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In This Issue:
- Market Update: U.S. Rice Significantly Available in the Americas
- Washington, D.C. Update
- USRPA Hosts Millers from El Salvador
- The 27th Annual NCS Cotton & Rice Conference is headed to Jonesboro
- 2024 Western Rice Production Conference
- Save the Date: Texas Rice Roundup
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RMTC 2024: Sponsor & Exhibitor Opportunities Now Open to the Public
- Photo from Rice Country
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Market Update: U.S. Rice Significantly Available in the Americas | |
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Prices are still firm as the U.S. is the only supplier of viable long grain quantities in the Western Hemisphere at the moment. A strong domestic market, which proved to be the savior last year when export sales were painfully low, continues to be a help in the current market environment. The buyer that is noticeably absent at the moment — but not a cause for concern — is Iraq. Iraq has already procured much of what was expected from the U.S. They are busy making acquisitions in the East, so an entry from Iraq back into the U.S. market would only firm prices further. As it stands, mills are already busy with fulfilling Iraq deliveries, so all is good on that front.
What is not so great for the mills, however, is the overall milling quality of the crop. There have been a lot of reports of below-normal quality this year, ranging from the low 40s up to the mid 50s. Some regions are much better than others, but surveys would suggest that on the whole at this stage in the game, 51-52 is normal. Anything as high as 55 is a blessing to help make up for the sub-50s that are all too common this year.
Prices on the ground remain firm, with adequate volumes transacting in recent weeks. The low levels of the Mississippi River are certainly a drag on logistics but do not seem to be slowing the purchase or acquisition of paddy prices. Prices have not moved significantly off of last week’s levels, with Texas showing $18/cwt, Louisiana at $17.30-$18/cwt, and Mississippi, Arkansas, and Missouri in the $16.75-$17.25/cwt range.
As if the Russia/Ukraine conflict and the Hamas terrorism aren’t enough, Venezuela has thrown its name into the hat of potential conflicts in the Western Hemisphere. This is significant to rice because 37,000 MT of rice was just registered on the Export Sales report this week. Venezuela recently voted in strong favor of reclaiming a portion of Guyana, essentially redrawing a map that is over a century old. The United States has put its weight behind Guyana in the territorial dispute but creates another delicate situation for the U.S. to face on the international stage. There is an additional layer of complexity here because U.S. crude oil imports have begun since January of this year, up to 153,000 b/d as of July, after a halting of imports in 2019 due to political reasons. It is a tricky situation diplomatically, but good for the rice industry to regain an important market.
In Asia, prices keep marching upward, with Viet prices cresting as high as $670 pmt and Thai prices reaching $630 pmt. The big question is how long prices will remain this high, and what will the ultimate impact be of India relaxing its export ban. Very strong demand in the region keeps pressure on prices that are now within $100 pmt of U.S. long grain prices. A very strange phenomenon indeed.
The weekly USDA Export Sales Report shows net sales of 128,400 MT this week, up 73% from the previous week and 29% from the prior 4-week average. Increases were primarily for South Korea (40,000 MT), Venezuela (37,000 MT), Mexico (22,400 MT), the Dominican Republic (14,200 MT), and Japan (7,300 MT). Exports of 90,100 MT were up 90% from the previous week and 60% from the prior 4-week average. The destinations were primarily to Mexico (30,200 MT), Venezuela (21,000 MT), Honduras (15,700 MT), Haiti (14,200 MT), and Jordan (4,500 MT).
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GAO releases report on decreasing the cost of crop insurance to the federal government
On Saturday, the Government Accountability Office (GAO) issued a report outlining ways USDA can reduce the costs to the federal government for the crop insurance program. It noted that in 2022, the program supported 1.2 million policies covering 493 acres of farmland at $17.3 billion. Of this total amount, $3.7 billion was paid to private companies to administer the program. It noted that between 2011 and 2022, companies received an annual rate of return on retained premiums of 16.8 percent on average (about $1.4 billion in underwriting gains per year), which exceeded a market-based rate of return (10.2 percent). GAO suggested that adjusting the program’s rate of return to more closely reflect market conditions could save the federal government hundreds of millions of dollars per year. In addition, GAO suggested that costs could also be cut by reducing premium subsidies for high-income policyholders. The full report can be found here.
USRPA signs on to a letter on fertilizer prices
On Thursday, USRPA joined other agriculture organizations in calling for the U.S. International Trade Commission (ITC) to consider how tariffs on Moroccan phosphate fertilizer impact domestic producers. ITC was ordered by the U.S. Court of International Trade to reconsider how it determines material injury in a decision issued in September this year. The letter acknowledges the challenges producers have faced due to rising input costs. A copy of the letter can be found here.
