U.S. 2011-12 rice production is projected by USDA at 199.5 million hundredweight, down 11.5 million from last month due to a decrease in planted area. This is the smallest crop since 2007-08. Long-grain production was lowered 10.5 million hundredweight to 134 million hundredweight, while combined medium-and short-grain production is lowered 1 million to 65.5 million.

All rice planted area was lowered 168,000 acres to 2.85 million acres due to the impact of Mississippi River Delta flooding in the Mid-South, with long-grain rice in Arkansas and Missouri accounting for most of the decline. The all rice average yield is projected at 7,040 pounds per acre, up fractionally from last month.

The 2011-12 total use projection was lowered 4 million hundredweight to 232 million due to decreases in both domestic and residual use and in exports. Exports were lowered 3 million hundredweight – all in long-grain rice – to 106 million hundredweight. The rough rice export projection was reduced 1 million hundredweight to 39 million hundredweight. Ending stocks for 2011-12 are projected at 42.1 million hundredweight, down 6.5 million or 13 percent from a month ago, and down 14.5 million or 26 percent from 2010-11.

Global rice production is projected at a record 456.4 million tons, down 1.5 million from last month’s forecast, primarily due to a decrease for China. Global rice consumption for 2011-12 was lowered 800,000 tons, primarily due to lower consumption expected in China. Global ending stocks for 2011-12 are projected at 94.9 million tons, down 1.3 million from last month, due primarily to reductions for China and the United States.