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
Rail logistics remain supportive, with access to Mexico improving
Restored base acres strengthen cotton risk protection.
Record Choice grading levels are changing how beef quality premiums are valued.
The closure of Lubbock Feeders highlights mounting pressure on the U.S. cattle supply, according to the Texas Cattle Feeders Association, as border restrictions and costs strain feedyards.
U.S.-Mexico agricultural trade faces uncertainty in 2026 as tariffs and cartel violence threaten farmers and ranchers. Congressman Henry Cuellar and Texas leaders weigh in on impacts and risks.
Stable blending demand continues to underpin corn use despite export volatility.

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:

USDA’s March WASDE report leaves U.S. corn, soybean and wheat ending stocks unchanged while adjusting global production estimates for South America.
Tariff revenues rarely flow directly back to farmers.
U.S. Agriculture Faces Mixed Weather, Market Pressures
Strong exports and production support ongoing corn demand.
Strong consumer demand supports livestock market outlook.
Farm legal expert Roger McEowen discusses a new rail antitrust case in Kansas and its potential implications for farmers as rail upgrades signal continued export-driven demand for logistics.