Rice Month Giveaway
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Harvest marches forward with both Louisiana and Texas approaching 90% complete. Both states have seen strong progress as they are nearly 10% faster than last year. Arkansas is now at 40% complete, which is a whopping 30% faster than last year. This is where the news will be, with many producers stating they are seeing some excellent yields coming out of the fields. We can’t confirm how widespread this is, nor can we make firm statements on milling yields yet. Initial reports seem to be average, but much too soon to tell. Missouri and Mississippi are moving steadily forward, and medium grain on the west coast will begin first part of next week on the early rice. Crop condition is still fantastic compared to last year, with 79% being Good/Excellent this year, compared to only 70% last year.
The Calrose market has been a volatile one in the last 12 months, where cash prices have bottomed out at below $8/cwt over loan (appx $15/cwt all in), resulting in severe losses for cash sellers who have been holding their rice hoping for higher prices. A confluence of inaccessible demand in the Middle East, a large crop, and global competitors that got a foothold during the drought has made for a rough marketing season. Strong Japanese SBS business in the coming weeks, along with typical exports and a returning MENA region appear to be shifting the tide though, as we expect prices to turn northward and bump above $9/cwt for old crop rice. There has been little to no price discovery on new crop, as record stocks have precluded new crop sales.
Looking at our total exports through June, it is great news when comparing them to last year. Our top three markets this year are Mexico, Haiti, and Japan, where last year they were Mexico, Haiti, Iraq. We expect Iraq to bump up again now that their banking issues seem to be resolved, and they can fulfill their MOU for U.S. rice. Of the top ten export destinations, the first 6-months of the 2023 calendar year resulted in 1.328 MMT of exports. This year, the same period has resulted in 2.124 MMT of exports, a whopping 60% increase! With a crop expected to exceed 2.8 million acres, exports are likely to increase further, though price direction is still uncertain.
We are thankful now for good weather, a strong looking crop, and what looks like steady demand moving into the fourth quarter of 2024.
US Rice Producers Association continues to develop innovative marketing programs aligned with new consumption and shopping trends to position U.S. rice in different markets worldwide. For several years now, and in collaboration with several Mexican importers, USRPA has been conducting digital marketing campaigns to boost U.S. rice sales in Mexico, obtaining extraordinary results. Last year, an ad campaign was implemented through Rappi, a delivery platform with a presence in more than 100 cities and which will exceed 63 million users in Mexico during 2024. The campaign consists of a series of pop-up banners strategically placed within the app using the search algorithm, which will allow content to be shown to users looking to purchase rice, dishes prepared with rice, or pairing products, creating a link for an automatic shopping cart with the nearest retail chain. Due to this initiative, in December 2023, sales of U.S. rice up to USD $18,000 were registered in Rappi. This amazing success motivated USRPA to continue developing marketing strategies within this type of application. In 2024, US Rice Producers Association will partner with Schettino, the largest importer, miller, and packer of U.S. rice in the Mexican industry, implementing joint promotions in Rappi. The campaign, which began this week, is expected to surpass the results obtained in 2023 and impact directly a market share increase in Mexico. |
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In celebration of National Rice Month in September, what better way to honor this occasion than by launching the application process for the Ray Stoesser Memorial Scholarship. In collaboration with the US Rice Producers Association, the Stoesser family is thrilled to offer a $5,000 scholarship for the fourth consecutive year. This scholarship aims to assist a deserving high school senior or current college student with a passion for, or pursuing a career in, an agriculture-related field. The application period starts on Sunday, September 1st, and closes on Friday, December 6th. For more information and to apply, click on the link below. |
