'Chinese price'
According to Feng Xiaojian's forecast, the early rice price will fluctuate between 1900 yuan (US$278.18) to 2150 yuan (US$314.79) per ton this year. The price will generally remain stable without much room for sudden growth or decline.
Other than human consumption, early rice is also extensively used in industrial production, and serves as the raw material for producing rice noodles, beer, MSG, and even medicines. Additionally, high-dense maltose syrup is also a derivative of the grain, and is used in the production of candies and other foods.
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| Debut of rice futures forecasts 'Chinese price' [CFP] |
Development trends suggest that industrial production will see a faster growth of early rice use than human consumption.
"The industrial use of early rice makes it easier to trade in a market with a growing export volume." Yongan Futures' Vice Manager Jiang Yibo thinks that early rice is very likely to establish a 'Chinese price' soon after its arrival on world markets.
To date the USA, Thailand, and India – respectively a major rice trading country, the largest rice exporting country and the second-largest rice producing country, have all put rice on the futures market.
China is the largest country both for rice production and consumption and has certain advantages in international pricing.
"At the moment the Chinese domestic market is still disconnected from the international rice market. Our own rice futures market will win us a greater say in the world market," Feng Xiaojian claims.
(China.org.cn by Maverick Chen, April 28, 2009)
