Dojima Exchange to Introduce Physical Delivery for Rice Futures
Osaka, Thursday, 14 August 2025.
The Dojima Exchange plans physical delivery for rice futures next spring to boost trading. The initiative aims to increase daily contracts and engage farmers and traders more effectively.
Introduction of Physical Delivery in Rice Futures
The Dojima Exchange in Osaka City has announced plans to introduce a physical delivery option for rice futures trading as early as next spring. This strategic move aims to combat stagnant trading volumes and invigorate market participation by offering more tangible options for traders, particularly engaging farmers and wholesalers. The introduction of physical delivery comes on the heels of the exchange’s rice futures index launched last year, serving as a price indicator but facing limitations in trading activity [1][2].
Enhancing Market Engagement
Dojima Exchange President Shigeru Shibano has emphasized the goal to increase daily contracts to 3,000, highlighting the need for improved usability of futures contracts among stakeholders [1]. By enabling physical deliveries, the exchange hopes to attract greater participation among market players, who perceive direct delivery as a more immediate reflection of market conditions and supply-demand dynamics [2].
Impact on Japan’s Agricultural Market
This initiative by the Dojima Exchange reflects broader developments within Japan’s agricultural trading systems. The Ministry of Agriculture, Forestry and Fisheries is concurrently considering changes to farmland consolidation support mechanisms, potentially bolstering the restructuring of rice production to meet both domestic and international demands [2]. Aligning with these efforts, the physical delivery model could provide clearer price signals and improve market liquidity, offering benefits such as price stabilization and supply chain enhancements [1].
Innovation in Food Production Techniques
In parallel with changes in traditional agriculture, innovations in food production are advancing, such as lab-grown food technologies. Such innovations promise to not only increase food production efficiency but also significantly reduce environmental impacts. Companies based in Singapore are at the forefront, pushing the adoption of printed electronics applicable in various industries, thereby supporting enhanced food production methods through advanced technologies [2][3].