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In This Issue:
- Market Update: Possible India Export Ban Bullish News for Rice Market
- USRPA Staff Attends Annual U.S. Agricultural Development Export Council Attache Seminar
- Washington, D.C. Update
- Reports from Nutrien & Beaumont Field Days
- Photo from Rice Country
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Market Update: Possible India Export Ban Bullish News for Rice Market | |
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International news rules the day for this issue of the Advocate, as India is now considering banning most rice exports, including non-basmati varieties, because of soaring domestic prices. This is huge news for the global rice complex, as India is the largest exporter in the world at approximately 22 million metric tons, whereas Thailand and Vietnam fluctuate between 7-9 million metric tons in vying for second place. If India truly follows through with this drastic measure as a result of troublesome El Niño weather patterns, it could send reverberations through the market reminiscent of the 2008 food crisis. While global food security is a primary focus of any rice producer, a shock to the supply side of the equation as significant as India banning exports will certainly find its way into the western hemisphere and support U.S. prices in the coming marketing year.
In other international news, Mexican importers visited Pakistan to inspect rice mills, ports, farms, and facilities to investigate the possibility of lifting the export ban imposed on Pakistan. This would be a significant change in the market dynamic, and another barb in the already complex relationship that is being navigated to maintain our largest trading partner in Mexico. Pakistan has recently made inroads into Haiti, creating a problem for U.S. exporters, and intrusion from Pakistan into our core Mexican market will be another point of contention moving forward this year.
Recent results of the Panama tender and crop damage caused by El Niño in various Andean markets along with Central America and Mexico indicate that many buyers’ eyes are on the U.S. harvest. The first fields are being cut in Texas and Louisiana. As we all know, until it's cut, dried, and stored we don’t know what we have in the way of quality, especially for good milling yields and minimum chalk.
Turning now to the WASDE report that was just released, it appears that the USDA has raised world stocks by 3.6 MMT when China is excluded. The reports lowered the 22/23 carryover number by 1 million cwt down to 15.8 million cwt, which is where they estimate the carryover in 2023 to be as well. They also expect a production increase of 2.8 million cwt on revised acre reports filtering in. The average farm price was lowered $0.50/cwt to $14.50/cwt.
In Asia, prices are still firming with Thai 100% now as high as $530 pmt, and Viet priced at $550 pmt. India is approaching $500 pmt, but we will see what the weather dictates moving forward and how it may shape the export policy of the globe's largest rice shipper. Daily volume dropped 13% this week down to 470, while open interest stayed flat at 8,484.
It was another bad week in the USDA Export Sales Report. Net sales of 4,000 MT for were down 32% from the previous week and 66% from the prior four-week average. Increases were primarily for Mexico (2,000 MT), Canada (1,700 MT), and the Bahamas (200 MT). Exports of 4,800 MT were down 91% from the previous week and 89% from the prior four-week average. The destinations were primarily to Mexico (3,200 MT), Canada (1,100 MT), Japan (100 MT), Saudi Arabia (100 MT), and Bahamas (100 MT).
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USRPA Staff Attends Annual U.S. Agricultural Export Development Council Attache Seminar | |
USRPA staff members Grace Wang and Mollie Buckler with incoming Morocco attache Ben Rau during attache consultations | |
The U.S. Agricultural Export Development Council (USAEDC) held its annual Attache Seminar in McLean, VA this week, bringing together USDA cooperator organizations and USDA FAS staff from around the globe. Grace Wang and Mollie Buckler represented USRPA at the seminar and met with post staff from Guatemala, Morocco, Brazil, China, and Peru on Wednesday afternoon. In his FAS Update during Thursday's plenary session, FAS Administrator Daniel Whitley noted that for every $1 FAS spends on market development programs, $25 comes back to the U.S. | |
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Torres-Small Confirmed as USDA Deputy Secretary
On Tuesday, the Senate voted on an 84-8 vote to confirm Xochitl Torres-Small to be Deputy Secretary of USDA. This role, the second highest in the Department, has been vacant since former Deputy Secretary Jewel Bronaugh resigned in late January citing family reasons. Torres-Small most recently served as USDA Under Secretary for Rural Development. Prior to this role, she served New Mexico’s second congressional district in the House of Representatives. Throughout the nomination process, Torres-Small received bipartisan support from members of the agriculture community.
House Appropriations Committee Releases EPA pending Bill
On Wednesday, the House Appropriations Committee released the text of its FY2024 spending bill for the Department of Interior and EPA. The bill would provide a total of $6.173 billion in funding to EPA, a $3.96 billion decrease from the FY2023 enacted level. It also included a provision prohibiting EPA from enacting its rule regulating waters of the United States (WOTUS). The bill was marked up and favorably approved by the Interior and Environment Subcommittee Thursday afternoon. It will now go to the full Appropriations Committee for consideration. The Senate has yet to release its version of the bill.
House Ways & Means Committee Holds Hearing on Agriculture & Trade
On Monday, the House Ways and Means Committee held a field hearing to learn how agricultural producers are impacted by trade policy. In the hearing, which took place in Kimball, Minnesota, touched on agricultural labor challenges, enforcing trade agreements, and how to help keep American producers competitive in the global market. A recording of the hearing can be found here.
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Dr Qiming "Doc" Shao and Scott Greenwalt describes Nutrien DYNAGRO rice varieties’ development, particularly hybrid trials, during a tour of the research station this week near El Campo, Texas. | |
Drone operation on hybrid seed production was presented by Ignacio Guevera from Nutrien. | |
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Texas A&M AgriLife Research and the Texas A&M AgriLife Extension Service hosted their 75th annual Rice Field Day on July 13 at the Texas A&M AgriLife Research and Extension Center at Beaumont. This year’s theme was "Innovations in Texas Rice Irrigation".
The program included morning and afternoon tours , reseach displays and in the general program; AgriLife Research: Developing Solutions Today for Agricultural Challenges in the Future – G. Cliff Lamb, Ph.D., director of AgriLife Research, Bryan-College Station; Maximizing Water Management through Farm Design – Ryan Frey, irrigation specialist, Smart Acre Solutions LLC., Ferriday, Louisiana; Irrigation Conservation Practices Used by Mid-South Rice Producers – Joe Massey, Ph.D., U.S. Department of Agriculture – Agriculture Research Service research agronomist, Jonesboro, Arkansas.
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USRPA President and CEO, Marcela Garcia, staff members Iris Figueroa, Trey Barker, and USRPA Stoesser Scholar Gayla Rose represented USRPA at the event. | |
Lina Bernaola, Ph.D., assistant professor in theTexas A&M AgriLife Research Department of Entomology | |
Assistant professors in the Texas A&M AgriLife Research Department, Shyamal K. Talukder, Ph.D., and Lee Tarpley, PhD., on Physiology & Inbreed Breeding. | |
Xin-Gen (Shane) Zhou, PhD., assistant professor in the Texas A&M AgriLife Research Department on Pathology. | |
The Missouri Rice Research Farm team is gearing up for the annual Missouri Rice Field Day, scheduled for the morning of Thursday, August 17. Missouri producers: Save the date! | |
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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Inter-Rice
World Rice Market Report
June 2023
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The Bootheel
Rice Briefing
from Mizzou Rice Agronomy
July 13, 2023
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Arkansas Rice
Update
July 7, 2023
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July 20, 2023
2023 Model Farm Field Day
Haynie Farms
Altheimer, AR
More Information
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August 17, 2023
Missouri Rice Research & Merchandising Council
Annual Field Day
Glennonville, MO
More Information
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