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In This Issue:
- Market Update: Milling Yields Down, But Pace and Acres Up
- From Field to Export: Ecuador Delegation Tours U.S. Rice Industry
- Washington, D.C. Update
- 3rd Annual Ray Stoesser Memorial Scholarship: Application Open
- Photo from Rice Country
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Market Update: Milling Yields Down, But Pace and Acres Up | |
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Milling yields are the only thing that’s lacking this harvest. We are ahead of pace, up on acres, and up on yields almost across the board, but converting the ample paddy supply to an ample milled product is proving more difficult than anticipated. While this isn’t a huge surprise to anyone because of the excessive heat at key times throughout the growing season, it’s about the only negative we can cite at the moment — which is a net positive!
Export prices are competitive with South American origins, and we are largely isolated from any negative impacts of the Indian export bans. In actuality, we are a beneficiary because Iraq took swift action to book milled rice from the U.S., and mills are busy through the end of the year filling that business. Last year all we could report was the doom and gloom of negative food policies foreign governments were taking to combat raging food inflation to the detriment of our U.S. long grain crop. This year represents a new opportunity, in which we will be a featured and stable supplier of long grain rice. Let’s just hope the milling yields improve, as this will be the year we can gain some of our market share back from our drought-stricken South American competitors, namely Brazil.
On the ground, prices in Texas are holding at $17.60/cwt, while Louisiana is at $16.50/cwt. Mississippi, Arkansas, and Missouri are in the $15.75/cwt range. The futures market is also firming up a bit, 2%+ increases from Nov '23 thru Jul ’24, with Jul ’24 registering as high as $17.020. Average daily volume jumped 14.86% up to 436, while open interest held steady at 10,839 this week.
The USDA crop progress report shows the entire complex at 66% complete, 7% above the 5-year average. Louisiana is leading the charge with 95% complete, followed by Texas at 92%, Mississippi at 90%, Arkansas at 70%, Missouri at 53%, and California at 10%. Arkansas is 1% ahead of last year, and California is 8% behind last year.
In Asia, stability has returned with prices settling in Thailand and Vietnam between $600-$610 pmt. India is still the driver in the region, but with small announcements surfacing of approved G2G deals (Saudi Arabia) an adjusting market, a “business as usual” is returning. In the Western Hemisphere, all prices are now exceeding $700 pmt, with Brazil around $715 pmt, Argentina at $740 pmt, Uruguay at $745-750 pmt, and the U.S. at $755-$765 pmt. The difference here is that the U.S. is the only origin with legitimate supplies until March when the Southern Hemisphere harvest is underway. With prices this firm in the long grain market, it will be interesting to see the medium grain acres planted next year. It’s too early to tell now, but by February when seed is booked and planting decisions are made, we would forecast a drop in medium grain acres and a return to long grain by some degree.
The weekly USDA Export Sales report shows net sales of 28,100 MT, 57% down from the previous week and 55% down from the prior 4-week average. Increases primarily for Haiti (15,100 MT, including decreases of 100 MT), Honduras (9,500 MT), Canada (2,000 MT), Belgium (500 MT), and Israel (400 MT), were offset by reductions for Guatemala (400 MT). Exports of 46,300 MT were up noticeably from the previous week, but down 13% from the prior 4-week average. The destinations were primarily to Japan (26,000 MT), Haiti (15,100 MT), Canada (2,100 MT), Mexico (1,900 MT), and Belgium (500 MT).
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From Field to Export: Ecuador Delegation Tours U.S. Rice Industry | |
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Organized by the US Rice Producers Association, five rice mills from Ecuador and three government officials spent a week in the Mississippi River Delta from St. Louis to New Orleans, visiting every aspect of the U.S. rice trade.
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 last time Ecuador imported rough rice from the United States was in 1997 due to an El Niño weather phenomenon. Since that year Ecuador has been self-sufficient in rice and most years have had a surplus that could be exported to neighboring markets. Due to a long-time relationship between the USRPA and Ecuador’s CORPCOM (Corporacion de Industriales Arroceros del Ecuador), the national rice millers organization, the two groups began discussions earlier in the year about the market and the supply/demand issues in the Western Hemisphere. Aware of meetings in Ecuador between the rice mills, producers, and the Ministry of Agriculture, the USRPA invited CORPCOM members and government officials.
