Strong Rough Rice Export Sales with Eyes on Hurricane Ida

Volume 18, Issue 33

August 26, 2021

In This Issue:

Strong Rough Rice Export Sales with Eyes on Hurricane Ida
RiceTec Releases Virtual Field Days
Washington Update

View as Webpage

Strong Rough Rice Export Sales with Eyes on Ida

In the U.S., the focus has turned to a harvest that is expected to be at least 15% off from last year. Optimism still reigns from Arkansas, where harvest is expected to be in full swing in the next two weeks. Louisiana and Texas continue to have solid reports coming out of their cuttings as well. The milled rice market and the paddy market have bifurcated, and this is augmented by the struggles in Haiti for milled rice. While we were celebrating sales last week, the industry is lamenting the removal of 22,000 metric tons from previous sales as a result of the political turmoil. And as we’ve stated in the past, the 120,000 metric tons of Iraq business is what the mills needed, but more business must be won to keep prices up. Conversely, paddy sales to Central and South America have remained strong and are a significant help as the industry prepares for new crop. This is supported by the USDA Export Sales report this week, discussed below.

On the ground in Texas, prices are reported at $14.33/cwt, and Louisiana at $12.96. Mississippi, Arkansas, and Missouri remain at $14.50-$15 CIF NOLA, and will come closer to more exact ranges once harvest begins.

In Asia, prices are returning to a more historic norm. Indian prices remain in the $380/mt range, while Thai prices have bumped slightly to $395/mt, and Viet cresting at $400/mt again, for the first time in several weeks. The assumption is that Viet rice has increased more on account of winning most of the Filipino business, but we will likely see Thai prices inch upwards in the weeks to come as well.

USDA’s weekly net export sales report shows net sales of 79,500 metric tons, up 84% from last week. Of the total, 57,240 metric tons of which was long grain. Of the long grain, 38,500 metric tons, or 67%, was rough rice, further corroborating the importance of the rough rice exports. The milled and brown long grain rice went to Mexico, Canada, Costa Rica, and Saudi Arabia. The 22,300 metric tons of medium grain all went to South Korea.

Exports totaled 81,900 metric tons, which is 11% down from last week. 50,900 metric tons, or 62% of which, was long-grain rough. Long Grain milled or brown was 26,400 tons, and only 4,700 tons of medium grain was registered.

The futures market had an average daily volume of 934, which is 27% lower than last week, and Open Interest of 7,687, which is right on par with last week’s numbers. The low from last week was down to $13.18, and the high this week was $13.68. The market is trading mostly sideways in anticipation of potentially more Iraq business in the face of new crop supplies.

Tropical Storm Ida Is Strengthening and Forecast To Slam Gulf Coast As A Major Hurricane Sunday

By weather.com meteorologists

At a Glance

Tropical Storm Ida is strengthening in the Caribbean Sea.
Ida is forecast to grow into a major hurricane in the Gulf of Mexico this weekend.
Interests along the northern U.S. Gulf Coast should make hurricane preparations now.

Go to weather.com

US Rice Producers Association Meets Joins FECARROZ's Board Meeting Virtually

Earlier this morning, the FECARROZ Board of Directors held their board meeting in Costa Rica. Stuart Hoetger attended the meeting in person, representing the US Rice Producers Association. Marcela Garcia, President & CEO of USRPA, Bianka Rodriguez, USRPA Marketing and Promotions Director, and Asiha Grigsby, International Promotions Director at USARF, also participated in the meeting virtually.

FECARROZ addressed various issues related to the rice industry including the CAFTA-DR trade agreement with the United States. The Central American rice market is one of our most important markets for U.S. long-grain rice.

Another important agenda item at this meeting will be the appointments of the upcoming 2021 - 2022 Board. USRPA continues to work with FECARROZ and expresses its support and appreciation of the long-time relationship between groups.

Along the gulf coast in Texas and South Louisiana, the 2^nd crop (ratoon) is an important practice for rice farmers. These pictures of a field of CL153

were taken only one week apart.

