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In This Issue:
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Market Update: USDA WASDE Report Lowers Carryover Stocks
- USRPA Hosts Walmart Nicaragua
- Texas Rice Council Holds Board Meeting
- USRPA Participates in the Texas Rice Festival in Winnie
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USRPA Judges the 2023 Katy Rice Harvest Festival Rice Cooking Contest
- 3rd Annual Ray Stoesser Memorial Scholarship: Application Open
- Photo from Rice Country
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Market Update: USDA WASDE Report Lowers Carryover Stocks | |
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The USDA’s WASDE was published this week, sending a bullish signal into the U.S. rice world by dropping carryover by 1.3 million cwt, or 5%. Last month’s report called for 24.1 million cwt of carryover, while this month it calls for only 22.8 million cwt on increased exports. The new crop export forecast was raised by 1 million cwt to 86 million for long grain rice because of strong early sales to Mexico, Central America, and Iraq. Also of note is a decrease of 14 pounds/acre in the forecast yield for the U.S. rice harvest; we will know more about the field and milling yields within the month.
The global outlook from the WASDE is sideways, calling for increased supplies, consumption, and trade right in line with last month. Ending stocks on a global scale are largely unchanged, resting at 167.5 million tons, which remains the lowest level in six years.
The October FAO rice price index reported an average of 141.7 points for September, a drop of 0.5% from August, though still 25% higher than this time last year. This slight decline came from Japonica and Aromatic prices, where full crops in California and the southern U.S., along with strong supply from Australia resulted in medium grain indexes dropping 11%. On the broader long grain market, however, those prices through September sustained their post-Indian export ban pricing with Vietnam and Thailand both sourcing rice for prices in excess of $600 pmt. We expect to see the FAO index drop significantly in next months’ report, as the broader Indica market has settled down, and is currently trading now below $600 pmt.
On a calendar year, it is nice to see that Iraq is helping to pick up the slack from exports to Haiti, Mexico, and Japan. Our top export market through July is Haiti with 208 MT, followed by Mexico at 184 MT and Japan with 158 MT. Last year through the same period, Mexico was on top with 352 MT, then Haiti with 264 MT, and Japan with 205 MT. The difference maker is that Iraq has 132 MT this year, whereas they had zero last year. A strong harvest and resulting supply will help the export figures bounce back to these key markets, as well as to some of our smaller markets in the coming months. With Mercosur largely out of the market until the new harvest, paddy importers are focused on the U.S. supply. Over the past few weeks, the US Rice Producers Association has hosted buyers visits from Ecuador, Mexico, Guatemala, Nicaragua, and Guyana while numerous others in the Western Hemisphere have inquired about the U.S. crop. The low level of the Mississippi River is a concern that has the attention of export merchants and buyers.
|  | South Louisiana Rail Facility continues an active export season with the loading of the above vessel destined for Mexico with 25,000 tons of rough rice. | In Asia, another tender from BULOG, Indonesia’s rice purchasing arm, has kept Viet and Thai markets rolling. At the start of the year, Indonesia was expected to procure no more than 2 MMT. But as the bans in India unfolded and climate risk shined a light on food security, the country has taken major steps and is expected to amass nearly 4 MMT of rice this year, fully doubling the originally anticipated purchases. While this is all rice that will come from the Far East, it keeps pressure on already high global prices and helps to buoy prices in the Western Hemisphere. On the back of BULOG’s announcement to procure more rice, Viet prices jumped back up to $615 pmt, nearly $35 pmt over Thai prices, currently at $585 pmt. The one wild card that could come to fruition is a G2G deal between India and Indonesia, which could soften prices out of Vietnam and the entire complex. If we see that happen, it could be the prelude to a relaxing or complete removal of the export ban. | |
USRPA Hosts Walmart Nicaragua | |
From left to right: Chris Lee, President, Black River Commodities; Dwight Roberts, USRPA Advisor; Harvey Mendoza, Grain Purchasing Manager, Walmart Nicaragua; Mollie Buckler, USRPA Chief Operating Officer; and Roger Gilmore, General Manager, Black River Commodities. | |
Last week, US Rice Producers Association hosted a reverse trade mission for Walmart Nicaragua. The week-long trip through rice country included stops in Texas, Louisiana, Arkansas, and Missouri. Harvey Mendoza, Grain Purchasing Manager for Costa Rica and Nicaragua, represented the company on the trip.
The trip gave Mendoza an in-depth look at every facet of the U.S. rice industry, from farm to export, with an emphasis on varieties and logistics that might fit the company’s needs. Texas visits at Rice Belt Warehouse, Nutrien, RiceTec, and East Bernard Rice Marketing primarily focused on examining various varieties and taste testing at every nearly every stop. In Louisiana, the group toured the brand-new South Louisiana Rice Mill and an discussed the South Louisiana Rail Facility’s capabilities. In Arkansas, the group visited with Poinsett Rice and Grain and Black River Commodities. Finally, in Missouri, the group visited Inland Cape Rice, another relatively new mill; Wheeler Farms, where they looked at on-farm storage and graded a sample; and Castor River Farms, where they discussed export possibilities.
