Despite the tropical system that has settled over much of the rice growing region, the industry has stayed the course over the past week and continues the slow progression to new crop.

Export sales were significantly lower this week than the previous report, largely due to order reductions and cancellations. This week’s numbers were actually a net negative after several significant tonnages were taken off of the books. Hopefully, this represents a one off for the year and is not perpetuated with any frequency. 

Vessel loadings were also down over the week. The limited quantity of old crop left in the system has made near term trading difficult as buyers are still trying to cover short term commitments until new crop is available. 

Asian benchmark pricing has appreciated over the week for similar reasons. The exchange rate matrix has been more favorable to US origins of recent date as the overseas competitors have narrowed the price gap and made domestic rice more competitive. As the global trade has tightened due to the coronavirus, USDA has raised its world market price estimate for the week. 

Domestically, new crop pricing is becoming more aggressive although the price discovery process is still in its infancy. Cash prices for early shipment are notably stronger than the deferred months due to the immediacy of near-term demand. The trade still anticipates a large crop for the year which if realized will take some of the pressure off of the near-term commitments. Strong export demand for new crop is also keeping the pressure on the industry which will ultimately lead to more aggressive marketing strategies from producers as the year progresses. 

Futures action for the week has also been an interesting study. After a strong run up to levels not seen in a decade or more, the nearby July contract finally broke to the downside and began to move toward convergence with the September contract. This contract has been an anomaly for some time as it has been characterized by lock limit moves on a daily basis, first as it appreciated into the $22 range, and then as it marched back into $14 territory toward the end of the week. The remaining contracts traded down as well with losses ranging from 0.46% to 5.24% respectively. 

Much of the decline in the futures market came as a result of the monthly WASDE report released on Thursday. The report itself was net bearish for rice. On the supply side, beginning stocks were increased by 1.5 million hundredweights, while the imports figure was also increased by 1 million hundredweights which together increased the total supply figure by 2.5 million hundredweights. Demand side revisions included an increase in the domestic use figure (2 million hundredweights) which was partially offset by a 1 million hundredweight decrease in projected exports. The net impact of the revisions was an increase in ending stocks by 1.5 million hundredweights with no change in the projected 2020/21 average farm price at $12.90 per hundredweight.

Both congressional committees with jurisdiction over matters involving trade will hold hearings on important trade issues next week. The U.S. House of Representatives Committee on Ways and Means announced it will hold a hearing next Wednesday June 17 to hear testimony from Ambassador Robert Lighthizer, the United States Trade Representative. In an advisory notice announcing the hearing, the Committee indicated the title of the hearing is “The 2020 Trade Policy Agenda,” and Ambassador Lighthizer will be the sole witness. Likewise, the Senate Committee on Finance will hold a hearing entitled, “The President’s 2020 Trade Policy Agenda” the same day at 3:00 PM, with Lighthizer testifying.

Members of the public may view the hearing via live webcast available at www.waysandmeans.house.gov starting at 10:00 AM ET on June 17 and at 3:00 ET at https://www.finance.senate.gov/hearings/the-presidents-2020-trade-policy-agenda.

There is no shortage of current events to discuss at the hearing, and commenters anticipate discussion of numerous trade topics. USMCA, with implementation set for July 1, will certainly be among topics discussed. Another matter grabbing headlines is the status of purchase commitments under the China Phase One economic agreement. The Trump Administration is also in the midst of trade negotiations with the United Kingdom in the wake of Brexit and initiating discussions with Kenya in anticipation of the first free trade agreement with a sub-Saharan African nation. Others expect discussion of the outlook for WTO reforms, including the replacement Director-General, among other items such as the prospect of mini-deals with Brazil and India, and renewal of preferential trade access under the Generalized System of Preferences. 

By Dr. M.O. Way, Prof. of Entomology, Texas AgriLife Research and Extension Ctr.

Well, we in Texas dodged Cristobal; I hope the rest of the southern rice belt fared as well too…Today I want to revisit the 38 ^th Rice Technical Working Group (RTWG) meeting held in Orange Beach, AL February 24-27, 2020. My last couple articles highlighted some of the awards passed out during this meeting. So, for this article, I want to recognize scientists receiving The Distinguished Rice Research and Education Team Award. This award was presented to Drs. Anna McClung, Melissa Jia, Yulin Jia, Robert Fjellstrom (deceased), Jeremy Edwards, Ming-Hsuan Chen, Christine Bergman and Bill Park. The award is based on the development of a wide range of genetic markers used by rice breeders across the US to select for disease resistance, rice cooking quality and other agronomic traits as well as a means of identifying red rice or the source of off-types in foundation seed supplies. The goal of the team is to modify, develop and deploy genomic technology specifically to help the US rice industry remain competitive in the world market.

Also, The Distinguished Service Award, which recognizes scientists for long term service to the US rice industry, was presented to Drs. Don Groth (Rice Pathologist LSU AgCenter), Kent McKenzie (Rice Breeder and Director, California Cooperative Rice Research Foundation), Karen Moldenhauer (Rice Breeder University of Arkansas) and yours truly. Dr. Jason Bond presented the awards to the recipients.

Left to right; Drs. Yulin Jia, Melissa Jia, Jeremy Edwards, Anna McClung, Christine Bergman and Ming Hsuan Chen

Photos by: Kenner Patton

USRPA and ARROZGUA have taken the in person demonstrations and are now expanding the social marketing campaign to bring a wealth of information to the consumer directly to their hands. The Social Media campaign has been very active all through April and May, sharing rice cooking tips, recipes, and even the benefits of using rice in your health and beauty routines!

USA Arroz has expanded this month from simple posts and videos to now including a live, interactive virtual cooking course where attendees can follow along for free on Zoom. The classes are being shared via social media, primarily though Facebook. The chefs demonstrate several recipes featuring U.S. grown rice, emphasizing its nutritional information and how easy it is to incorporate into your daily diet, using ingredients you already have in your kitchen, along with helpful tips and modifications.

The first webinar published earlier this afternoon received great feedback and participants are able to access the recipes on the Facebook Fan Page of USA Arroz, which has more than doubled its followers in the past few months.