Rice Futures Fall to 20-Month Low as Demand for U.S. Grain Ebbs

Rice futures fell to a 20-month low in Chicago as demand for supplies from the U.S. declines and production increases. Last month, Iraq bought 90,000 metric tons from Thailand and Vietnam, the world’s biggest exporters. The price at $350 a ton was $100 less than U.S. supplies, said Dennis DeLaughter, the owner of Progressive Farm Marketing Inc. in Edna, Texas. Today, futures tumbled 3.9 percent, the most since January 2009. “When you have a lack of demand, you have a day like we had today in the futures market,” Delaughter said. “The U.S. is just too high. That means we have to go lower. The futures are being led by world demand, and it’s just not there.” Rice futures for July delivery fell 45.5 cents to $11.105 per 100 pounds on the Chicago Board of Trade. Earlier, the price touched $11.06, the lowest level since Sept. 14, 2007. The most- active contract has dropped 25 percent this year. Favorable weather boosted crop prospects in the U.S., the fourth-biggest exporter behind Pakistan. “Most of the crop in Texas looks good, and in Arkansas, it looks good,” said DeLaughter, a rice grower. “Everything we’ve been hearing about the crop is that it looks great.”