Japan futures industry news "Futures Tribune"

MAFF Held Study Meeting of Rice Future Price－Strategy for Revival of Rice Futures Market?

_{Aug. 22, 2023}

The Ministry of Agriculture, Forestry and Fisheries (MAFF) held the first meeting of“The Study Meeting on Future Price of Rice”on July 2. The application of rice eternal listing by Osaka Dojima Exchange (ODEX) was disapproved in August 2021, and having lost futures price as a base for rice cultivation management, some producers are concerned that the outdated distribution system will be maintained. Meanwhile, MAFF is preparing a rice spot market and plans to get it working next September, but It is an unknown situation how much flexibility trading will take place. Although the study meeting labeled as future price, it definitely means futures price, so it seems to be taken as strategy for revival of rice futures market.

Purpose of “The Study Meeting by Practitioners on Future Price of Rice” Since rice users wish trading with stable price and quantity, expansion of prior contract, etc. including price are problems. So if future price of rice can be guessed, it can help pricing on the occasion of the conclusion of prior contract and it can be also expected that production will be carried out according to supply and demand by producers.
Therefore, from the perspective of complementing rice spot trading, about how to figure out trends of rice future price, a study meeting to study in the eyes of producers, distributors, wholesalers and users is to be set up.

The first meeting was held in an undisclosed manner.　Kouji Miyaura, the councillor of MAFF mentioned “There is a story if future price can be guessed, we will see prior contract and pre-purchase amount by Zennoh(Japanese agricultural group), etc. ”, and after that, the members set the direction of the meeting.

The first keynote lecture was explained by Shunsuke Orikasa, the chief researcher of the Distribution Economics Institute of Japan, that will become the substantial management body of the spot market“Mirai Rice Market, entitled “About rice spot market Mirai Rice Market and its price market”. Then, Toshihiro Butta, the president of Butta agricultural products corporation, that raised one’s hand to management of rice spot market, gave a lecture entitled “Foundation of a new rice market with farmer origin” ,and in the second half, Mitsuyanagi, the assistant director, wheat and oilseed division, food department, food headquarters, Mitsui & Co., Ltd., spoke his experience under the title“Use case of wheat futures market”.

Next meeting will be held in the second half of October.
The members of the study meeting are as follows.

Yuuki Iijima, managing director and sales manager of Iijima Rice Co., Ltd.,
Takatoshi Inoue, senior managing director of INOUE FARM,
Kenichiro Kitamoto, president of Kichoraku Co., Ltd.,
Takuro Sato, president of Agreenheart Co., Ltd.,
Masashi Sato, president of Niigata Yuuki Co., Ltd.,
Jiro Imoo, product manager of Senda Mizuho Ltd.,
Kenichiro Taguchi, president of Taguchi Nousan Co., Ltd. ,
Aiichiro Hirasawa, managing director of National Staple Food Distribution Cooperative Federation,
Akira Fujii, deputy director of rice department, National Federation of Agricultural Cooperative Associations,
Tomoyuki Maeda, general manager of food distribution division, director of food distribution center and manager of aroz division, head office sales division, NIPPON GENERAL FOOD Co., Ltd.
Hiroshi Yoshida, executive officer and purchasing manager, WARABEYA NICHIYO FOODS CO., LTD.

（Futures Tribune・issued August 8, 2023 ・no.3232）

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