worldwide. Rough rice futures and options are traded at the CME Group.
Prices - CME rough rice prices on the nearest-futures chart rose all year with a sharp increase in the summer months to close the year 2017 at $11.680 per hundred pounds, up +23.8%. Regarding cash prices, the average monthly price of rice received by farmers in the U.S. in the first five months of the 2017/18 marketing year (i.e., August 2017 through December 2017) rose +14.0% yr/yr to $11.88 per hundred pounds (cwt.).
Supply - World rice production in the 2017/18 marketing year is expected to fall -0.7% to 721.208 million metric tons, down from the 2016-2017 record high of 725.968. The world's largest rice producers are expected to be China with 28.9% of world production in 2017/18, India with 22.4%, Indonesia with 8.1%, Bangladesh with 6.9%, Vietnam with 6.3%, and Thailand with 4.3%. U.S. production of rice in 2017/18 is expected to fall -20.4 % yr/yr to 178.382 million cwt (hundred pounds), the lowest level since 1996-97.
Demand - World consumption of rice in 2017/18 is expected to rise +0.6% to a record high of 479.289 million metric tons. U.S. rice consumption in 2017/18 is expected to fall -12.5% yr/yr to 115.0 million cwt (hundred pounds), farther below the 2010-11 record high of 136.921 million cwt (hundred pounds).
Trade - World exports of rice in 2017/18 is expected to fall -1.4% yr/yr to 45.317 million metric tons, down from the 2016/17 record high of 45.955 million metric tons. The world's largest rice exporters will be India with 25.6% of world exports, Thailand with 22.5%, Vietnam with 14.3%, Pakistan with 8.43%, the U.S. with 7.2, and Burma with 6.6%. U.S. rice imports in 2017/18 are expected to rise +4,3% yr/yr to 24.500 million cwt (hundred pounds), but still below the 2014/15 record high of 24.667 million cwt. U.S. rice exports in 2017/18 are expected to fall -11.7% yr/yr to 103.0 million cwt.
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