In This Issue:
- Rough Rice Export Sales Providing Market Support
- Washington DC Update
- Welcome New Cuban Ambassador to U.S.
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Rough Rice Export Sales Providing Market Support
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The lack of export activity is catching up to the cash market where spot prices throughout the delta are unchanged or showing further signs of softening. Demand for paddy is considered weak as mills work feverishly to generate demand. With the expectation that paddy prices will edge lower as we move into in planting, buyers are generally operating with patience, and only procuring hand to mouth.
Export demand improved by 2% against last year’s numbers this week, but is still reported to be down 16% year to date. Milled shipments to Mexico are up this year, but exports to Haiti are down 13%, and are ultimately weighing on milled rice demand. Although paddy shipments are down year over year, total paddy sales are on par which is providing some much-needed support to the market.
Asian rice prices held relatively steady this week as demand continues to be muted with importers awaiting new crop. Vietnamese exports are projected to be down 31% during the first two months of the calendar year. As for India, the Rupee is causing pause among importers as they attempt to navigate volatile exchange rates.
Futures posted some small gains against last week but were generally quiet as volume shrank to the lowest levels seen in over a month. Without a rally in far contracts or a strong new crop forward cash contract, the industry’s current expectation of a significant decrease in acreage will likely hold true.
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The House passed President Biden’s $1.9 trillion stimulus and COVID relief bill, the American Rescue Plan Act, 219–212 last Friday with two Democrats, Rep. Kurt Schrader and Rep. Jared Golden, voting against the bill. The Senate began consideration of the bill today voting on a motion to proceed. Sen. Ron Johnson (R-WI) objected to the request to dispense the bill without reading, requiring the Senate clerk to read the bill in its entirety. Following the reading, which is expected to take 8 to 10 hours, the Senate will begin 20 hours of debate, to be followed by what they are calling “voterama.”
The bill includes $2,000 in direct payments to Americans, $400 per week in supplementary unemployment benefits, child, earned income, and child and dependent care tax credits, $14 billion for vaccine distribution, and another $49 billion for COVID-19 testing, tracing, and genomic sequencing. For agriculture, the bill includes $4 billion for food and commodity purchases, grants and loans to small or midsized food processors or distributors, and loans and grants to maintain and improve food and agricultural supply chain resilience. The bill also includes $1.01 billion to support socially disadvantaged farmers and ranchers, minority-serving universities and colleges, and to provide grants and loans to improve access to land.
Last week, the Senate parliamentarian ruled that the minimum wage increase provision had budgetary effects and therefore was not germane under reconciliation rules. However, the House chose to include the provision. The Senate has since introduced an amendment as a substitution to the bill, with the provision removed. Removing that section will require another vote in the House before it can go to the President for his signature. Congress is pushing to pass the bill before March 14 when unemployment benefits expire.
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Welcome New Cuban Ambassador to the U.S.
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Dwight Roberts, USRPA President & CEO along with Alice Gomez, USRPA Counsel at Cornerstone Government Affairs, and with fellow members of the U.S. Agriculture Coalition for Cuba, participated in a virtual meeting with the new Cuban Ambassador to the United States, Lianys Torres Rivera. The Coalition encourages normal agricultural trade between the two countries.
Ambassador Torres Rivera immediately pointed out the need for the improvement of agricultural trade while clearly stating her focus as the end of the blockage the U.S. first placed on exports in 1960 and again in 1962.
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Lianys Torres Rivera
Head of the Cuban Mission in the United States.
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Since the year 2000, the USRPA has maintained a presence in Cuba through relationships developed with the Cuban government particularly Alimport, the food buying agency for the country, and the rice research specialists who have spoken at the USRPA’s annual conferences. The USRPA was instrumental in supporting Congressional bill language that first allowed the trade of food and humanitarian supplies.
Roberts will be meeting again with Ambassador Torres Rivera later this month at a virtual meeting of the Texas-Cuba Trade Alliance. The US Rice Producers Association continues to push for normal commercial trade relations with Cuba. The latest legislation introduced by the Senate Finance Committee Chair Ron Wyden, D-Oregon can be found here.
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Wyden Introduces Bill to End Cuba Embargo and Establish Normal Trade Relations
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Washington, D.C. – Senate Finance Committee Chair Ron Wyden, D-Ore., last night introduced the U.S.-Cuba Trade Act of 2021 to repeal outdated sanctions on Cuba and establish normal trade relations with the island nation.
“Our nation’s embargo on Cuba is an artifact from the 1960s. To continue this outdated, harmful policy of isolation would be a failure of American leadership. While Trump increased tensions with Cuba during his disastrous time in office, I am optimistic about President Biden’s new diplomatic course,” Wyden said. “Regardless, Congress has a moral and economic obligation to the American people to improve U.S.-Cuban relations as swiftly and safely as possible.”
The U.S.-Cuba Trade Act of 2021 would repeal the major statutes that codify sanctions against Cuba, including the Helms-Burton Act and the Cuban Democracy Act, as well as other provisions that affect trade, investment, and travel with Cuba. It would also establish normal trade relations with the country.
Joining Wyden on the bill were U.S. Sens. Patrick Leahy, D-Vt., Richard Durbin, D-Ill., and Jeff Merkley, D-Ore.
A copy of bill text is available here.
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MARK YOUR CALENDARS!!!
The Rice Market & Technology Convention
will take place in The Woodlands, Texas
July 6-8, 2021
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President Biden announced this week that every American will have access to the COVID-19 vaccine by the end of May and we are excited to bring RMTC attendees to Texas this year!
The Texas rice industry is thriving and as a host, Texas has a lot to offer our RMTC Attendees - those who have visited Texas know that there is always something interesting to see and do, from visiting the South Louisiana Rail Facility and the Port of Lake Charles to attending one of the many social events around downtown Houston, just 30 minutes from The Woodlands.
Stay tuned, registration opens soon!
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COVID-19 Legislative Update
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Food & Ag Regulatory
and Policy Update
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25722 Kingsland Blvd.
Suite 203
Katy, TX 77494
p. (713) 974-7423
f. (713) 974-7696
e. info@usriceproducers.com
www.usriceproducers.org
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We Value Your Input!
Send us updates, photos, questions or comments!
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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
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