Volume 18, Issue 29

July 29, 2021

In the US, the news of the Iraq business keeps getting better. The original report of 60,000 metric tons was bumped to 80,000 metric tons, and now it appears that an additional 40,000 metric tons may have been sold, totaling 120,000 metric tons. There was a recent MOU signed between the US and Iraq that asks for 200,000 metric tons annually for US rice, so this is a welcomed purchase after a two-year drought. This is the only bright spot for the milled rice market, and this business materialized not a moment too soon. It is paramount in helping offset the lost business from Haiti as a result of the assassination and political confusion in that country. Haiti has become the most steady milled rice market for the US as of late, but with their focus turned inward, they are unable to coordinate their rice purchases with success. This leaves the milling capacity wide open for Iraq in what all hope to be a solid relationship moving forward.

Prices in Asia have all converged at $385-$390 mt for Thai, Viet, and Indian rice. There has been speculation that Indian rice may cheapen further, but that has not materialized. This leaves large buyers like the Philippines and West Africa to choose their origin, as opposed to looking to India first simply because it’s been the cheapest. Now, more than ever, freight and logistic costs are coming into play though, as the COVID-19 log-jam continues to plague rice shipments on account of delays and soaring costs.

In South America, Argentina is experiencing a drought and has called a 180-day emergency on the Rio Parana. The exact implications are unknown at this point in time, but will no doubt create supply shortages that will ripple through the pricing equation in the coming months. Uruguay, like the US, is busy loading a vessel to Iraq.

On the ground in the US, Texas and Louisiana are in the early stages of harvest. Louisiana is proving difficult because of the wet weather and green rice, but this is typical for this time of year and looks to be improving shortly. The early reports from Texas are indicating a bit of smut, with potential rain in the forecast in the next 10 days. Arkansas expects to start harvest in September, as does Mississippi, with little to report until cutting begins. Reports of insect pressure especially armyworms in the delta are becoming more frequent.

New crop prices are edging up with paddy indications of $342-$345 FOB Gulf ports. Demand in Venezuela appears to be increasing among other buyers in both Mexico and Central America.

USDA weekly export sales report shows 10,700 metric tons of exports, with Mexico, Canada, Jordan, and Belgium being the destination. The new marketing year number boasts the 80,000 metric ton sale to Iraq, along with smaller shipments to Guatemala and Honduras, 7,500 tons and 4,000 tons respectively. Exports totaled 54,300 metric tons, down 32%. Japan was the lion's share of this report with 40,000 tons of medium grain from CA.

Futures bumped slightly this week on account of the Iraq sale, but not enough to significantly move the needle because of the large carryover still weighing on the market—especially with a new crop just around the corner. Contracts traded at a low of $13.29 pre-Iraq announcement but bumped to $13.685 with the news. The average daily volume is 1,620, with open interest at 1,631.

On Wednesday, July 28th, the much anticipated Sabor USA competitive cooking event was held, which was broadcast on Facebook LIVE. Sixty students from the Culinary Arts school "Les Art Culinaires," in El Salvador, competed to prepare the best recipe with products imported from the United States, including a category for rice.

Students presented some amazing dishes including an impressive sweet rice dish with strawberries and dried fruit presented as a main course.

Jean Manes, the Charge d'affaires for El Salvador at the US Embassy was the guest of honor and gave the inaugural address at the competition. USRPA's promotional work and sponsorship of the event was recognized throughout the day, bringing attention to the nutritional benefits of US rice which the campaign, translated to "Eat Healthy, US Rice, Guaranteed Nutrtion," continues to promote.

July 1^st marked the start of USRPA’s digital campaign in El Salvador with the slogan: Eat Healthy, USA Rice, Guaranteed Nutrition. For this year’s campaign, a new Instagram account was created under the name of ArrozYSalud which will draw in a younger, active, and more involved audience. The account will feature influencers who will encourage healthy rice consumption with new dynamic and vibrant content.

Similarly, our Facebook account was revamped with a current following of 9,192. The campaign shares important content via live videos and posts which encourage engagement. Social media influencers, Chef Juan Salomón Miguel, who has an established career in traditional media and now on social media, and Rodrigo Valdivieso, a well know nutritionist to athletes, will be joining the campaign and bringing their followers to help spread the message that U.S. rice is healthy, tasty, economical and versatile.

In recent weeks, the USA Arroz Facebook fan page has seen a rapid increase in followers with more people interested in learning how to cook U.S. rice.

The virtual learning trend continues to gain popularity as a way to connect with others safely and conveniently. For these reasons, USRPA and ARROZGUA jumped on the trend early on as a way to connect with consumers and teaching them new ways to prepare nutritious and economical recipes with classes via Facebook Live and Zoom Webinars.

According to media monitoring reports, Facebook is the most used social network in Guatemala. The last cooking class reached nearly 2,000 initial streams, which continue to be shared amongst users on social media.

On Tuesday, July 27, the House Committee on Agriculture held a business meeting (Webcast link) to consider H.R.267, the 2020 WHIP+ Reauthorization Act. HR 267 was amended (Amendment) to broaden the bill to cover disasters in 2020 and 2021, among other things. H.R. 267 reauthorizes the Wildfire and Hurricane Indemnity Protection Act (“WHIP+”) and provides $8.5 billion for payments to producers for losses from hurricanes, wildfires, and other qualifying natural disasters. The Committee favorably reported the bill as amended by voice vote.

CE credits are pending — agenda and registration

CANCELLED: Arkansas Horizon Ag Field Day: University of Arkansas Rice Research and Extension Center, Stuttgart, AR.

CANCELLED: RiceTec Arkansas Rice Field Day: Harrisburg, Arkansas, tours start at 4 p.m., followed by dinner and presentations.

CANCELLED: University of Arkansas Rice Field Day: Rice Research and Experiment Station, Stuttgart, Arkansas. Morning tours followed by lunch.

CANCELLED: University of Arkansas Rice College: Pine Tree Research Station near Colt, Arkansas. This training event, hosted every other year, will be at Pine Tree for the first time. This will be an all-day training event for rice growers, consultants and industry personnel. Pre-registration will be required, along with a fee of $100 per attendee. Additional details and registration information will be sent out as the event nears. Space will be limited, so be sure to register quickly

Missouri Rice Research & Merchandising Council Rice Field Day: Eight miles west of Malden, Missouri, at the Missouri Rice Research Farm, 40130 Freddie Tanner Dr., Campbell, Missouri. Registration begins at 8 a.m., tours follow at 8:30 a.m. Lunch will be provided

University of Arkansas Rohwer Field Day: Rohwer Research Station, Rohwer, Arkansas

34th Annual Arkansas Agricultural Hall of Fame Induction Luncheon: Embassy Suites, Little Rock, Arkansas – event details and tickets

The 84th International Rice Festival: The rice festival will return to Crowley, Louisiana, after being canceled last year due to the COVID-19 pandemic.