Rough Rice Futures Contracts:
- Ticker Symbol: RR (Open Auction), ZR (Electronic)
- Exchange: CBOT
- Trading Hours: 10:30 - 2:15 EST.
- Contract Size: 2,000 hundredweight (cwt.)
- Contract Months: Sep, Nov, Jan, Mar, May, Jul
- Price Quote: price per bushel. Ex $10.50 per hundredweight
- Tick Size: 1/2 cent/hundredweight ($10/contract)
- Last Trading Day: Business day prior to the 15th calendar day of the delivery month.
Rough Rice Basics:
Rice is the primary food staple for much of the world. Rice has been growing in popularity in the U.S., with annual per capita consumption at more than 30 pounds.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).
Direct consumption of cooked rice accounts for more than half of the consumption of rice in the U.S. Use in processed foods - has been growing rapirdly since the 1980s. Use of rice in beer production accounts for about 10-12 percent of usage as well as rice used for pet food.
Growing Rice:
Rice typically requires high average temperatures during the growing season, a plentiful supply of water, a smooth land surface to facilitate uniform flooding and drainage, and a subsoil hardpan that inhibits the percolation of water.Planting typically begins in early March in Texas and southwest Louisiana. The Delta plants the bulk of its crop in April, and California's crop is planted from late April through mid-May. Harvest begins in early or mid-July in Texas and southwest Louisiana. Peak harvest in the South is in September and early October.
Rice is one of the highest cost crops to grow.
U.S Rice:
The U.S. only produces less than 2 percent of the worlds rice crop, yet accounts for almost 12% of the world's export supplies.Arkansas, California, Louisiana, Mississippi, Missouri and Texas are the six states that produce more than 99% of all rice grown in the U.S.
Arkansas, the largest rice-producing state in the nation, harvested nearly half of the bushels produced nationwide.
All U.S. rice is produced in irrigated fields, achieving some of the highest yields in the world.
Most U.S. rice imports are aromatic varieties from Asia-jasmine from Thailand and basmati from India and Pakistan.
World Rice:
China, India, Vietnam, Thailand, and Indonesia produce over 70% of the world's crop.Rice is the primary staple for more than half the world's population.
Asia and Africa the largest consuming regions.
Rice is produced worldwide and is the world's second or third largest staple crop, with corn being the largest and wheat nearly the same.
The demand for rough rice by the top two markets-Mexico and Central America-has grown considerably over the past decade. The United States is the only major exporter that allows rough-rice exports.
Rice Supply and Demand Statistics:
In the U.S., 2008 plantings of rice are expected at 2.77 million acres. The U.S. rough rice crop is estimated at 197.5 million cwt. Total use of U.S. rice in 2007/2008 is projected at 236.7 million cwt. U.S. exports are projected at 112.0 million cwt in 2007/08.Global production is projected at 425.3 million tons for 2007/08 by the USDA. Global use is projected at 424.2 million tons. Global ending stocks for 2007/08 are projected at 77.2 million tons.
Rice - Key Reports:
The Rice Outlook: Released monthly by the USDA, this report gives a good analysis of the U.S. and world rice market.Monthly Crop Production - Released around the 10th of each month. The report gives an updated estimate of supply and demand for rice.
