FX.co ★ Rice Futures Hit 2018-Lows

Rice futures have fallen to just under $10 per hundredweight, marking their lowest level since September 2018 as expectations of a global surplus loom large. This abundance in supply is primarily due to significant harvests in major Asian exporting countries, most notably India, which recently experienced its most substantial monsoon in five years. Stocks in other nations such as China, Thailand, Indonesia, and Vietnam are also anticipated to increase with the new harvest season underway. The United Nations Food and Agriculture Organization (FAO) projects that global rice production will reach a record 556.4 million tons by the 2025-26 period. In light of these developments, buyers are adopting a more cautious procurement strategy, resulting in subdued demand.