The holidays have descended upon the U.S. rice market, resulting in relative calm in the pricing. Milled rice for Haitian shipments has been steady, while Iraq business is in the rearview. Domestic business is steady, and the Omicron variant of COVID isn’t expected to make significant impacts in the future food distribution to schools. The record yield of 7,756 lbs/acre, up over 130 lbs/acre from the previous forecast, is currently the best yield on record. This means that despite an enormous acreage reduction, only a 16% reduction in overall output is on record. However, millers are acutely aware that the yield has the potential to be offset by low milling yields, which may, unfortunately, be the case this year.

The market conditions in the Mercosur are certainly on the radar. Large unsold Brazilian inventories are having a ripple effect on its exporting neighbors as they approach closer to a new harvest. As a result, a significant volume of both paddy and milled rice from the Mercosur countries is expected to be sold into Central America and Mexico. New crop cutting will begin in Paraguay by January 2 and we are currently hearing prices of under $200/ton in origin. Lack of demand has caused price decreases in Argentina and Uruguay as well. Initial harvest is expected in northern Argentina in first days of January, Brazil by January 15 while Uruguay closer to early February. FOB prices range from $270-$305 depending on the location, variety, and quality. We will continue to monitor these and other related Western Hemisphere markets including the current tender for 83,000 tons in Costa Rica that is only for Mercosur origin rice.

The FAO Rice Price Update shows that the FAR Rice Price Index at 99.9 points in November, unchanged from last month, and 8% below last year. Medium grain rice is up 3.2% on account of the California drought, the highest since February 2015. The report also shows weakening prices for Indian rice because of the Kharif crop harvest, exerting additional downward pressure on prices.

Asian prices show Thai 100%B in the range of $385-390 pmt, closing the gap with Vietnamese at $410-$420 pmt. Pakistan is at $345-$355 pmt, while India is still in the range of $350-$360 pmt.

In the futures market, rice finished higher with a bullish technical reverals. Cash prices in Texas remain between $14.25 and $15.00 based on grade. Average daily volume was at 862, a 35% drop from last week. Open Interest was at 8,467, a 9% drop from last week.

Last week, the USDA Foreign Agricultural Service approved USRPA’s Market Access Program (MAP) funding for 2022, increasing the funding by approximately 15 percent year over year. MAP funding is integral to USRPA’s interaction with key rice markets around the world, allowing U.S. producers continue to export their rice into these markets.

“We appreciate the Foreign Agricultural Service’s continued support of our international marketing activities,” Marcela Garcia, President and CEO of US Rice Producers Association, said. “This year’s approval and increase in funding speaks to their confidence in our efforts.”

The US Rice Producers Association Board will hold their annual Winter Meeting next week in San Antonio, where they will discuss 2021 international marketing and promotion results, such as the CONSUME ARROZ USA campaign in Mexico, and plan activities for the new marketing year.  

House Agriculture Committee

On Wednesday, December 1, Congresswoman Shontel M. Brown (OH-11) was appointed to serve on the House Agriculture Committee after her nomination from the House Democratic Steering and Policy Committee was approved by the full Democratic Caucus. Congresswoman Brown represents northeast Ohio and was elected to Congress to fill the vacancy created when President Biden selected her predecessor, Congresswoman Marcia L. Fudge, to serve as Secretary of HUD.

“I am honored to be appointed to serve on committees that provide an opportunity to advance accountability and justice in government and use my voice to fight for working families in Northeast Ohio,” said Rep. Brown. “On the Agriculture Committee, I look forward to building upon the legacy of my friend and predecessor, HUD Secretary Marcia L. Fudge, by improving access to food for families and people in need. I am proud to continue in the tradition, stretching back to Shirley Chisholm, of Black women representing urban districts who have served on this Committee, as Speaker Pelosi acknowledged in introducing my appointment.”

Government Funding

With a looming December 3 midnight deadline imminent, the House was scheduled to pass an extension of the Continuing Resolution agreed to by House and Senate leadership. The agreement, H.R. 6119—Further Extending Government Act, is based on the previous CR and includes virtually no changes to existing funding or policy (anomalies) which is intended to build/continue political pressure for Congress to pass an Omnibus when the agreement expires on February 18. The agreement does include $7 Billion for Afghanistan evacuees. A description may be found here. The Senate is expected to expeditiously consider H.R. 6119, but House Members were advised that additional votes on legislation related to funding the government are possible in the House on Friday, December 3.

USRPA's digital campaign, "Eat Healthy Use Rice, Nutrition Guaranteed," has seen positive results in El Salvador. One of the objectives of the campaign is interaction with the public through the Facebook and Instagram accounts @arrozysalud, partnering with influencers who amplify our social media content. Followers actively engage on both pages, frequently commenting and sending in photos of the recipes they have made with rice.

Last Saturday, Chef Juan Miguel Salomón cooked delicious American white rice with garlic butter, clams, and white wine with the Salvadoran painter, Rafael Figueroa.

They had a very pleasant conversation and taught viewers how to make the recipe.

Campaign Nutritionist Rodrigo Valdivieso also recently took the opportunity to instruct the audience on how to add rice to their daily diet. This time he cooked rice balls mixed with cheese, tuna, and vegetables. In his posts, he educates the audience about the nutrition facts of each recipe.