Rice Futures End of Day Settlement Price - Essay Example

However, due to the decrease in demand in rice during 2008, the price of rice has significantly increased. But with the aid of the structural changes, the US rice industry has managed to cope and since then the trend of the demand has normalized. Currently, rice is valued in the market at $578.36 per metric ton. (Source: World Bank)According to World Bank’s bi-annual Global Economic Prospects (26) report, a decline in the prices of global prices of farm commodities should be expected in 2012 by up to 11% mainly due because of the slowdown in demand and improved supply prospects.

Comparing rice to close commodities like wheat would yield an observation that while other commodities such as wheat and corn have increased prices in recent months, rice has constantly decreased.(Source: Mundi)Conclusion:Although returns to rice production are highly variable and fluctuating, the trend is being controlled with the substantial structural changes that are being implemented in order to balance these factors. In the years to come, as the World Bank has predicted, rice prices will continually drop.

And unlike other agricultural products, the rice industry has enjoyed a decline in its prices.