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In This Issue:
- Remembering Robert "Bobby" Little
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Market Update: India Harvests Record Crop While America’s Rice Trade Awaits Panama Tender Results
- Brazil Predicting Smallest Rice Harvest in 26 Years
- Washington, D.C. Update
- USRPA to Participate in USDA Trade Mission to Panama
- 5 Days Left to Register for RMTC 2023 at the Early Bird Rate
- Photos from Rice Country
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Robert "Bobby" Little
May 3, 1951 - February 23, 2023
Robert “Bobby” Little lived his life serving his Creator, Community, Family, and the Western Rice Belt of the Texas Rice Industry," reminisces Tommy Turner, President of the Texas Rice Council who considered Bobby a dear friend.
"He would always go the extra mile to help someone and give the shirt off his back to someone in need. We miss you Bobby, but we know you are in Heaven, and in that we rejoice."
Donations in memory of Bobby Little may be made to St. Philip School, El Campo, TX.
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Market Update: India Harvests Record Crop While America’s Rice Trade Awaits Panama Tender Results | |
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The USDA World Agricultural Production report had a headline story this week, reporting that because of India’s larger-than-expected Rabi crop, the world’s largest exporter has notched yet another record crop for its third consecutive year. The Rabi crop typically accounts for approximately 30% of India’s total production, however this year it increased by 25%, offsetting losses that occurred during the primary kharif growing season. This doesn’t change the system matrix by any significant margin, but it is still stunning to see a recovery of such magnitude given the dry conditions seen in the earlier part of the year. Harvest of the Rabi crop will begin this month and end in late April where actual yield numbers will be derived.
The supply and demand report for us here in the U.S. didn’t have terribly significant changes. The one thing that is being circulated in our conversations, but hasn’t made its way to the balance sheet yet, is the expectation that carryover is significantly higher than the reports are showing. It’s been week after week of dismal export sales reports (except for this week which set a marketing year high), and it’s well known that even with the strength of the domestic market and shorter crop these last two years, it’s not enough to offset the lean exports of rough and milled rice. There is potential for more Iraqi business, as well as the long shot for the Panamanian tender, but those are far from being baked into our calculations.
The USDA Grains report corroborates the above news on India, showing that global rice production is now up because of the larger-than-expected Rabi crop being harvested in India. As a result, we anticipate exports will increase out of India, and regions like China, Nigeria, and Vietnam will import. While global consumption is expected to increase slightly, U.S. exports are at their lowest levels since 1985 on account of lost market share in Mexico and other countries in the Western Hemisphere. The below chart taken from the USDA report helps to visually explain why U.S. exports have been so low—it’s a simple function of a high price. And without favorable trade agreements, it is extremely difficult for the U.S. to compete in the current market.
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The FAO Rice Price update shows that the All Rice Price Index average dropped 1% this month down to 125.1. This is 22% above its level last year, where last month was the All Rice Price Index’s highest price in the last 12 months. 2022 was also the highest price year, with 2018 coming in second in the last five years. This would indicate that inflation is finally finding its way to rice where it has appeared to have a delayed effect. A small slowdown in demand had the largest impact in Thailand, where prices slid nearly 5%, further influenced by the depreciation of the baht against the U.S. dollar.
The weekly USDA Export Sales report shows net sales of 141,900 MT this week, a marketing-year high, which is great news and up significantly from last week and the prior 4-week average. Increases were primarily for Colombia (65,000 MT), Haiti (41,300 MT), Mexico (24,800 MT), Iraq (4,000 MT), and El Salvador (2,500 MT). Exports of 173,200 MT, also a marketing-year high, were up noticeably from the previous week and from the prior 4-week average. The destinations were primarily Colombia (59,000 MT), Iraq (44,000 MT), Mexico (26,300 MT), Haiti (22,200 MT), and Guatemala (12,100 MT).
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Brazil Predicting Smallest Rice Harvest in 26 Years | |
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The National Supply Company (Conab) has just announced, in Brasilia (DF), on the morning of Thursday (9/3), that Brazil's rice harvest in the 2022/23 season will be the lowest in 26 years: 9.880 million tons. The production reduction is 8.4% compared to the last harvest. The data are from the 6th Grain Crop Survey and show that in 2021/22 the country produced 10.789 million tons.
