Volume 17, Issue 37
September 17, 2020
In This Issue:
  • Port of Lake Charles to Resume Rough Rice Shipments
  • Prospect for China's Rice Harvest are Positive Despite Flooding and COVID-19
  • Washington DC Update
  • Texas Rice Update
Port of Lake Charles to Resume Rough Rice Shipments
While the cleaning up and repairs from the devastation of Hurricane Laura continues, progress is still being made which will enable rough rice and milled rice vessel loadings in October. The bulk terminal experienced minimum damage and is expected to be operational for the first half of October. The first of two vessels (30,000 tons each) of rough rice sold to Brazil are scheduled for October. The second one in November. 

Milled rice for a USDA tender is currently in the bagged warehouse ready to load as that facility reported no damage. Much of the delay was due to the cleaning of excessive debris in the ship channel itself to allow vessel movement into the port.

Congratulations to Louisiana Governor John Bel Edwards and state officials with this important effort to keep the food supply chain moving. 

It continues to be an interesting time in the rice industry as the weather won’t cooperate and the market won’t either. Conflicting reports continue to be issued in the aftermath of the recent hurricanes that have impacted the Northern Gulf Coast and the extent of the damage will probably not be completely known for several weeks. Southwest Louisiana seems to have gotten a large part of their infrastructure put back together but the newest weather installment that is currently impacting Alabama and parts of Mississippi has yet to be analyzed. 

In the export market, Asian pricing has pulled back ever so slightly among the benchmark origins, with minimal changes in the underlying currency values. This leads the market to speculate that the supply/demand matrix in that part of the world is not as tight as has been seen over the past week or two. Export sales have surged over last week’s volume and is getting close to levels seen several weeks ago. Vessel loadings are reporting similar numbers and increases which underscores the belief that buyers are working against short term inventory needs in anticipation of falling cash prices closer to the harvest in the Upper Delta. 

USDA held its world market price estimate unchanged for the week. Domestically, the Texas and Louisiana first crop harvest has drawn to a close. Milling yields are lower than optimal, especially given the favorable conditions of the growing season. Mississippi and Southeast Arkansas are getting harvest underway and preliminary reports indicate that quality is holding up in that area at acceptable levels. The Upper Delta is in the early stages of harvest and no significant data has been reported at this time. The futures market for the week reported net losses for the open contracts on the board, largely a result of external forces in the soybean/corn/wheat futures complex. Daily volume and open interest both closed the week at higher levels than the previous report. 

Last Friday, USDA released its September WASDE report with a few surprises for rice. On the supply side of the balance sheet, all rice beginning stocks were lowered while production, imports, and domestic use were increased. On the demand side, exports were increased by 1.6 million which was not enough to offset the supply side adjustments. The net result was an ending stock increase of 1.6 million hundredweights and a decrease in season average farm price by $0.10.  
Rough rice loading in the Port of Lake Charles is scheduled to resume in October.
Prospect for China's Rice Harvest are Positive Despite Flooding and COVID-19
Even though China’s severe flooding in the Yangtze region and the ensued structure damage to its Three Gorges Dam has made international news, official statistics released indicate that China continues to the have a bumper crop. Floods affected only 5% of fields which mostly contain Indica rice and only 1% of fields were destroyed. However, China had expanded the planted area by 6.8%, more than offsetting the field damage. 

Meanwhile in the northwest region, responsible for 70% of China’s grain output including rice, prospects are looking positive. Typically, harvest in this region begins anywhere from October to November. In September, USDA’s World Agricultural Production report's estimate for rice production of China remains unchanged from previous month with 147 million metric tons. 

Milled rice imports for China are estimated at 2.55 MMT, while milled rice exports are estimated at 2.75 MMT.
Trump and Biden: What solutions do they bring to ag?
Sep 11, 2020
Presidential candidates offer their stance on 10 agriculture issues, including food security, trade, renewable fuels, regulations and more.
Washington DC Update
Rumors are rampant and expectations are imminent that CFAP 2.0 is on the way with more details to be announced soon. Last month Secretary Perdue announced that the rules for CFAP would be announced in September and rumors this week said it would be announced Wednesday or Friday. 

