In This Issue:
- Rice Market & Technology Convention, July 6-8, 2021 in The Woodlands!
- Despite Weak Long Grain Export Demand, Prices Remain Unaffected
- President Biden Joint Address to Congress
- Coastal Warehouse, Ltd Sold to Dr. J. Thomas Wynn
- Central America: Visits to Supermarkets Increase
|
|
Rice Market & Technology Convention, July 6-8, 2021 in The Woodlands!
Participant Networking Popular Activity
|
Despite the concerns of covid-19 in all the various countries, we are encouraged by the interest expressed to attend the 2021 Rice Market & Technology Convention scheduled to take place at The Woodlands Resort ( www.woodlandsresort.com ), a 350-acre resort in the East Texas pine tree forest just 30 miles north of Houston and only 20 miles from the Houston Intercontinental Airport.
We are also encouraged by the daily news of increased covid vaccinations including many of our rice friends from foreign countries who have been traveling to the U.S. for the vaccine. At the same time, we are conscious of the anxiety the pandemic has brought upon all of us in every corner of the world. As a result, we are taking every precaution, using the recommended guidelines of the CDC, the State of Texas, and The Woodlands Resort. All staff of the USRPA has received their covid vaccinations. What is obvious to us is that rice folks (farmers, mills, importers, exporters, allied industry, etc) want to get together and talk about rice!!!
Currently, we have rice companies from 24 countries scheduled to participate as listed below, and close to 150 attendees registered.
If you have any questions or require special accommodations, please contact the USRPA at i[email protected]
|
|
|
|
Despite Weak Long Grain Export Demand, Prices Remain Unaffected
|
|
According to the USDA, rice planted in Arkansas was at 44% complete as of April 25th, which is about 12% behind the normal pace. The other delta states are generally behind schedule as well, but not as much. It was noted that warmer weather is needed to jumpstart the growing process, but so far, the forecast calls mostly for cooler temperatures. The cool temperatures can obviously impact yields for multiple reasons, one being it pushes harvest into a wetter season. In California, the crop was reported 12% planted, which is probably a bit low as growers have made speedy progress given the nearly ideal planting conditions to date.
US exports continue to lag significantly behind last year, down more than 11% year to date. Between the difference in year-over-year outstanding sales and in shipments, the drop in export demand accounts for approximately 10 million cwts, or 131,000 acres worth of production. Despite lackluster demand for US long-grain, prices remain unaffected. The situation is similar in Asia, where even without breaking news, export prices are generally sideways to even slightly up from last week.
In a recent USDA GAIN report, China’s total use for rice was projected to be up 9 million metric tons from 2020/21 on higher feed use. In fact, Post estimates that due to a 6.7% increase in feed and residual use, corn imports are expected to jump to a record 28 million metric tons. China’s corn stocks are at their lowest level in 15 years, which is sustaining high corn prices worldwide and is ultimately soliciting greater acreage in both North and South America. China’s misreporting of stocks and production has left the market unable to efficiently respond to the need, burdening grain importers around the world that were unprepared for such an extreme jump in pricing.
China is using every commodity in stock to minimize the feed supply shortage as record volumes of rice and wheat have been seen en route to feed mills. The market can expect further disruption due to this situation through the rest of 2021 and even into 2022. Of course, extrapolating the amount of rice being utilized to offset corn demand is highly unknown, and as always, the data offered by China is believed to be unreliable. In other words, even when the corn complex is sorted out, the market disruption may reverberate into the rice and wheat markets as well.
It was another uneventful week in the futures market, at least for rice where traders were focused on rolling May contracts forward. May open interest fell below 1000 and volume was down to 38.
|
|
Biden Nominate Moffitt for Under Secretary for Marketing and Regulatory Programs
This week, President Joe Biden announced the nomination of Jennifer Moffitt for Under Secretary for Marketing and Regulatory Programs, Department of Agriculture. Jenny Lester Moffitt is currently Undersecretary at the California Department of Food and Agriculture, where she previously served as Deputy Secretary from 2015-18. Before that, Moffitt spent 10 years as Managing Director at Dixon Ridge Farms, her family’s organic walnut farm, and processing operation. In addition, Jennifer served on the Central Valley Regional Water Quality Control Board from 2012-15 and worked for American Farmland Trust from 2002-05. Moffitt is a graduate of Brown University and the California Agricultural Leadership Program. She resides in Davis, California with her husband and daughter.
President Biden Joint Address to Congress
In his first joint address to Congress, President Biden gave a candid assessment of the issues he faced upon taking office, highlighted achievements from his first 100 days, and outlined an ambitious legislative agenda. To allow for social distancing, spaces were limited for lawmakers, with a portion of Members of the House and sixty Senators in attendance. Similarly, guest attendance was limited, with members and the White House opting for “virtual” guests to showcase their priorities.
Throughout the night, President Biden promoted the American Jobs Plan and American Families Plan and laid out his priorities on COVID, health care, immigration, racial justice, climate change, gun violence, foreign policy, and voting rights areas. To read a full summary of the President’s speech.
|
|
Coastal Warehouse, Ltd Sold to Dr. J. Thomas Wynn |
|
From the beginning of Coastal Warehouse in 1958, the business focus has been on agricultural infrastructure and the betterment of local agricultural communities by providing storage and marketing opportunities for grain producers in Wharton and the adjacent counties. After 62 years of service to those farmers in Wharton and surrounding counties, Coastal Warehouse is proud to announce a change of ownership to Dr. J. Thomas Wynn of Egypt, Texas, effective April 12, 2021.
