It's instinctive. Great defenders/defensive midfielders have it.
In that scenario he'll be keenly aware of two things - 1) the tempo and consistency of the opposition player's touch.
2) the opposition player's focus.
In the split second or moment they look up to evaluate their options. The focus on the ball is gone and you can sneak in to steal the ball or at least force a 50-50 where they have to protect it and can't execute their next pass as intended.
That was one of my specialties when I used to play. Picking off poor first touches or intercepting a loose touch in transition. Rice probably reads these situations 100x better than I ever could.