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Trade and World Markets, in Theory and Practice at RMA Convention
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 | David Hightower (l) and
USDA Under Secretary Michael Scuse |
LAKE TAHOE, NV - Speakers at yesterday's opening general session of the 115 thUSA Rice Millers' Association (RMA) Convention focused on different aspects of world markets and foreign trade. The discussion ranged from the theoretical to the practical, and included broad overview as well as detailed analysis.
First up was commodity expert David Hightower, president and founder of the Hightower Report, and publisher of one of the most widely read daily commodity wires. Citing real world trends in commodities such as pepper, pork, and fuel consumption, Hightower made the case that historically high energy prices, rising standards of living, and expanding personal mobility are becoming the new drivers of the global economy. Currently China is the major market influencer, but Hightower said keep an eye on India and Africa as they promise to be the "next booster rockets of demand."
Next, Under Secretary for Farm and Foreign Agricultural Services Michael Scuse gave an update on U.S. Department of Agriculture (USDA) efforts to maintain and open foreign markets, saying $150 billion of American agricultural products were exported last year, a 56 percent increase over 2009. Scuse reported on two ongoing trade agreements with potential impact on the U.S. rice industry, the Trans-Pacific Partnership and the Trans-Atlantic Trade and Investment Partnership, and a recent U.S. trade mission to China and USDA's work to secure a phytosanitary protocol with that country. Scuse also called Farm Bill implementation a top USDA priority, saying: "We're working to provide web-based tools to help ensure farmers and ranchers are highly educated as they make critical decisions about new programs. These new tools will empower farmers and ranchers to select the plan that best fits their unique needs."
 | | Guillermo Cárdenas |
The morning's final speaker, Guillermo Cárdenas, CEO of AgriGrain Mexico S.A. de C.V., provided detailed information on the current realities of the rice trade in Mexico. The U.S. once held nearly 100 percent of the market share in Mexico, but due to price and quality competition from various origins, our market share has fallen to about 85 percent. According to Cárdenas, the dramatic decrease is "primarily due to imports of milled rice from Asia and Uruguay, which has, in turn, reduced imports of both U.S. paddy and milled rice." He emphasized the importance of quality and branding to the Mexican consumer, saying "the average person buys rice according to quality and appearance, and most customers have been 'brand' captive not only for years, but for generations."
"Today's presentation offered such varied perspectives, said RMA Chairman Chris Crutchfield. "It's important for us as an industry to be reminded of a broader scope, so I was happy we were able to provide a forum to hear these views."
Contact: Deborah Willenborg (703) 236-1444
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USDA Announces Mississippi Water Conservation Management Project
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 WASHINGTON, DC- The U.S. Department of Agriculture Natural Resource Conservation service (NRCS) recently announced they are taking applications for the Mississippi Water Conservation Management Project. The program aims to address water conservation issues, including water quality and quantity in the Mississippi River Valley Aquifer.
"We highly encourage eligible farmers to apply for this program," said Reece Langley, the USA Rice Federation's vice president of government affairs. "Not only is the program worthwhile and advantageous to many types of growers, but any time we can link rice and conservation, it's a positive situation."
Eligible producers are those with irrigated farm land that falls within the Mississippi River Valley Aquifer and qualify for EQIP funding, but the program is not limited to rice. There is an initial FY2015 funding deadline of June 30, but the application process is ongoing. The following Mississippi counties are included: Bolivar, Carroll, Coahoma, Desoto, Grenada, Holmes, Humphreys, Issaquena, Leflore, Panola, Quitman, Sharkey, Sunflower, Tallahatchie, Tate, Tunica, Warren, Washington, and Yazoo. For more information and to apply for funding visit your local NRCS office.
Contact: Lydia Holmes (703) 236-1450
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Weekly Rice Sales, Exports Reported
| WASHINGTON, DC -- Net sales of 85,900 MT for 2013/2014 were up noticeably from the previous week and from the prior 4-week average, according to today's Sales Exports Highlights report. Increases were reported for Turkey (33,500 MT), Iraq (30,000 MT), Mexico (18,500 MT), Guatemala (5,300 MT), and Jordan (2,500 MT).
Decreases were reported for Ghana (11,000 MT).
Exports of 40,900 MT were down 55 percent from the previous week and 39 percent from the prior 4-week average. The primary destinations were Mexico (21,500 MT), Haiti (9,500 MT), Canada (2,900 MT), Honduras (1,500 MT), and Saudi Arabia (1,300 MT).
This summary is based on reports from exporters from the period June 6-12, 2014.
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| CME Group/Closing Rough Rice Futures | CME Group (Preliminary): Closing Rough Rice Futures for June 19
July 2014
| $14.690
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- $0.095
| September 2014
| $13.875
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+ $0.065
| November 2014
| $14.065
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+ $0.075
| January 2015
| $14.210
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+ $0.070
| March 2015
| $14.365
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+ $0.070
| May 2015
| $14.365
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+ $0.070
| July 2015
| $14.365
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+ $0.070
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In the News
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Around Washington
Pryor, Blunt urge passage of agriculture spending bill - Arkansas News
Tom Cotton and the Farm Bill - The Weekly Standard
Defending Rep. Cotton's vote against the Farm Bill
Around the World
Fleeing Migrant Workers in Thailand Delaying Rice Shipments - Bloomberg As many as 70% of migrant workers, responsible for loading grain onto vessels have fled the country because of unrest. Resultant shipping delays could prop up Thai prices. India to Offload 25% of Rice Stocks as Monsoon Threatens Prices - Bloomberg India will sell 5 million tons of rice from central reserves at subsidized rates as soon as possible. Just for Fun Rice-field green for Samurai Blue - The Japan Times Using rice to cheer on the Japanese soccer team in the World Cup |
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| Upcoming Events | Events Calendar
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Mission Statement | | USA Rice Federation is the global advocate for all segments of the U.S.
rice industry with a mission to promote and protect the interests of
producers, millers, merchants and allied businesses. |
| About Us | Editor: Michael Klein,
(703) 236-1458,
mklein@usarice.com
Fax (703) 236-2301
2101 Wilson Boulevard, Suite 610
Arlington, VA 22201
This report is time-sensitive, based on information available at press time. Content is derived from facts and sources believed to be reliable. Reprinting and/or distribution may be done with permission of the USA Rice Federation
Copyright © 2014. Please direct comments or questions to the editor or contact name listed for each story. |
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