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In This Issue:
- Market Update: U.S. Rice Exports Confront Various Challenges
- Washington, D.C. Update
- USDA-FAS Export Sales Reporting and Maintenance System Upgrade
- 2023 Rice Market & Technology Convention
- Photos from Rice Country
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Market Update: U.S. Rice Exports Confront Various Challenges | |
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The long-grain rice market remains on auto-pilot for a few more weeks as the industry awaits planting decisions. While it results in rather lackluster stories for reporting, the steady market is wonderful for producers and millers alike. The consecutive years of decreased supply have largely matched the reduced demand for milled rice out of Haiti and other key export markets, keeping prices stable for several months now.
A recent USDA report revised U.S. exports sharply downward, now projected to be at the lowest level in 37 years. While this can be attributed in part to the acreage loss in California, the lion’s share of the decrease is the result of the loss of U.S. long-grain market share in Mexico and Central America. While the decrease in Calrose exports is entirely supply-driven (hence record high medium grain prices) the loss in the southern U.S. is more trade policy driven. A phasing out of longstanding trade agreements that increased market access in Central America, and with Mexico’s opening to alternative origins, is wreaking potentially longer-term havoc on the long-grain industry.
Both rough and milled rice buyers in Mexico and Central America have the attention of Mercosur suppliers as the new harvest in that area is moving ahead. However, like elsewhere very unusual weather continues to affect and it gives the feeling that the crop is getting smaller by the day. “Until it’s cut, dried, and stored, we don’t know what we have”, said one Brazilian farmer. The changes in government policies for importing countries in an effort to maintain food prices are causing a change in buying habits. Costa Rica today must import 70% of long grain rice consumption needs. Brazilian rough rice currently hovers around $400/ton FOB. New crop sales for April deliveries are underway. You will notice in the January 2023 Brazilian Foreign Trade Report that the U.S. has become an important market for milled rice and we are told this is largely on the East Coast.
In Asia, prices continued to soften slightly. Thailand dropped from $465 pmt last week down to $460 pmt this week, now directly in line with Vietnam which is also priced at $460 pmt. With these two origins now in concert, the market dynamics are very interesting and will largely boil down to currency valuations and logistical costs. The second crop harvest in Thailand is on the approach, which could source additional demand; in any case, having parity in these two regions, while not unheard of, is a rare occurrence.
The volatility in the futures market this last week would indicate a divergence of thought in the carryover quantity for the current crop. It would seem that the ups and downs are largely on account of the current cash business at hand, attributed to the domestic milled business. That has to be the case, as the export sales numbers are so dismal it’s difficult to attribute much activity to that at all. The story of carryover will come to light soon, but it’s being worked out in the futures market now. One thing is certain, and that’s that if there is a carryover, it won’t be a large one.
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House and Senate Agriculture Committees announce subcommittee leadership
Last Friday, both the House and Senate Agriculture Committees announced their subcommittee membership and leadership for the 118th Congress. Below are the top Democratic and Republican members for each subcommittee.
Senate Agriculture Committee
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Subcommittee on Commodities, Risk Management, and Trade:
- Chair Tina Smith (D-MN)
- Ranking Member Cindy Hyde-Smith (R-MS)
- Subcommittee on Rural Development and Energy:
- Chair Pete Welch (D-VT)
- Ranking Member Tommy Tuberville (R-AL)
- Subcommittee on Conservation, Climate, Forestry, and Natural Resources:
- Chair Michael Bennet (D-CO)
- Ranking Member Roger Marshall (R-KS)
- Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research:
- Chair John Fetterman (D-PA)
- Ranking Member Mike Braun (R-IN)
- Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security:
- Chair Kirsten Gillibrand (D-NY)
- Ranking Member John Hoeven (R-ND)
The full rosters for the Senate Agriculture Committee’s subcommittees can be found here.
House Agriculture Committee
- Subcommittee on General Farm Commodities, Risk Management, and Credit:
- Chairman Austin Scott (R-GA)
- Ranking Member Shontel Brown (D-OH)
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Subcommittee on Forestry:
- Chairman Doug LaMalfa (R-CA)
- Ranking Member Andrea Salinas (D-OR)
- Subcommittee on Conservation, Research, and Biotechnology:
- Chairman James Baird (R-IN)
- Ranking Member Abigail Spanberger (D-VA)
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Subcommittee on Nutrition, Foreign Agriculture, and Horticulture:
- Chairman Brad Finstad (R-MN)
- Ranking Member Jahana Hayes (D-CT)
- Subcommittee on Livestock, Dairy, and Poultry:
- Chairman Tracey Mann (R-KS)
- Ranking Member Jim Costa (D-CA)
- Subcommittee on Commodity Markets, Digital Assets, and Rural Development:
- Chairman Dusty Johnson (R-SD)
- Ranking Member Yadira Caraveo (D-CO)
The full rosters for the House Agriculture Committee’s subcommittees can be found here.
