Volume 18, Issue 25

June 25, 2021

Visit www.ralstonfamilyfarms.com to learn more about the varieties and the uniqueness of Ralston Family Farms.

On June 23, 2021, President Joe Biden announced his intent to nominate Homer Wilkes for Under Secretary for Natural Resources and the Environment, Department of Agriculture.

Dr. Homer Wilkes, a native of Port Gibson, Mississippi, currently serves as Director of Gulf of Mexico Ecosystem Restoration Team. He is one of the five Federal Executive Council members to oversee the rebuilding of the Ecosystem of the Gulf of Mexico after the BP Oil Spill of 2010. He served as the Acting Associate Chief of USDA/Natural Resources Conservation Service (NRCS) in Washington during the period of 2010 to 2012. Dr. Wilkes' tenure with the United States Department of Agriculture spans over 41 years. During his tenure he has served as State Conservationist for Mississippi; Chief Financial Officer for NRCS in Washington, DC; Deputy State Conservationist for Mississippi; and Chief of Administrative Staff for the South Technical Center for NRCS in Fort Worth, Texas.

Dr. Wilkes also served as Naval Supply Officer in the United States Navy Reserves from November 1984 to April 2007. Dr. Wilkes received his Bachelors, Master of Business Administration, and Ph.D. in Urban Higher Education from Jackson State University. He also successfully completed the USDA Senior Executive Service Candidate Development Program (SES CDP) through American University’s Key Executive Leadership Certificate in Public Policy. Dr. Wilkes and his wife Kim, currently reside in Ridgeland, MS. They have three sons, Justin, Austin, and Harrison. He enjoys fishing, restoring antique vehicles, and family activities.

On June 18, 2021, President Joe Biden nominated Xochitl Torres Small for Under Secretary of Rural Development, Department of Agriculture. Xochitl Torres Small is the granddaughter of migrant farmworkers and grew up in the borderlands of New Mexico. In 2008, she came home from college to work as a field organizer, working in neighborhoods known as colonias, in southern New Mexico. She served as a field representative for New Mexico’s Senator Tom Udall, where she collaborated with local grassroots leaders, business owners, elected officials, and regional and state economic development officials to help communities access American Recovery and Reinvestment Act funds. Torres Small studied water law and has worked closely with rural water utilities. In 2018, Torres Small became the first woman and first person of color to represent New Mexico’s second congressional district, the largest district that isn’t its own state. Torres Small served as the U.S. Representative for New Mexico’s 2^nd congressional district in the 116th Congress. Torres Small was defeated in 2020 by Yvette Herrell.

Although there are a few cash bids surfacing, the cash market is still considered extremely quiet. Because the bids that are surfacing vary significantly, it appears that mills are offering more for price discovery purposes than for actual demand. 

Rainfall throughout much of the delta proved relentless this week as did cooler temperatures and windier conditions. For these reasons, crop growth has drastically slowed. In addition to potentially lower yields brought on by cooler temperatures and wind, many growers believe that even the later planted rice may fail and not be brought to full production. This could ultimately make the projected small crop even smaller. 

Last week, the futures market appeared to be establishing some sort of a downward trend as prices ebbed lower and both open interest and volume were up. This week, however, the market reacted to the negative weather by forming a temporary, albeit sharp, reversal as the nearby contract gained over $1 per cwt against last week. Because open interest and volume are both decidedly down and prices are up, the market will likely remain inflated until the shorts get covered. Once that happens, rough rice contracts are probable to drive lower again. 

In Asia, ongoing container shortages and excessive shipping rates have subdued trade to some degree this week, which ultimately drove prices lower in several key exporting countries. India’s total rice export value is nearly twice what it was a year ago on account of rock bottom pricing and a strong appetite in Africa. African importers have recently signaled a slowing of demand until freight rates can normalize which may leave India with additional product to sell. Despite this development, most traders don’t suspect Indian exporters to suppress prices any further in the immediate future. 

Next week, the USDA will release its stocks report, showing rice in all positions as of June 1^st. In addition to the stocks report, the USDA will also release its updated June acre report. Although California’s acres will be heavily reduced from the initial estimate, the impact on the market will be minimal since the industry has already reached a consensus on planted area. For long-grain however, the industry is hopeful that the USDA will shave their projection, bringing it more in line with reality.