Rice Prices Fall Despite Tighter Domestic Stocks Outlook

Global surplus outweighs tighter U.S. supplies, pressuring prices.

rice update 1280.jpg

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.

Global conditions are driving the decline. Worldwide production is expected near record levels while demand lags, creating a third straight 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 rice. 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
The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.
Danny Munch of the American Farm Bureau joined us to discuss USDA’s latest farm income forecast, revisions to prior estimates, and what the updated data means for farmers heading into 2026.
HHS Secretary Robert Kennedy calls on cattle producers to retain breeding cows while Ivomec receives emergency authorization to prevent New World screwworm.
The U.S. trade deal with Argentina creates new export opportunities for U.S. livestock and crop producers but also raises competitive concerns.
Policies aimed at ground beef prices may primarily reshape dairy incentives rather than deliver lasting consumer savings.
More flexible export financing could strengthen demand in emerging markets and support higher U.S. agricultural exports.
Incremental trade clarity with India could support select U.S. ag exports, but major gains hinge on future market-access talks.
The phone call injected optimism into the soybean market, but actual Chinese buying and its timing will ultimately determine the extent of U.S. agricultural export benefits.
Mexico has fallen behind by several hundred thousand acre-feet in required water deliveries to the United States, a shortfall that has had devastating consequences across the Rio Grande Valley.

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:

Lower freight costs helped sustain export demand amid a challenging pricing environment.
Producers across the country spent the week balancing spring planning with tight margins and uneven moisture outlooks. Input purchasing stayed cautious, while marketing and cash-flow decisions remained front and center for many operations.
Income support helps, but farm finances remain tight heading into 2026.
Federal assistance has helped, but the most recent row-crop losses remain on producers’ balance sheets.
Rebuilding domestic textiles depends on automation and vertical integration, not tariffs or legacy manufacturing models.
Strong supplies and rising stocks point to continued price pressure unless demand accelerates.