Volume 17, Issue 29
July 23, 2020
In This Issue:
  • Gulf Coast Harvest Running Full Ahead of Approaching Tropical Depression
  • Washington DC Update: FY 2021 Appropriations
  • Texas A&M's AgriLife Extension's First Virtual Field Day
Gulf Coast Harvest Running Full Ahead of Approaching Tropical Depression
Although rice harvest has begun in the lower delta, the data has yet to make it to the weekly crop progress USDA reports. This week’s rain in south Louisiana and the weather event expected to move thru Texas’s rice growing region won’t help that either. Harvest is just barely underway in these states, and so far the field yields look good, and what’s been milled also looks positive. Price discovery is in its early stages and will improve as more harvest data becomes available. For now, prices remain mixed, with Texas prices down slightly while Arkansas and Missouri prices slightly up from last week. Unless the aforementioned weather systems result in heavier than expected rainfall and wind, the crop should come thru it unscathed. However, if the storms are worse than predicted, and yields are dampened as a result, buyers may be tempted to pick up a few more lots which may result in some price action.

The crop progress report painted a favorable picture for several states, as rice headed was generally above their 5-year averages for this time of year. Unfortunately, the largest rice growing state in the country, Arkansas, was recorded at only 10%, down 20% from the historical average.

At the beginning of July, total export demand for US long grain rice was down 6.75% year to date, and now the latest export sales report cites total demand to be down 9.45% YTD. This slowing of export business falls in line with industry expectations as sellable supplies all but dried up later in the season. Continuing the trend, net sales for the week were down again this week (30%).

Overall, it was a relatively quiet week for rice worldwide. Planting continues to progress throughout Asia, and it appears that India is working on a record sized crop which is benefiting from favorable monsoon conditions. While demand hasn’t been overly attractive recently, most of the trade expects to see a surge from Bangladesh, China, and other destinations. Export prices in Asia were a bit mixed this week, as was the case last week. Thai 100% B prices bumped $5 per ton to $470 FOB. Meanwhile, Vietnam and Myanmar pricing were unchanged, quoted at $465 and $440, respectively.

Futures weren’t too exciting this week with the nearby contract only improving 6 ½ cents from last week. Volume fell by 26% but open interest was basically flat. Surprising to some, further out futures contracts appreciated more than the nearby which were up between 13 ½ to 14 cents per cwt.
Rice farmer, Johnny Colvin in Brookshire, Texas is harvesting RiceTec's Full Page variety this week.
Washington DC Update: FY 2021 Appropriations
The House is currently considering the FY 2020 Agriculture Appropriations bill as part of a four-bill, $259.5 billion spending package that includes Agriculture-FDA, Interior-Environment, Military Construction-VA, and State-Foreign Operations. On Wednesday, the House Rules Committee approved 132 amendments for debate.

The Agriculture Appropriations bill funds important food and agriculture programs that support animal health programs, agricultural trade, nutrition programs, and rural development. Total discretionary funding in the legislation is $23.98 billion, an increase of $487 million above the FY 2020 enacted level. In total, the bill allows for $153 billion in both discretionary and mandatory funding, an increase of $331 million above the FY 2020 enacted level.

The House began consider of the minibus, H.R. 7608, on Thursday morning with the goal of passing it by Friday afternoon.
The 2020 hurricane season has begun, and many experts have predicted above-normal activity this year. USDA is ready to help you during this hurricane season. 
Texas A&M's AgriLife Extension's First Virtual Field Day
As confirmed cases of COVID-19 have surged through the country and Texas being identified as a hot-spot in recent news, Texas AgriLife Extension Agents faced the difficult task of how to best serve farmers who have come to expect a great program through annual field days yet maintaining safety standards for farmers and staff. On July 9, Texas AgriLife hosted their first Virtual Rice Field Day with 112 people registering to attend. Feedback has been positive and the YouTube link to the Virtual Rice Field Day has now been made available: https://youtu.be/RToqxj-kJQg
This video will soon be posted to the Beaumont Rice Research Station Website, along with other videos of rice research that has been conducted in Texas in 2020. That website is http://beaumont.tamu.edu
As we are all learning to live our new normal we applaud the efforts by the different organizations that support our rice farming communities to continue to innovate and provide resources for those that feed our country and the world.
Upcoming Events
August 5, 2020
University of Arkansas Row Crops Field Day
Northeast Research & Extension Center
1241 W. County Road 780, Keiser, Arkansas – check back later for more information.

August 7, 2020
University of Arkansas Rice Field Day
Rice Research & Extension Center, Stuttgart, Arkansas – check back later for more information.

August 20, 2020
Missouri Rice Research and Merchandising Council Field Day
More Information Coming Soon.
Food & Ag Regulatory and Policy Roundup
Legislative Update
Rice planting is proceeding as anticipated and there are no COVID-19 related planting delays. Locust attacks so far have not resulted in significant damage to the rice crop. Pakistan’s rice exports forecast for MY 19/20 remains unchanged at 4.4 MMT. Strict lockdowns imposed by the Indian government is benefiting Pakistan’s Basmati rice exports, especially to the Middle East. Pakistan is also expected to gain from increased international demand due to COVID-19.
The MY 2020/21 paddy rice area estimate is 97,000 ha with production forecast at 882,000 MT, down three percent compared to MY 2019/20. The lower production numbers are due to a decrease in planting area, especially in the Thrace region, after a winter drought leading to low water levels of key dams used for irrigation. Rice planting finished in May 2020. So far, paddy germination and plant development are favorable throughout Turkey.
Arkansas Rice Update

It includes information on progress, rice stink bugs, potassium deficiency, more on foliar vs. soil-applied nitrogen fertilizers, disease update, and rice markets.

25722 Kingsland Blvd.
Suite 203
Katy, TX 77494
p. (713) 974-7423
f. (713) 974-7696
e. info@usriceproducers.com
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