The reverse trade mission was made possible by USDA Market Access Program funding.
“The trade mission is the perfect example of the public/private partnerships made possible by MAP funding,” Marcela Garcia, USRPA President & CEO, said. “This kind of trip is what makes a possible purchase go from an idea to reality. We’re happy to be the partner who helps make it happen.”
Learn more about USDA’s Market Access Program here.
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During a taste test, Harvey Mendoza visits with Dr. Paola Andrea Mosquera, Senior Breeder at Nutrien. | |
Harvey Mendoza and Johnny Hunter, Founder of Castor River Farms near Dexter, MO. | |
Harvey meets with Mark Pousson at the South Louisiana Rail Facility and Mill in Lacassine, LA. | |
A variety overview with Jay Davis of East Bernard Rice Marketing and USRPA Board Member Tommy Turner in East Bernard, TX. | |
Texas Rice Council Holds Board Meeting | The Texas Rice Council held a board of directors meeting on October 10 at Midway Bar-B-Q, in Katy, Texas. The Rice Council is entrusted with producer check-off dollars earmarked for promotion, education, and market development. Leaders from academia and the U.S. Rice Industry spoke on topics essential to bettering the Texas Rice Industry. | Great turnout with Texas Rice Council board members, USRPA staff and USRPA industry members. | |
Dr. Jake Mowrer, Texas A&M Extension Associate Professor in Soil and Crop Sciences, discussed a new sustainability grant regarding nitrogen's importance for rice growth and development. For more information click here. | |
Dennis DeLaughter gave an update on the 2023 Market Plan. | |
Panel discussion and update about the Market Development program. Past, present, and future market developments were discussed. Left to right: Marcela Garcia, USRPA President and CEO; Tommy Turner, Texas Rice Council President, and USRPA Board member; Neal Stoesser, USRPA Chairman; Dennis DeLaughter, Texas Rice Council & USRPA Board Member and Galen Franz, Texas Rice Council & USRPA Board Member. | |
Luiz Antonio Michelini, from Agrocete, a Brazilian multinational that operates in the biological, nutrition & plant physiology, and application technology market, spoke to the attendants about the possibility of assistance in evaluating some products in 2024. For more information, you can contact him at luiz.michelini@agrocete.com | |
USRPA Participates in the Texas Rice Festival in Winnie | |
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USRPA staff members Iris Figueroa and Grace Wang participated in the Rice Education Exhibit at the 54th Annual Harvest Celebration in the Winnie-Stowell Park, Winnie, Texas last weekend.
This year, in keeping with the purpose of the Rice Education, Texas Rice Council board members Ben and Debbie Hoffpauir from Hoffpauir Grain DBA HG Rice Mill joined USRPA to educate kids on the process of milling rice and gave out samples to the attendees. 2023 Ray Stoesser Memorial scholarship recipient, Gayla Rose, also joined and interacted with kids and families in all things RICE!
It was a great event to educate youth. Participation in community educational events has allowed USRPA to raise awareness of rice and promote rice consumption and education.
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Debbie Hoffpauir, from Hoffpauir Grain
educating the kids about the rice milling process. Make sure to check out their online store here.
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2023 Ray Stoesser Memorial Scholarship recipient, Gayla Rose, and USRPA staff member Iris Figueroa. | |
USRPA Judges the 2023 Katy Rice Harvest Festival Rice Cooking Contest | |
The City of Katy Fussell Senior Center partnered with the Katy Rice Harvest Festival to host the 2nd Rice Cooking Competition on Wednesday, October 11. USRPA staff member Iris Figueroa participated as one of the judges of the event alongside Chef Casey Castro from Astor Farm to Table and private / celebrity chef, Chef Willie Holmes.
Twelve entries were judged with rice as the star of the show. Congratulations to all the participants and winners.
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3rd Annual Ray Stoesser Memorial Scholarship: Application process is now open! | |
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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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Yesterday we celebrated National Farmer's Day, honoring and thanking the hardworking men, women, and families who plow, sow, grow, and harvest to provide for our nation.
We thank our farmers today and every day!
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Food & Agriculture
Regulatory & Policy Roundup
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Grain: World Markets and Trade
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World Agricultural Production
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from MU Rice Agronomy
Vol. 1, No. 8
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January 17, 2024
Western Rice Belt Conference
El Campo, TX
More Information Soon
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January 30-31, 2024
27th Annual National Conservation Systems Cotton & Rice Conference
Jonesboro, AR
More Information
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February 10, 2024
Texas Rice Roundup
Richmond, TX
More Information Soon
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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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