Volume 19, Issue 23

June 17, 2022

In This Issue:

  • Market Update: U.S. Market Quiet, Crop in the Field Progressing Well 
  • USDA Reminds Producers to File Crop Acreage Reports
  • Washington, D.C. Update

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Market Update: U.S. Market Quiet, Crop in the Field Progressing Well

The good news is that the crop is progressing well it looks solid across all regions. Producers can take solace in that fact after a bumpy planting season plagued with volatile prices and uncooperative weather. Now that the crop is in the ground, the exporters and marketers are left to deal with an extremely difficult market environment. Export sales reports in recent weeks have been dismal, and while this week is better than previous, it is unlikely to be a new trend. Iraq has found its trading partner in Thailand for milled rice. With prices of U.S. Long Grain far outpacing that of the competition, there is not an easy path forward in the near term.

On the ground, new crop bids in Texas still lead the way at $17/cwt, but they are all out of old crop, so new sales won’t surface until we get closer to harvest. Louisiana is indicating bids of $16.67/cwt but doesn’t seem to be attracting much attention at this point in time from sellers. Mississippi is still struggling through planting in some regions, and old crop is all gone. Bids are expected to be in the $16.75/17.50 range. The crop in Arkansas is looking solid, notching 24% excellent and 55% good, which is higher than normal. Missouri is in a similar situation.

In Asia, prices held firm in Vietnam at $425 pmt, while they softened a bit in Thailand largely based on currency fluctuations. Indian rice continues to be the lowest at $350 pmt, and their exports outpace all others.

All in all, the market is relatively quiet despite the wild fluctuations in the stock market and interest rates. The value of the dollar could have a significant impact on the price of the coming crop, as well as its exportability based on currency fluctuations at harvest. Because the price is currently so high, stocks have the potential to build beyond expectation, which could result in more competitive pricing in the months ahead as the crop progress becomes clearer.

The futures market is likely reflecting the slow milled, barge, and paddy business right now. Average daily volume was 4,379, up 75% from last week, and Open Interest was 9,753, down 10% from last week.

The USDA Export Sales report shows net sales of 78,400 MT which is up noticeably from the previous week and from the prior 4-week average. Increases primarily for Mexico (24,400 MT), Haiti (22,400 MT, including decreases of 100 MT), Colombia (17,700 MT, including decreases of 100 MT), Panama (9,900 MT), and Canada (2,500 MT), were offset by reductions for Saudi Arabia (900 MT). Exports of 103,800 MT were up noticeably from the previous week and from the prior 4-week average. The destinations were primarily to Mexico (27,000 MT), Colombia (26,900 MT), Japan (12,100 MT), Panama (9,900 MT), and Nicaragua (9,500 MT).

USDA Reminds Producers to File Crop Acreage Reports

Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local Farm Service Agency (FSA) service center before the applicable deadline. July 15 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Producers should make an appointment as soon as possible to avoid missing earlier deadlines.

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Washington, D.C. Update

House Appropriations Subcommittee marks up FY23 bill

On Tuesday, the House Appropriations released text for the FY 2023 Agriculture-Rural Development. The bill included $27.2 billion in total spending, an 8% increase from FY 2022. On Wednesday, the bill went before the Agriculture Appropriations Subcommittee for markup where the bill was approved on a voice vote. Full committee markup is scheduled for June 23. The text of the House agriculture appropriations bill can be found here.

House Agriculture Committee adds new member

This week, House Agriculture Committee Chairman David Scott announced Rep. Sharice Davids would be joining the Committee. Rep. Davids is a Democrat representing Kansas City and northeastern Kansas who also serves on the House Committees on Small Business and Transportation and Infrastructure.