Two reasons are listed by Conab's crop monitoring manager, Rafael Fogaça: the reduction of area and the drought that affected Rio Grande do Sul, the main national producer (with more than 70% of the volume harvested annually). An adjustment of -1% in the rainfed areas of Mato Grosso and Maranhão was added to the national scenario of rice cultivation in this survey. "They are small areas of rice grown in a rainfed regime, of low technology, which predominate in Maranhão, and whose trend is to gradually reduce throughout Brazil," notes Fogaça.
In the area, the 6th Grain Harvest Survey brought a reduction of 2.8% on the value disclosed in February, while productivity fell by 1.9%.
Brazil's agricultural crop shrank 150.9 thousand hectares this season, which corresponds to -9.3%. From 1.618 million hectares it went to 1.467 million. Still, and despite the climate, productivity is expected to rise 1% from 6,667 kilos per hectare to 6,733 kilos.
Also according to Conab, harvesting operations reached 7% of the area sown in the national territory until last weekend, the equivalent of 44,000 hectares, with evident delay. Last year it was 11 percentage points ahead. But from this week on, the trend is for harvesting work to become more effective with many crops entering harvest conditions, especially in the Brazilian South.
Source: https://planetaarroz.com.br
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White House Releases President’s Budget
On Thursday, the White House released President Biden’s budget request for the fiscal year 2024. The budget included $30.1 billion in spending across the Department of Agriculture (USDA), an increase of 14% from the fiscal year 2023. The largest increases at USDA were for nutrition and climate programs. The full budget can be found here.
USDA Provides Update on Assistance to Rice Farmers
USDA previewed its plans to provide $250 million in assistance to rice farmers. USDA announced once the official notice is published later this year, the Farm Service Agency (FSA) will mail prefilled applications to producers. These applications will use the information on file with FSA or the Risk Management Agency. USDA believes this will streamline and simplify the application process. USDA will provide more information when FSA announces the signup period in the coming weeks. The funding for this program was included in the Consolidated Appropriations Act of 2023. Read the press release here.
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USRPA to Participate in USDA Trade Mission to Panama
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WASHINGTON, March 7, 2023 – The U.S. Department of Agriculture's Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor will lead a delegation of 26 agribusinesses and farm organizations to Panama City, Panama, from March 19 to 23. The mission highlights export opportunities in Panama and throughout Central America and the Dominican Republic Free Trade Agreement (CAFTA-DR) region. Exports of agricultural products to Panama and CAFTA-DR countries reached a record $8.8 billion in 2022, up 57 percent from 2018.
Click here to read the complete press release.
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5 Days Left to Register for RMTC 2023 at the Early Bird Rate | |
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Five days left to secure your early bird registration for $600pp.
Don't miss out! Register today by clicking on the link below.
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Thanks to @c_slem #pinoakfarms for letting us share your first picture of the 2023 rice planting.
Send us your rice country photos on Facebook, Instagram, or via email!
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Food and Ag Regulatory and Policy Roundup | | |
World Agricultural Production | | |
Grain: World Markets and Trade | | |
USDA Announces Sign-up for Cost-Share Assistance for On-Farm Grain Storage in Areas with Limited Commercial Capacity Due to Severe Storms | | |
USDA Encourages Rice Farmers to Prepare for New Rice Production Program | | |
FAO Rice Price Update March 2023
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USDA Dale Bumpers National Rice Research Center FY22 Highlights | | |
CLL16 – THE COMPLETE PACKAGE
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USDA Announces $29 Million to Increase American-Made Fertilizer Production | | |
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May 30 - June 1, 2023
2023 Rice Market & Technology Convention
Puerto Vallarta, Mexico
More Information
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender identity, sexual orientation, religion, age, disability, political beliefs, or marital/family status. Persons who require alternative means for communication of information (such as Braille, large print, sign language interpreter or translation) should contact USRPA at 713-974-7423. |
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