China Launches Early Rice Futures

China has started the trading of early rice futures contracts Monday on the Zhengzhou Commodity Exchange, in central Henan Province, with the goal of a larger role in global grain prices.

China has expanded the range of commodity futures available at exchanges to boost financial markets and increase producers’ and investors’ ability to hedge against price changes.

According to the Chinese Securities Regulatory Commission Chairman, Shang Fulin, early rice futures trading would help to improve domestic grain pricing and provide grain traders with more risk control measures.

Rice is China's largest grain crop. Over the past 30 years, annual rice output has ranged from 180 million to 200 million MT, about 40 % of the total grain output.