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IN THIS ISSUE:

  • Market Update: Rice Farmers Looking for a Brighter Year In 2017
  • United States & Cuba: Life After Fidel Castro
  • Congress Mulls Appropriations Continuing Resolution
  • Trump’s Transition Moving Forward

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Market Update: Rice Farmers Looking for a Brighter Year in 2017

[vc_column_text css=”.vc_custom_1480716482509{border-top-width: 3px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #81d742 !important;border-left-style: solid !important;border-right-color: #81d742 !important;border-right-style: solid !important;border-top-color: #81d742 !important;border-top-style: solid !important;border-bottom-color: #81d742 !important;border-bottom-style: solid !important;}”]While much of the agricultural industry resumes the interim work schedule between the Thanksgiving and Christmas holidays, rice seems to have checked out for the remainder of the year.

Railcars loading paddy rice for shipment to Mexico at the South Louisiana Rail Facility this week.

Railcars loading paddy rice for shipment to Mexico at the South Louisiana Rail Facility this week.

Truly, the events that have transpired since the last report can be summed up in a single word – Nothing.  December is historically a very slow month for the domestic rice trade as the buyers have generally accumulated their necessary inventory to finish out the calendar year.  Meanwhile, growers are typically wrapping up miscellaneous field work and repairs at the end of the season.  As a result very little marketing gets done at this time.  From this perspective, everything is normal.  This sense of mundane “normalcy” is reflected in the cash bids, which have seen very little changes over the past two weeks.  Similarly, the world market price has strengthened slightly since the last report but only by marginal amounts.  Asian markets have seen valuation changes, but those are due almost explicitly to currency fluctuations against the US dollar.  Even the futures market has seen a roller coaster week that resulted in no significant changes in price in the first five contracts on the open board.  The only noteworthy indicators this week are reflected in the export sales, which are understandably sluggish given the aforementioned reasons and also the partial work week due to the Thanksgiving holiday.  Having established that the market is in almost the same state as that of the last report, it is probably beneficial to spend some time looking forward as to what the next few weeks

Pacific Navigation vessel Atlantic Veracruz loads rough rice in the Port of Lake Charles this week as Louisiana rice farmers continue to export their harvest to the Mexican market.

Pacific Navigation vessel Atlantic Veracruz loads rough rice in the Port of Lake Charles this week as Louisiana rice farmers continue to export their harvest to the Mexican market.

might bring.  Between now and the end of the year there are a few key events which should be kept in mind as both planting and marketing decisions are made.  The most significant of these will be the government reports, specifically the World Agricultural Supply and Demand Estimate (WASDE).  The last WASDE of 2016 will be released next Friday (12/9), and while it is always dangerous to speculate on the outcome, there are a few revisions that are more likely than others.  Supply side predictions will likely remain very close to the numbers that have been seen in previous releases.  Yield variances are possible but will have a minimal impact on the bottom line.  Demand side expectations are unlikely to change either, the exception being the export numbers.  Given the numbers we have seen in recent weeks the total export estimate will probably be decreased.  This will in all likelihood net a larger carryout.  In the meantime, the futures market will likely respond in kind as it slowly loses steam going into the Yuletide holiday.  Also, with the inventories being what they are, it is unlikely that any significant buying pressure will enter the market during this time.  Before the wailing and gnashing of teeth starts, remember that this is a slow time of year and that these events would not be out of place in any given year.  Other events that may stimulate the market are the export sales reports.  If the historical trends hold, the next report should provide some more positive numbers.  Any business that keeps the domestic mills running and moving product at this time is a boon to the industry as it will provide an outlet for some of the large inventories.  Aside from these events, it is likely to remain very quiet through the end of 2016.  The only thing left to do as an industry is to continue to grind through the existing stocks and look to a brighter year in 2017.  2016-12-2_rmu

 

 

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United States & Cuba: Life After Fidel Castro

