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In This Issue:
- Market Update: U.S. Spring Planting Begins in 35 Days… Weather Permitting
- Washington, D.C. Update
- USRPA Represents at Southeast Texas Rice Symposium
- Take Advantage of Early Bird Pricing for RMTC 2024
- Get Your Tickets for the Texas Rice Roundup
- USRPA New Members Spotlight
- Photo from Rice Country
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Market Update: U.S. Spring Planting Begins in 35 Days… Weather Permitting | |
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The weather certainly keeps things interesting. Where we were praying for rain only weeks ago to get the Mississippi levels up, now there is so much in some places it’s slowing down deliveries again. And the arctic blast that froze much of Arkansas in recent weeks put a damper on domestic movement, slowing action a bit further. Nothing earth shattering that would change the market in a drastic way, but enough to notice a slowdown in both cash purchases, barge loadings, and exports. After a banner week of export sales last week, sales dropped nearly 75% this week and exports dropped about 20%. On the ground, we are reporting prices in Texas at $18.75/cwt, Louisiana at $18.36/cwt, and Mississippi, Arkansas, and Missouri at $17-$17.25/cwt. Spring planting is just around the corner and farmers are making variety and acreage decisions along the gulf coast.
The obvious goal for exporters is to maximize bookings in both milled and paddy sales over these next few weeks before the South American harvest gets in full swing. The expectations for the South American crop are on the low side of average, but will be the first Western Hemisphere competition in several months. Prices remain firm for U.S. prices at the moment; milled quotes are as high as $750 pmt into Central and South America while paddy prices hover around $440/ton FOB New Orleans. Now it’s just a matter of being able to get it there with the rippling logistical issues from the drought-ridden Panama Canal and the terrorist activity in the MENA region.
The Houthi terrorist situation is placing extreme distress on the global complex for rice and all trade. Recall the snarl in the Suez Canal when the now infamous “Ever Given” blocked the trade route for six days in 2021. In this current crisis, virtually all shipping carriers have ceased activity in that region for the time being. These shipping disruptions aren’t limited to the Red Sea and Suez Canal, as global trade lanes are feeling the burden of losing a major trade channel. This has driven up global shipping costs, particularly for containers, along with substantial and unpredictable surcharges causing exporters to pull out of the market. The historic drought in Panama only compounds the problem where surcharges are also being imposed. These obstacles have driven most carriers to file emergency surcharges, which in the MENA region can range from $400 to $2,500 per container ($20 to $125 per ton in 1 MT totes). The bottom line is that the Federal Maritime Commission (FMC) is allowing carriers to change rates at any time and without any notice, basically eliminating the value of any freight quote. Until the FMC revokes or rescinds that policy, export sales to MENA will be extremely risky. In Asia, prices jumped from their already high levels. Thai prices bumped as high as $667 pmt, and Vietnam as high as $650. Strong demand from Indonesia for Thailand, and the Philippines for Vietnam is sustaining the upward pressure.
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USRPA Signs on in Support of Preserving Crop Insurance Funding
This week, USRPA joined other agriculture organizations in advocating against spending cuts for the crop insurance program. In a letter to Secretary of Agriculture Tom Vilsack and Director of the Office of Management and Budget Shalanda Young, they cite the challenges faced by producers as a reason to avoid funding cuts to the program. Agencies are currently working on finalizing their funding requests for fiscal year 2025, which will be compiled to form the President’s Budget Request. The letter can be found here.
House Ways and Means Approves Tax Package
On January 19, the House Ways and Means Committee approved a tax bill which addresses a variety of business tax policies as well as expands the child tax credit. The bipartisan tax proposal was released earlier last week by the Ways and Means Chairman Jason Smith (R-MO) and the Chairman of the Senate Finance Committee Ron Wyden (D-OR). Of note to agriculture, the bill includes provisions to raise limits on the Section 179 expensing provision as well as restore bonus depreciation. These provisions are both often used by those in the agriculture sector to write off expenses related to farm equipment and machinery. It does not address any tax policies which expire in 2025, including the Section 199A deduction on pass through income for agricultural cooperatives. The bill was approved by the Committee on a bipartisan 40-3 vote; the three no votes were all from Democratic members. The full House may consider the bill as early as next week. It remains to be seen when the Senate may consider the bill.
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USRPA Represents at Southeast Texas Rice Symposium | |
Tommy Turner, President of the Texas Rice Council, presents at the Southeast Texas Rice Symposium | |
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The Southeast Texas Rice Symposium, hosted by Texas A&M AgriLife Extension, brought together rice producers and industry leaders on January 25th at the Winnie-Stowell Community Building.
Attendees had the opportunity to listen to industry professionals and leaders give presentations. One of the notable speakers was the President of the Texas Rice Council, Tommy Turner, who provided an update on the council's accomplishments.
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USRPA staff member Iris Figueroa and 2023 Stoesser Memorial Scholarship recipient Gayla Rose representing US Rice Producers Association at their booth. | |
Take Advantage of Early Bird Pricing for RMTC 2024 | |
Reserve Your Stay for the Texas Rice Roundup | |
Join us for the Texas Rice Roundup, a special evening honoring the tireless efforts of our farmers. The event is scheduled for February 10, 2024, at the Safari Texas Ranch in Richmond, TX. Enjoy a fantastic night out with a scrumptious three-course meal, live music, and exciting silent and live auctions, all complimented by an open bar! | | *Hotel reservations must be made by January 31 to guarantee a special group rate. | |
USRPA New Members Spotlight | |
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Microbes Biosciences is a biotechnology company focused on developing new technologies for the energy and agriculture sectors. As a diversified research and development company, we specialize in microbial technologies to enhance oil production from under-producing wells, accelerate bioremediation of contaminated soils and waters, control corrosion problems in the petroleum industry, and encourage beneficial soil health for increased crop production in agriculture and crop protection.
Microbes BioSciences is on the cutting edge of new discoveries that will drive technology breakthroughs and new product developments.
We look forward to discussing your needs and the next step is just a call away.
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IBVN USA provides sales and service to the Americas - from Canada to Argentina. Our branch also provides engineering and design consulting services for rice processing to customers.
History:
In 1955, the founder of Bui Van Ngo Company Limited, Bui Van Ngo, established his company in Saigon, Vietnam. In 1988, Bui Van Ngo Company Limited invented and began to produce rice processing machines. Our products have been exported to nations of the world including Thailand, Philippines, Cambodia, Korea, Indonesia, Malaysia, Brazil, Argentina, Uruguay, Paraguay, Panama, Australia, Bulgaria, Italy, Egypt, and more. In 2019, IBVN INTERNATIONAL was established in Virginia, USA as a branch of Bui Van Ngo Company Limited in the United States of America.
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Food & Agriculture
Regulatory & Policy Roundup
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Grain & Feed Update: Mexico
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World Agricultural Production
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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 7, 2024
30th Annual Arkansas State University Agribusiness Conference
Jonesboro, AR
More Information
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February 13, 2024
University of Missouri Rice Meeting
Dexter, MO
More details to come
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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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