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In This Issue:
- Market Update: Rice Market Full of Uncertainty
- Washington, D.C. Update: Trevino Withdraws Nomination; USRPA Meets with Congress & Agency Leaders in Washington
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Market Update: Rice Market Full of Uncertainty | |
As has been the case for several weeks now, the cash market throughout most of the delta was a bit stagnant this week, showing little signs of activity. It seems that most growers are more preoccupied with planting than marketing as the global grain complex becomes increasingly unstable. It seems clear that Putin severely underestimated the resolve of the Ukrainian people. Unfortunately, as a result, violence continues to escalate, and global grain security continues to deteriorate. Knowing input costs are soaring, and that they’ll probably continue to do so, growers around the world are forced to consider or even reconsider what and how to plant.
In Asia, rice prices jumped a couple of weeks ago with all the other grains, further reflecting the global inflation at hand. However, since then, prices appear to have stabilized, at least in Thailand and Vietnam. Meanwhile, Pakistan is undergoing a small price correction as demand for whole kernel thins. Fortunately, the slowing of head rice demand is being partially offset by the growing needs for brokens in China.
The US rice industry is just two weeks away from the USDA publishing its initial acre projections. Although the USDA is expected to overestimate California’s acreage, the agency should call for lower rice acres throughout the delta if their view is in line with the industry’s.
According to the latest exports sales data, US rice sales have averaged roughly 68,000 MT/week over the past month, up from 42,000 in the four weeks prior. It will be interesting to see how US rice exports react to El Salvador’s new policy regarding the suspension of rice tariffs for a year. The El Salvadorian government suspended tariffs on multiple products in an attempt stifle the dangerous rate of inflation the country is currently experiencing (6.7%). Keep in mind that this policy is not US specific and may result in more non-US rice entering the market, not to mention, the fact that other Central American countries struggling with a similar battle may consider the same action.
This may be first taste of what a fulfilled CAFTA-DR agreement looks like in this region. Fortunately, the US may find temporary market solace nearby, as South America rice acres come under pressure due to ongoing drought conditions and exorbitant fertilizer costs, inhibiting their ability to expand their market share in Central America.
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Trevino Withdraws Nomination
This week, Elaine Trevino announced that she would be withdrawing from the nomination process to be the next chief agricultural trade negotiator at the Office of the U.S. Trade Representative. Trevino’s withdrawal leaves one of the most significant agriculture trade positions without an official or a nominee in the confirmation process. While Trevino will not serve as chief agricultural negotiator, USDA is considering placing her in a senior position within the department.
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From left to right: Tommy Turner, USRPA Board Member; Daniel Whitley, USDA Foreign Agricultural Service Administrator; Alex Clark, USRPA Chairman; Marcela Garcia, USRPA President & CEO; and Mollie Buckler, USRPA Coordinator for Delta Producers Relations. | |
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USRPA Meets with Congress and Agency Leaders in Washington, D.C.
This week, the U.S. Rice Producers Association was in Washington, D.C. to discuss some of the issues affecting rice producers and outline priorities for the upcoming farm bill.
President and CEO, Marcela Garcia, and Chairman Alex Clark led the group to meetings with Daniel Whitley, Administrator of USDA’s Foreign Agriculture Service (FAS), FAS Deputy Administrator Mark Slupek, Deputy Under Secretary for Farm Production and Conservation (FPAC) Gloria Montano Greene, and the Office of the United States Trade Representative’s (USTR) office of Agricultural Affairs. The group also met with the House and Senate Agriculture Committees and Members of Congress representing strong rice-producing states.
During the meetings, USRPA encouraged reauthorization of the 2018 Farm Bill with improvements to the commodity safety net programs in which rice producers rely, labor reform that supports a strong and stable supply of willing and able farm workers, expanded support for Market Access Program (MAP) funding, and conscientious trade policy that supports rice farmers. USRPA also expressed concern over changes under Waters of the United States (WOTUS) and encouraged consideration of farmers’ interests in developing new tax policies and pesticide regulations.
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USRPA President & CEO Marcela Garcia and USRPA Board Member Tommy Turner met with Senators Ted Cruz (R-TX) and John Cornyn (R-TX), along with staff members from the offices of Congressman Michael Cloud (TX-27), Congressman Troy Nehls (TX-22), Congressman Brian Babin (TX-36), and Congressman Randy Weber (TX-14). | |
Representing Missouri, USRPA Chairman Alex Clark and Coordinator for Delta Producer Relations Mollie Buckler made the rounds to meet with the Missouri delegation, including Senator Roy Blunt (R-MO) and Congresswoman Vicky Hartzler (MO-4). They also met with staff members from the offices of Congressman Jason Smith (MO-8) and Senator Josh Hawley (R-MO). | |
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Food and Ag Regulatory and Policy Roundup | | | |
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Grain: World Markets and Trade
This monthly report includes data on U.S. and global trade, production, consumption and stocks, as well as analysis of developments affecting world trade in grains. Covers wheat, rice and coarse grains (corn, barley, sorghum, oats and rye).
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RiceTec Field Day (in-person), Harrisburg, Arkansas | |
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. | | | | |
