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In This Issue:
- Market Update: USDA Planting Report is Purely Prospective, Far from Actual
- Washington, D.C. Update
- Strong Industry Representation at RMTC 2022
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Market Update: USDA Planting Report is Purely Prospective, Far from Actual | |
Prices remain firm as planting gets underway. The initial USDA Prospective Plantings report just published this week has a much rosier picture than the industry is currently projecting. The table below shows that the total long grain production is expected to be 99% of last year’s total. The industry is predicting a 10-15% decline, or acres looking much closer to 1.65 million acres. This lower acreage number would appear to be baked into paddy prices right now, which are holding firm across all regions despite scant offshore demand. Louisiana is the only region that is expected to gain acres with any significance, and the rest are expected to taper. The actual USDA acreage report is released on June 30 along with an updated rice stocks report.
Looking at Medium Grain, the big drop will be coming from drought-plagued California. The USDA is projecting a 315,000 acre medium grain crop from the west coast, but recent water allocations coming out of GCID, the State’s largest water district, are dismal. Initial signals are showing that acreage could fall well below even a 270,000 acre level. Medium grain across the rest of the states will hold relatively constant. It will be interesting to watch planting progress as the weeks tick by and the actual numbers come to light.
As far as planting goes, Louisiana has crested the 60% planted now, approaching as high as 70%. Texas is now approximately nearly 50% planted as well, though rain has slowed progress there a bit last week. They are itching to get started in Arkansas, and we expect to have first plantings by this time next week.
The March rice stocks report was released this week, showing rough rice stocks in all positions down by 8% from this time last year. To break things out, long grain rough is down by 11%, and long grain milled almost 6% down, medium rough about equal, and medium grain milled rice stocks down nearly 40%.
In Asia, Thai prices firmed slightly up to $415pmt, and Viet prices softened just a bit to come down to $415pmt. This is largely based on currency fluctuations and strong demand coming out of China and the usual suspects like the Philippines. India is still holding at steady at $365pmt, and Pakistan is coming in just below at $360pmt.
The weekly USDA Export Sales report shows net sales of 17,000 MT for this week, down 80% from the previous week and 71% from the prior 4-week average. Increases were primarily for Guatemala (5,500 MT), Honduras (3,500 MT, including decreases of 400 MT), Mexico (3,300 MT), Canada (2,600 MT), and Saudi Arabia (800 MT). Exports of 27,500 MT were down 49% from the previous week and from the prior 4-week average. The destinations were primarily to Guatemala (11,000 MT), Honduras (6,000 MT), Canada (3,300 MT), Mexico (2,700 MT), and Jordan (1,600 MT).
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On Monday, President Biden submitted his FY23 budget request to Congress. The request included a $4.2 billion increase in discretionary spending from 2021 for USDA. The request prioritized conservation and the environment and strengthening the supply chain. Secretary Vilsack issued a statement saying the budget would:
- Invest in climate resilience and U.S. agriculture’s ability to be part of the climate solution.
- Prioritize consistent access to safe, nutritious food for all Americans.
- Build stronger rural economies.
- Develop more and better markets for U.S. agricultural products.
- Ensure underserved groups can more fully access and participate in USDA programs and services.
- For more information on the President’s FY 2023 Budget, visit: www.whitehouse.gov/omb/budget.
On Tuesday, the Senate unanimously confirmed four nominees to the Commodity Futures Trading Commission. Kristine Mersinger will serve a term expiring in April 2023. Christy Goldsmith Romero will serve a term expiring in April 2024. Kristin Johnson will serve a term expiring in April 2025. Caroline Pham will serve a term expiring in April 2027.
The House Ways and Means Committee held a hearing on the 2022 trade policy agenda. During the hearing, Representative Jason Smith from Missouri asked the US Trade Representative Ambassador about US engagement with the WTO on rice subsidization in India, noting the influence India has over the global rice market and India’s high levels of price supports. The Ambassador responded that she is working with her Indian counterpart and stated her commitment to working through this issue. Members also discussed cost increases for fertilizer, fuel, and other agricultural inputs.
On a related note, the House Agriculture Committee also announced it will hold two hearings next week on the Farm Bill. The first is scheduled for April 5, 2022, entitled “A 2022 Review of the Farm Bill: Energy-Renewable Energy Opportunities in Rural America”. The second hearing is scheduled for April 6, 2022, and is entitled “A 2022 Review of the Farm Bill: International Trade and Food Assistance Programs”. The hearings will be live streamed here.
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Strong Industry Representation at RMTC 2022 | |
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Individuals from almost 120 companies representing nearly 30 countries have already registered for RMTC 2022.
