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
RealAg Radio’s Shaun Haney discusses the next generation of Canadian agricultural policy, producer priorities, concerns surrounding risk management programs, and what the framework could mean for agriculture on both sides of the border.
Seasonal beef production gains may moderate retail price pressure, while tight cattle supplies continue supporting producer values.
Higher rail fuel surcharges could add cost pressure even as wheat production falls and grain movement remains active.
The Washington State Tree Fruit Association says crop quality looks promising despite ongoing drought conditions.

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:

Producers growing multiple spring crops should compare CLIP with individual coverage increases and county-based supplemental protection.
Improved coffee output could strengthen the U.S. supply, but input costs and weather risks keep the outlook uncertain.
Estimates for 2026 harvested crops remain early. Corn and sorghum are below their reference prices, while wheat and soybeans are above them.
Markets Analysts and Livestock Experts Say Screwworm Adds Costs for Producers, Not Food Safety Risks
Data centers will continue expanding, but local decisions will determine whether that growth protects agricultural water access or adds stress to already vulnerable production regions.
A long-running poultry waste lawsuit remains unresolved after a federal judge rejected proposed settlements and appeals followed.