Rice futures prices fell to their lowest since November 2020 and approached the $12 per 100 pounds mark amid heightened expectations of global supply growth.
In a May report, the US Department of Agriculture forecast total rice production in the 2025/2026 crop year to increase to a record 538.7 million tonnes, driven by increases in India, Bangladesh and China.
Rice production in India is expected to record a tenth consecutive year of record production, although declining planted area may be a limiting factor.
World rice consumption is also forecast at a record 538.8 million tonnes, mainly due to higher demand in India, Bangladesh, the Philippines and Nigeria. Consumption in China is forecast almost flat as more competitive feed grain prices limit the use of rice for feed purposes.
Since the beginning of the year, the price of rice futures on the Chicago Mercantile Exchange (CBOT) is down 14.26 per cent. Their historical peak was reached in April 2008, when rice cost $24.46 per 100 pounds, according to Trading Economics.