Global Rice Market – Americas
US Long grain rough rice futures: how they work.
A seller example:
Region: North Arkansas
This area is the largest production area in the US for long grain rice. From I 40 in Arkansas to the northern limits of growing in Missouri most of the price discovery happens. Both large Arkansas cooperatives are located in Arkansas but also in Missouri and Mississippi with one cooperative owning a mill on the other side of the river in Greenville. The uniting force in the Upper Delta is the Mississippi River down which flows a lot of the rough rice into the world market. It was the trade in rough or paddy rice that jump started the trading in rice as the contract matured so did the trading in rough rice for export in the US. Without the trading and export of rough rice by barges down the river, it is doubtful we would have a rice futures contract in the US. President Bill Clinton was instrumental in implementing the NAFTA agreement in 1994. Like the WTO for California a bit later, NAFTA gave the US industry a market it did not have before. Trade agreements can make or break a futures contract.