In This Issue:
- Market Update: Rice Competes with Corn & Soybeans for Acres
- Missouri Rice Farmers Gather in Dexter
- Washington DC Update
- Mark Your Calendars: RMTC 2021
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Market Update: Rice Competes with Corn & Soybeans for Acres |
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Export Demand Expected to Improve Later in 2021
After several weeks of the cash market trading sideways, it looks like slower export demand and domestic use has finally caught up. Rice prices soften in each state, albeit by minimal amounts. Rice acres are looking to be flat as corn and beans steal the show. Early guidance suggests growers will consider corn and bean acres as demand is forecast to be strong moving into the 2021 marketing year.
Export demand for US long-grain rice remains suppressed as the market struggles to compete with Asian and even South American origins. The latest USDA export sales report cited total long-grain demand to be down over 18% YTD.
Between sluggish demand in rice and robust demand in corn and beans, it’s no surprise that growers intend to supplant rice ground for these other commodities. Early projections are that long-grain acres in Arkansas will decline by 210,000, Louisiana down 35,000, and Mississippi is forecast down 21,000. Only Texas is expected to match last year’s planted area. California acres are expected to see a sharp reduction as well, however, that is not market driven, it is strictly water related. There is some potential risk for US farmers attempting to chase corn and bean prices as reports are coming in that suggest China plans to increase acreage by over 1.65 million acres in the upcoming marketing year.
With the exception of India, most of the major Asian exporters have seen few market developments over the past couple of weeks. While Vietnam is rumored to be in talks with Iraq regarding a tender, that sale has yet to come to fruition and in the meantime, Viet prices have slipped further to $505-510 per metric ton. Thailand is experiencing some market volatility as the local market reached 10-month highs on supply scarcity. Ultimately, this price action has kept many Thai exporters at bay, paving the road for India to capture additional market share.
The nearby contract closed at $12.805 per cwt in Thursday’s trading session which marks a $0.20 per cwt decline over the past 2-weeks. Volume is also down significantly, recorded at only 496 while open interest was relatively steady at 9481. With little change in pricing for the June ’22 and March ’22 contracts, the board seems to be signaling that more acres aren’t needed in the market.
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Venezuela: New Destination for Gulf Coast Rice Farmers
Facilitated through marketing efforts of the US Rice Producers Association, farmers in SW Louisiana and East Texas are emptying their storage bins of the 2020 crop with the loading this week of the vessel “Nestor I” destined for Venezuela, a new destination for the South Louisiana Rail Facility members. This shipment involves some 47 farmers for a total volume of 22-23,000 tons of paddy rice. The buyer, GSI Food in Venezuela was founded 60 years ago as a rice marketing business under the name Alimentos Mary and evolved to become the largest rice miller in the country. In 2016 the company grew into GSI Food and expanded into numerous products while opening operations in the Dominican Republic. Today the company has a wide variety of some 30 products, representing numerous brands in addition to their imports of bulk rice, wheat, and white corn. The USRPA first met Alimentos Mary while participating in a trade servicing trip to Venezuela.
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Organized by the USDA’s Foreign Agricultural Service, USRPA staff and board members participated along with USA Rice in a virtual briefing on the world rice trade with a focus on policy issues and international market developments. The meeting gave the US rice industry the opportunity to ask questions and provide comment on current trade conditions. |
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Missouri Rice Farmers Gather in Dexter |
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The Missouri Rice Council and Missouri Rice Research and Merchandising Council met this week at the Gathering at Versity Crossing in Dexter, Missouri for their 38th Annual Meeting.
Mitchell Thomas, Missouri Rice Council's Chairman, welcomed approximately 75 farmers and affiliated industry members on Tuesday evening. Attendees listened attentively to the Rice Research Farm Report by Dr. Michael Aide, Professor at SEMO's Department of Agriculture, followed by an update from the Missouri Department of Agriculture by Davin Althoff, Division Director. Lastly, Lynn Weeks, Group Leader and Market Consultant at Hurley and Associates Agri Marketing Centers gave a detailed Market Presentation before dinner which was catered by the always popular Tasteful Creations.
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The youngest rice farmer at the meeting is making sure everyone signs in and feels at home! |
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On Tuesday, Tom Vilsack was confirmed by the Senate for a second time as Secretary of Agriculture. With a Senate confirmation vote of 92-7 the Biden administration gains a very experienced Secretary with a depth of knowledge in agriculture issues having served as Secretary of Agriculture for eight years during the Obama administration.
Three areas that Vilsack focused on during his confirmation hearing was climate-friendly agricultural industries such as the creation of biofuels and rural biomanufacturing. Vilsack also testified about creating an “equity taskforce” inside the department to identify intentional or unintentional barriers that prevent or discourage farmers of color from properly accessing federal assistance programs. Vilsack also expressed support for SNAP (the Supplemental Nutrition Assistance Program aka food stamps) as a key instrument in helping the country’s most vulnerable families survive and recover from the pandemic era.
Also, this week the House Budget Committee passed the $1.9 Trillion pandemic relief package under reconciliation rules. It is expected to be voted on by the full House of Representatives by the end of the week. After House approval, it will be considered by the Senate where different reconciliation rules apply. It is expected that some of the provisions will be deleted.
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MARK YOUR CALENDARS!!!
The Rice Market & Technology Convention
will take place in The Woodlands, Texas
July 2021
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US Rice Producers Association staff has been closely followed COVID-19 the developments throughout the Western Hemisphere, and while many locations were carefully considered, USRPA has decided to host RMTC 2021 just north of Houston, Texas in the Woodlands!
The Texas rice industry is thriving and as a host, Texas has a lot to offer our RMTC Attendees, including the fact that Texas is well underway vaccinating its residents. Those who have visited Texas know that there is always something interesting to see and do, from visiting the South Louisiana Rail Facility and the Port of Lake Charles to attending one of the many social events around downtown Houston, just 30 minutes from The Woodlands.
Stay tuned, soon more details!!
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New Horizon Ag Varieties Provide Best-In-Class Economic Returns |
The highest rice yields possible or best-in-class economic returns. One is a nice “bragable.” The other is smart business. Farmers planting new Clearfield® varieties CLL16 and CLL17 from Horizon Ag in 2021 have the potential to enjoy the best of both – great yields and, most importantly, a better return on their investment.
“These new Clearfield varieties are attracting a lot of interest this season because of their potential for higher yields and milling premiums at a lower total production cost than comparable hybrids or conventional varieties,” says Dr. Tim Walker, Horizon Ag general manager. “They are game-changers for farmers who understand that the story isn’t just about making good yields, it’s also about getting the most economic return at the end of the season.”
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COVID-19 Legislative Update |
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Food & Ag Regulatory
and Policy Update
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25722 Kingsland Blvd.
Suite 203
Katy, TX 77494
p. (713) 974-7423
f. (713) 974-7696
e. info@usriceproducers.com
www.usriceproducers.org
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We Value Your Input!
Send us updates, photos, questions or comments!
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, or marital/family status. Persons with disabilities who require alternative means for communication of information (such as Braille, large print, sign language interpreter) should contact USRPA at 713-974-7423 |
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