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In This Issue:
- Market Update: 2023 Presents New Challenges to Rice Farmers
- Washington, D.C. Update
- 2022 Spring-Summer Mexican Rice Production, Imports, & 2023 Mexican Rice Planting Intention Report
- Morocco Program Update
- 26th Annual NCS Cotton & Rice Conference Brings La. Governor John Bel Edwards
- RiceTec Appoints Lisa Safarian to Board of Directors
- USDA Releases Nationwide Farmer, Rancher, & Forest Manager Prospective Customer Survey
- 2023 Rice Market & Technology Convention
- AgriCapture Hiring Grant Program Manager & Partner Success Manager
- Photo from Rice Country
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Market Update: 2023 Presents New Challenges to Rice Farmers | |
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There is a new year upon us, but there has been little change in the rice market — and that’s not a bad thing. The assumptions that the industry has been working with on a short crop and lower yields have been finalized in several USDA reports that we highlight below. The domestic business has held steady, and the new year was greeted with a perk from Iraq and their announcement to procure an additional 44,000 metric tons. This will help exports get back on track, as the numbers have been dismal so far this marketing year because of the difficult — albeit recovering —a situation in Haiti.
The most recent WASDE report published on January 12 offers an outlook for the U.S. that calls for smaller supplies, higher domestic use, decreased exports, and lower ending stocks. The Crop Production Summary report for rice provides the evidence, citing that rice production in 2022 totaled 160 million cwt, down 16% from 2021. Planted area for 2022 was 2.22 million acres, down 12% from 2021. The area harvested was down 13% from last year, registering at 2.17 million acres. The average yield for all U.S. rice was estimated at 7,383 pounds/acre, down 4% from last year. None of this comes as a surprise to the industry, but these numbers are confirmation.
Turning to the global outlook from the WASDE, we see the opposite taking place with larger supplies available, reduced consumption overall, and increased trade, all resulting in higher ending stocks this month. All of these totals represent minor changes in the global complex, but nonetheless highlight a changing dynamic in China, India, the Philippines, and Pakistan.
The Rice Stocks report, also published on January 12, shows that rough rice stocks in all positions on December 1, 2022 totaled 106 million cwt, down 17% from the same time last year. On-farm stocks totaled 29.7 million cwt, and off-farm stocks were the remaining 76.1 million cwt. Long Grain varieties account for 72% of stocks, while medium grain accounted for 26%, and the remainder of 2% is for short grain varieties. This report helps provide support for the high price of U.S. rice. All eyes will be on the results of the January 23 tender in Colombia for U.S. rice under the Free Trade Agreement that calls for 89,779 tons milled basis and a shipment period of February 1 – June 30.
The biggest news out of Mexico is the government’s announcement on January 6 declaring the exemption of all import duties on food imports including rice in all forms as part of an effort to control food inflation. The decree, “Comunicado No. 001” states this anti-inflationary measure will remain in effect until December 31, 2023. We understand other Latin American governments are in similar policy discussions. Read more here.
In the Mercosur, Paraguay began harvesting the first fields last week. Brazilian buyers have been aggressively buying in the neighboring markets. The Mercosur countries are largely sold out of rough rice except for Brazil’s limited volume priced approximately at $415-$420/ton FOB. The trade also reports a sale of 60,000 tons of milled rice to Iraq out of Argentina and Uruguay in 50 kilo bags for March & April shipments of 30,000 tons each. Prices are reported at $565-$575.
Turning to Asia, prices have held steady in India at prices just below $400 pmt, and steady in Vietnam as well as prices around $455pmt. However, there was an increase in Thai prices up to the $490 pmt price point, largely on account of strong demand surfacing at the start of the year.
The weekly USDA Export Sales report shows net sales of 62,700 MT, up 29% from the four-week average and up noticeably from last week. Increases were primarily for South Korea (34,100 MT), Haiti (13,400 MT, including decreases of 3,600 MT), Jordan (8,000 MT), Honduras (5,100 MT), and Mexico (900 MT). Exports of 20,500 MT were down 59% from last week and 44% from the prior 4-week average. The destinations were primarily Haiti (15,100 MT), Mexico (2,200 MT), Canada (1,500 MT), Saudi Arabia (500 MT), and South Korea (400 MT).