After 1997 Ecuador had not been involved in the rice trade outside of their country. That year the population totaled 11 million but today the population has grown to 18 million, putting increased pressure on production where average yields are 5,500 pounds per acre. The visit to the delta by five mills and two government officials was an overwhelming success as noted by their comments.
- “Thank you for all your attention, you made a week of work like a vacation, meeting great people and professionals.”
- “Thank you very much for organizing and sharing your experience and knowledge with us, an enriching trip."
- ”You made us feel as if we were at home and we could verify every step in the process chain of rice, where we could resolve our concerns.”
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A glimpse of harvest and a conversation with Justin and Landon Wheeler at Wheeler Farms near Grayridge, MO. | |
A market presentation at Bunge headquarters in St. Louis kicked off the week. | |
The group met with USDA - Federal Grain Inspection Service staff in Stuttgart, AR. | |
Thanks to Dr. Jarrod Hardke and his team at the Arkansas Rice Research and Extension Center for hosting the group for lunch. | |
TRC Group and Russell Marine Group hosted a grading workshop for the group. | |
A river tour and export logistics discussion with Russell Marine Group in New Orleans. | |
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FSA announces second payment through the Rice Production Program
Last Friday, the USDA Farm Service Agency (FSA) announced that eligible rice producers who received an initial program payment through the Rice Production Program would receive an additional payment of .28 cent per pound. Recipients will not be required to submit a new application and payments will be determined on previously reported data. The Consolidated Appropriations Act of 2023 provided USDA with the authority and funding to provide up to $250 million in assistance to rice producers to counter stagnant prices and high input costs during the 2022 crop year. Earlier this year, FSA provided payments to producers totaling $195 million under a payment rate of 1 cent per pound.
House considers agriculture appropriations bill amendments
This week, the full House considered the appropriations bill for USDA and the Food and Drug Administration for fiscal year 2024. The House considered and adopted amendments to the bill, many of which further reduced spending in the bill. Final passage of the bill is uncertain at this time due to concerns from members on the bill’s overall reduced spending levels and inclusion of a policy related to mifepristone.
The current fiscal year concludes on September 30 and barring passage of a continuing resolution by both chambers, a government shutdown will commence on October 1. As of Thursday afternoon, the Senate has introduced and moved forward with procedural steps on a continuing resolution to fund the government through November 17. While proposals for a continuing resolution have been introduced in the House, the chamber has yet to consider any legislation to fund the government for the short term.
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3rd Annual Ray Stoesser Memorial Scholarship: Application process is now open! | |
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In partnership with the US Rice Producers Association, the Stoesser family is offering a $5,000 scholarship to one deserving high school senior or current college student who is interested in or is currently pursuing a career in an agriculture-related field.
In addition to the monetary award, the selected recipient will serve as a student ambassador for USRPA in 2024 with an expectation of participating in at least two activities during the calendar year. The recipient will be invited to participate in various USRPA activities, including but not limited to Field Days, legislative activities, Texas Rice Council meetings, conferences, and more.
Specific criteria for selection:
- Applicants should have the intention of pursuing a career in an agriculture-related field. Applications will be accepted from high school seniors, college students, and/or college graduate students.
- In addition to completing the online application form, applicants should submit a self-produced video no longer than 5 minutes answering the following questions: What is your vision for the next generation of the U.S. rice industry? Please cover topics relevant to the future of the U.S. rice industry, such as food security/safety, sustainability, etc.
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Food & Agriculture
Regulatory & Policy Roundup
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Rice Outlook: September 2023
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from
MU Rice Agronomy
Vol. 1, No. 6
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January 30-31, 2024
27th Annual National Conservation Systems Cotton & Rice Conference
Jonesboro, AR
More Information
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February 10, 2024
Texas Rice Roundup
Richmond, TX
More Information 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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