Agriculture Committees prepare for 2023 Farm Bill

Last week, the House Agriculture Committee held a hearing to discuss Title I commodity and Title XI crop insurance programs within the Farm Bill. During the hearing, Rep. Crawford (R-AR) voiced his concerns about how the farm safety net, particularly Price Loss Coverage (PLC), is not adequately working for rice producers. He noted that rice farmers are not seeing the increases in market prices as other commodities while still experiencing increased input costs. Rep. Crawford asked Dr. Joe Outlaw from Texas A&M University for an update on the study requested by Sen. John Boozman (R-AR) and Rep. Julia Letlow (R-LA). Dr. Outlaw responded that an analysis of the requested study showed that the only farms that will not see cash flow this year are rice farms. Dr. Outlaw stated that he expects two-thirds of rice farms to not see cash flow. He equated the problem to distortions from other countries and strongly advised Congress to specifically help rice farmers starting this year. Rep. Crawford noted that the U.S. rice industry relies heavily on foreign markets to move U.S. rice and asked what can be done to enhance exports. Dr. Outlaw stated the most critical action needed to be taken is to hold other countries accountable for what they have agreed to in trade negotiations. Additionally, Dr. Outlaw advocated for more Congressional assistance targeted towards rice producers. When asked what form that assistance would take, Dr. Outlaw suggested indexing production costs. He stated that the government has spent large amounts of money on the Coronavirus Food Assistance Program (CFAP) and the Market Facilitation Program (MFP) for losses that were likely to occur but didn’t materialize. Conversely in this situation, Dr. Outlaw stated the rice losses are certain to occur. He suggested the government use CFAP formulas and adjust them to deliver funds to rice producers.  

The House Agriculture Committee announced it would hold a listening session at Central Arizona College on June 25 to discuss the 2023 Farm Bill. In the Senate, the Agriculture Committee held a field hearing on Friday in Jonesboro, Arkansas, to receive stakeholder input as it prepares for the upcoming Farm Bill.

Reps. McCarthy and Thompson send President Biden letter on agricultural production barriers

House Minority Leader Kevin McCarthy (R-CA) and House Agriculture Committee Ranking Member GT Thompson (R-PA) sent a letter to President Biden calling for an end to regulations and policies harming agricultural producers. The letter recommended addressing input costs, halting changes to WOTUS, ensuring the EPA focuses on sound science, and terminating climate rules. The letter can be found here.

House advances agriculture bill

This afternoon the full House of Representatives passed the H.R. 7606, the Lower Food and Fuel Cost Act. The legislative package is the Meat and Poultry Special Investigator Act, which would establish an “Office of the Special Investigator for Competition Matters” at USDA. The vote was largely on party lines, 221-204, with a few crossover votes on both sides of the aisle.


The legislative package includes the Meat and Poultry Special Investigator Act, which would establish an “Office of the Special Investigator for Competition Matters” at USDA. In addition to the Special Investigator, the bill includes additional nutrient management assistance, permanent waver for the sale of E15 fuels, and significant investments into biofuels infrastructure.


Additionally, the Senate Agriculture Committee has noticed a markup for both the Senate companion to the Special Investigator and the Fischer-Grassley bill next Wednesday.

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Cornerstone Trade Update

June 17, 2022
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Food and Ag Regulatory and Policy Roundup

June 13, 2022

Grain: World Markets & Trade

Global rice production is forecast higher with improved yields for India and Peru. Global consumption is also up with increases for India and Brazil.

Current Report

World Agricultural Production

Including Dominican Republic Rice: MY 2021/22 Record Production Expected

Current Report

USDA Economic Research Service:

Rice Outlook: June 2022

U.S. 2022/23 Rice Exports Projected To Drop 2 Percent 

Current Report


Monthly Report No. 219

June 2022

Arkansas Rice Updates

from the

Arkansas Row Crops Blog

Latest Report
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Latest Report

Upcoming Events

June 28, 2022

TAMU AgriLife 47th Annual Rice Field Day, Eagle Lake, Texas

July 14, 2022

Texas A&M AgriLife Research Center 74th Annual Rice Field Day Tour & Program, Beaumont, Texas

August 11, 2022

RiceTec Field Day (in-person), Harrisburg, Arkansas

August 23, 2022

Missouri Rice Research & Merchandising Council Field Day,

Glennonville, Missouri


25722 Kingsland Blvd., Suite 203

Katy, TX 77494

p. (713) 974-7423

f. (713) 974-7696


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