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In This Issue:
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Market Update: USDA Report Suggests U.S. Rice Market to Remain Firm
- Washington, D.C. Update
- Robert “Bob” Papanos Service Update
- Texas Rice Roundup Success
- Explore all that Dreams Natura Has to Offer!
- Photo from Rice Country
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Market Update: USDA Report Suggests U.S. Rice Market to Remain Firm | |
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Following the vein from last week where we discussed the increasing pace of exports of US long grain rice, the USDA Economic Research Service Rice Outlook report just released this week is headlined “U.S. 2023/24 Export Forecast Raised 2.0 million cwt to 87 million.” Top-line news like this is especially positive when it trickles down to on-farm pricing, which has been the case thus far into the year. With futures prices pushing new highs, the market is also testing the topside tolerance of domestic buyers. What we are finding is that prices aren’t likely to go up forever, but sustained firm pricing is not only possible but probable.
Right now on the ground, we are seeing prices in Texas firm at $19.00/cwt, Louisiana $18.40/cwt, and Arkansas, Mississippi, and Missouri all strong at $18.50/cwt. If we look at prices from last September/October, we see an increase of 17% in the last four months. This increase typifies the reality that the United States has been the only reliable supplier of long grain for months.
In Asia, it has been a long-held expectation that prices would remain over $600 pmt on account of the Indian export ban. Prices skyrocketed to over $625 pmt, then $650 pmt, then even above $660 pmt. Thailand and Vietnam have been neck-and-neck vying for exports with strong demand, but the recent and very sizable procurement from Indonesia that didn’t include any Thai rice has poked a hole in the upward narrative. Prices for Thai rice have now dropped down to $625 pmt, and Viet prices at $645 pmt, down significantly from recent weeks. The expectation is that India will lift their ban sometime between April and June of this year.
Further investigation into the February ERS Rice Outlook reveals that the rice import forecast was raised by 1 million cwt, to a record 43 million cwt. This 8% increase from last year comes all in the long grain category. More specifically, the lion’s share is Thai jasmine or aromatic varieties. Also increased, as mentioned above, was the export forecast, by 2 million cwt, all of which is not only long grain rice but long grain rough rice. This is 35% above last year and the highest since 2020/21. This fact alone speaks to the value of our partners in Central and South America and the strategic partnerships and relationships that USRPA fostered over the years.
The weekly USDA Export Sales report shows net sales of 154,900 MT this week, up 40% from the previous week and up noticeably from the prior 4-week average. Increases primarily for Colombia (88,000 MT), Mexico (22,300 MT), Haiti (22,200 MT), Japan (14,000 MT), and El Salvador (6,000 MT). Exports of 95,600 MT were up 23% from the previous week and 27% from the prior 4-week average. The destinations were primarily Senegal (34,600 MT), Venezuela (27,700 MT), Haiti (22,200 MT), Mexico (4,100 MT), and Canada (2,400 MT).
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Agriculture Secretary Testifies Before House Agriculture Committee
On Wednesday, Secretary of Agriculture Tom Vilsack testified before the House Agriculture Committee. Republicans and Democrats agreed on the importance of a passing bipartisan farm bill. Republicans focused on the struggles faced by farmers due to fractured supply chains, high input costs, inflation, natural disasters, volatile markets, and labor shortages. They also discussed the ramifications of California’s Proposition 12, the rollout of the Emergency Relief Program for 2022, and funding for the Supplemental Nutritional Assistance Program and other nutrition assistance programs. Democrats focused on continuing support for nutrition programs and preserving investments in conservation programs through the Inflation Reduction Act. Secretary Vilsack advocated for preserving the flexibility of the Secretary of Agriculture to use the Commodity Credit Corporation.
Other topics discussed include labor challenges, wildfire and forest management, direct and guaranteed loan programs, foreign farmland purchases, and the impacts of tariffs on agricultural products. Secretary Vilsack is scheduled to testify in front of the Senate Agriculture Committee on February 28.
A summary of the hearing can be found here and a recording of the hearing can be found here.
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Robert “Bob” Papanos Service Update | |
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We continue to receive messages of condolence over the passing of Robert “Bob” Papanos. Bob, survived by his children Ann Gallo and Andrew Papanos, their spouses, and four grandchildren, was preceded in death by his wife Victoria Laing Papanos of 43 years.
A memorial service for Bob is scheduled for Saturday, March 2, 2024, from 10:00 am to 11:00 am at Forest Park The Woodlands Funeral Home & Cemetery, 18000 Interstate 45 S, The Woodlands, TX 77384. This will be followed by a committal service from 11:00 am to 11:30 am.
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In the picture above, Bob is seen speaking at the Rice Market & Technology Convention in 2015, marking his final appearance at RMTC. | |
Texas Rice Roundup Success | |
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The Texas Rice Council event, Texas Rice Roundup, once again proved to be a popular gathering among Texas farmers for the second year in a row. Here's a big thank you to everyone who is contributing to the rice industry and showing support for our farmers. Whether you're a generous sponsor, a guest, a bidder at the auction, or a raffle ticket buyer, your support is truly valued.
The event's success highlighted robust industry partnerships and effective leadership. Guests enjoyed mingling at their tables, the bar, and the dessert station and danced to the tunes of Layne Allen Music. While the auction items were distinctive and the music was lively, Texas Rice Roundup served a significant purpose.
The core of this event was to raise funds in support of our U.S. rice farmers. Despite facing numerous challenges, the industry has remained resilient and stronger than ever. The unwavering dedication and hard work of our farmers continue to drive us toward success.
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Explore all that Dreams Natura Has to Offer! | | |
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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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InterRice Monthly Report no. 239 | | |
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February 27, 2024
Missouri Rice Council Annual Meeting & 40th Anniversary Celebration
Poplar Bluff, MO
More Information
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June 4 - 6, 2024
Rice Market & Technology Convention
Cancun, Mexico
Registration
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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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