What Market Fundamentals Can Affect The Rough Rice Futures?
Rice typically requires high average temperatures during the growing season, a plentiful supply of water, a smooth land surface to facilitate uniform flooding and drainage, and a subsoil hardpan that inhibits the percolation of water. The rice market follows a fixed cycle of production. The rice cycle goes from flooding, to vegetative, to reproductive, to ripening. During these key stages of the crop’s development the rice futures prices are very sensitive to any potential supply disruption. 1. Rice Planting U.S. rice planting typically begins in early March in Texas and southwest Louisiana. The Delta plants the bulk of its crop in April, and California’s crop is planted from late April through mid-May. Harvest begins in early or mid-July in Texas and southwest Louisiana. Peak harvest in the South is in September and early October. 2. Rice Flooding At the onset of the rains or the arrival of irrigation water, fields are flooded with water depth varying between 2 and 15cm. Rice plants a
