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In This Issue:
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Market Update: U.S. Harvest in Full Swing; Buyers Focused on Milling Yields
- Ecuador Rice Industry Visits Mississippi Delta
- Washington, D.C. Update
- 3rd Annual Ray Stoesser Memorial Scholarship: Application Open
- National Rice Month Giveaway - Last Chance!
- Photo from Rice Country
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Harvest in full swing at Wheeler Farms in Grayridge, MO earlier this week | |
Market Update: U.S. Harvest in Full Swing; Buyers Focused on Milling Yields | |
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Is the story for this marketing year already written for the U.S. long grain crop? One could argue that it’s all but over over, before harvest is even finished. Every year has unique features, and this year is punctuated by the Indian ban and the resulting scramble that has gobbled up a bumper crop, and all but made a bearish WASDE report that increased paddy by more than 6 million cwt a mere speed bump in the wake of strong demand. Last year when prices were steady at $680pmt for the back half of last year’s short crop, the expectation was that this year’s large crop would make U.S. long grain more competitive, and prices would drop to converge with South American exporters. However, a strong market in Iraq and Haiti, bolstered by steady domestic business, have firmed prices even further, while South American export prices race upward to converge with U.S. prices — now finding rest at a minimum of $700pmt. We can confirm one sale of Uruguayan milled rice at $760/ton FOB Montevideo destined for Peru. We would contend that the dust is settling from the Indian situation, and we have a steady market moving through the first quarter of 2024 at this juncture.
We know that export prices are firm, and cash prices are looking the same. Texas is seeing cash prices of $16.25-$17.61/cwt based on preferred variety and quality of milling yield. Louisiana is looking at $16.50/cwt, while Mississippi, Arkansas, and Missouri are at $15.75.
The crop progress report shows steady movement toward completion, with California finally underway in a meaningful way, though still at only 6%. Arkansas is now 15% above the pace for the 5-year average, crossing the halfway point and sitting at 58%. Louisiana and Texas are at 93% and 90% respectively, while Missouri is at 27% and Mississippi is at 74%. The weather is favorable, and much still depends on milling yields to determine just how far this crop will go. Early milling yield reports continue to be very inconsistent, “mostly in the low 50s.”
Prices are settling significantly in Asia, where only weeks ago they exceeded $650pmt, but are now reported at $625pmt for Thai rice and $620 for Viet rice. Myanmar and Pakistan are at $635pmt and $580pmt respectively. A recent GAIN report on Vietnam shows rice exports surged to 656,869 tons in August, with the primary markets being the Philippines, Indonesia, Ivory Coast, Ghana, and China. The Philippines jumped 45% from the previous month, and accounted for 36% of all of Vietnam’s exports. This surge could be in response to the Thai government encouraging its rice farmers to plant less water-intensive crops as the El Nino is impacting the moisture cycles.
The weekly Export Sales report registers net sales of 65,800 MT, down 2% from the previous week, but up 24% from the prior 4-week average. Increases were primarily for Mexico (28,100 MT), El Salvador (12,000 MT), Honduras (10,000 MT), Saudi Arabia (8,600 MT), and Israel (4,000 MT). Exports of 21,200 MT were down 73% from the previous week and 58% from the prior 4-week average. The destinations were primarily to Saudi Arabia (8,800 MT), Guatemala (5,500 MT), Mexico (4,900 MT), Canada (1,600 MT), and the Bahamas (100 MT).
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Ecuador Rice Industry Visits Mississippi Delta | |
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Pictured is an important delegation representing the Ecuador rice milling industry led by Juan Pablo Zuniga, President of CORPCOM, the rice milling organization of Ecuador. The importance of rice to the diet of Ecuadoreans cannot be overstated due to a per capita consumption of 100 pounds per year. Since 1997 Ecuador has been self-sufficient and many years produced a surplus of rice; however weather related conditions have changed production efforts like many markets including the United States. Recent imports of milled rice from Uruguay are being used in order to maintain stability with consumption demands.
The delegation spent the week meeting with farmers, merchants, exporters, FGIS, research and others in order to gain an understanding of how rice is grown, handled and marketed in the U.S. The USRPA has maintained a strong relationship with both CORPCOM and Ecuador rice producers since its formation in late 1997 with visits over the years and participation in conferences and meeting in Guayaquil, the main port city on the Pacific coast and the center of the country’s rice production.
Next week’s Rice Advocate will have more details of the group’s visit from St. Louis through to New Orleans.
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DHS releases proposed rule for H-2A program
On Wednesday, the Department of Homeland Security (DHS) released a notice of proposed rulemaking to increase oversight of its H-2 temporary visa program, including for workers in the H-2A temporary agricultural program. The proposed rule would allow H-2A workers to switch to employers that do not use E-Verify to check workers' legal status. DHS is accepting comments on the proposal through November 20. This proposal follows last week’s release of a proposal from the Department of Labor on the H-2A program. Interested parties can view the proposed rule here and submit comments here.
House Committee on the Budget advances budget resolution
On Wednesday, the House Committee on the Budget passed a budget resolution for fiscal years 2024-2033, titled “Reverse the Curse” on a 20-14 vote. The resolution included a policy statement on agriculture, which stated the importance of protecting the farm safety net and curbing the use of the Department of Agriculture’s Commodity Credit Corporation. The full budget resolution can be found here.
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3rd Annual Ray Stoesser Memorial Scholarship: Application is 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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National Rice Month Giveaway - Last Chance! | |
Andrea Portilla, Assistant Financial Manager for Ecuadorean rice milling company Portiarroz, makes her way onto a combine at Wheeler Farms. | | |
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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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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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