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In This Issue:
- Market Update: Iraq Completes MOU Purchase, U.S. Imports at All-Time High
- USRPA Continues with In-Person Activities in Guatemala throughout 2022
- Photos from Rice Country
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Market Update: Iraq Completes MOU Purchase, U.S. Imports at All-Time High | It is encouraging to see Iraq hold up to its end of the MOU with the U.S. despite prices being nearly double that of competing origins. Iraq has confirmed that they will complete their MOU with the United States and have purchased an additional 44,000 mt of US long grain milled rice with scheduled delivery in November. This will help stabilize the milling schedule in Arkansas, but the announcement of the business wasn’t enough to put upward pressure on the futures market after last week’s supply and demand report. Stocks for long grain bumped 500,000 cwt, production bumped 400,000 cwt, and ending stocks jumped by 1.8 million cwt. The announcement of the Iraqi business came at a perfect time to balance out these supply-side increases. The USDA’s July Rice Outlook raised its 2021/22 import forecast to a staggering 38.5 million cwt. That is a 13% increase in a year. Long grain increased 15% to 31.5 million. This puts imports at 30% of the U.S. domestic consumption. This is not what U.S. farmers like to hear. |  | |
On the ground, Louisiana has passed the halfway point in harvest, with qualities looking good at this point. The market is liquid in the $17.30/cwt range, but most of the focus remains on cutting. Harvest is a bit more of a struggle in Texas, where rain and wind have created problems. Several hybrid lots to date have had poor milling quality, which garnered $10 premiums, resulting in total prices below $17/cwt. Conventionals have performed better thus far, with premiums closer to $11.50/cwt. Mississippi is looking good despite their concerns earlier in the year, with 87% of the crop noted in fair to good condition, and most of the harvest expected to be complete in September. Arkansas is in a similar spot, with harvest expected to begin in September, where 17% of the crop is rated as excellent, and the remaining balance is in good to fair condition.
In Asia, prices are holding steady in Thailand after a few weeks of volatility; the price remains at $430 pmt. Iraq continues to be an active buyer there, and Thailand has been their supplier of choice for much of this year. Vietnam is significantly cheaper at $395 pmt, with the Philippines being their primary customer and exceeding all expectations at this point, as the Philippines appear to exceed the 3 million metric ton mark. India remains the lowest at $355 pmt, with the news of a potentially light monsoon not having any impact on prices at this point. Pakistan is registering at $370 pmt with its record crop of 9 million metric tons.
The Reconciliation Package that Congress passed includes approximately $18 billion for the USDA conservation programs, with a directive to “mitigate or address climate change through the management of agricultural production.” This will be broken down into our buckets, which include Environmental Quality Incentives Program, Regional Conservation Partnership Program, Conservation Stewardship Program, and the Agricultural Conservation Easement Program.
The futures market has remained relatively flat as harvest has gotten underway. Open interest this week is at 8,789, flat from last week, while average daily volume took a huge jump, up to 1,243, or 135% higher than last week.
The weekly USDA Export Sales report shows net sales of 6,500 MT this week, primarily for Canada (3,900 MT) and Mexico (1,600 MT). Exports of 17,200 MT were primarily to Guatemala (8,600 MT), Canada (3,200 MT), El Salvador (2,100 MT), Mexico (1,800 MT), and Belgium (500 MT).
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The House and Senate are both on District/State Work Periods through Labor Day. Washington D.C. updates will resume when they reconvene on September 6. | |
USRPA Continues with In-Person Activities in Guatemala throughout 2022 | USRPA, in collaboration with Arrozgua, hosted another successful “Big Pot” event at Irtra, a theme park in Guatemala. Each day of the event, approximately 25,000 people visited the park. The tent was set up at a prominent location where they would experience and taste the rice. The recipes presented included U.S. rice with shrimp, pork, chicken, or sausage. Due to the popularity of the event, Irtra invited USRPA to conduct another live campaign at their October Fest in the fall. | |
Thanks to Texas rice farmer Chris Slemp for sending us this photo on Instagram this week! Tag us in your photos or email them to info@usriceproducers.com for the chance to be featured on our social media or in The Rice Advocate. | | |
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Food and Ag Regulatory and Policy Roundup | | |
Grain: World Market & Trade
This monthly report includes data on U.S. and global trade, production, consumption and stocks, as well as analysis of developments affecting world trade in grains. Covers wheat, rice and coarse grains (corn, barley, sorghum, oats and rye).
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World Agricultural Production
Monthly report on crop acreage, yield and production in major countries worldwide. Sources include reporting from FAS’s worldwide offices, official statistics of foreign governments, and analysis of economic data and satellite imagery. The report reflects official USDA estimates released in the monthly World Agricultural Supply and Demand Estimates (WASDE).
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World Agricultural Supply & Demand Estimates (WASDE)
The World Agricultural Supply and Demand Estimates (WASDE) is prepared and released by the World Agricultural Outlook Board (WAOB). The report is released monthly, and provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds, and cotton.
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FAO Rice Price Update: August 2022
The FAO Rice Price Update provides monthly rice export prices from major origins and is released monthly.
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Arkansas Rice Updates
from the
Arkansas Row Crops Blog
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August 23, 2022
Missouri Rice Research & Merchandising Council Annual Field Day
Glennonville, Missouri
More Information
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August 26, 2022
University of Missouri Fisher Delta Research, Education, & Extension Center Field Day
Portageville, Missouri
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September 17, 2022
Have a RICE Day Cook-Off Competition
Eagle Lake, Texas
More Information
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September 23-24 2022
2022 SE Texas Urban Ag and Farm Safety Summit
by Texas A&M AgriLife Extension Service, Ag & Natural Resources - Harris County
Katy, Texas
More Information
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September 28 - October 1, 2022
Texas Rice Festival
Winnie, Texas
More Information
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