In This Issue:
- Market Update: Gulf Coast Rice Harvest 20 Days Away
- Washington, D.C. Update
- TX Rice Producers Board Elects New Officers
- USRPA at Eagle Lake Field Day
- FECARROZ Convenes at RMTC
- Photo from Rice Country
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Market Update: Gulf Coast Rice Harvest 20 Days Away | |
The spot market throughout the delta was largely unchanged once again this week. This has been the case now for three to four weeks, which is to be expected given the tight supplies and the fast-approaching new crop. Price spreads between old and new crop in Texas and Louisiana remain at $2-3 per cwt or barrel, respectively.
Harvest for other grains has already started in Texas, and rice isn’t too far behind. According to the USDA, Texas is 54% headed, up from the normal 22% for this time of year. Louisiana is also ahead of schedule at 41% harvested. This week’s hot and dry weather will speed up crop maturity. Initial field reports from growers are optimistic and an early harvest bodes well for crop quality. As harvest nears, old and new crop prices should converge to the middle for both states, while Arkansas and may see more convergence to old crop pricing.
The July contract has slid roughly 8% from its high back in May but may be stabilizing in the weeks ahead. When open interest is increasing, prices are sliding and volume is rising, which usually that means new short positions are being opened and bearish sentiment is on the horizon. However, in this climate, weekly open interest is falling, prices are softening, but volume is rising — signaling the shorts are now covering their positions and potentially preparing for a rally or at least some stability.
With only a few more weeks left in the 2023/24 marketing year, export demand is looking relatively dialed in, and quite impressive. Mexico clearly steals the show in terms of year over year increases as shipments are up 400% year over year, but other destinations have certainly aided the market with more than 200,000 MT of paddy having shipped to Venezuela.
New crop recently traded at $375 CIF NOLA basis to Central America, a sizable drop from where rice was trading a few months ago. In other words, the market appears to have largely accounted for the acre increase. Moving into the new marketing year, U.S. long grain will look for continued success in Mexico, Venezuela, and Iraq. Should these markets remain at the door for the U.S., the long grain balance sheet should remain in a healthy state and market conditions relatively favorable. However, if the demand wanes to these destinations or is slower to develop, prices could erode a little further.
At present, the USDA forecasts a 25 million cwt carryout, and that is without really adjusting export or domestic demand for the larger crop. It is probable to see the USDA total use decrease by another 1-2 million cwts in the months ahead, which would bring carryout back to roughly 23 million cwts, just slightly over the 5-year and 10-year Olympic averages.
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Senate Agriculture holds a hearing on drought
On Wednesday, the Senate Agriculture Subcommittee on Conservation, Climate, Forestry, and Natural Resources held a hearing in Colorado to discuss the threat of drought to western states. Witnesses described how drought impacts soil health and leads to aquifer depletion and noted the need to improve climate-smart practices to help sustain western agriculture. A recording of the hearing can be found here.
House Appropriations marks up FY2025 EPA funding bill
On Thursday, the House Appropriations Subcommittee on Interior, Environment, and Related Agencies Appropriations Act released the text of its FY2025 appropriations bill, which includes the funding for the Environmental Protection Agency (EPA). The proposal includes a 20% decrease in funding for the EPA compared to last year’s enacted levels. It also includes a provision directing the EPA and Army Corps of Engineers to provide a documentation on how the two agencies are implementing regulations for waters of the United States (WOTUS). Early Friday morning, the Subcommittee marked up the bill, which was approved on a party-line vote. It now moves to the full Committee. The full Committee is currently intending to mark up both this bill and the USDA funding bill the week of July 8. Bill text for the EPA funding bill can be found here and a recording of the Subcommittee markup can be found here.
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Texas Rice Producers Board Elects New Officers | |
This week the Texas Rice Producers Board met and elected Josey Dishman (Chairman), Neal Stoesser (Vice Chairman) and Kenneth Hlavinka (Secretary). Pictured with Josey is the TRPB administrator Vicky Rao, CPA, Katy, Tx. | |
USRPA at Eagle Lake Field Day | |
Earlier this week USRPA supported Texas rice producers at Eagle Lake Field Day hosted by Texas A&M AgriLife Research and Extension. The program focused on critical subjects including rice research and farm policy that benefit the Texas rice industry. | |
FECARROZ Convenes at RMTC | Invited by FECARROZ President Kamal Dieck, the USRPA participated in the Central American meeting prior to the conference. Marcela Garcia and Dwight Roberts, shown here with leadership, represented the only U.S. rice organization presenting. | Kamal E. Dieck, president of FECARROZ extends a special thank you to the USRPA for their long history of support for Central America. | |
On Tuesday, USRPA COO Mollie Buckler hosted Ryan Bardot, staffer in Senator Eric Schmitt's Washington, D.C. office, for a Missouri rice country tour.
Send us your Rice Country photos or videos on Facebook, Instagram, or via email!
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Food & Agriculture
Regulatory & Policy Roundup
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Grain & Feed Update:
Pakistan
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August 1, 2024
2024 Stuttgart Rice Field Day
Stuttgart, AR
More Details to Come
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August 20, 2024
Missouri Rice Research & Merchandising Council
Annual Field Day
Glennonville, Missouri
More Information
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August 22, 2024
Fisher Delta Research, Extension & Education Center Field Day
Portageville, Missouri
More Information
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