After over 35 years of ownership, increasing the storage capacity to over 5,400,000 bushels, and developing the successful Premium Deer Corn brand, the managing partners of Coastal Warehouse, Ltd. Ronnie Wittig, William Loocke and Laurance Armour III. have elected to retire. They are very pleased that Dr. Wynn will carry on the business with a similar philosophy and dedication to serving farmers in the Upper Texas Coastal area. Dr. Wynn will keep on all current employees and will add some new, key employees to enhance the success of the business. He also looks forward to helping his customers remain successful in making informed and beneficial marketing decisions.
In embarking on this venture, Dr. Wynn is committed to maintaining and enhancing the strong reputation for service and support for agriculture that has been developed over the years. Already a partner in East Bernard Rice Marketing, Thomas will further hone and broaden the services that Coastal Warehouse can provide to farmers.
Wynn, an Aggie to the core earning his undergraduate degrees at A&M and completing his Ph. D. in International Agriculture brings a wealth of experience to his new role as the owner of Coastal Warehouse. While with the U.S. Rice Producers based out of Houston, he traveled extensively in Latin, Central, and South America, and Mexico. His workplace travels have included Thailand, Cuba, Trinidad and Tobago, Switzerland, and most recently the country of Georgia in the former Soviet Union. During his tenure in the industry, he spent a great deal of time in Washington DC working with Congress and USDA on behalf of farmers and farm policy.
At the graduate level, he studied risk management techniques with clear insights being developed in futures and basis contracts, which he has mastered and employed to the satisfaction of his agricultural customers. He brings this experience into the application at Coastal for its longstanding agricultural clientele.
Married with three daughters, he and his wife Mary will continue to live in their 100-year-old home enjoying the benefits of a life in the country. In addition to his responsibilities as the new owner of Coastal Warehouse, he will continue as the managing partner of M&W Farm and Ranch in Egypt, Texas.
|
|
Picture caption L-R is Laurance Armour, William Loocke, Ronnie Wittig, and Thomas Wynn. |
|
Central America: Visits to Supermarkets Increase |
|
According to CentraAmericaData.com, in the first week of April 2021, El Salvador, Nicaragua, Honduras, Dominican Republic, and Guatemala were the countries in the region where the number of people visiting establishments identified as supermarkets was higher than the figures reported before the pandemic.
Over the course of the months and in the context of the reactivation of commercial activities, more Central American consumers have visited locations identified as supermarkets and pharmacies.
According to the interactive report, between the last week of February 2020 and the first week of April 2021, the number of Nicaraguan consumers attending supermarkets increased 19%. In Honduras, a 16% variation was reported, in the Dominican Republic the increase was 10% and in Guatemala, the increase was 9%.
|
|
 |
In marketing year (MY) 2021/22, corn and rice production is forecast to increase due to greater area planted and slightly improved yields. Since the Maduro regime’s mid-2019 decision to allow the sector to import, agricultural producers associations are pooling resources to purchase imported inputs. Venezuelan farmers had a greater incentive to plant more, given the prospect of being paid in U.S. dollars, instead of the devalued Venezuelan Bolivar. The rapid dollarization of the economy will possibly lead to a modest improvement of purchasing power in the forecast year, too. Despite increases in corn and rice production, FAS Caracas expects imports of corn and rice to increase compared to USDA’s MY 2020/21 estimates, assuming the private sector maintains control of the import market. FAS Caracas forecasts a slower year for Venezuelan wheat imports, reflecting that domestic milling capacity is down
|
|
|
|
In 2021, Nigeria is expected to face Marketing year (MY) 2021/22 area harvested for rice in Senegal, Guinea, Burkina Faso, and Mali is expected to increase about 9 percent to 3.35 million HA as movement restrictions are eased in Guinea, planted area rebounds from flooding, and financing and input access for farmers increases. MY 2021/22 rice production is forecast at 5.04 MMT, 8.4 percent higher than the previous year assuming good rainfall and low pest pressure. MY 2020/21 area is estimated to decrease 7 percent from the previous year to 3.07 million HA due to movement restrictions in Guinea and Mali, closed borders in Guinea, and flooding in Mali. MY 2020/21 production is estimated to decrease 3.5 percent to 4.65 MMT due to a labor shortage in Guinea and excess rains in Mali that reduced yield. MY 2021/22 and MY 2020/21 rice imports are estimated at 3.06 MMT and 2.98 MMT respectively based on population growth, increased consumption, and expectations of competitive international prices.
|
|
|
|
|
Post revised its marketing year 2020/2021 (MY20/21) estimates of rice harvested area and production at 3,265 thousand hectares (THA) and 9.48 million metric tons (MMT), lower than the USDA official numbers. Post forecasts that MY21/22 harvested area and production will reach 3,310THA and 9.61MMT based on expectations for improved weather conditions. Post revised its MY20/21 estimates for corn harvested area and production down to 185THA and 895 thousand metric tons (TMT), lower than the USDA official numbers, and forecasts MY21/22 harvested area and production at 190THA and 920TMT based on improved weather conditions and expectations for increased feed corn demand
|
|
|
|
H. Rouse Caffey Rice Research Station News |
Early Season Challenges for the Louisiana Rice Crop
|
|
|
|
|
|
|
|
Food & Ag Regulatory
and Policy Roundup
|
|
|
|
25722 Kingsland Blvd.
Suite 203
Katy, TX 77494
p. (713) 974-7423
f. (713) 974-7696
www.usriceproducers.org
|
|
We Value Your Input!
Send us updates, photos, questions or comments!
|
|
USRPA does not discriminate in its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, or marital/family status. Persons with disabilities who require alternative means for communication of information (such as Braille, large print, sign language interpreter) should contact USRPA at 713-974-7423 |
|
|
|
|
|
|
