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In This Issue:
- Market Update: No Need to Panic?
- USRPA Visits China
- Washington, D.C. Update: USRPA Board Members in TX and MO Meet with Congressional Leaders During August Recess
- Third Annual Ray Stoesser Memorial Scholarship Announced
- USRPA Board Members in Mexico This Week
- MO Lieutenant Governor and State Reps visit MO Rice Research Farm to celebrate the start of National Rice Month
- National Rice Month Giveaway
- Photo from Rice Country
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Market Update: No Need to Panic? | |
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The U.S. rice market has remained fairly insulated from the shocks taking place around the globe. As a result, significant market updates have been few and far between in recent weeks as it pertains directly to rice prices. That has largely been because of steady domestic business along with Haiti which has been procuring milled rice at a steady rate. However, just this week the U.S. State Department advised all Americans to leave Haiti immediately by whatever means necessary because of increased gang activity. We hope this doesn’t devolve into the situation we saw directly after the assassination of President Jovenel Moise in July of 2021, but recent reports predict that gangs control nearly 80% of Port-au-Prince. The slowing of shipments to Haiti just as new crops become available is not ideal timing.
Harvest continues to move forward in Louisiana and Texas, with 81% and 70% now reported complete. Both states jumped 10% from last week, indicating they will be largely wrapped up by mid-September. Arkansas, however, still has 90% to go and is just opening up the throttle on harvest. This is about 5% faster than last year, but by mid-September the largest rice state will be moving full-throttle through harvest. Mississippi is showing 15% harvested, while Missouri is at only 1%, and California is looking to get its earliest harvesters in the fields the week of September 11. Crop condition is looking better as we get deeper into harvest, with 75% now registering good to excellent, up from 68% last week. While milling yields along the Gulf Coast have been very inconsistent, farmers and mills in Arkansas are cautiously optimistic. The next two weeks will give us a clear picture.
India remains a confusing mess, which is translating into increased prices and panic for importers and exporters alike. As of this week, the white rice ban remains intact, a 20% tariff on parboiled rice has been imposed, and a minimum export price for Basmati of $1,200 pmt has been imposed, all while the broken rice export ban that has been in place since September 2022 may be relaxing a bit as the trade is talking about sales of brokens to some West African countries. All in all, confusion reigns in the Near and Far East, while the market is “fair to middling” here in North America. It is now anticipated that these export restrictions from India will remain intact into the 1st quarter of 2024, or at least until the election cycle is complete.
A recent GAIN report on Costa Rica rice, shows that U.S. rough rice exports have plummeted following the Costa Rican government’s tariff rate reduction on imported rice from August 2022. Exports of U.S. rice to Costa Rica have fallen a staggering 98% YTD through June of 2023. The attrition the U.S. industry has lost to South America has been widely reported here, where Brazil, Uruguay, and Argentina have been the beneficiaries. This loss was only exacerbated by the tariff rate reduction policy, with the true numbers just now being realized. The reduction of rice acreage over the last decade in Costa Rica would indicate a prime market for U.S. rice. Unfortunately, recent events make the opposite true. The reduction of acres in Costa Rica is highlighted by the fact that in 2013 they produced 163,000 acres of rice; projections for this year are as low as 37,000 acres. This reduction obviously increases their reliance on imports, of which the U.S. needs to claw back its market share.
South American exporting countries (Mercosur) are 90+% sold. The low production numbers in Brazil created a selling domino effect and today FOB prices for paddy are higher than the U.S. at $460-$470 per ton FOB. Paraguay and Argentina began planting new crops of rice two weeks ago. Along with their exporting neighbors, water remains an obstacle in some areas and is the only thing in way to prevent a large acreage increase. Texas knows that feeling! Demand is strong throughout the Western Hemisphere.
Great news on the Export Sales report, with net sales of 82,300 MT, up a whopping 162%, largely to Mexico (57,300 MT) and Haiti (21,000 MT). Exports of 64,600 MT, up huge from last week were primarily to Mexico (48,100 MT), Haiti (7,100 MT), and Venezuela (5,900 MT).
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USRPA is in China this week visiting Shanghai and SIAL Shenzhen, meeting with FAS Shanghai and Guangzhou and several China industry representatives. The trip started with a meeting with a contractor in Shanghai, and a visit of the Shanghai NGO office as required by China NGO law for the registration of USRPA’s non-government office in China. In the meantime, USRPA visited SIAL Shenzhen and met with FAS Guangzhou and the U.S. pavilion. SIAL Shenzhen is a food show exhibiting products from around the world. The trip also included meetings with a private importer Shenzhen Rui Li Lai and state-owned enterprise China Sino Grains. The meetings were productive, building relationships with China’s rice industry and promoting awareness of U.S. rice in the global market. | |
In Shanghai, with ATO Director Lashonda McLeod, Deputy Director Ted Shibata and team. | |
USRPA at the USA pavilion at SIAL Shenzhen with ATO director JoAnn Flemings, U.S. consulate in Guangzhou, and her team. | |
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Washington, D.C. Update:
USRPA Board Members in TX and MO Meet with Congressional Leaders During August Recess
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On Tuesday, USRPA Board Member Thomas Wynn represented US Rice Producers Association at an Agriculture Roundtable discussion in Corpus Christi with US Senator Ted Cruz and special guest, US Senator John Boozman, Ranking Member on the US Senate Agriculture, Nutrition and Forestry Committee.
Meanwhile, USRPA immediate past-chairman Alex Clark hosted Congressman Jason Smith (MO-8) at his farm near Poplar Bluff on Wednesday, along with Missouri Secretary of State Jay Ashcroft. The stop was part of Congressman Smith's 11th annual Farm Tour.
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Third Annual Ray Stoesser Scholarship Announced | |
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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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MO Lieutenant Governor and State Reps visit MO Rice Research Farm to celebrate the start of National Rice Month | |
Today is the first day of #NationalRiceMonth! To kick things off, the Missouri Rice Research & Merchandising Council hosted Missouri Lieutenant Governor Mike Kehoe at the Missouri Rice Research Farm yesterday. Lieutenant Governor Kehoe presented the Council with a proclamation to celebrate National Rice Month. Lieutenant Governor Kehoe was joined by State Representatives Donnie Brown, Cameron Parker, Doyle Justus, John Voss, and Missouri Speaker of the House Dean Plocher. | |
USRPA Board Members Visit Mexico This Week | |
USRPA board members Mark Pousson (Louisiana) and Galen Franz (Texas) traveled to Mexico this week to sell rice. A successful trip deserves a dinner of cabrito! | |
National Rice Month Giveaway | |
Rice farmer Scott Matthews near Weiner, Arkansas began harvesting this week and is cautiously optimistic for good results. | |
Cornerstone
Trade Update
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Food and Ag Regulatory and Policy Roundup | | | |
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GAIN Report: India Bans the Export of Non-Basmati White Rice | | |
Thailand: Grain & Feed Update
Post lowered MY2023/24 rice production estimate to 19.6 MMT due to water supply concerns.
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Vietnam Rice Trade - Monthly
In July, Vietnam's rice exports surged to 656,869 tons, with its primary export markets being the Philippines, Indonesia, Ivory Coast, Ghana, and China. Notably, shipments to the Philippines soared to 239,400 tons, marking a 45% spike from the previous month and securing a 36% share of the export market. Meanwhile, exports to Indonesia, the second-ranked market, accounted for 17% of market share but experienced an 11% decline. The average export price for all rice types rose by 8% compared to the previous month due to India's ban on non-basmati white rice exports on July 20, followed by the ban on rice exports by the United Arab Emirates and Russia a week later.
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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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