HarvestHarvest is in full swing now, and there is a welcomed absence of bad news. As of writing, we are happy to report no crazy weather events, no terrible harvest conditions, and continued optimism helping along a worry-free harvest. Louisiana leads the way with nearly 90% of its harvest complete, and 84% in Good/Excellent conditions. Texas is right behind them getting close to 90% harvested while reporting only 54% in the Good/Excellent conditions. Arkansas is over 25% harvested now, where 76% is reported as Good/Excellent. The next big step here will be to get initial milling yields back from the field, which we hope to begin trickling in within the next two weeks. Mississippi is also about 25% complete, showing 58% in Good/Excellent conditions. Missouri is now rounding out 10% harvested, and reports show 71% Good/Excellent. California still has yet to get a harvester in the field, where crop conditions are reported at 100% in Good/Excellent conditions. Overall, 33% of the harvest is complete, which is 15% faster than last year, and 79% of the crop is in Good or Excellent condition. Mills are happy to be working on the 40 TMT of business to Iraq that will likely be pulling from some old crops and some new crops. There is hope for additional purchases in the future once the crop is harvested and the market sentiment firms in one direction or another. The domestic buyers seem to be holding off on booking large quantities until the harvest is further along and new supplies are available. There is a dual purpose here, one for the hope of more competitive pricing with the larger crop, and the second for the simple fact of better quality on a new crop product. In Asia, prices are holding relatively steady. Thailand is $593 pmt this week, while Vietnam is $579 pmt, both prices are right on par with last week. Consistent purchases from Indonesia and the Philippines are fueling core demand, while business into Africa and other Pacific Rim destinations fill in the gaps. India continues to move rice via G2G under the radar of their export ban, now at higher volumes and profiles than in previous months. We continue to state that these private deals will help mute the eventual impact of their opening of exports in the future, which we expect to happen this calendar year. The weekly USDA Export Sales Report shows net sales of 24,300 MT this week, up 23% from last week. Exports of 21,100 MT are down 39%, and were primarily to Haiti (12,000 MT), Mexico (4,400 MT), Jordan (2,000 MT), Canada (1,300 MT), and Saudi Arabia (1,100 MT). In the futures market, average daily volume is down 4.14% to 1,653, and Open Interest is down 4.09% to 8,845. Sep 24 contracts bumped just over 2% to $15.130, while Sep 25 contracts are down -0.54% at $14.840. The large crop is putting buyers in a wait-and-see attitude until more is known about the milling yields. ![]() |
Missouri Rice Council Hosts Annual Field Day ![]() Missouri Rice Research & Merchandising Council held its annual Field Day on Tuesday. Although field and weather conditions have producers in one of the busiest times of the year, 100+ people attended the event. The Field Day included tour stops focused on weed and insect management, row rice, rice variety trials, and more. The luncheon program included local, national, and international updates. Senator Jason Bean, local state senator and rice producer, gave greetings, along with Marcela Garcia, US Rice Producer Association President and CEO. Fred Clark from Cornerstone Government Affairs gave an outlook on the future of the Farm Bill, while Stuart Hoetger gave a domestic and international market update. MRRMC thanks both attendees and sponsors for their support of this great event. |
![]() Field Day was held on one of the most beautiful days of the summer with a high of 82 degrees. | ![]() Dr. Hunter Biram with the University of Arkansas presents "Declining Net Returns in 2024 and Farm Bill Implications" |
![]() As always, Karon Campbell and her team at Tasteful Creations catered a delicious lunch. | ![]() |
![]() State Senator Jason Bean greets the crowd during lunch. | ![]() Fred Clark with Cornerstone Government Affairs in Washington, D.C. presents a Farm Bill update. |
Last week, US Rice Producers Association participated in USDA’s Agribusiness Trade Mission to Bogota, Colombia. Led by USDA Undersecretary for Trade and Agricultural Affairs Alexis Taylor, the three-day trade mission included market updates, tours of various types of markets and stores, and opportunities to connect with buyers from both Colombia and Venezuela. Mollie Buckler, Chief Operating Officer, and Iris Figueroa, Western Hemisphere Marketing Manager, represented USRPA on the trip. ![]() During the plenary session on Tuesday, USDA staff cited rice as one of the products with the greatest potential for expanded market growth. Currently, paddy rice sits at #8 of top US products imported to Colombia. To wrap up the trip, Buckler and Figueroa had a productive meeting with staff members from Induarroz, Colombia’s rice millers’ association. Conversations centered around the future of U.S. rice exports to Colombia and ways USRPA and Induarroz can continue to work together.Last week, US Rice Producers Association participated in USDA’s Agribusiness Trade Mission to Bogota, Colombia. Led by USDA Undersecretary for Trade and Agricultural Affairs Alexis Taylor, the three-day trade mission included market updates, tours of various types of markets and stores, and opportunities to connect with buyers from both Colombia and Venezuela. Mollie Buckler, Chief Operating Officer, and Iris Figueroa, Western Hemisphere Marketing Manager, represented USRPA on the trip. During the plenary session on Tuesday, USDA staff cited rice as one of the products with the greatest potential for expanded market growth. Currently, paddy rice sits at #8 of top US products imported to Colombia. To wrap up the trip, Buckler and Figueroa had a productive meeting with staff members from Induarroz, Colombia’s rice millers’ association. Conversations centered around the future of U.S. rice exports to Colombia and ways USRPA and Induarroz can continue to work together. ![]() USRPA Staff with Induarroz leaders Daniel Rodriguez, Sandra Avellaneda, and Ricardo Lozano |
