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In This Issue:
- Market Update - Unpredictable Rice Market Keeps Prices Firm
- Washington, D.C. Update
- USRPA’s Social Media Campaign in Mexico Proves Successful
- Ray Stoesser Memorial Scholarship: Application Available
- Photos from Rice Country
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Market Update - Unpredictable Rice Market Keeps Prices Firm | |
With the Indian tariff situation, a rail strike that is temporarily averted, and harvest in full swing, there is much to consider this week in the rice market. To follow convention, we’ll start first with a harvest update, where Arkansas is at 24% harvested as of September 11, but slightly behind the five-year average of 33%. Mississippi is now right on track with historical norms, crossing the 50% threshold as of writing. Texas is all but complete, and Missouri and California are just getting underway this week.
Despite all of the flux in the news, the price has been relatively constant for milled and paddy prices in the U.S. In Arkansas, prices remain in the $16/$16.50 per cwt for hybrid and conventional respectively, and the same goes for Mississippi and Missouri as well. Texas still leads at $17.50/$18 per cwt, and Louisiana is holding firm at approximately $17.30/cwt. The export business continues to feed Haiti and Iraq, while domestic millings keep churning. Export prices have firmed slightly in recent weeks, perhaps on account of India’s tariff, or perhaps because of decreased supply overall; in either case, USA 5% was quoted at $710 pmt at the beginning of September, and is now closer to $720 pmt.
The problem is, if there is not a permanent solution with Union Pacific and the railroad, and a shut-down of rail cars does in fact ensue in the middle of harvest, the price won’t matter because it won’t get delivered, period. The impacts would be devastating, swift, and severe to the entire supply chain. Some reports state that the U.S. economy could lose as much as $2 billion/day as a result. We haven’t heard numbers like this since the “Ever Given” was lodged in the Suez canal when over $9 billion was lost globally for the six-day obstruction. The temporary agreement with the railroad is positive news in light of such potential disruption, but even a solution will contribute to increased costs in an already blazing inflationary market. The tentative agreement provides rail employees a 24% wage increase from 2020-2024, including a payout of $11,000 to happen immediately. In the meantime, the availability of rail cars continues to be extremely scarce even to lease or purchase.
And now India; the world’s top exporter has completely banned the exports of brokens, which means China has been sourcing and will need to find a new supplier for their animal feed. As mentioned last week, basmati is excluded, and the 20% tariff will put the price much more in line with Vietnam and Thailand. Rumors of India’s current crop being as much as 10% off from last year’s record could also be a contributing factor. The bottom line for the US industry here is that USA long grain is already priced so much higher than Indian rice, the impact will be minimal.
The most recent Grain: World Markets and Trade report published by the USDA highlights that world rice production will decrease this month for the first time since 2015/16 because of decreased supplies in India (monsoon weakness), China (drought), and Pakistan (drought). With the population continuously on the rise, as expected, this production shock ripples down the line into decreased global stocks, hitting the lowest level since 2017/18. In the U.S., USDA is reporting the lowest rice production since the early 1990s, as long grain is down 8 million cwt to 132 million cwt, and medium grain is down 2.9 million cwt to 32.8 million cwt.
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Rail Deal
Early Thursday morning, the White House announced the freight rail companies and labor organizations had reached a tentative deal to prevent a national railroad strike. Negotiations began months ago as the existing labor agreement was set to expire on September 16. As the deadline neared, precautionary steps were taken, including pausing rail shipments of ammonia for fertilizer, as the likelihood of a strike increased.
Climate Grants
On Wednesday, Department of Agriculture (USDA) Secretary Tom Vilsack announced $2.8 billion in awards through the Partnerships for Climate-Smart Commodities funding opportunity. Seventy projects will receive funding, including $65 million for the Texas Climate-Smart Initiative, of which USRPA was a major partner. This project, led by the Texas A & M Agrilife Research, will support a transition to climate-smart agriculture and forestry and help develop new markets for climate-smart commodities within the state. A list of all projects can be found here.
New Member Joins House Committee on Agriculture
On Wednesday, September 13, Ranking Member Glenn (GT) Thompson (R-PA), announced the addition of Representative Brad Finstad (R-MN) to the House Committee on Agriculture. Rep. Finstad joins the Committee as a current operator of his family’s farm and as a former State Director for USDA Rural Development in Minnesota. Rep. Finstad fills the seat of a former member, Rep. Jim Hagedorn, who passed away of cancer in February of this year.
