Bangkok--29 Mar--AFET
The Agricultural Futures Exchange of Thailand (AFET) is ready to launch the latest futures contract “White Rice 5% FOB (Free-on-Board) (WRF5)” to be traded on its trading board on the very first trading day — April 29, 2011. WRF5 has a bigger size contract of 50-metric-ton trading unit and an FOB delivery term, which is appropriate and in accordance with the nature of rice exporting in the current market situations. This is highly convenient in terms of export as the buyer has the right to take delivery and choose amongst several major ports, or at warehouses nominated by the buyer for the domestic delivery as well.
AFET expects the latest WRF5 futures contract to be a better channel in favor of exporting and rice trading for every single rice trader. Mr. Prasat Kesawapitak, AFET Chairman of the Board of Directors, said “AFET has been ready to commence the futures trading of White Rice 5% FOB on April 29. White Rice 5% futures contract had been traded on AFET before in 2004 and later its contract specification has been continuously modified and developed until present. The government had seen the importance of White Rice 5% futures contract and thus participated in the futures trading in order to effectively auction the rice inventory during 2007 and 2008.
White Rice 5% FOB (Free-on-Board) (WRF5) soon-to-be-traded on AFET has received very well responses from various rice entrepreneurs and operators. The modern, high-standard, and sophisticated trading system, along with a secure system in cash settlement, plus the convenience in physical delivery of the product, will facilitate the rice market and develop it to a more liquid one. Several operators — from millers to every other single unit of the rice traders — will be given better opportunities to trade and export rice. Importers from several other countries can as well conveniently participate in AFET futures trading mechanism in order to hedge against price volatilities. This will be a major support and encouraging the export of Thai rice to the world markets. Farmers and cooperatives are welcome and eligible to participate in AFET futures trading system in order for them to effectively map out their cropping and harvesting plans along with their business plans, which will in turn boost up Thai paddy and milled rice market system to be more effective. Government units can also keep their eyes on AFET price monitors to pin down solid policies in order for them to complete their rice management system. Moreover, price fluctuations affected by foreign exchange volatilities will however create opportunities for investors and speculators to gain profits by trading on AFET range of commodities.
AFET strongly believes that White Rice 5% FOB (Free-on-Board) (WRF5) will be able to fulfill and satisfy exporting and rice trading system of the country. As a result, Thailand will become one of the world’s price reference markets of white rice. AFET will soon release the latest contract specification of White Rice 5% FOB (Free-on-Board) (WRF5) to public.” Mr. Prasat said.
Khun Isaraphon Kijpaituraya
Marketing and Public Relations Department
The Agricultural Futures Exchange of Thailand (AFET)
Tel 0-2263-9888, 0-2251-9535 Mobile 081-862-2247
www.afet.or.th