Rice Futures at Near 2-1/2-Year High

Rice prices have extended their rally, climbing above $17.9 per hundredweight to their highest level since June 2024, as upward momentum has gathered pace in recent months. Prices have surged more than 85% since the start of the year, driven by persistent concerns over tightening supply across major Asian producers. While the increase in new-season arrivals in India is improving domestic availability and providing some relief to export markets, supply prospects elsewhere remain uncertain. In particular, the developing El Niño phenomenon poses growing risks to rice production across Southeast Asia, with potentially erratic rainfall, prolonged dry spells and irrigation constraints threatening planting schedules and crop yields.