Rice was first cultivated in China where it was a staple in their diet. It spread from China and reached the shores of India and Sri Lanka. Overtime, it was distributed throughout Southeast and Central Asia. West Asia was able to get ahold of rice through Alexander the Great’s armies.
It arrived on the shores of Europe much later, at the same time the East African traders brought rice they had received from India and Indonesia to the African continent. The people in the middle ages believed that rice fields were breeding grounds for mosquitos that carried malaria.
Rice was only brought recently to the Americans during the 16th and 17th century and the Americans quickly began to grow and harvest rice and by the 1700s began exporting rice to England.
Today, rice is grown mainly in the following States: Arkansas, California, Louisiana, Mississippi, and Texas.
Rice in the Market:
Since its cultivation, rice has become one of the top three staple foods in the world. However, rice consumption in both China and India result into direct weak exports. This is because only a small percentage of rice production in the world is really available for trade, leaving small rice-producing like Thailand, the United States, and Vietnam in the front of exporting rice.
Rough rice futures are becoming relatively popular commodity among investors and speculators. This is thanks to its invaluable status as a staple food source in both China and India backed by its export shares from a small number of producers.
Just like every commodity, rough rice has its own ticker symbol abbreviated as RR; this is not to be confused with the ticker symbol of Rolls-Royce which is also RR. To avoid any discrepancy, rough rice also has another ticker symbol for electronic use: ZR.
Price Affecting Factors:
The price of rice is determined by several factors listed below:
- Because of its status as a commodity, rough rice’s status as a staple food is dependent on its demand for some of the most populated nations.
- The growing demand of rice in nations such as China and India.
- Prices are also affected by the rise of materials used to cultivate rice such a fertilizers and fuel.
Despite being a staple food in the diets of some nations in the world, commodity exchanges around the world have caused development for contracts to take some time.