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In This Issue:
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RMTC 2023 Featured Panel: The Bigger Picture of Marketing U.S. Rice
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Market Update: U.S. Rice Planting Continues at Uninterrupted, Optimistic Pace
- Washington, D.C. Update
- Member Spotlight: Wildfong Enterprises
- RMTC 2023 - Book a Treat at Hard Rock Hotel Vallarta
- Photo from Rice Country
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Featured Panel:
The Bigger Picture of Marketing U.S. Rice
| For more than 25 years, US Rice Producers Association’s top two priorities have been to maintain and enhance existing rice markets, both domestic and international, and find and develop new markets for domestic sales and export of rough, brown, and milled rice. The Rice Market & Technology Convention certainly contributes to those goals, but what does that look like during the rest of the year? Join us for a conversation with USRPA staff, U.S. rice producers, and key partners who work with USRPA in promoting U.S. rice abroad as we discuss the “bigger picture” of marketing U.S. rice. | |
Market Update: U.S. Rice Planting Continues at Uninterrupted, Optimistic Pace | |
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Planting is in full swing across all rice-producing states, with tractors finally firing up on the west coast in California. The most recent crop progress report shows Louisiana 83% planted and 73% emerged. Texas is in second place with 55% planted and 41% emerged, followed then by Arkansas at 33% planted and 5% emerged, Missouri at 30% planted with nothing emerged and Mississippi at 25% planted and 2% emerged. Optimism is high with a return to a fuller planting season across the board and no catastrophic weather events to severely hamper progress.
Prices on the ground haven’t changed significantly in recent weeks, as cash trading has been fairly thin. There was a bump in the futures market from the surprise cut in carryout stocks last week, but prices in Texas remain at $17/cwt, Louisiana at $18.50/cwt, and Mississippi, Arkansas, and Missouri at $17/$18. Cash offers have been slow to surface in California, as the enlarged crop now expected to crest 450,000 acres has cast uncertainty over the price for the new crop. This will likely be ferreted out in the coming weeks though as planting gets further underway.
In Asia, prices and demand have held steady as a region. Prices in Thailand have held around $485 pmt, while Viet 5% has been at $480 pmt. Pakistan rice registered a jump this week, bumping closer to $510 pmt, up from $495 pmt last week. India has held steady at $440 pmt as they continue to export at an absolutely breakneck pace, now expected to reach a staggering 22 MMT, which is 17% of their total production—a third straight record crop.
We’ll use India’s third record crop as a segue way to throw a little shade on a “bombshell” headline that just surfaced entitled “Global rice shortage set to be biggest in 20 years.” We want to caution everyone to take a breath and understand that this is no revelation at all, but the current rice market as we know it. There have been droughts (and floods) in China, the U.S., and South America that have strained production. China has been gobbling up all the broken rice for animal feed, thus requiring India to impose a tariff that increased prices for other major exporters like Vietnam and Thailand. Prices have increased over last year, in part to a constriction in supply, and in large part to India’s tariff. But don’t let an attention-grabbing headline change your expectations for the market in a drastic fashion. The market is fully aware of these dynamics and we don’t expect any radical shifts in the fundamentals will dictate otherwise.
A recent GAIN report on Haiti was released this week, which is a welcome update from the post on the current political climate and the ability to continue to source U.S. milled rice. To kick things off, rice imports are expected to stay relatively flat again this year, coming in at 435,000 MT. It is possible, however, for imports to increase on account of a downtrend in local production. Though Haiti has received grants from the IMF to subsidize farmers because of the strains within the country, those funds are yet to be deployed. Therefore, it is optimistic to assume that production can reach the anticipated 65,000 MT this year, up from 60,000 MT last year. Haiti is the most important milled export market for the U.S., where we enjoyed a 97% market share in 2021/22, then down to 90% a year later. This reduction can be attributed directly to gang violence and thus canceled cargoes, but there is concern that the rice from Pakistan reaching Haiti could have long-term implications on the U.S. market share. This market has been and will continue to be a key focus for the U.S. rice industry, and our prices are actually cheaper than domestically produced rice, which bodes well for exports in a politically stable environment.
It was yet another dismal week for the USDA Export Sales report, with sales registering at 10,500 MT, a 73% drop from last year and 58% down from the four-week average. Exports of 17,300 MT were down 48% from the previous week and 53% from the four-week average. All involved look forward to better export sales figures when the crop returns to normal size.
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House Fails to Overturn WOTUS Veto
On Wednesday, the House of Representatives voted to override President Biden’s veto on H.J. Res 27, which would have overturned the Environmental Protection Agency’s (EPA) waters of the United States (WOTUS) rule. Members voted 227-196 to override the veto, which falls short of the two-thirds majority needed to override the presidential veto.
EPA Proposes Registration for New Pesticide Use on Rice (Pyraclonil)
On Monday, the U.S. Environmental Protection Agency (EPA) released for public comment its proposed registration decision for granular pesticide products containing the new active ingredient pyraclonil to control weeds in water-seeded rice in California. EPA’s proposed registration decision includes measures to protect non-target organisms, including federally endangered and threatened (listed) species and their designated critical habitats. In addition to its proposed registration decision, EPA has also released its draft biological evaluation (BE) for this pesticide under the Endangered Species Act (ESA).
After considering public comments on the proposed registration and the draft BE, EPA will determine whether the registration action meets the FIFRA standard and ESA obligations. If EPA determines that the registration action can be granted, EPA will finalize the BE. If a final BE continues to find that pyraclonil is likely to adversely affect listed species and/or their critical habitats, then EPA will initiate formal consultation and share its findings with the Services, as appropriate.
EPA is accepting public comments on this proposal and its supporting documents via docket EPA-HQ-OPP-2020-0004 at www.regulations.gov for the next 30 days.
Agriculture Committee Hearings This Week with links to the hearings and summaries:
- House Committee on Agriculture Subcommittee on Livestock Dairy, and Poultry
“A Review of USDA Animal Disease Prevention and Response Efforts”
(summary memo)
- House Committee on Agriculture
“For the purpose of receiving testimony from The Honorable Michael
Regan, Administrator, U.S. Environmental Protection Agency”
- Senate Committee on Agriculture, Nutrition, and Forestry Subcommittee on Conservation, Climate, Forestry, and Natural Resources
“Conservation in the Farm Bill: Making Conservation Programs Work
for Farmers and Ranchers”
- Senate Committee on Agriculture, Nutrition, and Forestry Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research
"SNAP and Other Nutrition Assistance in the Farm Bill”
(summary memo)
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Member Spotlight: Wildfong Enterprises | |
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USRPA would like to welcome and introduce our newest member, Wildfong Enterprises.
"There are many costs on a farm, and custom concaves from Wildfong Enterprises are an investment that returns on every acre with more grain in the bin. Whatever your crop or combine, they will have a concave solution to meet your needs."
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RMTC 2023 - Book a Treat at Hard Rock Hotel Vallarta | |
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All this and so much more Hard Rock Hotel Vallarta can offer while you stay. Book your extra treat in the Hard Rock Hotel link below or by email.
Make sure to register and reserve your room for a special group rate.
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Food and Ag Regulatory and Policy Roundup | | |
World Agricultural Production | | |
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Grain: World Markets
& Trade
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Haiti: Grain and Feed Annual
Rice imports are forecast at 435,000 MT, up one percent relative to the same period last year.
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FAO Rice Price Update March 2023
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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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