USRPA Signs Onto Letter In Support of Doug McKalip’s Expeditious Confirmation
USRPA joined commodity groups in signing a letter in support of the expeditious Senate confirmation of Doug McKalip to be Chief Agriculture Negotiator within the Office of the United States Trade Representative. Last week, the Senate Committee on Finance favorably reported McKalip’s nomination out of committee on a unanimous vote. McKalip has previously served in a variety of positions at the United States Department of Agriculture, most recently as a senior advisor to the Secretary of Agriculture. The letter goes on to explain how McKalip’s confirmation would benefit American agriculture by finally having a dedicated negotiator working to push for new agricultural markets and removing barriers to growth in existing marketplaces.
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USRPA’s Social Media Campaign in Mexico Proves Successful
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Are you following USRPA’s social media campaign in Mexico? If you are not, please do! The Instagram and Facebook accounts are @consumearrozusa Links below.
Our 2022 Mexico campaigns began on April 1 and May 3, respectively. The USRPA team has worked with Raul Caballero, an in-market representative in Mexico, to develop a campaign that includes quick one-minute video recipes, written recipes, GIF-style recipe posts, and other informative posts.
ONE-MINUTE VIDEO RECIPES
To make these video recipes, we’ve collaborated with three renowned chefs: Chef Melissa Morelos, Chef Carlos Leal, and Chef Alfredo Oropeza. Cumulatively, they have published 39 video recipes thus far. This type of content has the best reach with consumers with likes and comments. As of today, the videos have more than 453,000 views.
WRITTEN RECIPES
As part of the campaign, we’ve also posted complete recipes that include the listing of ingredients, preparation instructions and photos of the final recipe. With these types of posts, consumers have the opportunity to print the entire recipe and prepare it in the traditional manner.
GIF STYLE GRAPHICS AND RECIPES
GIF style recipes differ from "traditional" recipes in the form and style in which they are published. The GIF includes an attractive picture or element that has some moving components, taking the attention of the consumer. These posts tend to be attractive to consumers as well.
U.S. RICE NUTRITION AND QUALITIES POSTS
Last but not least, the campaign includes curated posts that will inform consumers about the different nutrients that the U.S. long grain rice offers. We also provide relevant information about the health benefits of consuming rice on a regular basis, as well as tips for a better use of U.S. long grain rice through cooking recommendations.
RESULTS
From April 1 to August 31, the campaign has reached a total of 1,881,668 viewers with a total of 2,206,289 impressions. Metrics have accounted for 12,286 likes, 1,294 comments and 418 shares.
Some of the videos have reached interesting organic high audience numbers. For example, Chef Carlos Leal had a total of 14,442 views for his U.S. Rice with Grilled Octopus video. Another successful example was from Melissa Morelos with a total reach of 25,592 views for a Spinach Crepes recipe made with U.S. rice flour.
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Follow Consume Arroz USA on
Facebook & Instagram
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Second Annual Ray Stoesser Memorial Scholarship | |
Know current high school seniors, undergraduate, or graduate students pursuing a career in agriculture? Encourage them to apply for the Second Annual Ray Stoesser Memorial Scholarship!
Applications are due Thursday, December 1.
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Thanks to USRPA Chairman, Alex Clark, for sharing this photo as he kicks off harvest, which began in earnest this week in southeast Missouri. Send us your harvest 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 | | |
Vietnam: Rice Trade - Monthly
This report provides trade data on Vietnam's monthly rice exports by grade and destination and weekly export quotes for rice by grade.
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Osiriz / InterRice
Monthly Report No. 222
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Arkansas Rice Updates
from the
Arkansas Row Crops Blog
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September 17, 2022
Have a RICE Day Cook-Off Competition
Eagle Lake, Texas
More Information
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September 23 - 24, 2022
2022 SE Texas Urban Ag and Farm Safety Summit
by Texas A&M AgriLife Extension Service, Ag & Natural Resources - Harris County
Katy, Texas
More Information
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September 28 - October 1, 2022
Texas Rice Festival
Winnie, Texas
More Information
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October 20 - 23, 2022
The 85th International Rice Festival
Crowley, Louisiana
More Information
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January 18, 2023
Western Rice Belt Conference
El Campo Civic Center, El Campo, Texas
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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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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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