Harvest is near complete in all regions, with early milling yields in the mid-South looking positive. Reports so far show a 1.5-2lb increase on head rice when compared to last year. On the Gulf Coast however, things are a bit different with initial millings looking to be down 1-1.5 lbs on head rice. Reports indicate that hybrids in Texas have been off from historical norms on the head and total, while conventional varieties are coming in normal so far. US long grain millings since August are down 18% against last year which means the industry has to get a firm handle on average milling yields.  It is a similar story in California, where early reports show head and totals all over the board. But with only a small percentage of the California crop having been graded, there is much to be discovered here.

The 113,000 MT of rough rice that the US sold to Brazil can’t get there fast enough. But with the Port of Lake Charles still in recovery-mode after the hurricanes, things are still moving slower than normal. The US is expected to sell one more shipment to Brazil before the country has its needs met. Ultimately, Brazil was projected to import up to 500,000 MT this year, most of which came from Paraguay and the US. US rice exporters are now looking to Mexico where sales are expected to ramp up in the coming weeks. In fact, there are several sales currently in the works to Mexico, which should hit books in the near future.  There seems to be a high level of confidence among shippers that Mexico will return to a normal pace as we move thru the marketing year. 

The cash market in Louisiana is still getting its legs back after hurricane Delta. Rice is trading at $12.35/cwt fob farm where available. In Texas, it’s flat with last week at $13.09/cwt. Mississippi and Missouri, where harvest is still in its final stages, shows bids at $12.15/cwt delivered in Mississippi, and no bids yet in Missouri. Arkansas is all but finished with harvest, and with light domestic demand on account of COVID has prices softening a little bit from $12.55 last week to $12.22 this week.

Export sales posted positive net sales of 60,900 metric tons for last week. Long Grain accounted for 2/3 of the business, with rough rice going to Colombia (15,900 tons), Guatemala (10,000 tons) Mexico (2,000 tons), and Honduras (600 tons). The balance of the long grain was brown or milled and went to Canada, Colombia and Taiwan. Medium and Short Grain sales accounted for 20,000 tons moving to Japan (13,000 tons), Jordan (4,000 tons), and Saudi Arabia (3,000 tons). Exports were strong at 84,600 metric tons, with nearly half of that being long grain rough rice to Mexico. There was also significant loadings to Haiti, Canada, and medium grain to South Korea.

In Asia, prices continue to slip, specifically in Thailand where it is now $452 MT for 100%B. These levels are nearly $50 MT below Vietnam, and doesn’t seem to be sustainable. India continues to be low-price leader at $350 MT. The market here is slow, and the price is reflecting the sluggish demand that is most likely COVID related.

Futures remained fairly quiet on the short week. November open interest has been transitioning into January, and the nearby has dropped, which may result in profit taking from technical traders. Average daily volume was 2,081, and Open Interest at 10,135.

US Rice Producers Association continues its efforts to enhance American long grain rice consumption in Mexico, this time with a program intended to create a gastronomic training experience by engaging consumers with professional chefs.

USRPA has been conducting cooking lessons through Facebook Live with the collaboration of Professional Chef Valeria Ochoa, teaching how to prepare delicious recipes with American long grain rice and constantly interacting with the viewers, solving their questions and advising them on different ways to include rice in their family’s diet. From a Rice with Chili to a Rice Pizza, USRPA followers have been learning amazing recipes to vary their rice consumption.

This series of lessons has been supported by USDA through the Agricultural Trade Office in Monterrey, Nuevo Leon. Director of ATO Monterrey and Luis Chavez, Marketing Specialist for ATO, stated his satisfaction with the current results and requested some of his favorite recipes to be included in the lessons.

The program will continue to perform for the rest of the year and will feature Professional Chef Melissa Morelos, finalist of Master Chef cooking contest and US Rice Producers Association’s ambassador in Mexico, who will teach traditional American recipes for the most demanding tastes. 

Harvest in Heilongjiang Province is currently underway for medium grain rice. The province is in northeast China and accounts for 6 million tons of Chinese medium grain production and is known for growing award-winning medium grain varieties, including Wuchang and Yanshou. Rice from the region is famous for its stickiness, sweet after taste and unique cooking properties thanks to its unique geographical location which provides a significant difference in day and night temperature and unpolluted soil.

The region from Ha’erbin all the way to Jiamusi has suffered 3 hurricanes this summer, causing lodging of soybeans and corn, while the majority of the rice crop survived.  Typically, harvest in the region is completed in early October, unfortunately, recent wet weather resulted in a slower than normal harvest. Due to continuous rains, combines and machinery were not able to go into the fields, therefore most of the crop is dependent on labor harvesting, delaying harvest by another month.

USRPA has developed a friendship with the rice industry in the Heilongjiang Province and welcomes the opportunity to visit with members and allied industry in the region for future trade missions with China.