By: Dwight Roberts, USRPA President & CEO

[vc_column_text css=”.vc_custom_1480717133218{border-top-width: 3px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #81d742 !important;border-left-style: solid !important;border-right-color: #81d742 !important;border-right-style: solid !important;border-top-color: #81d742 !important;border-top-style: solid !important;border-bottom-color: #81d742 !important;border-bottom-style: solid !important;}”]The death of former Cuban President Fidel Castro last week did not go unnoticed as witnessed by the reaction around the world.  Powerful emotions took the Cuban people to the streets to mourn or celebrate as all of us closed a chapter of world history.  As someone who has lived and worked throughout Latin America for the past 40 years and has traveled to Cuba numerous times in the past 16 years, my thoughts immediately turn to the future of Cuba and its people.  “What’s next?” is really the important question.  Politicians can debate the rights and wrongs of the left and the right on every country in the world.  Extremism, whether political or religious in nature does not provide what most families want in the world and what most parents want for their children.  Whatever is next for Cuba and the United States, we can only hope that two neighboring countries…yes neighbors we are…… can resolve issues, allow each to help the other and pave the way for the next generation.  What a great example for the rest of the world if this is the next chapter of history.

Pictured is Dwight Roberts of the USRPA having a discussion about rice and farming with President Fidel Castro shown on the front page of the Granma, the official newspaper of the Cuban government (December 17, 2004). Dwight was in Havana to speak at the US-Cuba Trade Conference hosted by the Cuban government at the time.

Pictured is Dwight Roberts of the USRPA having a discussion about rice and farming with President Fidel Castro shown on the front page of the Granma, the official newspaper of the Cuban government (December 17, 2004). Dwight was in Havana to speak at the US-Cuba Trade Conference hosted by the Cuban government at the time.

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Congress Mulls Appropriations Continuing Resolution

[vc_column_text css=”.vc_custom_1480717437165{margin-bottom: 15px !important;border-top-width: 3px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;padding-top: 5px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #81d742 !important;border-left-style: solid !important;border-right-color: #81d742 !important;border-right-style: solid !important;border-top-color: #81d742 !important;border-top-style: solid !important;border-bottom-color: #81d742 !important;border-bottom-style: solid !important;}”]As the end of the year quickly approaches, one of the last major pieces of legislation left to consider is government appropriations. Most agree that Congress will pass a Continuing Resolution (CR), which will maintain government funding at Fiscal Year 2016 levels, but the length of the CR is still under debate. The Senate is in favor of extending the CR through May, as the early part of the year will require focus on approving President-elect Trump’s nominees. However, the House is in favor of a shorter extension date. The White House showed concern with a long-term extension. Negotiations must continue next week, as the current Continuing Resolution expires on December 9, 2016.[/vc_column_text]

Trump’s Transition Moving Forward

[vc_column_text css=”.vc_custom_1480717465052{margin-bottom: 15px !important;border-top-width: 3px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;padding-top: 5px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #81d742 !important;border-left-style: solid !important;border-right-color: #81d742 !important;border-right-style: solid !important;border-top-color: #81d742 !important;border-top-style: solid !important;border-bottom-color: #81d742 !important;border-bottom-style: solid !important;}”]President-elect Donald Trump’s transition efforts are moving forward. While most of the talks have focused on other senior cabinet officials, the pick for agriculture secretary will likely come in the next 2 to 3 weeks. The agricultural advisory committee was among the Trump campaign’s largest, and some of its 60+ members have been rumored as candidates for Secretary of Agriculture, including the chair of the committee, Chuck Herbster, a Nebraska cattleman. Other rumored candidates include (but at this point in time are not limited to) Kansas Governor Sam Brownback, former Nebraska Governor Dave Heineman, National Council of Farmer Cooperatives CEO Chuck Conner, and former Secretary of the California Department of Food and Agriculture, A.G. Kawamura, also a grower-shipper.[/vc_column_text][vc_row_inner css=”.vc_custom_1480720233597{border-top-width: 1px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;border-left-color: #1e73be !important;border-left-style: solid !important;border-right-color: #1e73be !important;border-right-style: solid !important;border-top-color: #1e73be !important;border-top-style: solid !important;border-bottom-color: #1e73be !important;border-bottom-style: solid !important;}”][vc_column_inner][vc_single_image image=”1166″ alignment=”center” css=”.vc_custom_1478292913956{margin-top: 25px !important;}”]

Food and Agriculture Regulatory and Policy Roundup

Congress News / USDA Reports & News / White House News and More...

