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USA Rice Federation is the global advocate of all segments of the U.S. rice industry with a mission to promote and protect the interests of producers, millers, merchants and allied businesses.
Thursday, October 23, 2014

World Market Meeting Covers Large Rice Crop, Reporting Mechanisms, Trade, More 

Keith Glover and Staff
Chairman Keith Glover and USA Rice's Kristen Dayton
WASHINGTON, DC- Industry leaders met here yesterday to review market

data on the robust current U.S. crop, discuss critical issues, and exchange information with representatives of the U.S. government.

 

One area of concern for growers and millers alike was the accuracy of reporting rough rice prices to the National Agricultural Statistics Service (NASS) which form the basis of NASS's published monthly rough rice prices.  

 

"We heard a renewed importance of filling out the necessary forms to ensure accuracy," said Keith Glover, president and CEO of Producers Rice Mill and chairman of the USA Rice Federation's World Market Price committee.  "We need to be sure we're all reporting correctly to avoid, or at least minimize, discrepancies."

 

Growers also pointed to October NASS estimates that had yield figures for Texas that sounded too high, and California that sounded too low.

 

"We think the yield questionnaire is solid, but we can continue to work with state offices to make certain they are reaching out to the reporters to double check any numbers that seem out of place," said a NASS representative at the meeting.

 

Attendees also heard updates from representatives of USDA's Foreign Agricultural Service (FAS) who said that there was a big push to conclude Trans Pacific Partnership (TPP) talks in advance of next month's APEC meeting, but the representative admitted that timeline may be optimistic.

 

The FAS representative also said the Transatlantic Trade and Investment Partnership (T-TIP) negotiations are essentially at a standstill for the remainder of the year as a new EU Commission is approved and takes office. 

 

Carl Brothers, chief operating officer for Riceland Foods and chairman of USA Rice's International Trade Policy committee stressed that with the changing landscape of rice markets, the U.S. government needs to challenge EU tariffs on rice.

 

"The EU's Everything But Arms concession has really blown open the European market for rice from countries like Cambodia," he said.  "It's high time the tariffs that make U.S. rice uncompetitive there go to zero."

 

The group also discussed developments in India and Thailand, Korea's rice tariffication plans, food aid programs (see next story), and the U.S. International Trade Commission's investigation into factors having an impact on the competitiveness of the U.S. rice industry. 

 

"It was a very positive meeting, we covered a lot of ground, and the give and take with the U.S. government is always worthwhile," Glover said.

 

Contact: Michael Klein (703) 236-1458

FAS Administrator Emphasizes Importance of Rice in Food Aid Programs      

US rice to the rescue
U.S. rice: the global effect
WASHINGTON, DC - USDA/FAS Assistant Administrator for Food Security, Suzanne Palmieri, provided a positive outlook on the use of rice in future food security programs at the USA Rice Federation's World Market Price meeting here yesterday.

 

U.S. rice millers and producers shared industry concern with the steady decrease in the amount of rice used in U.S. government food assistance programs with Ms. Palmieri.  They also emphasized the price competitiveness of U.S. origin rice as a result of a record size harvest this year, and similar, or greater, expectations for crop size next year.

 

Ms. Palmieri noted that rice is already one of the most widely consumed commodities worldwide. She emphasized that the addition of fortified rice to U.S. government programs is expected to result in a significant increase in the amount of milled and fortified rice used for global feeding initiatives, such as USDA's McGovern-Dole school feeding program.  (see "Global Rice Fortification Program Endorses USA Rice Position," USA Rice Daily, September 26, 2014) Fortified rice provides a new cost effective and nutritionally efficient method of providing essential micronutrients to children suffering from stunting and malnutrition.

 

Ms. Palmieri responded to industry concerns regarding collaboration with all food assistance influencers by committing to a series of multi stakeholder meetings with strategic partners.  USA Rice will remain engaged in these evolving discussions and upcoming meetings with collaborators such as the annual workshop of the U.S. Agricultural Export Development Council in November 2014. 

 

Contact: Sarah Moran (703) 236-1457

USA Rice Meets with U.S. ITC on Competitiveness Investigation       

USITC

WASHINGTON, DC - As part of the USA Rice Federation's continuing support of the U.S. International Trade Commission's (USITC) investigation of the factors affecting the U.S. rice industry's competitiveness, USA Rice members and staff met with USITC staff at their headquarters here yesterday.

 

Millers Carl Brothers of Riceland Foods, Keith Glover of Producer's Rice Mill, and Chris Crutchfield of the American Commodity Company were joined by USA Rice Federation Chairman and Arkansas rice producer Dow Brantley, to answer questions about the structure of the domestic rice industry.

 

Topics of discussion included the history of rice milling cooperatives, as well as how both cooperatives and independent rice mills currently operate. The ITC staff asked questions regarding export markets for regional varieties of rice and methods of milling, and the members present gave an overview of domestic markets.

 

The Section 332 study on the global competitiveness of the U.S. rice industry is scheduled to be made public in April of 2015. USITC staff plans to reach out to other operations in the coming weeks to expand their familiarity with aspects of the domestic rice industry.

 

Contact: Kristen Dayton (703) 236-1464
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for October 23.


Month
Price
Net Change
November 2014$12.365
- $0.165
January 2015$12.595
- $0.130
March 2015$12.850
- $0.130
May 2015$13.045
- $0.130
July 2015$13.225
- $0.130
September 2015$12.590
- $0.130
November 2015$12.565
- $0.130


In the News 

Around the Country

USDA Announces Funding for Rural Broadband/Telecommunications Infrastructure TMC

Agriculture Secretary Tom Vilsack today announced $190.5 million in grants and loans to make broadband and other advanced communications infrastructure improvements in rural areas.

California Still at Risk of Floods during Drought Capital Public Radio

If a levee were to breach (on Twitchell Island) it could have devastating consequences for water that is pumped to central and southern California.

 

Around the World

State Tackles Rice Price Issue Head on (Thailand) Bloomberg

The government has vowed to take a proactive approach to farm product management with plans to stabilize crop prices, particularly rice, and accelerate sealing government-to-government rice deals with Africa, the Middle East and China.

 

Rice Brokers Stop Buying as Unsold Stockpiles Rise (Myanmar) Myanmar Times

A dramatic fall in the volume of rice exports has dragged prices downwards and threatens to drive small farmers off the land, farmers' advocates have warned.

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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.
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Editor: Michael Klein,
(703) 236-1458,
mklein@usarice.com

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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

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