Rice Month Giveaway

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.

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.

Scholarship Information

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.

"Eat MO Rice!"

State Senator Jason Bean greets the crowd during lunch.

Fred Clark with Cornerstone Government Affairs in Washington, D.C. presents a Farm Bill update.

Three generations of Wheeler Farms with Congressman Jason Smith (MO-8)

Congressman Jason Smith hosted his annual farm tour in the Eighth Congressional District of Missouri this week. The tour included a stop at Wheeler Farms, a fourth-generation farm near Grayridge, Missouri. Missouri Rice Council and USRPA Board Member Justin Wheeler hosted Congressman Smith for a drive around the farm.   The day concluded with a luncheon with Congressman Smith hosted by Missouri Soybeans at Strawberry’s BBQ in Holcomb, MO. USRPA’s Mollie Buckler and Board Member Alex Clark represented USRPA at the event, which included discussions on the future of the Farm Bill.