Rice Futures Hover at 2024-Highs

Rice futures traded above $17 per hundredweight, staying close to their highest level since July 2024, amid mounting supply cooncerns.Global rice prices are facing upward pressure as adverse weather threatens production and disrupts supply chains across major Asian exporters. In India, rice output is forecast to decline by 7 million tonnes to 147 million tonnes in the 2026/27 marketing year following the weakest monsoon in nearly two decades. The projected reduction is significant for global markets, as India accounts for more than 40% of worldwide rice exports. Meanwhile, flooding in Thailand has disrupted rice transportation and raised concerns over planting delays and potential crop losses. Higher freight costs are adding to trade uncertainties, although ample inventories could help cushion the impact of lower production. The outlook for prices will depend on the extent of crop losses, export availability and the ability of major suppliers to meet international demand.