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
“Arkansas was the first state in the country to kick a Chinese-owned company off of our farmland...”
Dis is a delightful dish. You can serve it by itself or with a good gravy or gumbo. It is so easy to fix, I garontee!
Dis rice isn’t that wild, no, but it is a delicious rice!
A down-home, one-pot wonder with a Cajun kick.

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:

Secretary Rollins’ plan targets high costs, labor challenges, and export growth, delivering relief at home while building markets abroad.
Transportation challenges are mounting as droughts lower Mississippi River levels and push freight rates higher.
Waiting could risk leaving next year’s crop unprotected.
Rising cow numbers and higher yields are boosting milk supplies, which may keep pressure on prices and farm margins into the fall.
U.S. soybean farmers are growing increasingly frustrated by Argentina’s gains in Chinese grain contracts and Trump’s pledge of economic support for the South American ally.
The USDA is moving to close the farm trade gap through promotion, missions, and stronger export financing.