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Kaiima and Horizon Ag Announce Their Collaboration to Develop New Rice Varieties for the U.S. Market Using the EP™ Technology Platform

MOSHAV SHARONA, Israel and MEMPHIS, Tennessee, Nov. 28, 2016 /PRNewswire/ — Kaiima Bio-Agritech Ltd., a genetics and breeding technology company, and Horizon Ag LLC, a leading technology provider for the U.S. rice industry, today announced their collaboration to develop new, high-performing rice varieties. The multi-year project, initiated in 2015, combines U.S. adapted germplasm sourced by Horizon Ag and Kaiima’s proprietary EP™ technology platform.

Horizon Ag and Kaiima have recently completed the development phase and are entering the new EP™ rice varieties in first year yield trials in 2017 in select locations across the U.S. rice growing belt. The companies are considering the possibility of adding additional germplasm conversion projects in the future.

CLICK HERE TO READ THE FULL RELEASE

[/vc_column_text][vc_single_image image=”1382″ alignment=”center” onclick=”custom_link” img_link_target=”_blank” link=”https://agconference.mo.gov/index.html”][vc_row_inner css=”.vc_custom_1480720578568{border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #194da8 !important;border-left-style: solid !important;border-right-color: #194da8 !important;border-right-style: solid !important;border-top-color: #194da8 !important;border-top-style: solid !important;border-bottom-color: #194da8 !important;border-bottom-style: solid !important;}”][vc_column_inner width=”1/4″][vc_single_image image=”1451″][vc_btn title=”FAO Rice Price Update: December 2016″ color=”blue” link=”url:http%3A%2F%2Fwww.fao.org%2Feconomic%2Fest%2Fpublications%2Frice-publications%2Fthe-fao-rice-price-update%2Fen%2F||target:%20_blank|”][/vc_column_inner][vc_column_inner width=”3/4″][vc_column_text]

  • The FAO All Rice Price index (2002-04=100) averaged 185 points in November 2016, marginally below its October value of 186 points. The month’s small decline was the result of a 3.0 percent slide in Aromatic quotations, reflecting the arrival of freshly harvested Thai Hom Mali rice into the market at considerably lower prices than those of old-crop supplies. Indica quotations were little varied month-to-month, while somewhat firmer buying interest supported a mild (0.6 percent) recovery in the Japonica Index.
  • Rice export prices followed diverging trends across the major origins in November. A slow pace of sales and new crop arrivals continued to exert downward pressure on quotations in Thailand. Benchmark Thai 100%B white rice was quoted at USD 369 per tonne, 1.5 percent below October levels and down 3.0 percent year-on-year. Declines came notwithstanding support provided by the Thai Government’s extension of the on-farm mortgaging scheme to main-crop Indica and Pathumthani fragrant supplies, as well as sales to private sector buyers from the Philippines. Harvest pressure was similarly behind easing non-fragrant quotations in India, while subdued demand extended declines across the main South American origins. Instead, Basmati prices rebounded in India in reaction to a lower anticipated fragrant harvest. Quotations also tended to regain ground in Pakistan amid a revival of sales, with output disruptions posed by unfavorable weather also driving partial recoveries in Viet Nam.
  • According to the FAO All Rice Price Index, international rice prices in the first eleven months of the year were 8.3 percent below year-earlier levels, primarily reflecting weak Japonica and Aromatica quotations.