Next week we will delve more deeply into intentions for new crop planting in the U.S., as those decisions are being made right now.
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Marine vessel Ernst Oldendorff loading 27,500 tons of rough rice for Panama as a result of the November 2022 tender. Congratulations to the South Louisiana Rail Facility on their first time sale to this market. | |
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Omnibus appropriations package includes assistance for rice producers
On December 29, President Biden signed into law an omnibus funding package for the fiscal year 2023. Included in this package was $250 million in assistance for rice farmers to offset the impacts of high input costs and relatively small increases in the market price for rice. This provision, championed by the Senate Agriculture Committee Ranking Member John Boozman (R-AR), will be delivered as a one-time payment. The amount producers receive will be a function of a payment rate set by the Secretary of Agriculture, individual APH or area yield for 2022, and certified rice acres for 2022 (both planted and prevented from being planted). For rice acreage where prevent planting indemnities were paid for 2022, impacted acres will be eligible for 55% of the payment. If those acres were replanted to a different insured crop, impacted acres will be eligible for 35% of the payment. There will be a payment limit of $250,000 if 75% or more of a producer’s adjusted gross income is derived from farming and $125,000 if less than 75% of a producer’s adjusted gross income is derived from farming. The full text of the omnibus package can be found here. The section on assistance for rice producers begins on page 3977.
Jason Smith elected Chairman of Ways & Means Committee
On January 12, Rep. Jason Smith (R-MO) was elected Chairman of the House Ways & Means Committee for the 118th Congress. Rep. Smith represents the rice-producing district in the southeastern corner of Missouri. He has served on the Ways & Means Committee since the 114th Congress.
Sen. Stabenow announces upcoming retirement
On January 5, Sen. Debbie Stabenow (D-MI) announced that she would not seek reelection in 2024. Sen. Stabenow currently serves as the Chair of the Senate Committee on Agriculture, Nutrition, and Forestry, and also Chairs the Democratic Policy and Communications Committee. Sen. Stabenow’s official date of retirement will be January 5, 2025.
EPA and the Army Corps of Engineers release new rule defining WOTUS
On December 30, the U.S. Environmental Protection Agency (EPA) and the Army Corps of Engineers announced the final “Revised Definition of ‘Waters of the United States’” rule which will be effective 60 days after it is published in the Federal Register. The new rule defining “waters of the United States” or WOTUS, under the Clean Water Act, trims back an exclusion for prior converted cropland that had been in the Trump administration’s Navigable Waters Protection Rule. Although the new rule has been released, it may be short-lived pending the outcome of the Supreme Court’s current case on WOTUS, Sackett v. EPA.
Alexis Taylor and Doug McKalip confirmed by Senate for top agriculture trade posts
In the final hours of the 117th Congress, the Senate confirmed the nomination of Alexis Taylor to be the United States Department of Agriculture (USDA) Under Secretary for Trade and Foreign Agricultural Affairs, and Doug McKalip to serve as Chief Ag Negotiator within the Office of the United States Trade Representative. The Biden Administration originally announced its intent to nominate Taylor and McKalip in early 2022, and their confirmation comes after months of agricultural industry concern over the Administration filling top agricultural trade roles.
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2022 Spring-Summer Mexican Rice Production, Imports, & 2023 Mexican Rice Planting Intention Report | |
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The Mexican Department of Agriculture – SIAP, reported on December 13, 2022, that until October 31, 2022, in the Spring-Summer cycle, 19% or 4,174 of the total planted rice hectares, have been harvested obtaining 38,945 MT of paddy rice, which will yield 25,626 MT of white rice.
Until this date, production by state in this Spring-Summer Cycle is as follows:
Veracruz – 59% or 23,004 MT – paddy rice
Morelos – 24% or 9,233 MT - paddy rice
Tabasco – 7% or 2,797 MT – paddy rice
Nayarit – 4%. or 1,434 MT – paddy rice
Rest of the states – 6% or 2,478 MT of paddy rice
The price paid to producers in Mexico at the field in October 2022, is reported at US$275 per MT, 7% higher than in September 2022, and 4.3% lower than the prices paid in October 2021. The wholesale reference price is US$1.05 per kilogram, 6.9% higher than in September 2022, and 30.3% higher than in October 2021. Consumer price is reported at US$1.70 per kilogram, 4.6% higher than in September 2022 and 4.5% higher than in October 2021.
