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In This Issue:
- Market Update: No Two Years Alike!
- Washington, D.C. Update
- USRPA Participates in USDA/FAS Western Hemisphere Regional Conference in Costa Rica
- USDA Reminds Producers to File Crop Acreage Reports by July 17
- Photo from Rice Country
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Market Update: No Two Years Alike! | |
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The market remains steady with exports into Haiti and resilient domestic business. There is a “hurry up and wait” stance as the crop grows, as there doesn’t appear to be much reason for price movements until then. In that vein, price discovery for new crops has been very limited in Texas, Louisiana, and the mid-south, with little old-crop paddy supplies to trade as well. Of note, rice in Louisiana is now approaching 30% headed, with Texas approaching 20%. The balance of the states continues to proceed nicely.
The slow export situation is now old and/or common news, but an update on the Bud Light situation is at hand because of its impact on the domestic market. The negative response to the brand has been nothing short of astounding from a business and marketing perspective; it is something that will be studied for years to come by aspiring business majors, consultants, and MBAs. This is important to rice farmers because Anheuser-Busch is the single largest domestic buyer of rice, and if they stop selling beer, they stop buying rice. In the last week, it was reported that Bud Light’s sales have dropped a staggering 25%, and Budweiser sales have dropped 9%. This is a significant enough drop to remove Bud Light as America’s top beer brand, and it has been replaced by Modelo Especial. While we’re not here to talk about beer, the dilemma remains for rice farmers — boycotting for moral reasons has an impact on the producer. As mentioned above, the resilient domestic market has been the counterweight to the slow exports this year, with one of its core pillars being Anheuser-Busch. With a full crop coming, we need that pillar to remain strong. Full crop meaning, harvested, dried, and stored!
In Asia, prices are still inching upward with Thailand and Vietnam both at $505 pmt, up from $500 last week. For Thailand, it’s important to note that Iraq is approaching 1 million metric tons of exports from this origin at a significant discount to its purchases from the US. The key takeaway here is a big “thank-you” to Iraq for holding to its MOU to buy U.S. long-grain rice. In Vietnam, steady demand and prepping for El Niño have kept exports and prices high. If India maintains its export ban and Thai and Viet prices continue to rise, there’s a possibility that the U.S. could attract more rice from Iraq and even some African countries next year as prices converge. There will have to be significant price movements on both sides of the globe for this to happen — but stranger things have happened.
Looking at exports, it is interesting to note that Colombia currently holds the top spot for exports from the United States, registering just over 96 TMT. This reinforces the value of the Colombian TRQ to the U.S. rice market complex. The “usual suspect” for the top exporter is Mexico, which is now in second place through the first quarter at 93 TMT. The third top export market is Haiti at almost 85 TMT. Overall, 1st quarter exports have decreased 12% this year; a total of 785 TMT registered for Q1 2022, and a total of 690 TMT for Q1 2023.
Weather interruption has caused production shortages in several markets in the Western Hemisphere, particularly Ecuador and Peru. Ecuador, normally a self-sufficient market, is looking to import a few thousand tons from its neighbor Colombia, but estimates indicate a shortage of 60,000 to 100,000 tons paddy basis. Frequent meetings between the Ministry of Agriculture, mills, and producers are ongoing. Peru has been buying some containers of milled rice from Uruguay of specific varieties. Also, Panama is expected to tender in a few days for 68,000 tons of paddy for delivery by August 31. While Brazil does not have a phytosanitary agreement with Panama for paddy rice and the U.S. harvest isn’t far enough along, this leaves Uruguay as the origin. Both Argentina and Paraguay are not in a position to offer either. This news and current market comments are causing prices to edge up in Mercosur.
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Senate Appropriations Committee marks up Ag Appropriations Bill
On Thursday, the full Senate Committee on Appropriations marked up the Agriculture, Rural Development, and Food and Drug Administration appropriations bill for fiscal year 2024. In a brief discussion, the committee unanimously voted to approve both this bill and the Military Construction and Veterans Affairs funding bills. It will now head to Senate floor to be considered by the entire chamber. A recording of the markup can be found here. This markup follows last week’s House markup, which was a much longer and more contentious discussion.
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USRPA Participates in USDA/FAS Western Hemisphere Regional Conference in Costa Rica | |
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The week of June 7, USRPA Chief Operating Officer Mollie Buckler traveled to San Jose, Costa Rica for “Cooperator Day” during the USDA/FAS Western Hemisphere Regional Conference. Prior to the event, Buckler met with Antonio Martinez, who represents the four largest rice mills in Costa Rica.
Cooperator Day began with a morning of sessions and dialogue between cooperators and FAS staff from posts throughout the Western Hemisphere. Buckler served on one of the panels titled, “What do Cooperators Want Posts to Know?” The afternoon consisted of “speed dating” meetings with FAS posts. USRPA had a full schedule, meeting with staff from FAS posts in Mexico, Chile, Guatemala, El Salvador, Honduras, Nicaragua, Colombia, Brazil, Argentina, and the Dominican Republic. Discussions included the market of each country, upcoming event opportunities such as ATMs or trade shows, possible locations for the 2024 Rice Market & Technology Convention, and promotional activity brainstorming.
Thanks to the FAS Staff for a productive and educational event.
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USDA Reminds Producers to File Crop Acreage Reports by July 17, Use New Online Map Features on Farmers.gov
WASHINGTON, June 21, 2023 - Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local U.S. Department of Agriculture (USDA) office before the applicable deadline, which for many places and crops is July 17. USDA’s Farm Service Agency (FSA) also reminds producers with login access to farmers.gov of several features that can help expedite acreage reporting, such as the ability to view, print and label maps.
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Here are some of the speakers that represented the best industry leaders from throughout the Western Hemisphere at RMTC 2023. Who was your favorite and who would you like to hear from in RMTC 2024?
Send us your rice country photos on Facebook, Instagram, or via email!
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Cornerstone
Trade Update
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Food and Ag Regulatory and Policy Roundup | | |
Grain: World
Markets & Trade
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World Agricultural Production | | |
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Mexico:
Grain & Feed Update
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August 3, 2023
2023 Stuttgart Rice Field Day
Stuttgart, AR
More Information Coming Soon
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August 17, 2023
Missouri Rice Research & Merchandising Council
Annual Field Day
Glennonville, MO
More Information Coming Soon
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender identity, sexual orientation, religion, age, disability, political beliefs, or marital/family status. Persons who require alternative means for communication of information (such as Braille, large print, sign language interpreter or translation) should contact USRPA at 713-974-7423. |
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