Rice production in the United States is down 20 percent compared to last year, while futures prices for the commodity are up 30 percent from a year ago.
Online source World-Grain reports the drastic reduction largely was the result of reduced planted and harvested area as rice lost acreage mainly to soybeans and cotton. Rice prices were dropping in March when soybean prices were rising influencing growers to choose soybeans over rice.
U.S. rice carryout for 2017 at the time was projected to reach a 30-year high. Some rice acreage losses also resulted from heavy rains and flooding related to Hurricane Harvey in Texas and Louisiana. For 2018, USDA is predicting another reversal, projecting 2018 U.S. rice planted area at 2.9 million acres, up 17 percent from 2017.
Unlike wheat, corn and soybeans, the United States is not a major producer of rice on the global stage. Still, the United States exports about 55 percent of its rice.
From the National Association of Farm Broadcasting News Service.