Commodity Brokerage / Agricultural Commodities / Rice

Agricultural Commodities

Rice

Rice is a highly specification-driven physical market, with price references differentiated by origin, variety and percentage of broken grains.

MARKET REFERENCES

How the market commonly references price

There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.

  • Thailand 5% broken white rice
  • Vietnam 5% broken rice
  • India parboiled / white-rice export references

TYPICAL COMMERCIAL STRUCTURE

How physical pricing is often built

Unlike major exchange-traded grains, seaborne rice is generally negotiated as an outright FOB $/mt price for a defined origin and grade, with CFR/CIF obtained by adding freight and insurance.

PRICE DRIVERS

What moves the physical differential?

  • Broken percentage
  • Variety / milling
  • Government export policy
  • Crop and stocks
  • Freight

PHYSICAL TRADE

Commercial considerations

A 'rice price' is not sufficient by itself — origin, grade, broken percentage, crop year and packaging must be specified.

The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.

Market methodology reference: view source / methodology

PHYSICAL COMMODITY BROKERAGE

Discuss a Rice requirement.

Share the specification, quantity, origin or destination, delivery basis and timing.

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