Farmers Focused on New Crop Planting

Volume 18, Issue 15

April 15, 2021

In This Issue:

Farmers Focused on New Crop Planting
President Biden Releases "Skinny" Budget
USRPA Updates

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Farmers Focused on New Crop Planting

The cash market across the Delta was quiet as growers were consumed with planting. According to the USDA, Texas’ planting progress is a little slow this year but is still reported at 70% complete which compares to on the ground sources that peg the group to be closer to 90% complete. With only a few small weather events in the forecast, growers should be able to make strong headway in the upcoming 2-weeks. Louisiana is also a little off-pace but is expected to catch up this week as well. In fact, the situation is similar in the northern delta where planting progress is slightly delayed. Considering the crop will be much smaller, and it’s still early, growers aren’t yet concerned.

This week the USDA also released the Grain: World Markets and Trade report which contained numerous pertinent updates. Burma was featured in the report as the country’s exports fell to a 5-year low due to political turmoil. The political unrest which culminated in a military coup back in February has resulted in substantial trade disruptions ranging from logistics, financing, and even export licenses. As such, exports from this origin are expected to remain suppressed in the months ahead.

Larger production in Colombia should drive imports lower by 100,000 MT while a smaller crop in Indonesia is expected to boost demand by 200,000 MT. As for exporters, the smaller crop and political turmoil look to reduce Burmese exports by 200,000 MT which should open up trade opportunities for others South East Asian exporters. Due to higher demand from non-traditional buyers, Brazil’s exports are expected to improve by 100,000 MT in 2021 as well.

Asian export prices were generally sideways this past week with Viet and Indian rice both losing $5 per ton while Thai prices gained $5 per metric ton. In South America, prices were unchanged with Uruguay at $620 and Argentina at $500 FOB.

Even with the bump in demand brought on by the USDA booking more than 75,000 MT which is to be shipped to West Africa, the total demand for US long-grain rice is basically flat against last year. That said, this large sale has yet to hit the books, which means total demand may break out past last year’s number in the weeks ahead.

As countries march toward herd immunity and becoming vaccinated, regional economies around the world are expected to ramp up which stimulates greater consumption of rice. Already this can be seen in countries where restaurants are reopening based on recent rice sales. The USA is now 31% vaccinated, which is far higher than most developed countries. Israel, UAE, Chile, and UK are among the countries that have relatively larger populations to vaccinated ratios.

In mid-April the Texas Department of Agriculture granted registration to Adama for Highcard™ herbicide, a novel safened herbicide used as part of the RiceTec Max-Ace™ Rice Cropping Solution.

The US Rice Producers Association played a key role in the support of this registration and is glad to hear this product will be available for growers this season.

The Max-Ace Rice Cropping Solution gives rice growers an excellent tool for weed control, high-yield, a rice rotation alternative to the FullPage™ Rice Cropping Solution, and conventional offerings from RiceTec.

Missouri rice farmer and USRPA board member, Chris Berry is in the midst of planting RiceTec's FullPage 7321 in the Bootheel using a 60' wide planter with section command. Berry plants both on a 0-grade flat field and a row rice field.

President Biden Releases "Skinny" Budget

Last week, President Biden released his FY 2022 “skinny” budget. The proposal includes $27.8 billion, a 16% increase, for agriculture programs. Increases align closely with the President’s priorities outline during his campaign and see in his recent infrastructure proposal.

Specifically, the bill provides increases to expand broadband access, upgrade drinking water and waste water infrastructure in rural communities, bolster public and private lands conservation, and advance clean energy usage and equity within the department. Additionally, the bill provides strong investment in research and development for farmers and local agriculture marketing programs to support local supply chains.

As evident in all the Administration’s initiatives, there is great emphasis on bolstering economic activity in rural communities. The President’s budget makes critical investments to create jobs and opportunities in rural America, restore America’s advantage, and address climate change through agricultural practices.

In addition to the “skinny” budget, we expect President Biden to release a detailed budget sometime in late May.

USRPA Updates

As the world works to figure out business through the pandemic, the agricultural industry continues to move ahead to provide the world safe and sustainable food.

