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In This Issue:
- RMTC Announces Seminar: "Follow the Money"
- Time to Plant 2022 Rice Crop in Texas and S. Louisiana
- Washington, D.C. Update
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RMTC Announces Seminar: "Follow the Money" | |
“Follow the Money - Closing the Rice Milling Profitability Circle”
RMTC attendees will have the opportunity to register for the seminar, “Follow the Money - Closing the Rice Milling Profitability Circle” starting next week. The seminar is sponsored by Superbrix and Applied Milling Systems and will take place on Tuesday, May 31, 2022, and is exclusively open to RMTC 2022 attendees.
This full-day seminar focuses on maximizing the profit potential in every grain of paddy that enters the rice milling process covering the analysis and management of the rice milling process on a fiscal rather than a technical basis and optimizing the profit potential of broken rice.
Early Bird Registration for the RMTC is available through March 14th and registration for the seminar will open to attendees next week.
Follow RMTC on Facebook, Instagram, and LinkedIn for the latest news and updates.
For more information including sponsors and exhibitor opportunities, hotel reservations and registration details, please visit www.RiceMTConvention.com.
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Time to Plant 2022 Rice Crop in Texas and South Louisiana | |
With planting intentions drawing near, it is clear that acres will likely not exceed the numbers from last year, nor will they drop as much as some expected on account of the fertilizer and fuel prices. However, that story is still being written as Russia is invading Ukraine at the time of writing. Atrocities aside, the world’s dependence on Russian exports of fertilizers and energy is significant, and price hikes are coming in multiples at the moment. Overall impact of the current geopolitical conflagration is yet to be determined, but the one thing for sure is it will continue driving production costs, inflation, and food prices up.
On the ground, paddy pricing remains strong despite what feels like weak demand—though actually isn’t. With the drought in S. America and the shorter crop in N. America, mills seem to be preparing for what could be a tighter year than the Western Hemisphere has seen in quite some time. Paddy exports remain strong, and despite not having fresh business from Iraq in the milled markets, processers are busy keeping up with demand that hasn’t slowed to a dangerous pace. It would appear that even though the market seems to be lulled to sleep at the moment, everyone is preparing for a bit more motion in the coming months.
Prices in Texas have remained unchanged, still holding strong at $15-$15.50/cwt. Louisiana is also holding steady in the $14.50/cwt range. Mississippi, when you can find supply, is in the same price range, perhaps just a bit higher than Louisiana at $14.75. Arkansas and Missouri follow suit in a similar price range, holding steady. This market is trading sideways, but there’s an undertone of expectation riding on the heels of a decreased supply in North America and severe drought in South America.
The weekly USDA Export Sales report shows net sales of 84,200 MT , which is up noticeably from the previous week, but down 25% from the prior 4-week average. Increases primarily for Mexico (53,700 MT), Haiti (15,200 MT, including decreases of 100 MT), El Salvador (6,000 MT, including 500 MT switched from Honduras), Costa Rica (5,000 MT), and Canada (2,400 MT), were offset by reductions for Honduras (1,500 MT). Exports of 116,800 MT--a marketing-year high--were up 87% from the previous week and 77% from the prior 4- week average. The destinations were primarily to Colombia (46,000 MT), Mexico (33,200 MT), Japan (13,400 MT), Haiti (7,100 MT), and El Salvador (5,500 MT).
The futures market shows an average daily volume of 1,808, an increase of nearly 70% from last week, while open interest has dwindled slightly, falling to 8,951, or 4% below last week. Mar ’22 prices bumped 1.39% to $15.12, while Jan ’23 prices bumped 2.04% up to $15.195.
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If you fail to enroll in the Agriculture Risk Coverage & Price Loss Coverage programs, you will be ineligible to receive a payment for the 2022 crop year should one trigger. Give USDA’s Farm Service Agency a call today. fsa.usda.gov/arc-plc
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The House Agriculture Committee announced a hearing next Tuesday, March 1st, to review the Commodity Title of the Farm Bill. Information may be found here.
The House and Senate were on recess this week after extending the continuing resolution to fund the government through March 11th. President Biden signed the CR into law on Friday, February 18th, as negotiations continue on an omnibus for FY 2022. Upon returning to session next week, House and Senate appropriators will have a busy week as developments in Ukraine have initiated calls for a supplemental spending bill by members of both parties, with the possibility of bill introduction happening as soon as next week. Details of the what the package would contain remain unclear as there is disagreement over the appropriate response to Russia’s actions. As appropriators already faced a tight deadline for an omnibus under the new CR, these events may further complicate progress.
Congressman Jim Hagedorn of Minnesota passed away last Thursday, February 17th, from kidney cancer. He served on House Ag Committee and was the Ranking Member of the Small Business Committee’s Underserved, Agricultural, and Rural Business Development Subcommittee. Elected officials expressed condolences at the news of his passing, including House Ag Chairman David Scott and Ranking Member GT Thompson.
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Former USRPA Government Relations Rep Retires | | |
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Food and Ag Regulatory and Policy Roundup | | |
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Post forecasts that Burmese rice exports will continue to rise in February in anticipation of regular demand from China through official channels, increased broken rice demand from EU countries, continued demand from regional countries, and a rebound in demand form African countries. Domestic prices for both Emata and Shwe Bo Pawsan in February will likely increase as there are less supplies entering the market and strong export demand.
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University of Missouri Extension Rice Meeting
8:30 a.m - 12:30 p.m.; The Gathering @ Versity Crossing, Dexter, MO
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RESCHEDULED
Missouri Rice Research & Merchandising Council Annual Meeting
The Gathering @ Versity Crossing, Dexter, MO
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34th Annual Arkansas Agricultural Hall of Fame Induction Luncheon: Embassy Suites, Little Rock, Arkansas – event details and tickets (RESCHEDULED) | |
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