BATON ROUGE, La. (RFD News) — The U.S. rice crop is expected to be smaller this year as fewer acres go into production across major growing regions.
Louisiana State University economist Dr. Michael Deliberto tells us the industry is looking at fewer acres in the six-figure range.
“We’re probably going to harvest about 500,000 fewer rice acres, which would signal production 200 plus million hundred weight down to about 175 million hundred weight,” Deliberto says. “Producers in Arkansas faced poor returns in recent years. They got what a lot of people would consider maybe a gloomy outlook for rice. And keep in mind, the story for the rice market — really for the past two or three years — was excessive carryout. There was a lot of rice on the market that had to find a home.”
Deliberto says tighter production could boost demand for the new crop and potentially support stronger prices for rice producers.
Market reaction was bearish for corn and soybeans, with analysts noting that abundant supplies amid tepid demand could keep price pressure on agricultural commodities.
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