Rice Prices Fall Despite Tighter Domestic Stocks Outlook

The global rice surplus outweighs tighter U.S. supplies, pressuring prices.

NASHVILLE, TENN. (RFD NEWS) — U.S. rice producers are heading into 2026 facing lower prices even as supplies tighten, according to University of Arkansas economist Ryan Loy.

U.S. rice acreage totaled about 2.8 million acres in 2025, with roughly 2.7 million harvested after spring flooding reduced plantings across the Midsouth. Long-grain ending stocks are projected near 34.6 million bushels — similar to last year — but the average farm price is forecast to drop to about $10.50 per hundredweight from roughly $14.00 the previous marketing year.

Farm-Level Takeaway: Global surplus outweighs tighter U.S. supplies, pressuring prices.
Tony St. James, RFD NEWS Markets Specialist

Global conditions are driving the decline. Worldwide production is expected to be near record levels, while demand lags, creating a third consecutive year of surplus. Large exportable supplies from Asia — especially India — continue pressuring prices across major exporters.

Competition remains strongest in Western Hemisphere markets where U.S. rice competes with South American crops. A smaller Mercosur crop could help support market share, though high beginning stocks in Brazil limit upside potential. U.S. long-grain exports during the first half of the marketing year already fell 31 percent from a year earlier.

Related Stories
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Energy shifts influence diesel and fertilizer costs.
Weather remains the primary driver for wheat price outlook.
HTS Commodities’ Lewis Williamson provides updates on how growers are preparing for spring planting in an unpredictable agricultural landscape.
RealAg Radio host Shaun Haney explains how geopolitical developments in the Middle East can create energy-driven pressures that impact the supply chain and reshape demand for certain ag products.
Jake Charleston of Specialty Risk Insurance offers his perspective on current cattle market conditions and shares advice for producers seeking to stay protected in an uncertain market.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Refining shifts could influence fuel and input costs.
ASFMRA’s Craig Thompson shares insights for American farmers who are navigating farmland markets amid agricultural uncertainty.
Ben Kurtzman with American Farmland Trust discusses the growing pressure on farmland and ranchland and the steps being taken to help conserve farms and ranches across the country ,as unrest in the Middle East adds more obstacles for producers.
Acre reporting is crucial to maximize specialty crop aid.
Leadership continuity signals a steady focus on family farm advocacy.
India trade tensions may affect the U.S. export outlook.