|
In This Issue:
- Market Update: Latest WASDE Report Analysis
- Texas Rice Council & Louisiana Independent Rice Producers Association Hold Meetings
- Lance Nicholas Announced as Ray Stoesser Memorial Scholarship Recipient
- Washington, D.C. Update
| |
|
The USDA World Agricultural Supply and Demand Estimates (WASDE) report was released this week, and offered an outlook that denoted smaller supplies, unchanged domestic use, lower exports, and higher ending stocks—most of the changes a result of medium grain rice instead of long grain. The smaller supplies are on account of the reduced crop due to drought, unchanged domestic use is what we’ve been seeing all year, and lower exports on account of high prices. The WASDE further reports that the season average farm price is forecast at $15.70/cwt, up $0.60/cwt on higher reported cash prices throughout December. Global rice supplies are increased slightly by 0.4 million tons, largely in Pakistan. Trade increased by 1 million tons to 50.9 million tons, on account of India’s break-neck export pace.
On the ground in the US, Brazil and other South American suppliers like Uruguay and Argentina are stealing market share in Mexico from the US. With a price difference of over $70 pmt in most cases, the attrition isn’t a surprise, but isn’t welcomed either. But with the short supply this year and another short year expected as planting approaches, this dynamic is almost inevitable this year. Iraq seems to prefer the price point from Asian destinations right now, and Haitian demand is keeping demand steady, but not enough to provide a bullish outlook. The market is looking sideways at the moment.
In Asia, the Lunar New Year has kept the market quiet, with pricing being very similar from last week to this week. Thailand is reporting prices at $420 pmt, Vietnam $395 pmt, and India down to $360 pmt. Pakistan, who is emerging as a player once again, and trading a significant amount with China, is quoting in the $360/pmt range as well.
The weekly USDA Export Sales report shows net sales of 193,000 MT, which is a marketing-year high. This means sales were up 23% from last week and up noticeably from the prior 4-week average. Increases primarily for Colombia (120,000 MT, including 22,000 MT switched from Mexico), Haiti (41,500 MT), Panama (27,400 MT), Japan (25,100 MT), and Canada (1,100 MT, including decreases of 900 MT), were offset by reductions primarily for Mexico (19,500 MT) and the United Kingdom (4,400 MT). Exports of 71,000 MT were up 5% from the previous weeks and 67% from the prior 4-week average. The destinations were primarily to Panama (27,400 MT), Haiti (26,300 MT), Mexico (5,600 MT), Honduras (5,000 MT), and Canada (2,200 MT).
In futures action, prices from March 22 – Jan 23 have all dropped slightly. Average daily volume registered at nearly 14% higher than last week, up to 1,066. Open Interest also rose about 6% up to 9,335. At low prices that we saw this week, buying is likely in order to scoop up the value.
| |
Texas Rice Council Convenes | |
The Texas Rice Council met on Tuesday, February 8, at the Tru by Hilton in Katy, Texas. The Council elected officers, received a report from USRPA President & CEO Marcela Garcia, and met the inaugural Ray Stoesser Memorial Scholarship recipient, Lance Nicholas. | |
Pictured: Tommy Turner, Texas Rice Council President & USRPA Board Member; Neal Stoesser, Texas rice farmer, Texas Rice Council & USRPA Board Member; Lance Nicholas, scholarship recipient; Eileen Stoesser, Stoesser Scholarship Founder; & Marcela Garcia, USRPA President & CEO. | |
|
The US Rice Producers Association Ray Stoesser Memorial Scholarship Committee is pleased to announce Lance Nicholas as its 2022 first place scholarship recipient. Lance, a senior at Katy High School in Katy, Texas, received a $5,000 scholarship from the Stoesser family to continue his education.
Lance is the son of Lonnie and Denise Nicholas. He plans to attend Texas Tech University where he will study Agricultural Communication. He also plans to earn his teaching certificate. Active within his local and state FFA organizations, Lance has served as a Texas FFA Ambassador, Katy FFA Vice President, and FFA Area III First Vice President, among other positions.
In addition to the monetary award, Lance will serve as a student ambassador for USRPA in 2022. He will be invited to participate in various USRPA activities, included but not limited to Field Days, legislative activities, Texas Rice Council meetings, and conferences. He attended his first Texas Rice Council meeting this week and had the opportunity to meet members of the Stoesser family.
For more information on the Ray Stoesser Memorial Scholarship, visit www.usriceproducers.com/scholarship.
| |
Despite high fertilizer and fuel prices and a poor crawfish catch, Thursday evening's Louisiana Independent Rice Producers Association Annual Meeting was well attended. | Mark Pousson, manager for the South Louisiana Rail Facility welcomes Jose Cremades, a rice miller from Monterrey, Mexico and Marcela Garcia, CEO of the USRPA at the annual meeting of the Louisiana Independent Rice Producers Association. | |
This week the Federal Caribou left the port of Lake Charles, Louisiana with a shipment of rice headed for Colombia. | |
|
USDA Announces $1 billion for Climate Smart Commodities, Expanding Markets and Strengthening Rural America
This week, USDA announced $1 billion for projects that create market opportunities for agricultural and forestry products that use climate-smart practices, including innovative and cost-effective ways to measure greenhouse gas benefits. The money will be distributed in two buckets. The first will be for large-scale pilot projects that emphasize the greenhouse gas benefits of climate-smart commodity production and include direct, meaningful benefits to a representative cross-section of production agriculture, including small and/or historically underserved producers. The second will be limited to innovative pilots with emphasis on enrollment of small and/or underserved producers and/or monitoring, reporting, and verification activities developed at minority-serving institutions. MORE INFO
House Passes CR
This week, the House passed its third continuing resolution to fund the government through March 11. The bill now needs approval in the Senate and the President’s signature before February 18 to avoid a government shutdown. Although earlier it appeared unlikely that Congress would be able to reach an agreement on spending, recent rumors indicate that House and Senate appropriators are close to reaching an agreement which would allow Congress to then complete an omnibus appropriations bill to fund the government through the end of the fiscal year.
