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In This Issue:
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Market Update: Overall Good U.S. Crop Threatened by Unpredictable Weather
- Washington, D.C. Update
- South Louisiana Rice Mill Facility Now Operational, Provides Better Price to Farmers
- Photo from Rice Country
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Market Update: Overall Good U.S Crop Threatened by Unpredictable Weather | |
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With the crop planted and emergence on track, all eyes are now on the crop condition and weather. As of this week, 13% of the crop is in Excellent condition, which is 3% lower than last year. 54% of the crop is in Good condition, also 3% behind last year. 30% of the crop is in Fair condition, 4% more than last year, and only 3% of the crop is in Poor condition, 2% more than last year. All in all, good news so far, but weather systems in Arkansas look to threaten the outlook; right now 57% of rice in Arkansas is reported as Good/Excellent, and we may see that number drift closer to 50% if cold and wet conditions materialize and persist.
The recent USDA Grain report shows global rice production to be flat this year, as the larger Indian crop, on account of the increased second rabi crop, will be offset by reductions in Thailand and Cambodia. Consumption is expected to grow slightly, and global stocks have bumped as well on carryover from India’s record crop last year. The price graph below paints a clear picture of the global rice trade, where U.S. Long Grain FOB prices are in a class of their own—and that’s not technically a good thing. This is the reason that exports have been dismal all year, and the coming normal crop size this year is expected to change that.
We expect price convergence on all parts for the major exporters in the Western Hemisphere; that is to say, U.S. long grain prices will fall, and South American prices will rise. Production hiccups due to drought in some of the major exporting regions in South America have constricted exportable supply, so firming prices are in the future for this region. Brazil is down 7% year over year and Argentina is down 20% year over year, for an expected total supply reduction of approximately 5%. None of this will come to pass until close to harvest, while right now we wait on a stagnant paddy market and a quiet export market with tight supplies to blame. An upcoming tender in Panama for 68,000 tons paddy basis (August delivery) along with climate issues affecting the domestic crops and creating shortages in Ecuador and Peru are expected to influence the market.
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Source: USDA June 2023 Grain: World Markets and Trade
In Asia, prices for Viet and Thai rice have coalesced around the $500 pmt number. Both countries have the potential to see a slight firming in the coming weeks as demand remains strong from countries like the Philippines, Malaysia, and Indonesia to name a few. Indian prices have inched slightly upwards as well, resting comfortably at $455 pmt, or about 4% higher than three months ago.
The weekly USDA Export Sales report is another ugly one, showing net sales of 9,000 MT, which is down 21% from the previous week, but up 34% from the prior 4-week average. Exports of 41,200 MT were down 42% from the previous week and 9% from the prior 4-week average.
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House Appropriations Committee marks up Ag Appropriations Bill
On Wednesday, the full House Committee on Appropriations marked up the Agriculture, Rural Development, and Food and Drug Administration appropriations bill for fiscal year 2024. In a long and contentious hearing, Democrats focused discussion on how the bill impacts energy and nutrition programs. Republican talking points centered on upholding fiscal accountability and reigning in the Department of Agriculture’s authority to act without congressional approval. The bill passed out of committee on a party-line vote. It will now head to the House floor to be considered by the entire chamber. A recording of the markup can be found here.
Agriculture hearings this week
On Tuesday, the House Agriculture Committee held a hearing on rural development programs in the farm bill. A recording of the hearing can be found here.
On Wednesday, the House Agriculture Committee held a hearing on the research title of the farm bill. A recording of the hearing can be found here.
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South Louisiana Rice Mill Facility Now Operational, Provides Better Price to Farmers
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South Louisiana Rail Facility’s new rice mill is expected to make its mark on SWLA’s rice industry.
Rail facility secretary-treasurer, Kyle Todd, said milling helps out the farmers by making their products more profitable.
Click Here for the Full Story
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"Head's up in the south".Thank you Meredith Stoeeser for always sharing such great pictures!
Send us your rice country photos on Facebook, Instagram, or via email!
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Cornerstone
Trade Update
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Food and Ag Regulatory and Policy Roundup | | |
Grain: World
Markets & Trade
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World Agricultural Production | | |
World Rice Market Report- May 2023 n°231 | | |
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August 3, 2023
2023 Stuttgart Rice Field Day
Stuttgart, AR
More Information Coming Soon
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August 17, 2023
Missouri Rice Research & Merchandising Council
Annual Field Day
Glennonville, MO
More Information Coming Soon
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