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In This Issue:
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Market Update - Solid Early Field Results for Arkansas, Milling Numbers Largely Unknown
- Washington, D.C. Update
- S. Louisiana Rail Facility Featured in Louisiana Farm & Ranch
- USRPA Participates in Southeast TX Urban and Farm Safety Summit
- National Rice Month Giveaway
- Ray Stoesser Memorial Scholarship: Application Available
- Photos from Rice Country
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Market Update - Solid Early Field Results for Arkansas, Milling Numbers Largely Unknown | |
Field reports coming in from Arkansas are mixed in a good way; some are seeing average, while others are reporting above average. Reports of below-average are starting to sneak in, but they are few and far between with early reports being solid. Harvest is just about 5% behind last year, but 9% behind the five-year average. The expectation is that things will catch up relatively quickly in the next two weeks, where we will get an initial read on millings as well. With old crops still in first hands, we could see an interesting price dynamic emerge for on-farm pricing as the market will begin deciphering old crops from new crops. Mississippi, like Arkansas, is still in the middle of harvest with 60% cut, which is right in line with last year and the five-year average. It was a small crop this year, and initial reports have not been so bright with some milling results coming in with head rice in the low 50’s.
Domestic millings remain steady, but the high prices may be bumping against a ceiling. In the most recent months, red-hot inflation provided the cover fire (and justifiably so) for increasing prices. Now that inflation is resting at over 8%, price increases aren’t being so readily accepted in the market. This doesn’t necessarily signal a price decrease coming anytime soon for US long grain rice, but it should make growers who are holding paddy consider selling at current prices before the domestic market gets covered and the market turns to depend on exports.
The 20% tariff on Indian rice exports is still having muted impact on Thai and Viet prices, but we expect to see them augment in the coming weeks. In years past, announcements like the ones India just made have jolted markets and prices into a panic—we are happy to see that level heads are prevailing this time. Buyers are discerning their way to dependable suppliers despite the tariff. And it can’t be overlooked either, that rice prices in the Middle East and far east haven’t risen like other grains have in the past six months, so on a parity basis, Indian rice, even with a 20% tariff, is still cheap in a relative sense. Thai prices are at $445 pmt, Viet prices at $410 pmt, and Indian Prices now rising to $390 pmt.
The USDA Export Sales report is finally back online, showing sales of 30,200 metric tons. Highlights are that 15,500 mt were long grain rough, and Saudi Arabia bought 8,800 mt milled. Exports for the week registered at 19,800 mt, with long grain milled in the amount of 8,500 mt to Saudi Arabia taking the lion's share.
In the futures market, average daily volume dropped by 22% down to 351, and open interest bumped 2.65% to 9,040. It would appear that the market is poised for a slight pullback, but there may still be some legs in the current action. Reports are indicating strength through harvest and the end of the year, but things can change quickly.
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On Tuesday, the Ranking Members of several House Committees sent a letter to Michael Regan, the Administrator of the Environmental Protection Agency (EPA), and Michael Connor, the Assistant Secretary of the Army for Civil Works. The letter called attention to regulatory actions taken by the EPA and Army Corps of Engineers that would expand regulatory authority to regulate waters of the United States (WOTUS). Members expressed concern over the lack of accountability accompanying increased bureaucratic authority. They noted their intent to conduct oversight into the issue and request a list of all pending and expected rulemakings on the definition of WOTUS. The letter can be found here.
On Thursday, members of the Senate Agriculture Committee voiced support for confirming key agricultural nominees. Members of both parties expressed hope that Alexis Taylor, the nominee for Under Secretary for Trade and Foreign Agricultural Affairs at the Department of Agriculture, and Doug McKalip, the nominee for Chief Agricultural Negotiator at the Office of the US Trade Representative, could be confirmed by unanimous consent next week. These roles have remained unfilled for nearly two years and there has been increasing bipartisan support to fill these and other key agricultural positions.
This week, the House Agriculture Committee held a hearing on Title II conservation programs as it prepares for the upcoming farm bill. Members received input from stakeholders across the agriculture industry about producers’ experiences with the programs and potential improvements. Stakeholders noted the difficulty in accessing government assistance and called for increased resources to improve efficiency. A recording of the hearing can be found here.
Last week, the House Committee on Small Business held a hearing on the right to repair. During the hearing, members and witnesses alike emphasized how important it is for farmers to be able to repair their equipment and machinery. They discussed how manufacturers inhibiting the ability to repair equipment can not only cause delays for farmers but also impact small business owners who had previously serviced and repaired equipment. A recording of the hearing can be found here.
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South Louisiana Rail Facility Featured in Louisiana Farm & Ranch | |
USRPA Participates in Southeast TX Urban and Farm Safety Summit | USRPA participated in this two-day, multi-county educational event (Harris, Fort Bend, Waller, Montgomery, and Austin Counties), where research-based information was provided to farmers and ranchers. | |
National Rice Month Giveaway | Did you know September is National Rice Month? To celebrate, we’re giving away a USRPA-branded RTIC cooler! Head to our Facebook or Instagram page to enter! | |
Second Annual Ray Stoesser Memorial Scholarship | |
Know current high school seniors, undergraduate, or graduate students pursuing a career in agriculture? Encourage them to apply for the Second Annual Ray Stoesser Memorial Scholarship!
Applications are due Thursday, December 1.
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The South Louisiana Rail Facility loaded a vessel headed for Central America this week. Thanks to USRPA Board Member Mark Pousson for sharing this photo! Send us your harvest photos on Facebook, Instagram, or via email! | | |
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Food and Ag Regulatory and Policy Roundup | | |
World Agricultural Production | | |
Grain: World Markets and Trade | | |
USDA Economic Research Service
Rice Outlook: September 2022
U.S. 2022/23 Rice Crop Forecast Reduced 6 Percent
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MO Crops Podcast
Produced by University of Missouri Extension
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Arkansas Rice Updates
from the
Arkansas Row Crops Blog
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September 28 - October 1, 2022
Texas Rice Festival
Winnie, Texas
More Information
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October 20 - 23, 2022
The 85th International Rice Festival
Crowley, Louisiana
More Information
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January 18, 2023
Western Rice Belt Conference
El Campo Civic Center, El Campo, Texas
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January 31 - February 1, 2023
26th Annual National Conservation Systems Cotton & Rice Conference
Baton Rouge, Louisiana
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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