In This Issue:
- New Crop Rice Planted, Farmers Looking for Improved Prices
- Texas Congressman Mike Cloud Meets Rice Farmers
- Washington DC Update
- The Rice Industry Loses a Historical Icon
- USRPA's Digital Marketing Campaign in Guatemala Continues to Grow
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New Crop Rice Planted, Farmers Looking for Improved Prices
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Rice planting in the U.S. is coming to an end as most states are now passing the finish line. In California, rice emerged is about 5% ahead of last year whereas the other states are slightly behind. Only about one-third of the crop is considered to be in poor condition, but with it being so early in the growing season, that statistic doesn’t yet hold much merit at this point in time.
World market prices are showing small signs of softening, according to the USDA which recently reported world market prices (rough rice) to only be down 2% in the last 3 months. Last year at this time, world market prices were at a similar level, however, they had made a 15% run in the 3-months leading up to the middle of May.
We are on the bridge between old crop and new crop. The June 29th actual planting report is much anticipated as it will indicate how many acres shifted over into corn and soybeans. Then the next WASDE report is due out on July 12th and will set the tone and real indications for new crop pricing.
With prices dropping in Brazil those suppliers should become more competitive and closer to the U.S. if not lower. Much depends on the freight market and foreign exchange. Some analysts see 200,000 tons of paddy exports and much more milled rice as well. The government agency CONAB is saying yields in the largest state of Rio Grande do Sul reached 8,500 lbs per acre.
Brazil must export to avoid additional price reduction. Currently business is slow and vessel freights are very high including for containers. We understand the Brazilian grain quality is excellent.
After a several-month bull run in freight markets, which was extra aggressive in April and May, the Dry Bulk Index showed its first sign of letting up. The recent retreat in shipping prices is attributed to China’s claim to police the industry and reduce hoarding and market manipulation. Of course, most analysts expect this small slide in prices to be quickly reversed as the shortage of ships and containers is clearly an ongoing obstacle.
An inflating US Dollar coupled with excessive shipping and logistics costs continues to have a significant impact on grain trade worldwide. If those economic factors weren’t enough, the relentless COVID outbreaks which seem to pop right when another starts to get reeled-in is working only to muddy the “market water” even more. If these components can’t stabilize in the near future, the global commodity markets may be in for a relatively volatile year.
The Futures market is already supporting volatile expectations as rough rice prices eroded further. Declining prices, and rising volume, and open interest normally point to a weak market. In this sense, the futures market actually reflects what is being seen on the ground, where buy interest is weak at best which is only working to demotivate sellers from engaging the market. The reduced output in 2021 may work to reverse the current sentiment, but with the crop having just been planted, that may take a little while.
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Texas Congressman Mike Cloud Meets Rice Farmers
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Representing the 27th District of Texas, Congressman Mike Cloud paid a visit to Franz Farms near Inez, Texas this week to gain a better understanding of rice farming on the gulf coast. Despite heavy rains, the weather opened up enough to visit some rice fields and have a thorough discussion of the domestic and international issues that affect district farmers. Representative Cloud was particularly interested in the markets of Mexico and Central America, the most important for all long-grain farmers.
Galen Franz, Chairman of the Texas Rice Research Foundation, board member of the USRPA, the Texas Rice Council, the Texas Rice Producers Board, and the Texas Rice Legislative Group, graciously hosted the visit. Tommy Turner, President of the Texas Rice Council and member of the USRPA board, along with Thomas Wynn, Chairman of the USRPA and owner of Coastal Rice Futures and Coastal Warehouse also participated in the meeting.
These farmers expressed their concerns over the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), commonly known as TPP that creates deep concerns about the duty-free access to the Mexican market by Vietnamese rice after the phase-in process.
The CAFTA-DR agreement with Central America and the ability of the U.S. to maintain a strong presence was also discussed. And the Texas rice leadership informed Representative Cloud that it is no secret that rice is one of the world’s most manipulated crops as competitors’ governments use interventionalist policies that in many cases are NOT legal under WTO rules. Rep Cloud was especially interested in trade issues with Mexico as he was appointed a member of the US-Mexico Interparliamentary Group, a committee formed by congressional members of both countries that address issues of trade, security, and immigration.
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Pictured Left to Right: Tommy Turner, Congressman Cloud, Galen Franz, Thomas Wynn.
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Today, May 27th, the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, held a hearing to consider the nomination of Janie Simms Hipp to be general counsel at the U.S. Department of Agriculture (USDA).
Ms. Hipp, as general counsel, will be responsible for providing advice and counsel directly to the secretary and deputy secretary. In addition to overseeing the Washington, D.C.-based office, the general counsel supervises 12 field offices within Office of General Counsel (OGC).
Ms. Hipp currently serves as the CEO of the Native American Agriculture Fund, created as a result of the Keepseagle litigation settlement, which implements the distribution of the remaining settlement funds to eligible entities to assist, educate, and support Native American farmers and ranchers.