Pictured left, Tommy Turner is explaining to Gabriel Figueroa (Nor-Ver Rice Mill, Panuco, Mexico) the steps a farmer takes to produce a high 2^nd crop yield on the farm of El Rancho de Los Patos located 13 miles west of El Campo, Texas. The farm is managed by Mark Rasmussen who applies 125 pounds of 46-0-0 (nitrogen) 4 days after harvest. Water is flushed across the field then immediately followed by a light flood. Notice the shallow flood….perfect!

Rice prices high despite ample supply

The Arkansas rice harvest in 2020.

Global rice prices spike during COVID pandemic, remain high despite ample supply.

Fred Miller, U of A System Division of Agriculture | Aug 24, 2021

RiceTec Releases Virtual Field Day Videos

Taking into consideration the health and safety of staff, growers, and partners, RiceTec released a video series of their typically in-person Field Day. The five videos ranging in topics can be seen at https://www.ricetec.com/virtual-field-day-2021/.

Farmers and media are invited to view the presentations from rice industry experts and RiceTec employees. The program focuses on four key areas: new product offerings, herbicide tolerance, seed treatment and farm optimization.

Adama joins RiceTec to discuss the key aspects and results of trials for Max-Ace®, HighCard® and FullPage® Rice Cropping Solution. Additionally, the announcement of two new FullPage® products and a Max-Ace® variety is shared.

In the seed treatment video, viewers will hear more about how RiceTec is putting to use current research data to improve its seed entrustment technology. The section on farm optimization includes the launch of a new digital application for farmers to manage and monitor irrigation, growth prediction models and weather.

Finally, RiceTec shares their 2022 product line-up with a range of offerings that are aimed to fit any acre in the rice industry. This includes the announcement of the limited availability of two Max-Ace® products and experimental lines being tested, a non-pubescent product and a long grain offering that is predicted to take yield to a new level and increase milling quality.

“While these videos focus on many of RiceTec’s key projects, there is so much more we had hoped to share in person, including many other agronomic studies now available through your local RiceTec representative,” said Van McNeely, Director of Sales and Tech Services. “We encourage growers to contact their representatives for private field tours and access to our line-up of extensive product information.”

To view the virtual field day videos please visit: https://www.ricetec.com/virtual-field-day-2021/.

Washington Update: Infrastructure/Budget Resolution

This week, the House voted to approve the budget resolution, S. Con. Res. 14, a concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2022 and setting forth the appropriate budgetary levels for fiscal years 2023 through 2031.

Earlier, the House Rules Committee had met on Monday and Tuesday to approve the rule for floor debate of the budget resolution. The rule includes a deadline of September 27 for a vote on the $1.2 trillion bipartisan infrastructure bill. The rule coupled advancing the budget framework with the promise of voting on the bipartisan infrastructure bill in September, and finally garnered the votes of centrist Democrats that wanted an immediate vote on the bipartisan infrastructure bill before the larger budget reconciliation package.

The House’s budget reconciliation instructions include $89.1 billion for the House Agriculture Committee and the Senate’s instructions include $135 billion for the Senate Agriculture Committee for Agriculture. The funding is intended to address the following:

Conservation, drought, and forestry programs to help reduce carbon emissions and prevent wildfires
Rural development and rural co-op clean energy investments
Agricultural climate research and research infrastructure
Civilian Climate Corps funding
Child nutrition
Debt relief

The Committees will have until September 15 to submit recommendations to the Budget Committees.

‌

USDA Accepts 2.8 Million Acres for the Conservation Reserve Program

WASHINGTON, Aug. 23, 2021 – The U.S. Department of Agriculture (USDA) has accepted 2.8 million acres in offers from agricultural producers and private landowners for enrollment into the Conservation Reserve Program (CRP) in 2021. This year, almost 1.9 million acres in offers have been accepted through the General CRP Signup, and USDA’s Farm Service Agency (FSA) has accepted over 897,000 acres for enrollment through the Continuous Signup. The Continuous Signup remains open and CRP Grasslands Signup closed last week, so USDA expects to enroll more acres into all of CRP than the 3 million acres that are expiring.