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In This Issue:
- Market Update: Report Shows 12 Months of Long Grain World Prices with U.S. Highest & India Lowest
- Washington, D.C. Update
- USRPA Visits Washington, D.C.
- Missouri Rice Research & Merchandising Council to Host Annual Meeting on February 28
- 2023 Rice Market & Technology Convention
- Photos from Rice Country
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Market Update: Report Shows 12 Months of Long Grain World Prices with U.S. Highest & India Lowest | |
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A GAIN Report on China was released this week centering on its release of old-crop rice. China remains the world’s largest rice importer and is therefore a key driver in global prices, but has been demoted to a low priority for the U.S. rice industry because of poor diplomatic relations. In this most recent report, the news centers around the auction of over 18 million metric tons of old-crop rice beginning in March to use for animal feed and grain alternatives, with the idea of tempering rising grain prices regionally. While 18 million metric tons is a staggering amount in any other region, this is still only half of the amount on offer in 2021 and 2022. These numbers could increase significantly in coming reports, but it is believed that the auctions include 15 MMT of the 2018 crop and 3 MMT of the 2019 crop. It’s also important to note that for the first time since the establishment of the TRQ, China’s rice imports exceeded the TRQ. This has been common for corn and wheat in the past, but 2022 serves as the first time this has happened for rice. This is largely a result of imports of brokens from India as an alternative to corn feed, but nonetheless significant in the global rice market.
The February Grain World Markets and Trade report calls for global rice production to be down 2% from last year, but this is unchanged from last month’s report. This will be due in part to smaller crops from Vietnam and Brazil, but this is offset by an increase of 5% in Sri Lanka and Bangladesh. Global consumption is forecast to be up slightly, largely on account of China, and global stocks are down slightly to their lowest levels since 2017/18.
The chart below from the World Markets and Trade Report tells the story quite nicely of global rice prices over the last 12 months. You can see, and as we’ve been reporting, U.S. prices continue to lead, while Indian prices are the cheapest. Prices have jumped up in the most recent weeks, partly on account of tightening supply, but largely a result of India’s export tariff and ban situation. Their announcement in October and enforcements since have put upward pressure on prices not for India alone, but for Thailand and Vietnam as well.
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Looking now to the Western Hemisphere, rice harvest continues to move forward in South America (Mercosur) where reports are beginning to roll in of crop conditions and yield expectations. There is muted optimism that the drought may not have had as severe of an impact as some were anticipating, but will remain a factor as harvest continues. In the United States, planting intentions will become clear in the next few weeks. What is known, however, is that medium grain plantings will max out based on seed availability. Producers are still evaluating the cost of production for rice vs. alternative crops where available, and the decrease of fertilizer costs to a more “normal” level is encouraging for rice acres. In Texas, there looks to be a significant reduction in acreage because of a lack of water, but producers in Arkansas, Missouri, and Louisiana hope to make up the difference to result in a net gain this year.
The weekly USDA Export Sales report finally brings some good news with strong sales to Colombia and Nicaragua. Net sales of 112,800 MT -- a marketing-year high -- were up noticeably from the previous week and from the prior 4-week average. Increases were primarily for Colombia (61,200 MT), Nicaragua (25,000 MT), Japan (13,000 MT), Saudi Arabia (8,500 MT), and Mexico (1,500 MT). Exports of 33,800 MT were up 20% from the previous week, but down 7% from the prior 4-week average. The destinations were primarily Japan (13,000 MT), Saudi Arabia (8,900 MT), Jordan (4,700 MT), Mexico (4,200 MT), and Canada (2,200 MT).
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Meeting with the staff of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry | |
USRPA Visits Washington, D.C. | |
This week, USRPA board members and representatives from Texas, Missouri, and California flew to Washington, D.C., to discuss issues impacting rice farmers. USRPA met with officials at the Environmental Protection Agency, the Department of Agriculture, and the Office of the US Trade Representative, as well as House and Senate offices for Missouri, California, Texas, and Arkansas. USRPA discussed a variety of issues with these offices, including its farm bill priorities, trade policy, and conservation policy. | |
The Texas cohort visited with Texas Congressman Troy Nehls (R-22). | |
The Missouri group had the opportunity to visit with Congressman Jason Smith (R-8), who represents all of Missouri rice country and now serves as the House Ways & Means Chairman. | |
USRPA Board Member and Texas Rice Council President Tommy Turner with Texas Senator John Cornyn and his staffer, Sophie Foley. | |
The whole group met with California Congressman Doug LaMalfa (R-1), who is a rice farmer himself and was part of the creation of the USRPA. | |
Congressman LaMalfa with his constituents, Logan Wilson and Andrew Sohnrey. | |
A conversation with Arkansas Senator Rick Crawford's staff member, Ashley Shelton. | |
A productive meeting with USDA's Foreign Agricultural Service team, including FAS Administrator Daniel Whitley and Mark Slupek, Deputy Administrator for Global Programs. | |
The trip was also a great opportunity for our producers to connect with one another. | |
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House Agriculture Democrats Announce New Members
On Thursday, Rep. David Scott (D-GA), the ranking member of the House Agriculture Committee, announced Reps. Salud Carbajal (D-CA), Angie Craig (D-MN), Chellie Pingree (D-ME), and Darren Soto (D-FL) would be joining the Committee for the upcoming congressional session. He also announced Del. Stacey Plaskett (D-VI) would no longer be serving on the Committee. Del. Plaskett served as the Chair of the Subcommittee on Biotechnology, Horticulture, and Research in the previous congressional session.
House Transportation and Infrastructure Holds a WOTUS Hearing
This week, the House Transportation and Infrastructure Committee held a hearing regarding the Environmental Protection Agency’s waters of the United States (WOTUS) rule. Witnesses, including the president of the Missouri Farm Bureau on behalf of the agricultural sector, explained how the current rule creates uncertainty and increases costs for farmers. They also argued the current rule is an overreach of the federal government.
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Missouri Rice Research & Merchandising Council to Host Annual Meeting on February 28 | |
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The Missouri Rice Research & Merchandising Council will host its Annual Meeting on Tuesday, February 28 at The Gathering in Dexter, Missouri. Registration begins at 5:30 p.m. and the program will begin at 6:00 p.m.
Guest speakers include Marcela Garcia, President & CEO, US Rice Producers Association; Stuart Hoetger, rice market expert and co-founder of The Stogan Group; John Hensley, Marketing Specialist, Missouri Department of Agriculture; and Dr. Justin Chlapecka, Assistant Professor and State Rice Extension Specialist, University of Missouri.
Dinner will be catered by Tasteful Creations. There is no cost to attend. Sponsorship opportunities are still available. Please contact Mollie Buckler at mollie@usriceproducers.com for more information on sponsorships.
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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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Food and Ag Regulatory and Policy Roundup | | |
World Agricultural Production | | |
Grain: World Markets and Trade | | |
China: Offloading Old Stock Rice Through Annual Auction | | |
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Cotton and Products Update
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Best Management Practices for Provisia Rice | | |
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February 16, 2023 | 8:00 a.m. - 1:00 p.m.
University of Missouri Extension Rice Meeting
The Gathering @ Versity Crossing
Dexter, MO
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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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