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In This Issue:
- Market Update: USDA WASDE Report Lowers U.S. Rice Exports
- Washington, D.C. Update
- International News: USRPA Exhibits at Food Hotel Asia in Singapore
- RMTC 2025: Featured Speakers & Exhibitor Highlights
- Photo from Rice Country
| | USDA WASDE Report Lowers U.S. Rice Exports | | |
While the activity in Washington is unprecedented and the pull to analyze the tariffs on a broad scale has a magnetic force to it, our focus here will be to remain steadily focused on the rice market. As each day passes, a “steady-as-she-goes” approach seems to be paying off because, as of this writing, President Trump has cancelled or relaxed tariffs on all countries except China for 90 days.
April’s FAO Rice Price Update shows that the Rice Price Index declined by another 1.7% in March to an average of only 104.1 points. This is 24.6% lower than this time last year and hit another three-year low. As we’ve continued to report, price quotations have dropped from all major exporting regions; i.e., the low prices we are seeing in the United States are not an isolated incident — it’s worldwide.
The WASDE report released yesterday has the futures market trading lower as the USDA cut exports 2 million cwt, but raised residual use by 3 million, while cutting carryover by 1 million cwt to 34.3 million cwt. World stocks (not including China) actually increased by 1.73 MMT up to 79.74 MMT. This is being blamed more on slow demand from the Philippines and Indonesia than any significant production increase.
A recent GAIN report on the Philippines, often the world’s largest importer, is projecting that this year they import less than last year. While that could happen, it is a common refrain for the Philippines to boast about an increase in domestic production and not needing to rely so heavily on imports, only to come to market later in the year with a severe need for large quantities of rice. The expected production numbers this year are 11.6 million acres, right in line with 2023 and up less than 1% from last year. Imports this year are at 5,200 MMT, down from 5,300 MMT last year but up from 4,500 MMT from 2023. The overall consumption of rice is expected to increase by .6% this year, up to 17.30 MMT. Vietnam has been the largest supplier by far, accounting for 75% of the 4.5 MMT of imports last year.
In the broader global market, Asia is hurting, while the Mercosur is steady in harvest. Prices continue to bring pain, where Thailand is quoted at $395 pmt, Vietnam at $400 pmt, and India at $380 pmt. Prices in the Western Hemisphere are certainly higher but still below break-even levels. Harvest in the Mercosur is continuing well, with strong numbers and what can currently be described as light demand. The result is a continued softening of prices, with paddy prices hovering around $310/ton FOB, if not lower. The hope is that demand picks up significantly.
This year’s first Crop Progress Report shows Louisiana at 69% planted, Texas at 60%, Arkansas at 15%, Mississippi at 14%, Missouri at 2%, and California at 0%, where tractors are just beginning to turn over dirt for initial field work. Recent flooding in southeast Missouri and northeast Arkansas has had a limited impact while water levels continue to recede. Rice is 52% emerged in Louisiana and 35% in Texas. Prices on the ground haven’t moved much as everyone is waiting with bated breath to see what will come of the tariffs.
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Trump Announces 90-day Tariff Pause, Excluding Duties on Chinese Goods
On Wednesday, President Trump announced his plans to temporarily halt the country-specific reciprocal tariffs for 90 days, except the tariffs applied to China. Following the announcement, the White House clarified that all countries’ reciprocal tariffs will be brought down to the 10% baseline rate, except for tariffs on China, which currently sit at a rate of 145%, as of the time of this writing.
In retaliation, China has also continued to raise their tariffs on U.S. products to 84% from the previous 34%. This comes after last week’s grand announcement of the widespread global reciprocal tariffs, which seemed to trigger large swings and turmoil in the stock and bond markets. President Trump and Department of the Treasury Secretary Scott Bessent, who is expected to help take a lead in trade negotiations, relayed that more than 75 countries have come to the negotiating table and are willing to secure lower duties. The tariffs placed on Mexico and Canada have remained unchanged from their previous settings, which means United States-Mexico-Canada Agreement (USMCA) -compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.
As more trading partners come to the table during this time, the Trump Administration’s trade goals of eliminating trade barriers, both on tariffs and regulations, and reversing the U.S. trade deficit seem to remain at the center of negotiations.
USTR Ambassador Greer Testifies Before Senate Finance and House Ways and Means Committees
This week, U.S. Trade Representative (USTR) Ambassador Jamieson Greer made his rounds on Capitol Hill, where he testified on behalf of the Trump Administration’s trade policy agenda before both the Senate Committee on Finance and House Committee on Ways and Means. Both sets of hearings seemed to feature bipartisan concern regarding the potential adverse effects that President Trump’s reciprocal tariffs may have on the U.S. economy and American businesses and consumers. Republicans highlighted how the Trump Administration’s reciprocal tariffs would create new trade agreements that reduce trade barriers and lower the trade deficits but were wary of potential unintended consequences. Further, Republicans said tariffs would promote protectionist ideals such as domestic manufacturing and job creation.