[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text css=”.vc_custom_1480716045647{margin-top: 20px !important;margin-right: 10px !important;margin-bottom: 20px !important;margin-left: 10px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;padding-top: 25px !important;padding-right: 25px !important;padding-bottom: 25px !important;padding-left: 25px !important;background-color: #ffffff !important;border-left-color: #aa3027 !important;border-left-style: double !important;border-right-color: #aa3027 !important;border-right-style: double !important;border-top-color: #aa3027 !important;border-top-style: double !important;border-bottom-color: #aa3027 !important;border-bottom-style: double !important;}”]The latest Texas Rice Crop Survey reports (updated through Friday, December 2, 2016) are available through the Beaumont Center web site at http://beaumont.tamu.edu/CropSurvey/

The crop survey provides detailed data on rice acreage across the Texas rice belt, including information on varieties and crop development.[/vc_column_text][vc_single_image image=”1171″ alignment=”center” style=”vc_box_shadow_3d” onclick=”custom_link” img_link_target=”_blank” link=”http://www.ricemtconvention.com”][vc_single_image image=”1172″ alignment=”center” style=”vc_box_shadow_3d” onclick=”custom_link” img_link_target=”_blank” link=”http://nctd.net/”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1480720777941{border-top-width: 1px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #81d742 !important;border-left-style: solid !important;border-right-color: #81d742 !important;border-right-style: solid !important;border-top-color: #81d742 !important;border-top-style: solid !important;border-bottom-color: #81d742 !important;border-bottom-style: solid !important;}”]USDA Reports Next Week

Wednesday, December 7
US Agricultural Trade Data (ERS) 3:00 pm

Thursday, December 8
Weekly Export Sales (FAS) @ 8:30 am

Friday, December 9
WASDE (WAOB) @ 12:00 pm
Crop Production (NASS) @ 12:00 pm
Grains: World Markets and Trade (FAS) @12:15 pm

All USDA reports are available by visiting: http://www.usda.gov/wps/portal/?navid=AGENCY_REPORTS=RT.

[/vc_column_text][vc_column_text css=”.vc_custom_1480716710271{border-top-width: 1px !important;border-right-width: 1px !important;border-bottom-width: 1px !important;border-left-width: 1px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;border-left-color: #81d742 !important;border-left-style: solid !important;border-right-color: #81d742 !important;border-right-style: solid !important;border-top-color: #81d742 !important;border-top-style: solid !important;border-bottom-color: #81d742 !important;border-bottom-style: solid !important;}”]Calendar

December 7-9, 2016
FECARROZ Board Meeting, Houston, TX

December 14, 2016
Metro Export Plan Forum 2016; Houston Growing Exports

December 14-16, 2016
47th Missouri Governor’s Conference on Agriculture, Tan-Tar-A Resort

January 18, 2017
Texas Rice Council Annual Mtg & Western Rice Belt Conf., El Campo

Jan. 30-Feb. 1, 2017
20th Annual NCS Cotton & Rice Conference, Baton Rouge, LA

 

For economic analysis on agricultural efficiency, efficacy, and equity issues: www.ers.usda.gov

Texas Rice from A&M AgriLife Research Ctr. at Beaumont: http://beaumont.tamu.edu/eLibrary/eLibrary_default.htm

AgFax – Editor: Owen Taylor: www.agfax.com[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]logo-01

2825 Wilcrest Dr., Ste. 218
Houston, TX 77042
Phone: (713) 974-7423
Fax: 713-974-7696
https://usriceproducers.com/
http://www.riceromp.com

www.facebook.com/usrpa[/vc_column_text][vc_separator color=”green” border_width=”3″][vc_column_text]USRPA does not discriminate in its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, or marital/family status. Persons with disabilities who require alternative means for communication of information (such as Braille, large print, sign language interpreter) should contact USRPA at 713-974-7423.[/vc_column_text][/vc_column][/vc_row]

Categories: Rice Advocate

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