Rice May Surge 30% as U.S. Harvest Facing a `Serious Problem,' Group Says

The rice harvest in the U.S., the world’s fourth-largest exporter last year, may be at least 10 percent smaller than estimated, missing a forecast record output and pushing prices 30 percent higher, a producers’ group said. Futures advanced, erasing an earlier loss.

Rough-rice futures in Chicago may surge to $16 to $17 per 100 pounds by January after hot weather in producing areas of the U.S. curbed yields and lowered milling rates, said Dwight A. Roberts, president of the U.S. Rice Producers Association, who correctly predicted the grain would peak at $16 last year.

Smaller production in the U.S. may limit supplies available to importers, after recent flooding slashed harvests in Pakistan, the world’s third-largest shipper last year. Rice has rallied 37 percent from this year’s low of $9.55 per 100 pounds on June 30. (more)