US rice prices fall to lowest levels since 2023

US rice prices slumped to the lowest level in over two years as of Jan. 23, as weak demand and low-quality milling yields continues to place downward pressure on the market.

The downward pressure was seen in both the US Long Grain rice varieties as well as California short and medium rice varieties was seen recently. Platts, part of S&P Global Commodity Insights, assessed US Southern and paddy at $384/mt FOB NOLA a decrease of $35/mt on year. US Southern paddy also decreased $57/mt from $426/mt to $369/mt on year.

Calrose saw big decreases of $234/mt on year from $1,025/mt FAS FCL Oakland to $791/mt for Calrose milled, whilst Calrose paddy decreased $114/mt on year to $394/mt.

Sharp decreases were attributed to low milling yields for both US Southern grain and Calrose.

"It's unclear when the floor is going to be reached. Buyers have covered themselves and not in any need to purchase, and they are also keeping an eye on the South American rice markets which are due to harvest the new crop very soon," an exporter from Arkansas said.

A source from Brazil said that "Paraguay is currently harvesting, and so far things are going pretty well. It seems like the odds are in favor of South America as we experienced plenty of rain and good weather during the growing season. So, in general, it is anticipated that we will have a good crop, not only in Brazil but in the whole of South America."