The month of November showed significant growth for USRPA's Facebook page in our North African Market, RizAmerican. The page gained a total of 1,300 new followers (a growth of 39.3%), with total followers now reaching 4,800. Facebook likes, comments and interaction rates also show positive growth. More than 650,000 impressions were made in just one month, the majority of the audience being females from Tunisia.
Our Moroccan-based influencer @MouniaSenhaji posted a series of stories talking about U.S. rice and prepared a healthy rice salad for her fans in North Africa. She tagged USRPA on Facebook, which also helps to increase awareness and achieve a higher reach, connecting both channels. The stories reached an average of 17,000 accounts per story.
Washington, D.C. Update: Debt Ceiling
The House and Senate passed legislation to suspend additional cuts to mandatory programs and initiate the process of raising the debt ceiling. The bill delays any additional sequestration cuts to Medicare, farm programs, and other mandatory spending programs and limits Senate debate on a separate debt ceiling increase bill, bypassing the legislative filibuster rules.
Congress will need another bill that would increase the debt limit to ensure the federal government doesn’t exceed its statutory borrowing limit and default. Congress is expected to swiftly draft and pass this legislation ahead of the December 15 deadline set by the Treasury Department.
USDA Supply/Demand Report Brings No Surprises
This week, the USDA released the December WASDE report which contained only minor revisions for both U.S. long-grain and medium & short-grain. The USDA didn’t make any notable changes to the 2020/21 balance sheet in this report but rather focused on the 2021/22 crop. Long-grain imports were revised downward, while export and domestic demand was left steady from the November report. Ultimately, the 2021/22 long-grain carryout was lowered by 1 million cwts, entirely the result of lower imports. Season average farm prices improved, but only slightly, up $0.10 per cwt to $13.10.
Medium & short-grain imports were also lowered this month, but that was more than offset by lower export use which is attributed to higher prices and less supply. The domestic use, as per the norm, appears more resilient against the current market conditions and is even expected to exceed last year’s demand. Ending stocks were assessed up 500,000 cwts, and while California’s price projections are unchanged from last month, southern medium-grain was lowered $0.30 per cwt to $13.70 per cwt.
On the ground, there is little to report in the way of cash trade activity. With tax implications prohibiting some from selling, and the normal holiday slow-down inhibiting others, a more mellow pace is normal for this time of year. However, the market is abuzz with what next year’s acreage numbers will look like as a result of the soaring fertilizer costs and the potential for growers to plant more corn and beans. The expectation is that the largest reduction will come for Arkansas and that Louisiana will remain close to the same as this year. Mississippi and Texas are still up in the air, and California acreage on the West coast is completely contingent on precipitation and the ensuing water policy.
In Asia, prices remain relatively constant. Thai rice remains around $385pmt, Viet at $405pmt, and Indian down at $355. It is notable that Viet prices have dropped in recent weeks to come more in line with Thai prices, while Indian rice has held steady along with their record-breaking export pace.
The weekly Export Sales Report shows net sales of 48,800 MT, which is up 51% from last week, but down 22% from the prior 4-week average. Increases were primarily for Honduras (18,500 MT), Guatemala (13,100 MT), Jordan (4,100 MT), Taiwan (3,000 MT), and Canada (2,400 MT).
Exports of 60,100 MT were down 42% from the previous week and 21% from the prior 4-week average. The destinations were primarily to Guatemala (14,400 MT), Japan (13,000 MT), El Salvador (12,400 MT), Haiti (12,400 MT), and Canada (2,600 MT).
Futures have been taking a hit since Thanksgiving, with the low registering this week at $13.79. This could be on account of the cash market being slow, the typical slow-down this time of year, or simply the difficulty in the logistics sector. Average Daily Volume is 815, down 5%, and Open Interest is at 8,444, holding even with last week.
The US Rice Producers Association Board of Directors held its winter board meeting earlier this week in San Antonio, Texas, primarily focused on strategic planning for 2022 and beyond. Board members also heard trade and legislative updates from the Cornerstone Government Affairs team learned about the positive results of recent USRPA marketing campaigns in Mexico and Central America and met with Foreign Agricultural Service representatives regarding 2022 MAP funding.
Thank you to all our dedicated board members who represent and advocate for their fellow rice producers across the country.
USDA Awards Funds for Fiscal Year 2022 Market Development Programs
WASHINGTON, D.C., Dec. 3, 2021 – The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) has awarded fiscal year 2022 funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for U.S. goods.
The Market Access Program (MAP) focuses on consumer promotion, including brand promotion for small companies and cooperatives, and is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. The Foreign Market Development (FMD) Program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. agricultural products.
“The Market Access and Foreign Market Development programs benefit producers throughout the United States, building markets for a wide variety of U.S. farm and food products around the globe,” said FAS Administrator Daniel Whitley. “These programs play a significant role in supporting the U.S. agricultural industry that achieved record exports in 2021 and is projected to do even better in 2022. Increased exports are critical to expand farm incomes, improve the economic health of rural communities, and ensure nutrition security here at home and overseas.” Under the Market Access Program, FAS will provide $175.6 million for fiscal year 2022 to 67 nonprofit organizations and cooperatives. These organizations use the funds to support U.S. producers with marketing and promotion activities around the globe, including market research, technical assistance, and support for participation in trade fairs and exhibits. The average MAP participant provides more than $3.50 in contributions for every $1 in federal funding it receives through the program.
Under the Foreign Market Development Program, FAS will allocate $26.8 million for fiscal year 2022 to 21 trade organizations that represent U.S. agricultural producers. The program focuses on generic promotion of U.S. commodities, rather than consumer–oriented promotion of branded products. Preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute on average more than $2.50 for every $1 in federal funding they receive through the program, will conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas.
USDA’s international market development programs have had a significant and positive impact on U.S. agricultural exports. An independent study released in 2016 found that MAP and FMD provide $28 in export gains for every $1 spent by government and industry on market development.
Agricultural exports have grown significantly over the past decades, becoming an increasingly important component of the agriculture industry and accounting for 20 percent of U.S. production. From 2000 to 2020, U.S. agricultural exports grew from $56 billion to $150 billion. It is estimated that U.S. agricultural exports supported nearly 1.1 million full-time jobs in 2019.
USDA has published the list of organizations that will receive fiscal year 2022 MAP awards and FMD awards. To learn more about MAP, FMD and other FAS programs, visit www.fas.usda.gov.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy, and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
USDA is an equal opportunity provider, employer, and lender.
Volume 18, Issue 47
December 3, 2021
In This Issue:
Rice Market Update: 2022 Calm Before the Storm?
US Rice Producers Association MAP Funding Approved for 2022
Washington, D.C. Update
El Salvador Digital Campaign Continues with Good Results