Senate Agriculture Committee holds hearing on nutrition programs
On Thursday, the Senate Agriculture Committee held a hearing to discuss nutrition titles as it prepares for the upcoming farm bill. Members of both parties noted the importance of the Supplemental Nutrition Assistance Program (SNAP) and child nutrition programs in ensuring families and children have access to healthy affordable food. Republican members noted USDA updates to the Thrifty Food Plan drastically increased the costs of nutrition programs, raising concerns about the possible implications of passing a farm bill this year.
Senate Agriculture Committee requests input for the 2023 Farm Bill
This week the Senate Agriculture Committee opened a form for stakeholders to submit feedback about the current farm bill and proposals for the upcoming farm bill. Interested parties can provide submissions here or email FarmBill2023@ag.senate.gov
House Agriculture Committee announces first hearing
On Thursday, House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) announced the committee’s first hearing for the 118th Congress. The hearing will be titled “Uncertainty, Inflation, Regulations: Challenges for American Agriculture” and will occur on Tuesday, February 28.
| USDA-FAS Export Sales Reporting and Maintenance System Upgrade | |
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The Export Sales Reporting (ESR) Program is mandated by Congress and U.S. exporters are required to submit their export sales and export data weekly into the Export Sales Reporting and Maintenance System (ESRMS).
The U.S. Department of Agriculture-Foreign Agricultural Service (USDA-FAS) began upgrading the close to 30-year-old ESRMS in 2019. As USDA-FAS moves closer to launching the new ESRMS 2.1, U.S. exporters reporting under the ESR Program have been invited to participate in ESRMS 2.1 Outreach Sessions.
These outreach sessions provide U.S. exporters the opportunity to see the ESRMS 2.1 user interface; the updated data entry screens and processes for manually entering or electronically uploading their weekly data submissions; and to provide feedback or suggestions on how ESRMS 2.1 can be improved before launching the system.
USDA-FAS scheduled six outreach sessions beginning in January 2023. Three outreach sessions remain. USDA-FAS strongly encourages those U.S. exporters who have not taken attended an outreach session to signup for one of the three remaining sessions at the following site: https://forms.office.com/g/NGucGyH3PC Please fill in the required information and indicate which session(s) you plan on attending.
In addition, USDA-FAS will be providing information on ESRMS 2.1 virtual training sessions as well as user acceptance testing (UAT) in the next several months. We appreciate that everyone’s schedules are very busy, but ensure you that participating in the ESRMS 2.1 Outreach Sessions, virtual training, and UAT, will prove very beneficial when ESRMS 2.1 is launched.
Finally, for easy reference, USDA-FAS is posting all ESRMS 2.1 Outreach Sessions and virtual training classes online at the following site: USDA Foreign Agricultural Service ESRMS Announcements.
USDA-FAS looks forward to a smooth transition to ESRMS 2.1. Please reach out to Amy Harding ESR Team Lead at amy.harding@usda.gov or 202-641-4935 should you have any questions or concerns.
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Rice Market & Technology Convention | |
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We value your opinion and strive to make this "The Premier International Rice Conference, Expo & Networking Event."
Email us your ideas!
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Dr. Justin Chlapecka, MU Rice Extension Specialist, presents at the University of Missouri Rice Meeting in Dexter, MO last week. USRPA COO Mollie Buckler kicked off the meeting with a Missouri Rice Council update.
Send us your rice country 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 Agricultural Predictions to 2032 | | |
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Rice Outlook:
February 2023
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Managing Horizon Ag
Elite Varieties for High-Yield Potential
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FAS Accepting 2023 McGovern-Dole Applications | | |
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February 28, 2023
Missouri Rice Council Annual Meeting
The Gathering @ Versity Crossing
Dexter, MO
More Information
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May 30 - June 1, 2023
2023 Rice Market & Technology Convention
Puerto Vallarta, Mexico
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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