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In This Issue:
- 4 Days until RMTC 2023
- Market Update: U.S. Rice Planting Season Nearing Completion
- USRPA Breaks Ground in Africa & Middle East with Foreign Ag Service
- Washington, D.C. Update: Supreme Court Rules on WOTUS Case
- Renato Gastaud, President of SAMAN, Announces His Retirement
- Photo from Rice Country
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Please note that The Rice Advocate will be on hiatus next week as the USRPA staff will be in Mexico for RMTC. We will resume publishing on Friday, June 9. | |
Market Update: U.S. Rice Planting Season Nearing Completion | |
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This will be about the last week we report on crop plantings as the majority will be at 100% next week, except for California and maybe Texas. It’s been a relatively painless planting season, save a few isolated weather events. Rice emerged is progressing nicely as well, still 10% ahead of the 5-year average with Louisiana at 94%, Mississippi at 89%, Texas at 88%, Missouri and Arkansas both at 85%, and California down at 15%.
We do have enough information with these reports though, to lay out a decent idea of acreage we have in each state by long grain and medium grain. In Arkansas, surveys have brought us to approximately 1.3 million acres of long grain and 165,000 acres of medium grain. Louisiana is reporting 390,000 acres of long grain and 60,000 acres of medium grain. Mississippi is just over 100,000 acres of long grain, with no medium grain expectation. Missouri is 195,000 acres of long grain, and 5,000 acres of medium grain reserved for seed. Texas is looking at 130,000 acres long grain, and 3,000 acres of medium grain, also reserved for seed. California is now projected at 470,000 acres of medium grain. This gives us a long grain total of 2.115 million acres, a medium grain total of 703,000 acres, and a grand total projected U.S. rice production of approximately 2.818 million acres of rice. This is welcome news to a market that has been battered by decreased production two years in a row. Input suppliers and allied industries domestically are thankful for the return to normal, and the battle will now be regaining the market share that has been lost due to high prices and short supply.
A look at USDA acreage numbers since 2018, particularly long grain rice reinforces what all farmers know: until the rice is cut, dried and stored we don’t know what we have in hand.
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The market will be going through an adjustment where, much like the stock market, bad news will be good news. As we know, tight supplies have led to high prices and constricted exports. All industry members keep saying that a larger crop will bring U.S. long grain back to a competitive nature. However, that means prices will have to drop significantly to compete with Paraguay, Brazil, Uruguay, Argentina, and heaven forbid—Viet/Thai/Paki rice. With the expiration of CAFTA-DR and most tariffs being suspended to reduce food inflation, prices will need to come down at least $140 pmt — and this makes us competitive with just Brazil. While a decrease of that magnitude is “bad news,” that’s the only way to claw back our export customers and see our export numbers climb once again. This is a farm bill year, and its passage and implementation will be more important then ever going into a climate with so many factors at play.
In Asia, prices continue to hover around the $500 pmt for both Vietnam and Thailand. India is holding firm in the $440 pmt range, and recently announced a special relaxation of their export restrictions on broken rice to help provide 200,000 mt of broken rice to Indonesia, 500,000 mt of broken rice to Senegal, and 50,000 mt of broken rice to Gambia.
The most recent FAO Rice Price Index reports that against the backdrop of rising inflation, input costs, Russia’s war on Ukraine, drought in major rice producing regions (namely Brazil, China, and the U.S.), global rice exports are expected to contract for the first time in four years for calendar year 2023. The report expects a global export contraction of 4.4%, down to 53.6 million metric tons.
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USRPA Breaks Ground in Africa & Middle East with Foreign Ag Service | |
USRPA Member Logan Wilson & USRPA COO Grace Wang with Mark Slupek, USDA FAS Deputy Administrator for Global Programs | |
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CASABLANCA, MOROCCO - This week, USRPA Staff and membership traveled to Morocco for a regional summit with the USDA Foreign Agricultural Service to bolster trade in the region. This summit comes at an excellent time given that USRPA trade missions in recent months have gained valuable ground and relationships in the territory.
