# Do Increased Rice Futures Mean Increased Profitability | USA Rice Federation

> A Louisiana State University agricultural economist explains that US rice futures remain elevated versus pre-COVID levels. He attributes this mainly to limited old-crop supplies, including a manageable carry-in, sales to Iraq, steady Latin American exports, and early sales in the 2019/20 marketing year. He also notes that global rice prices are becoming more competitive.

- Date: 2020-06-09 · published 2020-06-09T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/4922-do-increased-rice-futures-mean-increased-profitability-usa-rice-federation
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

Tight old-crop supplies keep US rice prices supported, while easing global prices may cap further gains. Buyers should expect firm but less volatile rice pricing.

## Read by commodity

- RICE: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| RICE | 2020-06-11 | 5 | -34.0% | -8.3 | Explains that the elevated futures were driven by tight old-crop supplies and that global rice prices were becoming more competitive, which signals a fragile price premium vulnerable to a sharp correction. |
| RICE | 2020-06-10 | 5 | -29.2% | -9.0 | Explains that elevated futures were driven by limited old-crop supplies and that global prices are becoming more competitive, implying vulnerability to a sharp correction as the squeeze unwinds. |
| RICE | 2020-06-19 | 5 | -15.9% | -4.0 | It explains that futures were elevated mainly on tight old-crop supplies while global prices were becoming more competitive, which left prices vulnerable to a correction. |

## Sources

- lafarmbureaunews.com: https://lafarmbureaunews.com/news/2020/6/9/do-increased-rice-futures-mean-increased-profitability
- usarice.com: https://www.usarice.com/news-and-events/publications/usa-rice-daily/article/usa-rice-daily/2020/06/09/do-increased-rice-futures-mean-increased-profitability

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.