＜Agricultural Market Study Group＞

Agricultural Policy Research Committee, Inc. (Chiyoda ward, Tokyo) is planning to set up “Agricultural Market Study Group”in June to discuss broadly necessity of agricultural market including futures one focusing distribution of agricultural products. At the Agricultural Market Study Group, based on the distribution situation of major agricultural products such as corn, wheat, rice, etc., seminar and panel discussion by experts are scheduled to be held. It will be held twice a month, eight times in all from June to September, its proposal or report will be officially announced in September. Anyone can attend the Group meetings at its venue or online. For the sluggish agricultural futures markets in Japan, voice from a private group, Agricultural Policy Research Committee will be a tailwind for revival.

At present, only Osaka Exchange has trading volume of its agricultural product, corn, whose trading volume in FY 2022 (April 2022－March 2023) was about 45,000(the ninth place by the exchange product in Japan), being a low level. Trading volume of gold standard in the FY at Osaka Exchange, the first place, was about 7 million, platinum standard at Osaka Exchange, the second place, was about 2 million 470 thousand and crude oil at Tokyo Commodity Exchange, the third place, was about 2 million 90 thousand, and the power relationships in domestic futures markets replaced agricultural products with precious metal products.

As to agricultural product, other than corn(Osaka Exchange), soybean (Osaka), Azuki (red bean)(Osaka and Dojima), Corn 50 (Dojima), US Soybean (Dojima), Niigata Koshihikari EXW (rice for export)(Dojima), five products at two exchanges are listed now, however, trading volume of the products except for corn(Osaka) was nil in FY 2022.
Voice worrying about such a situation is heard from outside of the commodity futures industry too. Especially, voices from rice producers appealing harmful effects that haven’t been presented a leading indicator, rice futures price, followed one after another at the rice industry symposium held by Agricultural Policy Research (https://apcagri.or.jp/apc/) in FY 2022. Rice futures transaction that had been listed as a trial at Dojima Exchange was disapproved in August 2021, and after that, the rice futures markets of Niigata Koshihikari and Akita Komachi were abolished but the rice futures market for export of Niigata-Koshihikari has been still presented.
Although Japanese Government has raised increase of rice export as a national policy, it can be said that no trading at its futures transaction has been left behind is unusual conditions anyway.

However, the Agricultural Market Study Group will hit the spot not only rice but also the other agricultural products, and it will also treat the distribution situation of many agricultural products, discussing necessity of their markets. The Group will complete its report in September after the meetings twice a month.

Agricultural Policy Research was set up based on the proposal by advisory body to the Prime Minister, the Fundamental Issues Research Council on Agriculture, Forestry and Fisheries in 1961. The Council has been carrying out research relating to fundamental issues of agriculture and rural, and compiling their results into booklets and books, that have been read by agriculturist widely.

（Futures Tribune・issued May 23, 2023・no.3216）