Market Update: Market Effects from India Evidenced Worldwide | |
Our thoughts and prayers go out to the victims of Hurricane Milton and the relentless devastation on so many communities. Rice country escaped this weather system, but there are many family members and friends that have been impacted.
In light of these wild weather events, global unrest, and election cycles, rice harvest is still clipping along or wrapping up. Arkansas is finishing up its final 5%, where Louisiana, Texas, and Mississippi are all but done. Missouri is reporting at 82% this week, and California at 45%. Initial field yields on the west coast were very low but have since recovered some, where it is now expected that overall the state will be off by about 5%. There has still been virtually no new crop priced as of this writing because of the oversized old crop, but we expect to hear initial pricing soon. On the ground, Texas is reporting prices of $15.25-$15.75. Louisiana is $15.50/cwt, while Mississippi, Arkansas, and Missouri are $14.75/$15.25.
Last week our special on India (thank you for the insight V. Subra!) took the spotlight over the port strike. Fortunately for us all, it was resolved before catastrophe, but anyone involved in logistics knows that our U.S. ports are already antiquated, and a continued ban on mechanization will only extend the pain for years to come. This issue is not over, but has been staved off for the moment. The supply chain is now in the process of unsnarling the log-jam that took place from the few days of stoppage.
In South America, particularly the Mercosur countries, fields have finally dried up enough for farmers to make spring planting gains. Up until this week, rains in Brazil and Uruguay had prevented activity. Planting intentions are for a large crop (15% increase) as prices, water reservoir levels, financing and the domestic/international market outlook are considered positive. November 15 is the apparent cutoff date; afterwards field yields will drop we are told. With current low stocks, prices remain firm.
The most recent FAO Rice Price Update shows the FAO all rice price index dropped .7% from last month, and is down 6.1% from last year at this time. The average most recently is 133.1. The primary drop was the aromatic varieties, and a direct result to India announcing the removal of its export ban and the arrival of its bumper crop. This of course is the primary driver on the supply side of the equation, while demand is now restructuring with all of the Indian rice now available.
Because this Indian rice is available, the markets in the East are experiencing more volatility than the prices in the West. For example, U.S. prices haven’t fluctuated more than 5% from the $800 pmt price in the last three months, while Thai prices have dropped 14% from three months ago, now at $500 pmt, and Viet prices have dropped closer to 8%, now at $550 pmt. This, of course, is because Indian prices are now at $490 pmt. It has been the strong purchases from Indonesia that have helped support Thai prices as of late, but there is still much to be settled as Indian exports work their way back into the market.
The weekly USDA Export Sales report shows net sales of 61,000 MT this week, up 70% from the previous week and 4% from the prior 4-week average. Exports of 73,200 MT were up noticeably from the previous week and up 24% from the prior 4-week average. The destinations were primarily to Mexico (30,500 MT), Haiti (15,100 MT), Saudi Arabia (9,400 MT), Honduras (5,900 MT), and Guatemala (4,600 MT).
| |
|
USDA Announces Actions to Increase Competition in Agriculture
On Tuesday, USDA announced it was taking action to promote competition in the agriculture industry. As part of the announcement, USDA released a seed competition framework to help increase transparency in the seed sector. The framework focuses on improving researcher access to seed germplasm through clarifying patent disclosure requirements as well as providing guidance on the uses of protected seed germplasm within the context of patent law. The Department will also encourage the sharing of seed germplasm developed using federal funding. Further, USDA released a report on competition in the meat retail industry and announced it would take the next steps to issue regulations impacting entities in the meatpacking sector. These actions are part of a broader USDA effort to create fair and competitive agricultural markets.
| |
Texas Rice Council Holds Biannual Meeting | |
Vernie Hubert with Cornerstone Government Affairs gives the Council an election outlook and Farm Bill update. | |
On Wednesday, Texas Rice Council held its biannual meeting at Midway BBQ in Katy. The agenda included discussions of USRPA's past and upcoming market activities, a Washington D.C. update from Vernie Hubert of Cornerstone Government Affairs, and planning for 2025. Thanks to our Texas Rice Council members for their continued commitment for the betterment of the Texas rice industry. | |
USRPA Participates in the Texas Rice Festival in Winnie
| |
|
Last week, USRPA staff members Iris Figueroa and Grace Wang joined the Rice Education Exhibit at the 55th Annual Texas Rice Festival in Winnie-Stowell Park, Winnie, Texas. The event, which featured approximately 150 5th graders from Anahuac Elementary, provided a unique opportunity for students to engage with various exhibitors as part of the festival’s educational programming.
For two days, USRPA enjoyed teaching kids and families about rice and deepened their understanding of rice production, consumption, and its importance in the community. The event occurred on Friday and Saturday, serving as an invaluable platform to raise awareness about rice and encourage healthy eating habits.
Participation in such community events has allowed USRPA to play a pivotal role in promoting rice education, fostering a greater appreciation for this staple crop among young learners and their families.
| |
USRPA and ARROZGUA Sustain Momentum in School Lunch Program | |
Since its inception, the School Nutrition Program (SNP) has aimed to teach how to use and cook U.S. rice correctly.
The program led by USRPA and ARROZGUA in Guatemalan schools targets an ideal audience — children and their mothers. This approach ensures that healthy eating habits are passed down through families, starting with the younger generation. By visiting four schools every week and reaching around 2,500 children, the program is making a meaningful impact. It not only provides nutritious meals but also educates families on how to cook rice correctly and affordably, reinforcing the importance of balanced nutrition in everyday life.
The involvement of Chef Promoters from both organizations adds a practical, hands-on element to the education, helping participants understand how versatile rice can be in various nutritious meals. This program likely helps combat malnutrition and promotes overall well-being in the communities it serves.
|  | "Food insecurity forces at least 40% of families to make difficult decisions. These data speak to us of the historical debt that we have dragged along as a country, but they also show us the path we are taking to work from early childhood so that children grow up with the opportunities they deserve." - Karin Herrera, Vice President of Guatemala | |
The collaboration between USRPA and ARROZGUA has been a long-standing and impactful initiative. Their focus on culinary education in schools, aimed at teaching healthy eating habits, seems to have successfully promoted the consumption of rice in a variety of ways. Encouraging nutritious dietary practices while emphasizing the versatility of rice helps foster both health and the appreciation of this staple food in different cultures. | |
TEMPLE, Texas, Oct. 8, 2024 – The U.S. Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS) in Texas announced fiscal year (FY) 2025 financial assistance opportunities for agricultural producers and landowners through the Environmental Quality Incentives Program (EQIP). While NRCS accepts conservation program applications year-round, producers and landowners should apply by Nov. 8, 2024, to be considered for FY 2025 funding. | RMTC 2025: HorizonAg is 2025 Official Tote Bag Sponsor | |
|
Chris Berry, Missouri Farmer: "26th crop I’ve been able to harvest running side by side with Ronnie Berry!! I was 15 when he turned me loose in a combine. Already looking forward to the 27th!!"
More Information
Send us your Rice Country and harvest time photos or videos on Facebook, Instagram, or via email!
| | |
|  |
Food & Agriculture
Regulatory & Policy Roundup
| | |
|
January 27 - 28, 2025
28th Annual National Conservation Systems Cotton & Rice Conference
Memphis, TN
More Information
| |
|
May 28 - 30, 2025
Rice Market & Technology Convention
Miami, Florida
More Information
| |
| |
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. |
| | | |
