The trade, based on the Live Rice Index was a swap based on price for Thai white rice, 5% broken. The swap volume was for 1,000 tons and was traded at $379/ton on April 2019 maturity. The transaction took place between a Thai-based rice exporter and a Singapore-based rice trader.
At expiry, in April 2019, the counterparties will exchange the difference between $379/mt and the Live Rice Index price in April.
Even though rice is the staple food of more than half of the world’s population, there is currently no reference for Asian rice. SCB believes that the Thai White Rice (“WR”) 5% SWAP will become the Global benchmark for the rice industry.
Arnaud Saulais, Rice & Grains Derivatives Markets Broker at SCB Group, commented:
“By creating a Thai WR SWAP product, SCB enabled the counterparties to mitigate price risk, hedge their positions and create a stable price point. We look forward to working with other traders, producers and rice market participants to support them with similar trades in the near future.”
For further information, please contact:
- Pauline Tainton, Marketing Officer, SCB + 41 22 365 5310
- Camarco, Financial PR
- Billy Clegg, Jennifer Renwick, Monique Perks +44 20 3757 4995