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In This Issue:
- Market Update: Western Hemisphere Rough Rice Importers Focused on U.S. Harvest
- USRPA Hosts Walmart Nicaragua
- Washington, D.C. Update
- 3rd Annual Ray Stoesser Memorial Scholarship: Application Open
- Video from Rice Country
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Market Update: Western Hemisphere Rough Rice Importers Focused on U.S. Harvest | |
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Harvest marches on with strong progress this week across all rice states. Arkansas jumped to over 80% complete — nearly 10% ahead of last year and the 5-year average—while Louisiana, Mississippi, and Texas are all but complete. Missouri is on the back-half of their harvest, while the Californians have finally hit full-stride, registering at 20% complete as a state. There are minor weather events on the horizon, and a deluge of rain in some regions this week that caused a lot of rice to go down, but optimism reigns on the west coast for a solid harvest.
Last week we reported on high field yields and low milling yields in Arkansas… and the story is the same this week. Producers are ecstatic about what their yield monitors are displaying in the field, but we can state with moderate confidence that head rice is going to average about 50 lbs this year, perhaps a bit higher. With the large acreage and high yields, the bottle-neck for some regions in Arkansas and Mississippi could turn out being the waning flow of the mighty Mississippi. Low precipitation levels and low river flows are causing concern in the logistics chain; more to report here as the situation develops.
The cash and futures market has been slow to materialize this year. The expectation was that we would be further along in market direction this deep into harvest, but the whiplash from India’s export ban and ensuing market reaction has resulted in significant caution from buyers. This doesn’t mean they aren’t coming to market, but simply that they are covered for the moment and want more information before booking business or taking any sizable positions. We do know that U.S. prices are very competitive with South American prices, and exporters south of the border don’t have sizable supplies. Paddy sellers want and expect higher prices, but the confidence to sell a milled (or paddy) product on the export market is not there yet. Again, U.S. long grain is in the $755-$765pmt range, Uruguay at $745, Argentina $740, and Brazil $715. The tables have certainly turned when comparing this year to last year. Spring planting is well underway in Mercosur countries and a large crop is anticipated. The Paraguayan harvest will begin in January.
In Asia, we have seen a significant cooling with the panic all but gone, and perhaps now with enough perspective to process what this market might look like when India re-enters the market. It might be too early to talk about the nuts-and-bolts of this action, but we all know it’s coming. Remember the ban was instituted in September on the assumption the El Niño would severely reduce the crop size. Well, we are almost through the season and the numbers won’t lie. In any case, Vietnam has held firm in the $610 pmt range, Thailand at $595 pmt, and Pakistan in the $550 pmt range. Remember that before the ban, prices were hovering right around $500 pmt.
The weekly USDA Export Sales report shows net sales of 53,100 MT this week, up 89% from the previous week and 10% from the prior 4-week average. Notably, Nicaragua registered for 25,000 MT. Exports of 25,500 MT were down 45% from the previous week and 48% from the prior 4-week average.
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USRPA Hosts Walmart Nicaragua | |
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USRPA hosted Harvey Mendoza, Deputy Manager for Grain Purchasing for Walmart Nicaragua, on a Reverse Trade Servicing trip this week. The trip included stops in Texas, Louisiana, Arkansas, and Missouri. Here the group meets with Rice Belt Warehouse team in El Campo, Texas.
More to come in next week's issue of The Rice Advocate.
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President Biden signs continuing resolution into law: On Saturday, the White House announced President Biden had signed into law H.R. 5860 – “A bill making continuing appropriations for fiscal year 2024 and for other purposes.” It was introduced in the House on Saturday, the last day of fiscal year 2023, and quickly moved through both chambers to avert a government shutdown. The bill provides funding for the federal government through November 17 and includes $16 billion in supplemental funding for domestic disaster relief; however, none of the disaster relief in the bill will go through the Department of Agriculture, though funding could support Federal Emergency Management Agency work in rural and agricultural communities impacted by hurricanes, floods, or other declared disasters. The bill extends the funding provided in the fiscal year 2023 agriculture appropriations bill at the same spending levels provided in that bill but prorated only through November 17. The bill did not address any farm bill programs, some of which expired on September 30. Neither the House nor Senate have introduced a bill to reauthorize the farm bill yet. | |
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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Harvesting Climate-Friendly Rice In Texas | AgriCapture
The crop grown by Galen Franz and his family on their Texas Climate-Friendly Rice farm was verified to use the Alternate Wetting and Drying technique to reduce methane and efficiently manage water use. The rice remains identity preserved during harvest, on-farm storage, and transportation to an AgriCapture-approved milling partner to ensure climate benefits in the final rice product.
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Food & Agriculture
Regulatory & Policy Roundup
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Rice Outlook: September 2023
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Nigeria: Grain & Feed Update
Rice consumption is expected to increase about 4 percent to 7.8 MMT due to low or no-cost government rice provisions to food insecure populations and an influx of unofficial rice imports.
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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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