A Japanese rice price futures index was listed on the Osaka Dojima Exchange on Tuesday, with trading off to a quiet start.
The listing comes after rice interdealer prices surged amid a shortage of high-quality rice due to the effects of extreme heat in summer 2023, forcing supermarkets and other retailers to raise prices.
The Dojima Rice Average index is based on the weighted average price of rice brands across Japan, and is expected to be considered an indicator of fair prices. Its standard transaction unit is 3 tons, and the price per 60 kilograms is displayed in 10-yen increments. Trading hours are from 9 a.m. to 3 p.m. on weekdays.
On Tuesday, the February 2025, April 2025 and June 2025 futures contracts each fetched an initial price of 17,200 yen soon after trading began. However, there were no trades for the rest of the day, ending up with only three contracts.
Futures contracts effectively fix future purchase and sale prices, potentially offsetting losses from rising spot prices in the event of adverse weather. Widespread use of futures trading is expected to allow consumers to purchase rice at stable prices.
Source: The Jiji Press