The USDA and Foreign Ag Service have directed focus towards Africa and the Middle East as the population growth and improving logistics make market expansion opportunities abound for U.S. agricultural products. It was noted by FAS staff in the North Africa region that there is strong market demand for U.S. rice, and importers are eager for fresh supplies after the short crop over the past two years. Government representatives from West Africa reminisced of the days when U.S. rice was a normal sight on the shelves, and are eager to work collaboratively to see that happen again.
The Administration also communicated its key focus point on climate change. Political Appointee, Jeremy Adamson, offered several reasons how climate change is impacting policy, trade, supply lines, and the environment. Adamson also introduced new tools that help farmers measure carbon capture and climate smart practices, and these tools will be rolled out the general public in the coming weeks.
This summit showed that there is not only significant opportunity in the Middle East and Africa, but also strong enthusiasm for U.S. products. Meeting in person created the opportunity to build valuable relationships with FAS Staff, USDA staff from Washington DC, and industry partners to position USRPA and its farmer members for success in this turbid and changing market environment.
|  | USRPA Member Logan Wilson & USRPA COO Grace Wang with FAS Staff from Sudan, Senegal, & Morocco | |
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Supreme Court Rules on WOTUS Case
On Thursday, the Supreme Court released its decision on Sackett v. Environmental Protection Agency (EPA) regarding the scope of the Clean Water Act. The case involved a property owned by the Sackett family where they intended to build a house. In 2007, the Army Corps of Engineers and EPA halted construction saying the property likely contains a protected wetland, leading the Sacketts to sue. The Supreme Court unanimously agreed to overturn the lower court’s decision and decided the land in question should not be regulated under the Clean Water Act; however, there was disagreement on the implications. The Court ruled on a 5-4 vote that the Clean Water Act only applies to wetlands with a continuous surface water connection to larger bodies of water. This ruling could impact the EPA’s Waters of the United States (WOTUS) Rule which went into effect in March 2023. To read the entire decision click here.
House Appropriations Committee Delays Markups
On Tuesday, House Appropriations Committee Chairwoman Kay Granger (R-TX) announced the Committee was postponing markups scheduled for this week to provide more flexibility as discussions continue regarding raising the debt limit. The Committee was scheduled to mark up the agriculture appropriations bill for fiscal year 2024 on Wednesday. The bill was previously marked up by the Agriculture Appropriations Subcommittee on May 18.
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Renato Gastaud, President of SAMAN, Announces His Retirement
Congratulations to Renato Gastaud, President of SAMAN (Sociedad Anonima Molinos Arroceros Nacionales), one of the most prestigious rice companies in the world and located in Montevideo, Uruguay, on his recent announcement to retire. Since 2007, SAMAN has been part of Camil Alimentos group, establishing itself as the continent’s leading rice company and one of the top five in the world. Long a symbol of consistent quality, SAMAN’s presence is known throughout the world marketplace. The USRPA always enjoyed and appreciated Renato’s participation in the Rice Market & Technology Convention and wishes him the very best in the years ahead. Felicidades Renato!
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#FlashbackFriday to RMTC 2013 in Miami, FL! Don't miss great networking, great conference sessions, and creating lifelong memories in Puerto Vallarta in just 4 days for RMTC 2023!
Send us your rice country photos on Facebook, Instagram, or via email!
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Cornerstone
Trade Update
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Food and Ag Regulatory and Policy Roundup | | |
Grain: World
Markets & Trade
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World Agricultural Production | | |
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Osiriz / InterRice
Monthly Report No. 230
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Arkansas Rice Update
5/12/2023
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Global Rice Market Update
May 2023
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May 30 - June 1, 2023
2023 Rice Market & Technology Convention
Puerto Vallarta, Mexico
More Information
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August 3, 2023
2023 Stuttgart Rice Field Day
Stuttgart, AR
More Information Coming Soon
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August 17, 2023
Missouri Rice Research & Merchandising Council
Annual Field Day
Glennonville, MO
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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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