This week’s market update will piggyback on some of the highlights from our Missouri Rice Field Day earlier this week. Harvest continues to look strong where it is ahead of schedule in all states. Arkansas is now just over 10% and going strong. The optimism for a quality crop continues with 79% in the Good to Excellent condition. With rice finally coming in the barn, it’s nice to view a quick recap of production and its variance from last year. Take a look below: · Arkansas: 1.31 million acres + 100,000 acres · Louisiana: 435,000 acres + 38,000 acres · Mississippi: 158,000 acres + 38,000 acres · Missouri: 210,000 acres + 193 acres · Texas: 140,000 acres + 120 acres · TOTAL LG: 2.251 million + 200,000 total In California, acres bumped to 470,000 acres, a 20,000 acres increase from initial projections, but a drop over 30,000 acres from last year. On the ground, paddy is being quoted at $385 CIF NOLA, which is down $15 from a month ago. This is expected to remain, but could firm up on tighter supplies as a result from the loss from the hurricane. Some of the hardest hit producers report losses in the 30% range. One challenge that has emerged in the last two weeks is the sky-rocketing barge rates, some bumping 750% of tariff, up 250-300% from just a week ago. Taking a look at the global picture, Brazil continues to be a factor in the Western Hemisphere. Their ending stocks are up slightly from last year but still down from historical average. USDA projects slightly higher exports than last year, but still more to develop here. Central America is forecast to import 25-30m tons more than last year, as opportunities for USA with Brazil are slightly down. Mexico, the largest market for U.S. long-grain is back again, after a few years of reduced demand due to Brazil and Asian origin rice. We expect to see greater demand to this destination as they are projected to import 860 MT. Colombia trade has been relatively consistent each year since the COL-RICE trade agreement. In the Middle East demand forecast up 255 MT tons year over year, coming out of Iraq, Saudi Arabia, Jordan, and the UAE. Iraq’s purchase of 40,000 MT, which will be shipped this fall, is welcomed demand after ongoing financing issues. The weekly USDA Export Sales report shows net sales of 19,800 MT this week, primarily for Guatemala (5,000 MT), Honduras (5,000 MT), Jordan (4,600 MT), Mexico (1,600 MT), and Japan (1,200 MT). Exports of 34,400 MT were primarily to Mexico (25,800 MT), Canada (2,600 MT), South Korea (2,400 MT), Jordan (1,200 MT), and Japan (1,100 MT). |
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![]() Early Bird Pricing Alert! Reserve your spot before December 15, 2024, to lock in the discounted rate of $750. Also, the 2025 Sponsor & Exhibitor Brochure has been released! Previous year's sponsors and exhibitors are given priority to choose their booth placements for 2025. Past sponsors, ensure you seize this opportunity! Booth availability will open to the general public on Friday, September 6. Register for RMTC2025 |
Consume Arroz USA is a communication and promotional campaign developed by US Rice Producers Association in Mexico as part of its marketing efforts to position and increase U.S. rice consumption worldwide. This campaign comprehends a series of strategies combining activities at point of sale with digital marketing to reach various target markets. For a couple of years now, USRPA has been partnering with renowned chefs and influencers to support its campaigns and directly communicate to an audience that’s continuously looking for food content and different ways to include innovative recipes into their daily diet. In 2023, Consume Arroz USA surpassed 8 million views in its digital communication, having collaborations with Chef Carlos Leal and social media outlets with a high volume of traffic. For 2024, and due to last year's great results, US Rice Producers Association will join efforts with five top influencers who have a powerful presence in social media (especially Instagram) to produce a video series of rice recipes where consumers can learn how easy it is to cook a complete meal for their families and friends. Carlos Leal, Giovanna Ronci, Melissa Morelos, Sara Cardenas and Luz Colsa will share delicious dishes with U.S. rice as the main ingredient to delight Mexican consumers. Consume Arroz USA 2024's first content posted this week, where Sara Cardenas showed us how to prepare some wonderful "bolitas de arroz" in a fast and fun way. In less than one day, this recipe has more than 2400 likes and over 360 followers shared it in their feed. We're confident that this year’s program will be a complete success, and we can be sure that we will see amazing U.S. rice dishes and be happy while tasting them with our families! |
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