In This Issue:
- India Exceeds Farmer Supports, Invokes WTO Clause.....Again
- Washington DC Update
- Rice Consumption in Colombia
|
|
India Exceeds Farmer Supports, Invokes WTO Clause.....Again |
|
Cash prices in the delta were a little mixed this week as Texas inched higher, but Louisiana moved lower. Prices were largely flat among the other rice-growing states. The USDA’s World Market Price was recorded at $11.42 per cwt, unchanged now for nearly a month.
Rice acres are slow to be planted in Arkansas at only 26% complete, however, the other states are generally tracking with their historical planting paces. As for rice emerged, the story is the same where all of the states, less Arkansas are right where they need to be. Weather conditions in Arkansas have also delayed the planting of corn and soybeans which are both considerably behind schedule. With the exception of a few smaller weather events, the road to planting looks more clear for Arkansas in the upcoming week.
Earlier this week, news broke that India was invoking the peace clause at the World Trade Organization for the second time as a result of exceeding the 10% ceiling on farmer subsidies. The peace clause protects India against action from WTO members; this shows yet another situation where WTO agreements are breached without recourse. India first took advantage of this clause in 2018, and since then other developing countries have exercised the same clause. China has also long been a perpetrator of breaching WTO agreements without facing any significant backlash. Although these clauses exist to provide the exercising nation with food security, it doesn’t take much scrutiny to see how such policy noticeably disrupts and distorts world trade. India exports twice as much rice as the next highest exporter in the world, and China’s exports basically match that of the United States. It’s these facts that bring into question the true efficacy of the WTO and its role as the world trade police.
In the meantime, India’s export prices for 5% broken parboiled rice fell for a second straight week on a weakening rupee. Ultimately, this has allowed India to experience a spike in export demand. The baht also saw further weakening this week which benefited Thai exporters as prices there slipped a little further this week.
Futures improved throughout the week but are still just shy of their 4-week high. Open interest was down this week, but the average volume was up considerably. It was a busy week at the ports with 93,000 MT being loaded and an additional 96,800 being reported on the outstanding sales. Total export demand for US long grain is still down 11% from last year despite last week’s USDA food aid rice purchases. It would require nothing short of an Iraqi tender to bring demand back into sync with last year’s demand picture.
|
|
On Thursday, April 22nd, the Senate Committee on Agriculture, Nutrition, and Forestry met to consider S. 1251, the Growing Climate Solutions Act of 2021, text here. The bill is intended to provide information to farmers, ranchers, and private forest landowners who seek opportunities in voluntary greenhouse gas credit markets. The bill will help provide the information needed to determine if this is an opportunity that will suit their business and be a viable income stream. The bill will help farmers, ranchers, and private forest landowners find the expertise to assist them in implementing practices that sequester carbon or reduce greenhouse gas emissions, and how to verify and quantify the benefits of these practices. The Growing Climate Solutions Act will give farmers, ranchers, and foresters a resource at USDA to learn more about the voluntary opportunities. The bill does not open the farm bill or cannibalize existing funding from other farm bill programs. It has privacy protections for farmer information and against conflicts of interest. The bill also requires that a majority of the program’s advisory council be made up of farmers, ranchers, and private forest landowners. The bill was approved by voice vote. For a detailed description of the bill here.
The Senate Agriculture Committee also held the confirmation hearing to consider the nomination of Dr. Jewel H. Bronaugh to be Deputy Secretary of Agriculture. Bronaugh had a career in Cooperative Extension which eventually led to serving as dean of the College of Agriculture at Virginia State University. In 2015, Secretary Vilsack appointed Bronaugh to serve as State Executive Director for the Farm Service Agency, and she thereafter received the appointment as the 16th Commissioner of the Virginia Department of Agriculture and Consumer Services.
|
|
Rice Consumption in Colombia |
|
This week, the National Association of Colombian Entrepreneurs (ANDI) reached out to the US Rice Producers Association for support in its fight to protect the current nutritional labeling regulations for rice and protest the proposed adjustment to the recommended portion size of rice in labeling.
Colombia notified the OMC (World Trade Organization) and other trading partners, the interest of issuing the resolution which “establishes the technical regulation on the nutritional labeling requirements for packaged foods for human consumption must comply with” in Colombia and proposes to reduce the recommended portion of rice from 50 grams to 30 grams.
Colombia’s economy is the third-largest in Latin America and has continued to grow in recent years due to sound economic policies, recent reforms, and a proliferation of free trade agreements (FTAs). With an annual rice consumption of around 40 kg per capita, according to the Colombian government, reducing the recommended portion would be equivalent to having a per capita consumption of 11 kg. Such a drastic change would put the consumers and the Colombian and U.S. rice sector at great risk. The USRPA supported the efforts of ANDI through letters that outlined the nutritional benefits of including rice in the everyday diet.
|
|
Texas Rice Council Board Member and rice farmer in Chambers county, multi-tasks this week, cultivating a field for planting CLL17 while joining a committee meeting via Zoom. |
|
|
BOOTH SPACE IS LIMITED
or Contact USRPA Staff for details
|
The Rice Market & Technology Convention
will take place in The Woodlands, Texas
July 6-8, 2021
|
The Rice Market & Technology Convention is committed to the health and safety of its attendees and we will continue to follow CDC Guidance for Organizing Large Events and Gatherings. RMTC will provide attendees PPE such as masks and hand sanitizer, room layouts will be modified, and crowd limits will be enforced to adhere to the physical social distancing protocols.
Large, wide-open facilities and opportunities for outdoor gatherings make the Woodlands Resort the perfect place to network while allowing for social distancing.
|
|
|
|
 |
Record volumes of old rice and wheat stocks are entering feed mills and deep processing plants as substitutes for high-priced corn.
|
|
|
|
Milled rice production for upcoming market year (MY) 2021/22 is projected at 1.2 million metric tons (MMT). Post projects MY 2021/22 imports at 1.1 MMT, which indicates a continued stabilization of import pace for a country that has consistently been a global top-five importer in recent years. The Port of Abidjan remains a significant transshipment point for milled rice to other markets in the region. Domestic production struggles and softening milled rice imports open up opportunities for U.S. rough rice exports to supplement an expanding domestic milling sector.
|
|
|
|
|
Guatemala is a net rice importer. Recent satellite images resulting from the assessment of hurricanes Eta and Iota at the end of 2020 revealed a rice production area three times larger than the last official estimate (which had only considered commercial production) reaching 13,000 hectares (Ha) with 75 percent of the producers being subsistence farmers (less than 2 Ha), small and extremely poor. Prices at retail and wholesale for both grains reached record highs during the March-August period of 2020 due to the COVID-19 pandemic.
|
|
|
|
In 2021, Nigeria is expected to face decreases in grain supplies due to conflict and economic factors exacerbated by the secondary effects of COVID-19. Internal security across the country is a serious challenge to food production especially in the corn belt. Insecurity is rife across the country’s leading agricultural states. Corn and sorghum production are forecast to decline while rough rice production is forecast to grow by 17% higher than MY 2020/21 due to farmers now cultivating two crops per year. Rice consumption is forecast to drop by 1.5% largely due to increasing prices amid lowering consumer purchasing power and declining household incomes.
|
|
|
|
|
Food & Ag Regulatory
and Policy Update
|
|
|
|
|
|
|
25722 Kingsland Blvd.
Suite 203
Katy, TX 77494
p. (713) 974-7423
f. (713) 974-7696
e. info@usriceproducers.com
www.usriceproducers.org
|
|
We Value Your Input!
Send us updates, photos, questions or comments!
|
|
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 |
|
|
|
|
|
|