Ms. Hipp’s agricultural law experiences span decades. In the mid-1980s, Ms. Hipp worked in the Oklahoma Attorney General’s office where she assisted farmers during the national farm credit crisis. She also has deep experience at USDA having spent time at the National Institute of Food and Agriculture, in addition to working at the Risk Management Administration.
Ms. Hipp has an LL.M. in agriculture and food law from the University of Arkansas School of Law, and serves in various positions at the National Center for Agricultural Law Research and Information at the University of Arkansas School of Law, in addition to teaching agricultural law. Ms. Hipp is a citizen of the Chickasaw Nation and has served as USDA’s Director of the Office of Tribal Relations, and as Founding Director of the University of Arkansas’ Indigenous Food and Agriculture Initiative.
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The Rice Industry Loses a Historical Icon
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The global rice industry has lost a dear friend, Yuanlong Ping, a Chinese scientist who developed higher-yield rice varieties that helped feed people around the world passed away at the age of 90 in China on May 22, 2021.
In honor of his great achievements and dedication to feeding communities suffering malnutrition and starvation worldwide, Dwight Roberts recalled at a meeting with him when he was visiting the U.S. rice states in early years, “Yuan Longping was a real rock star. Known as the Father of Hybrid Rice, he developed rice varieties that helped feed the world. When I met him 20 years ago I realized he was the 'Babe Ruth' of world food production, a real celebrity.”
Yuan spent his life researching rice and was a household name in China. Worldwide, a fifth of all rice now comes from the species created following Yuan’s breakthrough discoveries, according to the website of the World Food Prize, which he won in 2004.
On Saturday afternoon, large crowds honored the scientist by marching past the hospital in Hunan province where he died, local media reported, calling out phrases such as: “Grandpa Yuan, have a good journey!”
USRPA offers the deepest condolence to him and his family. May he rest in peace and joy and generations of rice folks will follow his generous heritage and footsteps, his lifelong endeavor to benefit the welfare of the world.
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USRPA's Digital Marketing Campaign in Guatemala Continues to Grow
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Begining in 2020 USRPA and ARROZGUA have had to find new and innovative ways to teach Guatemala's population how to prepare delicious and diverse dishes using U.S. rice.
USA Arroz's Digital Campaign started in April 2020 with 340 followers on its Facebook fan page and has since increased 789%! The page currently has over 5,000 followers, surpassing the fan page followers of renowned chefs and influencers.
Supermarkets have reported an increase of 18% in rice sales in the last 8 months, and that trend continues to increase as just last month, local supermarket chains in Guatemala reported a sales increase of 23% in comparison to the previous year. Digital Campaign activities in Guatemala currently combine 3 broadcast channels: radio (RCN Radio Group), Television (TVQtv), and two digital platforms: ZOOM and Facebook Live, which are directly reaching a large and very diverse audience spanning several target groups.
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WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), Amy Klobuchar (D-Minn.), and Patrick Leahy (D-Vt.) introduced major bipartisan legislation to lift the Cuba trade embargo. The Freedom to Export to Cuba Actwould eliminate the legal barriers to Americans doing business in Cuba and pave the way for new economic opportunities by boosting U.S. exports and allowing Cubans greater access to American goods. The legislation repeals key provisions of previous laws that block Americans from doing business in Cuba, but does not repeal portions of law that address human rights or property claims against the Cuban government.
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Known as the most widely attended conference in the Western Hemisphere, the Rice Market & Technology Convention taking place July 6-8, 2021, at the Woodlands Resort, just north of Houston, Texas is gaining attention from companies around the world!
Join The Companies Already Registered:
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Register today and save up to $200 on your registration and reserve your room at the Woodlands Resort by June 7th!
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Food & Ag Regulatory
and Policy Roundup
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LSU AgCenter Southwest Rice Field Day
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LSU AgCenter Acadia Parish and South Farm Rice Field Day
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University of Arkansas Rice Agricultural Sustainability Virtual Field Trip
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Texas A&M AgriLife Field Day, Eagle Lake
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LSU AgCenter H. Rouse Caffey Rice Research Station Field Day
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Rice Market & Technology Convention
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Texas A&M AgriLife Field Day, Beaumont, TX
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LSU AgCenter Row Rice Field Day
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University of Arkansas Rice Field Day (tentative)
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University of Arkansas Rohwer Field Day
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California Rice Experiment Station Field Day (tentative)
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University of Arkansas Virtual Rice and Soybean Field Day
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25722 Kingsland Blvd.
Suite 203
Katy, TX 77494
p. (713) 974-7423
f. (713) 974-7696
e. info@usriceproducers.com
www.usriceproducers.org
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We Value Your Input!
Send us updates, photos, questions or comments!
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, or marital/family status. Persons with disabilities who require alternative means for communication of information (such as Braille, large print, sign language interpreter) should contact USRPA at 713-974-7423
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