Thai Rice Futures

Thailand’s Agricultural Futures Exchange market (AFET) hosts a trading platform for three categories of rice, namely BWR5, BHMR and WRF5

  • The first category of Thai rice is tagged BWR5, which stands for Broken White Rice 5% (or the B stands for Grade B); this is the bulk of the rice in government stocks, and 5% refers to the proportion of the rice that is broken, i.e. it’s mostly long grain. Read more here about it here
  • The second category in the AFET is tagged BHMR, which stands for (Grade) B Hom Mali Rice, which is Thai fragrant jasmine rice, presumably the 100% means that it is completely brokenas opposed to long grain. Here is some stats about it on the world market in recent years.
  • The third rice category on the AFET is tagged WRF5, which stands for White Rice FOB 5%, and is the 95% long-grained rice from the current season’s harvest, i.e. new rice.
  • BWR5 and BHMR are sold in 15,000 tonne contracts while WRF5 is sold in 50,000 tonne contracts.
  • 5% broken rice, such as WRF5 and BWR5, can be further milled into 10%, 20% or 100% broken varieties later down the production chain, whereas it doesn’t work in the reverse order, i.e. you can’t take 100% variety and make it long-grain again.
  • North Asia rice consumers, i.e. in China, Koreas and Japan tend to consume more long-grain varieties of rice.