With the fiscal year ending September 30th and appropriation legislation left unfinished a CR is being developed that will ensure government funding through the election. The actual end date is subject to negotiation with a December end date and February end date being considered. Democrats are pushing for a February end date to delay spending decisions into a new Congress which may include a new administration. It is unlikely that Republicans in the Senate would agree to that timeframe so a December end date is expected.

Of course, what is included in a CR is also being negotiated. USRPA supported efforts to reimburse the Commodity Credit Corporation (CCC) in order to provide the U.S. Department of Agriculture (USDA) with the resources necessary to continue programs integral to the farm safety net such as Agriculture Risk Coverage, Price Loss Coverage, Dairy Margin Coverage, Marketing Assistance Loans, conservation programs, and many others. Without immediate CCC reimbursement, payments and programs would be significantly delayed.
Texas Rice Update
By: Dr. M.O. Way, Prof. of Entomology, Texas AgriLife Research and Extension Center

I know some of you rice farmers also grow soybeans which can be an excellent choice for rotation with rice. I also know soybeans can be a risky crop for Southeast Texas farmers. Our unpredictable weather (sometimes heavy rains at planting and near harvest and drought conditions during podfill) frequently is not conducive to soybean production. But this year, at least east of Houston, weather has so far cooperated. That being said, one of my responsibilities as an entomologist in Southeast Texas is to provide management guidelines for insects attacking soybeans. This year, my project is evaluating novel insecticides for control of the array of insects damaging soybeans. I scout my plots for insects and then apply treatments when populations reach a certain threshold. I emphasize “scout” which is crucial to successful soybean production in Southeast Texas. Our warm, humid climate and long growing season are perfect for rapid build-up of pest populations. Case in point occurred this year in my soybean research plots. Soybeans were R4 (very susceptible stage to insect attack) when I began collecting by sweep net a few Lepidoptera larvae…mainly green cloverworm. At this time, defoliation was probably no more than 1-5%...no big deal. But within a matter of days, populations skyrocketed resulting in close to 20% defoliation which triggered application of the treatment insecticides. My research plots are in a 4-acre field of CZ6020X soybeans. The untreated research plots and the rest of the soybean field are completely defoliated now. Many years ago, I inspected a field of soybeans in Jefferson Co. The crop had good yield potential, but the farmer went on a short fishing trip in September when defoliator densities increased explosively resulting in “soybean sticks” with no foliage upon his return. The soybeans were at podfill when the attack occurred, so the farmer lost his entire crop…pods did not fill.

So, the take home message: scout your crop (rice, soybeans, sorghum etc.) frequently and thoroughly because insect populations can increase quickly in Southeast Texas. I know you farmers are up to your necks in daily farming operations. This is where a private crop consultant can take the guesswork and worry off your shoulders…

Here is the link to a bulletin Managing Soybean Insects in Texas https://extensionentomology.tamu.edu/files/2017/06/J35419-TAMU-Managing-Soybean-Insects-1.pdf
Green cloverworm larva
(photo by Mo Way)
Sweep net full of defoliator larvae and redbanded stink bug nymph
(photo by Mo Way)
Untreated soybeans damaged by defoliator larvae (photo by Mo Way)
Irrigation timers: Saving time, money and groundwater
Alaina Dismukes | Sep 13, 2020
A project using irrigation timers on Arkansas rice farms shows how timer-switches not only save groundwater, but they also save farmers time and money.
Upcoming Events
October 21-22, 2020
RMTC Virtual Networking Days
More information coming soon
Cornerstone
Trade Update
COVID-19
Legislative Update
The August 2020 Rice Outlook Report contains the latest U.S. and global supply, use, and price estimates and projections from USDA's World Agricultural Supply and Demand Estimates report.
Over One Third Of 2020 Net Farm Income Is Expected To Be Government Payments
Arkansas Rice Update

It includes information on progress, preliminary yield data, measuring harvest loss, false smut and rice market updates.




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