Planting intention for the 2023 Fall-Winter cycle is being reported at 15,391 hectares, expecting production of 109,159 MT of paddy rice, which should yield 71 thousand MT of white rice.
SIAP informed that for the 2022/2023 commercial year:
- Production expected is 158 thousand MT of white rice, 7.8% shorter than the previous CY.
- Imports are expected to reach 1.048 million MT
- Consumption is expected at 1.187 million MT
- Exports are expected to reach 8 thousand MT
- Carryover by September 2023, is estimated at 110 thousand MT, just enough for 1.1 months of supply
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SOURCE: SIAP
IMPORTS
SIAP also reported that for the third consecutive month, rice imports exceeded 100 thousand MT accumulating 976 thousand MT until October 2022, representing an increase of 14.3% year over year. October imports reached 139,412 MT, 78 thousand MT more than in the same month in 2021, and 47 thousand MT more compared with the monthly average of 93 thousand MT.
According to the SIAP report, in October 2021, the United States, Uruguay, and Argentina were the main rice suppliers, however, this year, the Mexican President’s anti-inflation measures and the international context, have modified the import origins scenario, thus imports in October 2022, have come from Brazil with 88 thousand MT, Paraguay 28 thousand MT, and the United States 15 thousand MT.
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USRPA’s influencer campaign was successfully completed in North Africa, with great results in terms of impressions, engagement, and reach.
Below metrics and results from the campaign:
- Number of influencers: 3
- Number of feed posts published: 6
- Number of Instagram stories: 42
- Top target country: Morocco (94%)
- Impressions: 3.8 million
- Top interactive content: video/recipes
- Engagement (reactions, comments, shares): 9,000
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26th Annual National Conservation Systems Cotton & Rice Conference Brings Louisiana Governor John Bel Edwards | | |
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Thanks to the efforts and great relationship with USRPA farmers, Louisiana Governor John Bel Edwards, will give the keynote address at this year's 26th Annual National Conservation Systems Cotton & Rice Conference.
Read More Here
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RiceTec Appoints Lisa Safarian to Board of Directors | | |
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RiceTec announced the appointment of Lisa Safarian, President and Chief Operating Officer of Pivot Bio, to its Board of Directors. As a member of the board, Safarian will provide valuable insight and support as RiceTec further expands its sustainable rice seed technologies to farmers around the world.
Read More Here
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USDA Releases Nationwide Farmer, Rancher, & Forest Manager Prospective Customer Survey | |
The U.S. Department of Agriculture (USDA) announced a nationwide feedback survey targeting farmers, ranchers, and forest managers. USDA hopes to reach a new audience of prospective customers specifically, those who don’t know about us or have yet to work with us, and those who were unable to participate in the past. Existing USDA customers can also take the survey and provide valuable feedback. | | |
Rice Market & Technology Convention | |
It's time to register for the rice industry's premier event! Featuring the strongest and most relevant agenda designed by rice industry members from throughout the world, coupled with an outstanding trade show, it is known as one of the most important and widely attended international events in the Western Hemisphere. Click here to register. | |
AgriCapture Hiring Grant Program Manager & Partner Success Manager | | |
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AgriCapture is seeking qualified individuals to fill the roles of Climate-Smart Commodities Grant Program Manager and Partner Success Manager. Click the links below to access the job descriptions and learn more about each position. Questions? Contact Melissa Schoppen, People Operations Manager, at mschoppen@agricapture.com | | |
December 2022 - USRPA board members and staff joined by the Central American Rice Federation (FECARROZ) in Houston, TX. 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 | | |
Provisia Working Group Roundtable Sessions
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January 24, 2023
Upper Gulf Coast Feed Grain & Cotton Conference
Crescent Hall, Wharton County Fairgrounds
Wharton, Texas
More information
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January 31 - February 1, 2023
26th Annual National Conservation Systems Cotton & Rice Conference
Baton Rouge, Louisiana
More Information
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February 8, 2023
2023 A-State Agribusiness Conference
Arkansas State University Agribusiness Conference
Jonesboro, AR
More Information
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February 28, 2023
Missouri Rice Council Annual Meeting
The Gathering @ Versity Crossing
Dexter, MO
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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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