Democrats criticized President Trump’s tariff policy for alienating the U.S. from longtime allies and a negative impact on American families. Additionally, Democrats raised concerns about President Trump’s use of executive power while implementing his trade agenda. Ambassador Greer defended the Administration’s recent trade actions and said that while there would be no exemptions for U.S. companies, negotiations are underway, and many countries have already expressed willingness to work with the U.S. on the countries’ tariff rates and non-tariff barriers.
Other topics of discussion across chambers included the United States- Canada- Mexico Agreement (USMCA), U.S.- China relations, agricultural trade and exports, U.S.-produced steel and aluminum, domestic pharmaceutical manufacturing, digital trading markets, and the de minimis exemption. You can watch the full Senate Finance hearing here and the full House Ways and Means hearing here.
Senate Ag holds USDA Nomination Hearings
On Tuesday, the Senate Committee on Agriculture, Nutrition, and Forestry held a nomination hearing for the Honorable Stephen Vaden, of Tennessee, to be the next Deputy Secretary of Agriculture and Mr. Tyler Clarkson, of Virginia, to be General Counsel of the U.S. Department of Agriculture (USDA). Generally, Republicans and Democrats agreed on the importance of strong leadership at USDA to address the challenges facing rural America. Republicans focused on the nominations of Judge Stephen Vaden and Tyler Clarkson, emphasizing their roles in supporting the USDA's mission and addressing economic struggles in agriculture. Democrats repeatedly criticized the Trump Administration’s blanket tariff policy, the recent funding freezes at USDA, and the necessity for USDA leadership to uphold the rule of law and support rural communities.
Other topics of discussion throughout the nomination included foreign market development and various barriers to trade, the importance of reauthorizing a new five-year farm bill, Supplemental Nutrition Assistance Program (SNAP) work requirements, and rural development. While no date has officially been set to confirm either nominee, it is likely the Agriculture Committee and the full Senate will vote and consider their nominations during the next work period in May after the two-week Easter/Passover recess. You can watch the full nomination hearing here.
| | USRPA Exhibits at Food Hotel Asia in Singapore | Ambassador Casey Mace and Agriculture Counselor Timothy Harrison visiting USRPA's booth. | |
This week US Rice Producers Association showcased various U.S. rice products in Singapore, increasing U.S. rice visibility and generating leads in this critical Southeast Asian market. The booth featured a live tasting of three recipes specifically prepared to cater to Asian cuisine. All recipes were well-received, with positive feedback from industry professionals and consumers alike. This trip also provided a valuable opportunity to network with industry partners and gather competitor insights.
USRPA’s promotional programs in Southeast Asia cover Singapore, Malaysia, Vietnam, the Philippines, and Thailand. Beginning in 2024, USRPA has worked together with local agencies to actively promote and expand the U.S. rice market overseas, reinforcing its position as a reliable supplier in the global market. Follow-up actions are underway to convert leads into long-term partners and customers, and we will continue to generate interest and a positive image of U.S. rice in this robust and sophisticated market.
"Our presence in Singapore this week was a tremendous success. The enthusiastic response to our U.S. rice recipes and the strong interest from both consumers and industry professionals reaffirm the growing demand for high-quality U.S. rice in Southeast Asia," Grace Wang, US Rice Producers Association's Chief Financial Officer, said. "We're committed to building on this momentum by deepening relationships, supporting our partners, and reinforcing the U.S. rice industry's reputation as a trusted and innovative supplier in the region."
| | USRPA staff and local representative visited Singapore rice importer Tong Seng. | |  | Tastings made with U.S. rice were well received. | | | RMTC 2025: Featured Speakers | | RMTC 2025: Exhibitor Spotlight | | |
Throwback to RMTC Miami in 2013! We hope to see you at this year's convention.
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Food & Agriculture
Regulatory & Policy Roundup
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Deadline: August 15, 2025
| | | Brazil: Grain & Feed Annual
For the 2024/25 harvest, rice production is anticipated to be robust, encouraging high exports and supporting the 2025/26 planting. | | | Guatemala: Grain & Feed Annual
Rice production in Guatemala is slowly declining due to limited access to improved seed varieties and an insufficient domestic supply of locally developed seeds. As a result, both the cultivated area and overall production are expected to decrease in the coming years. Additionally, formal rice imports have not increased proportionally to meet growing demand, as contraband trade continues to rise. | | | |
May 28 - 30, 2025
Rice Market & Technology Convention
Miami, Florida
More Information
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USRPA does not discriminate in its programs on the basis of race, color, national origin, gender identity, sexual orientation, religion, age, disability, political beliefs, or marital/family status. Persons who require alternative means for communication of information (such as Braille, large print, sign language interpreter or translation) should contact USRPA at 713-974-7423. |
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