US rough rice futures on the Chicago Board of Trade rallied their 50-cent limit in the nearby contracts on Wednesday, buoyed by strong global demand, traders said. May rice shot up its 50-cent limit to $19.79 per hundredweight. July rice rose 50 cents to $20.11.
USDA increased the world weekly market price for long grain rough rice by $2.10 to $14.11 per cwt. India's ban exports of non-basmati rice to fight rising inflation expected to boost rice prices in top two producers, Thailand and Vietnam.
A slow start to fieldwork and planting in top rice state of Arkansas supportive. That area could get another 5 to 8 inches of rain in the next day or so, analysts said. World rice production is set to increase by 1.8 percent this year as government incentives and high prices spur output in Asia and Africa, the United Nations Food and Agriculture Organisation said.
Export restrictions in major producing countries like China, India, Egypt and Vietnam will however contribute to a fall in the rice trade, down 1.1 million tonnes to 29.9 million, FAO said.
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