Congress releases NDAA conference report
On Wednesday, the House and Senate released the conference report for the fiscal year 2024 National Defense Authorization Act. In the act was a provision to establish an office of counterintelligence within USDA. The House and Senate both passed their respective versions of the bill in July, though neither contained this provision. The two chambers are expected to move quickly towards final passage, hoping to have reached an agreement by the end of next week. The NDAA conference report can be found here; the section on the new office begins on page 2154.
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USRPA Hosts Millers from El Salvador | |
Left to Right: Joel Salazar, Board of Directors Secretary for Centroamericana de Mercadeo El Salvador, S.A. de C.V. (CEMERSA); Handal Salazar, Director of Central American Trade CEMERSA; Iris Figueroa - USRPA; Tommy Turner, President Texas Rice Council; Keith Klatt, Location Manager Rice Belt Warehouse; Javier Navas, President ASALBAR (National Rice Organization in El Salvador) and Legal Advisor to the Board Of Director of CEMERSA; Omar Salazar, President CEMERSA; Tony Sanchez, VP of Operations Rice Belt Warehouse. | |
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Organized by the US Rice Producers Association, millers from Centroamericana de Mercadeo El Salvador, S.A. de C.V (CEMERSA) in El Salvador spent three days visiting every aspect of the U.S. rice trade in Texas.
The purpose of the trip was to gain a solid understanding of how rice is grown and handled from the field to an ocean vessel for export. The group visited Texas farmer sales offices, drying and storage facilities, harvesting, and Hansen-Mueller at the Port of Houston to learn how the Texas Rice Industry identity preserves rice to provide traceability from our fields to their mills for both domestic and international buyers.
Once again, this reverse trade mission shows the relationships the staff of the US Rice Producers Association has with buyers of rice throughout the world. All business starts with good relationships.
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CEMERSA representation visiting Rice Belt Warehouse joined by Toni Sanchez and Trinidad Chavez, Rice Belt Warehouse. | |
Visiting with Chris Brown at Hansen Mueller. | |
Looking at rice samples with Pam West at Brookshire Drying Co., Inc./Texas Rice Milling Inc. | |
Meeting wth Jay Davis at Coastal Rice and Futures Inc. | |
The 27th Annual National Conservation Systems Cotton & Rice Conference is headed to Jonesboro, AR | |
Producers, mark your calendar for January 30 – January 31, 2024, for what will be the most important conference to attend in 2024 if you want to increase your yields and cut your costs. “This conference has the reputation as being the number one place where all producers can learn the latest production methods and techniques being utilized by the leading ag producers, researchers, and the ag industry in the United States,” said John LaRose, Jr., Conference Steering Committee. | |
2024 Western Rice Production Conference | |
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USRPA is proud to once again sponsor the annual Western Rice Belt Production Conference at El Campo Civic Center on January 17, 2024. The conference, which includes both a Production Conference for rice producers and industry professionals and a Rice Consumers Seminar for homemakers, will take place in the main auditorium.
To kick off the conference, an early bird session on Feral Hog Abatement will be held in the Myatt Room from 7:00 a.m. to 7:50 a.m. Registration will begin promptly at 7:30 a.m., followed by the main program at 8:15 a.m. The program will pause for a catered lunch, sponsored by local agribusinesses, and the conference is scheduled to conclude at 2:45 p.m.
There is no fee to attend the upcoming Western Rice Belt Conference. However, RSVP is required so that meals can be planned accordingly. For additional information, please contact the Texas AgriLife Extension office in Colorado County at 979-732-2082, in Matagorda County at 979-245-4100, or in Wharton County at 979-532-3310.
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Texas Rice Roundup: Saturday, February 10 | |
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Capturing the moment with smiles!
Join us and don't miss out on the fun!
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RMTC 2024: Sponsor & Exhibitor Opportunities Now Open to the Public | |
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Registration is now open for RMTC 2024!
Register at our early bird rate of $600 today.
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Flashback Friday: 2021 Texas harvest with @wiese_bros!
Happy Friday!
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Food & Agriculture
Regulatory & Policy Roundup
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Grain: World Markets and Trade
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World Agricultural Production
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January 30 - 31, 2024
27th Annual National Conservation Systems Cotton & Rice Conference
Jonesboro, AR
More Information
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June 4 - 6, 2024
Rice Market & Technology Convention
Cancun, Mexico
Registration
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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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