Rice Futures Trading Basics

Rice futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of rice (eg. 2000 hundredweights) at a predetermined price on a future delivery date.

Rice Futures Exchanges

You can trade Rice futures at Chicago Board of Trade (CBOT).

CBOT Rough Rice futures prices are quoted in dollars and cents per bushel and are traded in lot sizes of 2000 hundredweights (91 metric tons).

Exchange & Product NameSymbolContract SizeInitial Margin
CBOT Rough Rice Futures
(Price Quotes)
RR2000 hundredweights
(Full Contract Spec)
USD 2,430 (approx. 9%)
(Latest Margin Info)

Rice Futures Trading Basics

Consumers and producers of rice can manage rice price risk by purchasing and selling rice futures. Rice producers can employ a short hedge to lock in a selling price for the rice they produce while businesses that require rice can utilize a long hedge to secure a purchase price for the commodity they need.

Rice futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable rice price movement. Speculators buy rice futures when they believe that rice prices will go up. Conversely, they will sell rice futures when they think that rice prices will fall.

Learn More About Rice Futures & Options Trading

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