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In This Issue:
- Market Update: New Crop Planting in Texas; Louisiana Begins in One Month
- Washington, D.C. Update
- USRPA Travels to Guatemala
- 2023 South Texas Rice Symposium
- Join us for Denim & Diamonds on February 11
- 2023 Rice Market & Technology Convention
- Photo from Rice Country
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Market Update: New Crop Planting in Texas; Louisiana Begins in One Month | |
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The market is moving steadily along, which is a comfort to most involved. There was a nice bit of milled business to Haiti that was booked this week, as any business to this destination can no longer be taken for granted. What now seems to be the expectation is a strong domestic market that keeps the mills churning, and paddy prices firm for the time being. Recall that there have been two short crops, and this supply shock has resulted in high prices for farmers and exporters — but largely to the detriment of the ability to be price competitive.
Just this week, there is talk beginning to surface of a rebound in rice acres, albeit the discussion includes more medium grain acres as well. Farmers in the largest producing state of Arkansas are indicating a slight increase over last year. Remember last year U.S. production was the lowest in 30 years. New crop planting in Texas and south Louisiana will begin in late February, weather permitting. More acres would be welcome to the industry as a whole, and the hope would be to find pricing that would get some of our core markets back in Mexico and Central America. Easier said than done given domestic market conditions. However, with Brazil and other origins in the Mercosur region considerably below current U.S. long grain prices, there is a long way to go for price competitiveness to be a factor, not to mention quality issues. One thing to note is a prolonged drought that is plaguing rice production, particularly in Argentina, and to some degree in both Brazil and Uruguay. River levels have fallen significantly and reservoirs are almost exhausted. Several local analysts feel some rice will be lost while hoping that forecasted rains will be a reality. If not, the crop will be hurt. Only Paraguay, which has harvested close to 20%, is having a largely normal crop. Yields are reported at 8,000 lbs per acre. As most Mercosur relies on surface water, those areas that have close to normal water supplies will have high yields and may offset losses. The extent remains to be seen but could certainly have an impact on price perspectives in the coming marketing year and the firmness of the Mercosur market.
A GAIN report published in China this week forecasted lower rice imports with a smaller production of 2%, down to 146 MMT on account of drought in the mid and late-season crops. The lower rice imports can in part be credited to not bringing in as many brokens from India as a corn substitute for feed because of their export situation, resulting in a drop of 300,000 MT down to 5.2 MMT. 5.2 MMT is a staggering number for imports but pales in comparison to the 5.7 MMT of rice imported through November 2022.
In the rest of Asia, we have seen a consistent week with prices holding firm; Thai prices are unchanged from last week at $495 pmt, and Viet prices are unchanged at $455 pmt. The lack of price movement can be attributed to the Chinese New Year, as most are focused on the celebration. This will be the case through the first week of February.
The weekly USDA export sales report shows net sales of 42,700 MT this week, primarily for Japan (13,000 MT), Haiti (12,000 MT), Mexico (6,500 MT), El Salvador (5,600 MT), and Saudi Arabia (2,500 MT). Exports of 66,900 MT -- a marketing-year high -- were up noticeably from the previous week and from the prior four-week average. The destinations were primarily to Panama (27,500 MT), Honduras (15,600 MT), the United Kingdom (10,600 MT), Mexico (5,600 MT), and Jordan (3,900 MT). Results of the recently conducted Colombia-U.S. auction under the Free Trade Agreement will be released on January 31 after successful bidders have paid in full for their awards. Both paddy and milled rice has been awarded totaling 89,000+ tons milled basis.
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Agriculture Deputy Secretary stepping down
On Thursday, Deputy Secretary of Agriculture Jewel Bronaugh announced she was stepping down in the coming weeks. The Deputy Secretary currently holds the second-highest role in the Department. Bronaugh previously served as the head of the Virginia Department of Agriculture and as the head of Virginia’s Farm Service Agency.
Senate Agriculture Committee Announces Farm Bill Hearing Schedule
This week, the Senate Agriculture Committee released its hearing schedule to solicit input from the Department of Agriculture as it prepares for the upcoming farm bill. Programs in the current farm bill begin expiring on September 30. See below for the Committee’s intended schedule.
- February 1: Trade and horticulture programs
- February 9: Commodity programs, crop insurance, and farm credit programs
- February 16: Nutrition programs
- March 1: Conservation and forestry programs
- March 16: Agriculture Secretary Tom Vilsack testifies
Lawsuit Filed against EPA’s WOTUS rule
On January 19, 18 organizations representing agriculture, infrastructure, and housing collectively filed a suit against the Environmental Protection Agency (EPA) and Army Corps of Engineers (USACE) over its rule regulating the waters of the United States (WOTUS). The suit alleges the rule overextends federal jurisdiction. EPA and USACE released a final rule with an updated definition on December 30, 2022. The rule is set to take effect on March 20.
Sens. Fetterman and Welch Join Senate Agriculture Committee
On Thursday, the Senate Democratic Steering Committee announced Sens. John Fetterman (D-PA) and Peter Welch (D-VT) would be added to the Senate Agriculture Committee. The ratio of senators on the Committee is expected to change from 11 Democrats and 11 Republicans to 12 Democrats and 11 Republicans for the 118th congressional session. The Republicans are not expected to change their roster for this session. The additional open Democratic seat resulted from Sen. Pat Leahy’s (D-NY) retirement at the end of last session.
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USRPA Travels to Guatemala | Invited by the Guatemalan Rice Council (ArrozGua), Dwight Roberts (USRPA Trade Service Advisor) participated in a board meeting of ArrozGua this week in Guatemala City. The visit provided an opportunity to talk about the complexities of the current market and the outlook for 2023. Dwight also enjoyed observing activities of the ArrozGua demonstration kitchen used for rice cooking promotions and training, visiting several supermarkets, meeting with Rachel Nelson, Agricultural Counselor at the U.S. Embassy, and discussing specific issues with individual Guatemalan rice mills and farmers. The USRPA has enjoyed an extensive and positive relationship with ArrozGua since both organizations were founded some 25 years ago. | |
In addition to meeting with ArrozGua and visiting their demonstration kitchen, Dwight Roberts also visited several supermarkets while in Guatemala City. Keeping U.S. rice on their shelves (and supermarket shelves around the world) is one of USRPA's top priorities. | |
2023 South Texas Rice Symposium | |
On January 26th, the South Texas Rice Symposium with Texas A&M Agrilife Extension gathered farmers and industry leaders at Winnie-Stowell Community Building. 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 was Texas Rice Council President, Tommy Turner who gave an update on Texas Rice Council's accomplishments. | |
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.
TODAY is the last day to purchase your tickets! Don't miss out and purchase your tickets ASAP!
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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. | |
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Last week the Missouri Rice Council participated in AgConnect, an agricultural conference organized by the University of Missouri Extension Office in Butler County, MO. Two of the Council's youngest volunteers, Millie and Rowdy Thomas (children of USRPA Board Member Mitchell Thomas), stopped to pose for a photo op.
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 | | |
Bangladesh Grain & Feed Update
Post increased its MY 2022/23 rice import forecast to 1 million MT and decreased the wheat import forecast to 5 million MT, leaving the corn import forecast unchanged at 2.2 million MT.
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China Grain & Feed Update
Rice imports are forecast lower with smaller production in supplying markets and owing to a rice-related export ban in one of those countries.
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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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