India Ban On Rice Exports Not Yet Impacting U.S. Markets

Commodity markets already dealing with Russia’s assault on Ukraine’s grain stores may have to adjust to more drops in export activity.  India, the world’s biggest exporter of rice, announced last month it would stop the export of most rice types in an effort to curb rising domestic prices.  Darin Newsom, senior analyst with Barchart, says the impact of this move could soon materialize in the U.S. markets.

Newsom adds that the move comes as the U.S. rice futures recently experienced a major downturn, which could open the door for more exports.

The U.S. is a top-five exporter of rice, harvesting over eight million tons last year.  Production is primarily in eastern Arkansas, with the Missouri Bootheel accounting for about seven percent of the U.S. rice harvest.