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In This Issue:
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Market Update: U.S. Rice Harvest Moving North in the Delta
- USRPA Past Chairman Clark gives testimony at U.S. House Ag Committee Listening Session
- Guatemalan Rice Mill Visits Texas
- Missouri Rice Council Hosts Annual Field Day
- Photo from Rice Country
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Market Update: U.S. Rice Harvest Moving North in the Delta | |
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The USDA WASDE report was released last Friday, and they remained consistent with another increase in long grain production estimates. This is in line with industry assumptions as well, with the USDA pegging long grain production at 146.8 million cwt. This helped increase ending stocks, but they are still at a bullish level because of the tight supply all year long. What is more exciting is the news of Iraq posting an 80,000 metric ton sale in the Export Sales report from last week. This business, along with steady domestic and Haitian millings, is phenomenal news amidst a large crop. It can be argued that this Iraq booking is a direct result of the confusion in the east resulting from India’s white rice export ban. Iraq responded swiftly and with confidence by booking U.S. rice early, removing themselves from the market froth in Thailand and Vietnam.
Last week we discussed the quickly reducing spread between Asian and U.S. rice, and the chart below highlights the change. You can see the immediate response to the Indian export ban, with prices in Thailand this week registering as high as $655 pmt, and Viet prices as high as $630 pmt. Vietnam is enjoying its discount on Thai prices and is looking to notch a record year in exports on the backs of the confusion.
One of the peculiar oddities of the price increase in response to India’s ban is that there is still plenty of rice around the globe. In fact, the USDA is projecting the global rice production to be slightly higher this year because of larger crops in Russia, Uganda, and the U.S. India’s reasoning for the ban is to control domestic inflation, but externally, this is an election year, and a ban like this can be considered “par for the course” in a manner of speaking. Nonetheless, the market is reacting, and traders are left finding ways to feed hungry bellies in many of the poorest countries that have historically been customers of India.
On the ground here in the states, harvest continues to progress in Louisiana and Texas, with other states excited to get started. The pricing dynamic will be very interesting as old crop and new crop prices converge. The old crop has been so expensive for so long, but new crop futures values are considerably lower simply based on supply. This likely means the cash market will be at a standstill in the coming weeks, and may be quiet all the way through October if the global situation remains opaque on its impact on pricing in the U.S.
Turning to the Crop Progress report, Arkansas made a huge jump and is now 91% headed and 2% harvested. Louisiana is 96% and 61%, with Texas at 96% and 40%. Missouri and Mississippi are getting closer to harvest, but haven’t started yet, with 78% and 91% headed. California is also making strong progress, now showing 65% headed. Rice condition continues to trend in a positive direction, where 67% of the crop is in good to excellent condition, 27% is fair, and only 6% is in poor/very poor. Initial yields and milling yields are positive, but also volatile. There are early reports of chalk, but still premature to make any significant calls.
The weekly export sales report shows net sales of 24,700 MT, primarily for Mexico (14,600 MT) and Haiti (8,300 MT). Exports of 17,700 MT were primarily to Japan (13,000 MT), Mexico (2,200 MT), and Canada (1,800 MT).
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USRPA Past Chairman Clark Gives Testimony at U.S. House Ag Committee Listening Session | |
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On Monday, USRPA Past Chairman and current board member Alex Clark gave testimony during the U.S. House Ag Committee's Listening Session at the Missouri State Fair in Sedalia, MO. Hosted by Congressman Mark Alford (MO-4), the session included both federal and state officials, including House Agriculture Committee chair Glen "GT" Thompson (PA-15), Governor Mike Parson, Lt. Governor Mike Kehoe, Missouri Congressman Blaine Luetkemeyer (MO-3), Representative Monica De La Cruz (TX-15) and Representative Jonathan Jackson (IL-1).
Clark thanked the Congressional members for the $250 million Rice Production Program and emphasized the importance of the Farm Bill, particularly the commodity support programs and export development programs such as the Market Access Program. "As we move deeper into this Farm Bill season and closer to its expiration in September, we want to reaffirm that for rice farmers this is the most important piece of legislation," Clark said. "Current economics of rice production are dire because of the failure of the rice market to reflect current input costs of production. As a result, rice producers must rely even more heavily on the safety net benefits authorized in the farm bill."
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USRPA Hosts Guatemalan Rice Industry Leaders in Texas | |
From left are Tommy Turner (President Texas Rice Council, USRPA board), Francisco Perez (General Director ALCSA rice company Guatemala), Fernando Chavarría (Project Manager ALCSA), José Antonio Corrales (President of ALCSA), Jorge Rodriguez (International Marketing Director, ADM Rice, Inc), Dwight Roberts (Market Advisor, USRPA), Galen Franz (Texas rice farmer, USRPA board, Chairman of Texas Rice Research Foundation) and Cris Brown (Export Merchandiser, Hansen-Mueller, Port of Houston) after a tour of the Hansen-Mueller grain facility. | |
On August 14, 15, and 16, the Texas Rice Council in partnership with the US Rice Producers Association (USRPA) hosted Jose Antonio Corrales, President, Francisco (Paco) Perez, General Manager, and Fernando Chavarria, Mill Operator, of ALCSA, the largest mill in Guatemala. www.alcsa.com.gt
The group visited the offices of RiceTec and Nutrien, 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.
USRPA hosts trade servicing trips such as this with the support of USDA Market Access Program funding, a program implemented through the Farm Bill. This is yet another reason the Farm Bill is crucial to the success of U.S. agriculture!
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Missouri Rice Council Hosts Annual Field Day | |
The Missouri Rice Research & Merchandising Council hosted their annual Field Day on Thursday. The event had a great turnout and the weather could not be beat. After a morning of tour stops around the farm and discussions with researchers, USRPA President and CEO Marcela Garcia and USRPA board member Dennis DeLaughter spoke to the crowd during lunch. | |
El Campo, TX farmer and USRPA board member, Thomas Turner, enjoying the view at Franz Farm in Victoria, TX. | |
Cornerstone
Trade Update
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Food and Ag Regulatory and Policy Roundup | | | |
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Inter-Rice World Rice Market Report | | |
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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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