Here's a glimpse of the companies who will be
represented in Cancun:
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- A.J.Servicios, Guatemala
- ADM, Panama
- AGI - Ag Growth International, Canada
- Agreeta Solutions USA, USA
- AGRI Process Innovations Technologies, India
- AGROCETE US, USA
- Agrocomercial Los Samanes Srl, Dominican Republic
- Agroindustrias Gumarsal S.A. de C.V., El Salvador
- Agroindustrias Mayton, S.A., Guatemala
- Agroindustrias Santa Maria, Mexico
- AGRORREAL S. A., Ecuador
- AGROSILOS SA, Panama
- Agrosocio S.A., Uruguay
- Agrosocio S.A., Argentina
- Agrovision SRL, Dominican Republic
- Almonte Agroindustrial, Dominican Republic
- Ana-Dis SA de CV, Mexico
- ANAR, Nicaragua
- Arrocera 4 de Mayo SA, Venezuela
- Arrocera Del Mante, Mexico
- Arrocera Los Corrales, S.A., Guatemala
- Asociación Cultivadores de Arroz, Uruguay
- BAPROSA, Honduras
- Beneficio de Arroz San Luis, S.A., Guatemala
- Buhler Group, Colombia
- Bühler Group, Mexico
- Buhler Inc. USA, USA
- Bunge, Guatemala
- Bunge, USA
- Bunge Central America, Guatemala
- Campesinos Productores Campechanos, Mexico
- Caribbean Rice Industry Ltd., Suriname
- Caricom Rice Mills Limited, Guyana
- Chief Agri, USA
- Coalza Systems S.L., Spain
- Damboriarena Escosteguy SRL, Uruguay
- Derrick Corporation, USA
- Dopazo Jorge Alberto, Argentina
- Dos Hermanos S.A, Argentina
- East 2 West Investments LLC, USA
- Eladia S.A., Paraguay
- EMPACADORA NOR VER SA DE CV, Mexico
- EURICOM BRASIL, Brazil
- EURICOM SPA, Italy
- Factoría Estevez Díaz, Dominican Republic
- Farmer S.A., Paraguay
- Farmers Rice Milling Company, USA
- Fed Rice, Colombia
- FEDEARROZ, Colombia
- FrigorTec GmbH, Germany
- GAVIAGRO SAS, Colombia
- GrainX Incorporated, Canada
- Granja Sementes Terra Dura, Brazil
- Granja Umbu, Brazil
- Grupo Benavides, Panama
- Grupo Logra, Mexico
- Horizon Ag LLC, USA
- Imex BZ LLC / Begimex S.A., Guatemala
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- INDARROZ, Costa Rica
- Induhorst CIA., LTDA, Ecuador
- INDUSTRIAS MOLINERAS, S.A. DE C.V., Honduras
- INGENIERIA MEGA S.A., Argentina
- Interra International, LLC, USA
- JCM Agricola SRL, Dominican Republic
- Kellogg Company, USA
- Kepler Weber, Brazil
- Kuna, Argentina
- LATITUD, Uruguay
- LAUFFERVISION, China
- Louisiana Independent Rice Producers Assn., USA
- Marco Technology Corporation, USA
- Maxi-Lift, Inc., USA
- Mexicana de Arroz SA de CV, Mexico
- Molino Harinero San Blas, S.A. de C.V., Mexico
- MOLINO SAMAN SRL, Peru
- Molson Investment S.A., Uruguay
- MYSILO GRAIN STORAGE SYSTEMS TRADE INC. CO., Turkey
- National Rice Company, USA
- Noble Comercio Exterior Ltda, Brazil
- Nutrien, USA
- OMG International, SA de CV, Mexico
- Paoloni y Cia S.R.L., Argentina
- Perfor, Brazil
- Poinsett Rice & Grain, USA
- Premier Grain Cleaner Co., USA
- Primoris Belgium, Belgium
- PRODAL, Dominican Republic
- Productos Verde Valle, Mexico
- PROMEXA, Mexico
- RG AGROINDUSTRIAL SRL, Dominican Republic
- Rice Exchange, USA
- RiceTec, USA
- Russell Marine Group, USA
- Satake USA, Inc., USA
- Schettino Hermanos, Mexico
- Selgron Industrial, Brazil
- Solagro Soluciones Agroindustriales, Colombia
- Southern Brown Rice, USA
- STUDIO TECNICO APPIANI SRL, Italy
- Superbrix, Colombia
- SUPREME RICE LLC, USA
- Swiss Agri Trading SA, Mexico
- Symaga Silos, Spain
- Tahin SA, Argentina
- Taipey SRL, Argentina
- Texas A&M University, USA
- Texas Rice Council, USA
- The Russell Marine Group, USA
- TOP LINK COMPANY LTD, Ghana
- TRC Group, USA
- TRC Trading, USA
- TSGC - Tri-States Grain Conditioning, Inc., USA
- UNION DE ARROCEROS SAS, Colombia
- USA Rice, USA
- Valle chilam spr de rl, Mexico
- Verbruggen Palletizing Solutions Inc., USA
- Viterra, Uruguay
- ZACCARIA, Brazil
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Don't Miss Out! Register Today! | | |
Sponsorship & Exhibitor Opportunities Are Selling Fast! | | |
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Reserve Your Stay at the
New Hilton Cancun Resort!
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Food and Ag Regulatory and Policy Roundup | | |
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Production of milled rice for MY 2022/23 (July 2022/June 2023) is forecast at 640,000 MT with expectations of normal rainfall patterns in the major production areas and increased availability of irrigation water.
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Rice export prices remain unchanged despite a further weakening of the Thai baht.
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Arkansas Rice Update: Another Slow Start?
by: Jarrod Hardke, Scott Stiles,
& Tommy Butts
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RiceTec Field Day (in-person), Harrisburg, Arkansas | |
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