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In This Issue:
- Market Update: How Many Rice Acres in 2023?
- Washington, D.C. Update
- 2023 Western Rice Belt Conference
- Join us for Denim & Diamonds on February 11
- 2023 Rice Market & Technology Convention
- Photo from Rice Country
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Market Update: How Many Rice Acres in 2023? | |
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Planting intentions are officially on the minds of rice producers and the “holiday fog” is lifting off the market. To begin, an unprecedented offer for medium grain surfaced last week, where one of the larger coops in the south procured approximately 60,000 acres of medium grain at prices in the $20/cwt range. This is a very rare occurrence indeed, and it now appears that medium grain seed will be the constraining factor for more growth in acreage. The move to medium grain would make sense for growers in the South, especially when considering the enormous reduction in California production this year, and the resulting record pricing in excess of $1,600 pmt that Calrose has experienced. A spike in medium grain acres in the South is to be expected though, as the ERS Rice Outlook points out that last year only 398,000 total acres of medium and short grain were harvested in the U.S. This is 28% fewer MG/SG acres than the previous year, and the lowest since at least 1972/73. Read more here.
The long grain market continues to be a head-scratcher; export demand remains low while prices are high. The high prices are on account of a short crop, but when compared to other origins, U.S. rice is well over $200 pmt higher than its competitors. We reported last week the excellent news of an additional 44,000 metric tons of business to Iraq, and the significance can’t be understated when the country could have sourced that rice from Thailand at prices closer to $500 pmt. All this to say, the export business is more than welcomed and helps complement a steady core of the domestic business that has held the market firm all year. We eagerly await more news on planting intentions in the coming weeks as producers evaluate bean and corn prices, and how those will work into crop rotations this year.
In Asia, Thai and Viet prices have officially separated from Indian prices. This is the result of strong demand in the new calendar year, available supplies, and currency fluctuations. But one thing we expect is to see these bifurcated markets converge a bit more in the coming weeks and months. Expect to see the Indian prices creep up from their current levels just below $400 pmt, or Viet and Thai prices soften from their current levels of $455 pmt and $495 pmt, respectively.
We will turn now to Brazil, the emerging and most significant threat to the Mexico and Central American markets. A report published this week by ABIARROZ, the Brazilian rice organization, highlights that milled exports have returned to pre-pandemic levels in volume, and have surpassed those levels in value. Milled rice accounted for 52.4% of total rice exports in value, a drop from previous years, but paddy rice exports reached their highest levels both in volume and value, respectively 98% and 75% higher than average. Reports of drought in the region will certainly impact production and exportable supply, but will nonetheless have an impact on the U.S. long-grain complex.
As mentioned in last week’s RA, the long grain trade is looking towards the results of the Colombian tender on January 23 that calls for 89,779 tons (milled basis) or the equivalent in paddy. This result will be a good measuring stick for where the US export outlook.
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Republican Steering Committee selects members of the House Committee on Agriculture for the 118th Congress
On Monday, January 16, the House Republican Steering Committee selected the Republican members who will serve on the House Agriculture Committee for the 118th Congress. The returning members selected to serve on the Committee include:
- Rep. Glenn "GT" Thompson (PA-15)
- Chairman, Rep. Austin Scott (GA-08)
- Rep. Scott DesJarlais (TN-04)
- Rep. Doug LaMalfa (CA-01)
- Rep. David Rouzer (NC-07)
- Rep. Trent Kelly (MS-01)
- Rep. Don Bacon (NE-02)
- Rep. Dusty Johnson (SD-At Large)
- Rep. Jim Baird (IN-04)
- Rep. Tracey Mann (KS-01)
- Rep. Mary Miller (IL-15)
- Rep. Barry Moore (AL-02)
- Rep. Kat Cammack (FL-03)
- Rep. Brad Finstad (MN-01)
The new members selected to serve on the Committee include:
- Rep. Frank Lucas (OK-03)
- Rep. John Rose (TN-06)
- Rep. Ronny Jackson (TX-13)
- Rep. Mark Alford (MO-04)
- Rep. Lori Chavez-DeRemer (OR-05)
- Rep. Monica De La Cruz (TX-15)
- Rep. John Duarte (CA-13)
- Rep. Nick Langworthy (NY-23)
- Rep. Max Miller (OH-07)
- Rep. Marc Molinaro (NY-19)
- Rep. Zach Nunn (IA-03)
- Rep. Derrick Van Orden (WI-03)
Secretary Vilsack comments on upcoming farm bill
Agriculture Secretary Tom Vilsack expressed that he wants the next farm bill to include reforms for disaster relief and focus more on farmers who haven’t done as well financially in recent years. Secretary Vilsack said that existing disaster programs are not designed for addressing varying regional needs or cover damage from unusual storms. He also announced a new round of assistance under the temporary Emergency Relief Program USDA created with $10 billion in ad hoc disaster funding authorized last year for losses in 2020 and 2021.
Chairman Thompson hosts farm bill listening session
On January 13, House Agriculture Chairman GT Thompson (R-PA) hosted a listening session at the Pennsylvania Farm Show. He was joined by Reps. Chellie Pingree (D-ME), Austin Scott (R-GA), Doug LaMalfa (R-CA), Dwight Evans (D-PA), Dan Meuser (R-PA), Mary Miller (R-IL), Mark Alford (R-MO), and Derrick Van Orden (R-WI) to receive stakeholder from members of the agricultural community as they prepare for the upcoming farm bill.
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2023 Western Rice Belt Conference | |
On January 18th, the 2023 Western Rice Belt Conference gathered over 300 farmers at El Campo Civic Center. It was a great setting for rice producers and rice industry professionals to get together to hear presentations from the professionals and leaders in the agriculture industry. Among the speakers were Texas Rice Council President, Tommy Turner who gave an update on Texas Rice Council's accomplishments and future activities, and Galen Franz, who gave an update on the Texas Rice Research Foundation. | |
Join us for Denim & Diamonds on February 11 | |
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Don't miss out on this great event! It will be a great night out with a social hour, a three-course meal, an open bar, great music with a live band, a silent auction, and a live auction.
The last day to purchase your tickets is Friday, January 27. Don't miss out and purchase your ticket today!
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Rice Market & Technology Convention | |
It's time to register for the rice industry's premier event! Featuring the strongest and most relevant agenda designed by rice industry members from throughout the world, coupled with an outstanding trade show, it is known as one of the most important and widely attended international events in the Western Hemisphere. Click here to register. | |
Throwback picture from @timothytrey loving his job while finishing the second crop in 2018 #dollinsfarmpartnership. 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 | | |
Osiriz / InterRice
Monthly Report No. 226
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January 24, 2023
Upper Gulf Coast Feed Grain & Cotton Conference
Crescent Hall, Wharton County Fairgrounds
Wharton, Texas
More information
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January 31 - February 1, 2023
26th Annual National Conservation Systems Cotton & Rice Conference
Baton Rouge, Louisiana
More Information
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February 8, 2023
2023 A-State Agribusiness Conference
Arkansas State University Agribusiness Conference
Jonesboro, AR
More Information
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February 28, 2023
Missouri Rice Council Annual Meeting
The Gathering @ Versity Crossing
Dexter, MO
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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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