This week some 35 South Louisiana Rail Facility rice farmers took the time to meet with Corinna Baban from Agreeta Solutions USA (pictured right) to learn about Agreeta's partnership and progress on the new rice mill in Laccasine, LA.

On Thursday, Juan Luis Perez, Director for Cal-Ixa Aggregates, LLC in Houston joins Jay Davis of Coastal Rice Futures, and Marcela Garcia, Chief Operating Officer for the USRPA during a visit to East Bernard, Texas for a discussion of the rice trade between the U.S. and Mexico. (Pictured below)

Friday this week, Enrique Mendez from Grupo Agroindustrial MYR SA de CV in Mexico enjoyed a discussion of the Texas rice market with Pam West, Manager of Brookshire Drying Company in Brookshire, Texas. (Pictured right)

USRPA is proud of the relationships that it maintains with the primary buyers of U.S. rice while continuing to foster and grow new relationships with potential buyers.

Since 1997 USRPA has worked to:

Maintain and enhance existing rice markets, both domestic and international.
Find and develop new markets for domestic sales and export of rough, brown, and milled rice.
Represent producers in legislative and governmental affairs in Washington, D.C.
Educate and inform producers and the general public about rice and rice market information.
Expand research activities to develop the rice industry

BOOTH SPACE IS LIMITED

Visit RiceMTConvention.com

or Contact USRPA Staff for details

VIEW THE SPONSOR/EXHIBITOR PAGE

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.

If you have any questions or require special accommodations, please contact the USRPA at info@usriceproducers.com.

Kenya: Grain and Feed Annual

MY 2021/22 corn and rice production remain flat at 4 million MT and 80,000 MT (for milled rice), respectively. Kenya is expected to remain a net importer for corn, wheat, and rice. MY 2021/22 rice consumption is forecast to improve by 8 percent to 700,000 MT as schools and the hospitality sector reopen. MY 2020/21 rice consumption is reduced 14 percent to 650,000 MT due to business closures in major cities related to COVID-19 lockdowns.

April 12, 2021

Turkey: Grain and Feed Annual

Rainfall was scarce for most of the winter in the main grain growing regions in Turkey. Turkey struggles with food inflation, which is exacerbated by a weak Turkish Lira and high international commodity prices. Turkey reduced almost all grain tariffs until the new harvest. Some product exports and imports continue to be affected by COVID-19 related issues. The Ministry of Agriculture and Forestry approved new genetically engineered (GE) soybean and corn events for feed use in January and February 2021.

April 12, 2021

Indonesia: Grain and Feed Annual

The Government of Indonesia (GOI) has announced intentions to import 1 million tons of rice in 2021 to maintain sufficient stock levels and stable prices.

March 27, 2021

Paraguay: Grain and Feed Annual

A record rice production is forecast at 1.2 million tons rough base on increased planted acreage with exports forecast up at 650,000 tons milled base.

April 9, 2021

Cambodia: Grain and Feed Update

Post revised its marketing year 2020/2021 (MY20/21) estimates of rice harvested area and production at 3,265 thousand hectares (THA) and 9.48 million metric tons (MMT), lower than the USDA official numbers. Post forecasts that MY21/22 harvested area and production will reach 3,310THA and 9.61MMT based on improved weather condition expectation.

April 12, 2021

Ghana: Grain and Feed Annual

Post projects milled rice production for market year (MY) 2021/22 at 600,000 metric tons (MT); a five percent increase from the prior year estimate. MY2021/22 imports of milled rice and wheat are projected at 950,000 MT and 1.0 million metric tons (MMT), respectively. Imports of rice are expected to stabilize in view of increasing domestic production.

April 7, 2021

Taiwan: Grain and Feed Annual

Low rainfall and lack of typhoons in 2020 will lead to reduced rice production in MY 2020/21. Rice stock levels are expected to draw down in 2021 and recover in 2022. As Taiwan holds high stock levels of rice, therefore total supply will be minimally affected.

April 7, 2021

Arkansas Rice Update

By: Jarrod Hardke

and Scott Stiles

The 4th Arkansas Rice Update of 2021 is available now. It includes information on progress, other residual herbicides, cattail control, market options, and podcasts.