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Volume 19, Issue 45

November 18, 2022

In This Issue:

  • Market Update - USDA ERS Rice Report Lowers Exports Four Million Cwts
  • USRPA Participates in 2022 USAEDC Annual Workshop
  • Ray Stoesser Memorial Scholarship: Deadline December 1
  • Happy Thanksgiving from USRPA
  • Photos from Rice Country

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Market Update - USDA ERS Rice Report Lowers Exports Four Million Cwts

Reports on the market this week are much like last week. The business remains steady at the domestic level, and many are wondering how long it can keep up. Now that harvest is complete, paddy in first-hand is plentiful. There is a market for cash rice, but with slow exports and Haiti off the table, those offers will last only as long as the domestic market stays strong.


The USDA ERS Rice Outlook was published this week, with the “highlight” being that the export forecast was lowered by 4 million cwt. This comes as no surprise to anyone in the industry, but it still feels like a bit of a blow to see it so bleakly scrolled across the page. On the supply side, production was lowered 1.1 million cwt to 164.3 million and imports were raised 1 million cwt to a record 45 million. On the use side, exports were lowered 4 million cwt to 71 million, while the domestic and residual use forecast was raised 1 million cwt to 142 million. These revisions netted out to an increase of 2.9 million cwt in the ending stocks forecast, up to 36.1 million cwt.


Turning now to the ERS report on the global outlook, production was lowered 1.35 million tons to 503.7 million tons, 2% down from last year. This was a result of Nigeria, Pakistan, and Sri Lanka having a lighter production than a year before. The global consumption and residual use forecast are down 2.1 million tons from last year's record. Global ending stocks were lowered 2.2 million tons to 169.0 million.


In Asia, prices bumped a little this week, but are still within the band prices have been trading for the past several weeks; $415-$425pmt. Viet Prices softened just a bit down to $430pmt, while India graduated from $385pmt up to $390pmt. This is the first time Indian prices have exceeded the $385pmt price threshold, and our best guess would be currency fluctuations and the strength of the dollar. That is largely what is responsible for the appreciating price in Thailand in recent weeks.


Prices out of the United States remain far higher than the competition, but the domestic business is pulling more than its weight, and keeping cash offers afloat. We expect this to be the case through the holiday season and will turn a new chapter in the rice market upon entering the new year.

Washington, D.C. Update

USRPA Joins Agricultural Transportation Working Group Letter

The US Rice Producers Association joined more than 190 other members of the Agricultural Transportation Working Group in sending a letter to Congress urging them to take action to prevent a potential rail strike that would lead to devastating consequences. At the time of the letter, which was sent on November 3, the deadline for the rail “cooling off” period had been set to November 14, 2022. Recently, that deadline was extended. The letter emphasized the urgency at which Congress should be prepared to act, as well as underlined the national security implications a strike could impose.


Read the full letter here.


USDA Announces Additional Emergency Relief and Pandemic Assistance


Secretary Perdue announced plans for additional emergency relief and pandemic assistance from USDA. The Emergency Relief Program (ERP) Phase Two will assist eligible agricultural producers who suffered eligible crop losses, measured through decreases in revenue, due to wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture and qualifying droughts occurring in calendar years 2020 and 2021. The Pandemic Assistance Revenue Program (PARP) will help producers that experienced revenue decreases in 2020, compared to 2019 or 2018, due to the COVID-19 pandemic.


More information can be found here.’


Senate Ag Working to Move Ag Nominees


The Senate Agriculture Committee is pushing to confirm several agriculture nominees before the end of the year. Those awaiting confirmation include Alexis Taylor for USDA undersecretary for trade and foreign agricultural affairs, Jose Esteban for undersecretary for food safety, and Doug McKalip for chief agricultural negotiator at USTR.


Several members have voiced concerns about the nominees. Sen. Cory Booker (D-CO) is concerned with Esteban’s answers about which foods can be labeled as “humanely raised.” Sen. Bob Menendez (D-NJ) has been holding up McKalip’s nomination over concerns about transparency within USTR. Additionally, Sens. Bill Hagerty (R-TN) and Dan Sullivan (R-AK) have raised concerns with other USDA programs. Sen. Hagerty wants to avoid new oversight and regulations of the walking horse industry and Sen. Sullivan is concerned about new logging restrictions in the Tongass.


Farm Workforce Modernization Act


There is renewed interest in moving the Farm Workforce Modernization Act in the Senate. Rep. Dan Newhouse (R-WA), an original cosponsor of the legislation in the House, continues to urge Senate leaders to move the legislation in the last few weeks of the 117th Congress.



Senate Agriculture Committee Chairwoman Debbie Stabenow recently expressed support for the bill: “I would love to see that pass. I really feel like this is an opportunity, with the House having passed a bill, the president will sign it. I’ve been telling all the agriculture groups that this really is a moment to get something done, but they’re going to have to lean in very heavily to make that happen.”

USRPA Participates in USAEDC 2022 Annual Workshop

This week, USRPA was represented at the USAEDC 2022 Annual Workshop in Baltimore, MD by USRPA Office and Technology Manager, Iris Figueroa. The three-day workshop focused on election analysis, marketing trends, successes with export development programs, and sustainability. The effects of current events in the world market, compliance updates, and issues facing specific sectors of the agriculture industry were among the additional topics discussed. Members also got an opportunity to meet with their FAS marketing specialist during lunch as well as network with a variety of agriculture industry members. USAEDC is looking forward to next year celebrating its 40th Anniversary.

Second Annual Ray Stoesser Memorial Scholarship

In partnership with the US Rice Producers Association, the Stoesser family is offering a $5,000 scholarship each year to one deserving high school senior or current college student who is interested in or is currently pursuing a career in an agriculture-related field.

 

The application deadline is Thursday, December 1st, 2022.


Learn More

Happy Thanksgiving from USRPA

The Rice Advocate newsletter will resume Friday, December 2.

Photos from Rice Country

Throwback picture from Raywood, TX shared by @scott.winney. Send us your harvest photos on FacebookInstagram, or via email!

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Food and Ag Regulatory and Policy Roundup

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World Agricultural Production

October 2022 Report

Grain: World Markets and Trade

October 2022 Report

ERS Rice Outlook

November 2022 Report

Osiriz / InterRice

Monthly Report No. 224


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