Rice futures on CME Group fell by more than 4% this week following a report from a US government body that major producing nations in Asia and Latin America are set for a record harvest – offering smart returns for those who had hedged against a fall in prices.

The US Department of Agriculture on Tuesday said in its monthly outlook report that forecasts for global rice production during the 2012/13 harvest had been revised upwards by 2.3 million tons to a record 468.1 million. The largest increases in production forecasts came from major producers Cambodia, India and Peru.