With appropriators focused on finishing FY 2022, the FY 2023 process will continue to be delayed. While the President’s Budget is typically sent to Congress in February, it will likely be delayed until March.
America COMPETES Act
Last week, the House approved H.R. 4521, the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (COMPETES) Act with a 220 to 210 vote. Although the Senate version was approved earlier in June of 2021 on a 68 to 32 vote with 19 Republicans supporting, the House version was approved on a party line vote with only one Democrat and one Republican breaking ranks. The $250 billion package is aimed at investing in domestic research and manufacturing, with $45 billion to support supply-chain resilience and manufacturing of critical goods and $52 billion for semiconductor manufacturing and research.
The bill includes advancing internet of thigs (IoT) for precision agriculture and research to improve the use of advanced sensing systems in rural and agricultural areas. It also includes improving productivity in agriculture as a goal for activities funded under the Advanced Technological Education program and supports a government accountability Office technology assessment of precision agriculture technologies.
The bill also loosens the eligibility of farmers to receive trade adjustment assistance and increases the maximum available funding from $12,000 to $36,000.
Congressional Leaders are now expected to go to conference with the Senate-passed version, the S. 1260, the U.S. Innovation and Competition Act (USCIA).
USDA Announces Membership of Newly Formed Equity Commission
On February 10th, the U.S. Department of Agriculture (USDA) announced the members of the newly established Equity Commission and its Subcommittee on Agriculture (more info). The Commission will hold its first public meeting on February 28, 2022. The Commission is authorized and funded by the American Rescue Plan Act. The Commission implements the Biden-Harris Administration’s Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.
The 15-member commission and its Subcommittee on Agriculture will provide recommendations to the Secretary on policies, programs, and actions needed to address equity issues, including racial equity issues, within the Department and its programs, including strengthening accountability and providing recommendations to the Secretary on broader and more systemic equity issues at USDA. There are future plans to launch an additional Subcommittee focused on rural community and economic development.
The new commission members are:
Arturo S. Rodriguez, California
Hazell Reed, Arkansas
Toni Stanger-McLaughlin, Washington
Derrick Johnson, Mississippi
Ronald Rainey, Arkansas
Mireya Loza, District of Columbia
Charles Rawls, Virginia
Shorlette Ammons, North Carolina
Poppy Sias-Hernandez, Michigan
Todd Corley, Ohio
Yvonne Lee, California
Elizabeth Lower-Basch, Virginia
Shirley Sherrod, Georgia
Ertharin Cousin, Illinois
Rick Smith, Missouri
The new agriculture subcommittee members are:
Shari Rogge-Fidler, Illinois
Savonala Horne, North Carolina
Alexis Racelis, Texas
Gina Eubanks, Louisiana
Michelle Hughes, Virginia
Kari Jo Lawrence, South Dakota
PJ Haynie III, Virginia
Russell Redding, Pennsylvania
Janssen Hang, Minnesota
Erica Lomeli Corcoran, California
Sarah Vogel, North Dakota
Gary Matteson, New Hampshire
Jennie Stephens, South Carolina
| |
Grain: World Markets & Trade
This monthly report includes data on U.S. and global trade, production, consumption and stocks, as well as analysis of developments affecting world trade in grains. Covers wheat, rice and coarse grains (corn, barley, sorghum, oats and rye).
| |  |
World Agricultural Production
Monthly report on crop acreage, yield and production in major countries worldwide. Sources include reporting from FAS’s worldwide offices, official statistics of foreign governments, and analysis of economic data and satellite imagery. The report reflects official USDA estimates released in the monthly World Agricultural Supply and Demand Estimates (WASDE).
| | |
Osiriz/InterRice Report is Now Available
Monthly Report on World Rice Market
| | |
Brazil: Economic & Agricultural Overview
This report highlights the major macroeconomic indicators in Brazil, providing a forecast for 2022 and an overview of the Brazilian agricultural situation, including trade figures.
| | |
Bulgaria: Grain and Feed Update
The prospects for MY2022/23 winter grain crops remain favorable due to the relatively mild winter, sufficient soil moisture reserves, and snow cover. Higher input costs, however, may have a negative impact on the average yields due to expected lower application of inputs. Grain exports in MY2021/22 had a strong start early in the season but slowed down in December and January. Local feed consumption remains limited due to high feed prices and low to negative margins in the livestock and poultry industries as accelerating food inflation takes its toll on staple products such as bread, bakery, and confectionary products.
| | |
|
Imports will remain above average levels, though they will continue to be sourced mostly from the Mercosur trade bloc. Post forecasts rice production at 7.9 MMT in 2021/22, a decrease of 100,000 metric tons from the record production in the current season. Unlike corn and wheat, rice exports have been stymied by surging maritime freight costs associated with shipment in containers versus in open vessels.
| | |
|
Food and Agriculture
Regulatory and
Policy Roundup
| | |
|
Cornerstone
Trade Update
| | | |
| |
|
University of Missouri Extension Rice Meeting
8:30 a.m - 12:30 p.m.; The Gathering @ Versity Crossing, Dexter, MO
| | |
| |
|
Missouri Rice Research & Merchandising Council Annual Meeting
The Gathering @ Versity Crossing, Dexter, MO
View the Flyer Here
| | |
| |
34th Annual Arkansas Agricultural Hall of Fame Induction Luncheon: Embassy Suites, Little Rock, Arkansas – event details and tickets (RESCHEDULED) | |
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. | | | | |
