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In This Issue:
- Market Update: U.S. Spring Planting Underway Along Gulf Coast
- Washington, D.C. Update
- Missouri Rice Council Celebrates 40th Anniversary at Annual Meeting
- RMTC Early Bird Registration Ends Friday, March 15
- Photo from Rice Country
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Market Update: U.S. Spring Planting Underway Along Gulf Coast | |
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The market is moving forward in a firm direction, albeit without any significant changes. The domestic millings are strong, making it difficult to even procure rice for new or export customers. We have been noting for weeks the coming harvest in South America and the increased competition, but the expectation of a shorter crop and the continued strong demand is putting a bit more strength in the futures market than initially expected. It will be interesting to see how it plays out once harvest is officially underway, but signals as of writing are that prices may not soften much. Harvest has begun in Uruguay, Argentina, Paraguay, and Brazil, but not in earnest or with enough results to provide any actionable intelligence at this point. Weather-related incidents throughout the growing season have resulted in a late maturing crop with inconsistent field yields reported.
Prices on the ground are strong too, when demand surfaces. It is getting more and more difficult to find available supplies in Texas, but prices are reported as high as $19/cwt right now. Louisiana is firm at $18.52/cwt. Mississippi, Arkansas, and Missouri are all at $18.00-$18.25/cwt. When taken together, the current cash price, the pace of exports, and a smaller crop in South America are making a strong case to plant rice this year. Our surveys indicate a little rice has already been put in the ground in Texas ahead of schedule, but that is the outlier. We are still expecting a crop that exceeds 3 million acres this year. A few fields along the Gulf Coast have been planted during the last days of February as usual to hopefully obtain a good ration crop yield.
In the global marketplace, Asian prices are officially softening, with Vietnam's dropping below $600 pmt for the first time in several months to $590 pmt. Thai prices remain above the $600 mark but have dropped down to $620 pmt this week. At first glance, this could be taken as a foreshadowing of the easing of the Indian export ban, but upon further inspection, the softening is more a result of new supplies becoming available. Indonesia will be coming to market for another sizable tender in the coming weeks, which is expected to buoy prices back up. The spread is once again widening in comparison to U.S. long grain, where prices have now reached $800 pmt for USA 5%. Reports of Thai bulk rice vessels headed to Mexico are rumored to be sold at $710 CIF Veracruz if not lower.
The weekly USDA export sales report shows net sales of 60,900 MT this week, up noticeably from the previous week, but down 27% from the prior 4-week average. Increases primarily for Mexico (21,400 MT), Haiti (15,300 MT), the Dominican Republic (12,200 MT), Venezuela (6,300 MT), and Canada (2,100 MT). Exports of 96,800 MT were up 6% from the previous week and 18% from the prior 4-week average. The destinations were primarily Mexico (28,200 MT), Venezuela (25,800 MT), Honduras (21,700 MT), Haiti (15,300 MT), and Canada (2,700 MT).
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Secretary Vilsack Testifies Before the Senate Agriculture Committee
On Wednesday, Secretary of Agriculture Tom Vilsack testified before the Senate Agriculture Committee. Republicans and Democrats agreed on the importance of passing a bipartisan farm bill to provide stability for producers and the agriculture sector. Republicans were concerned about high input costs and inflation as well as stagnant commodity prices while Democrats called attention to the impacts of nutrition and conservation programs and the need to protect their funding. Other topics discussed in the hearing included California’s Proposition 12, the Secretary’s use of the Commodity Credit Corporation, protecting small and medium-sized producers, and the agricultural trade deficit. This hearing was the second time Secretary Vilsack testified before Congress recently, as the House Agriculture Committee held a hearing on February 7. A recording of the hearing can be found here.
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Missouri Rice Council Celebrates 40th Anniversary at Annual Meeting | |
Video edited by USRPA's Iris Figueroa | |
The Missouri Rice Research & Merchandising Council celebrated its 40th anniversary on Tuesday during its Annual Meeting in Poplar Bluff. A panel consisting of Dr. Michael Aide, BJ Campbell, Dr. Justin Chlapecka, and Alex Clark discussed the history of the Council, recounting the organization's early days and discussing the future of the Missouri Rice industry. The program also included Council financial and research updates, and an update from US Rice Producers Association. | |
The panel discussed the past, present, and future of the Missouri Rice Council. | |
At the end of the program, the Council presented Dr. Michael Aide with a plaque commemorating his 35+ years of service to the Missouri Rice Council and naming him an honorary council member. From left to right: Eric Hover, Zach Tanner, Alex Clark, Rance Daniels, Dr. Michael Aide, David Martin, Daniel Eddy, Mitchell Thomas, Justin Wheeler, and Chris Berry. | |
RMTC Early Bird Registration Ends Friday, March 15 | Don't miss out! Register today by clicking on the link below. | | |
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Food & Agriculture
Regulatory & Policy Roundup
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Grain:
World Markets & Trade
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World Agricultural Production
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June 4 - 6, 2024
Rice Market & Technology Convention
Cancun, Mexico
Registration
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