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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, November 13, 2014
As New Iraq Rice Tender Closes, Pressure Builds from USA Rice       
 
All eyes on
the Iraqi Trade Minister
 

ARLINGTON, VA -- American rice farmers, sitting on a large, high quality, and price competitive crop, are turning their attention to Iraq's Ministry of Trade who's latest tender for rice closes on Sunday.

 

"Despite very competitive bids, the U.S. was shut out of the previous tender, which raises the question of where these decisions are being made, at the Iraqi Grain Board, or some higher political level within the Ministry itself," said Betsy Ward, president and CEO of the USA Rice Federation.

 

Ward said following the Iraqi Grain Board (IGB) visit to U.S. rice country this spring, it appeared all technical questions had been answered and that the way had been paved for additional U.S. rice sales.

 

However, USA Rice has just learned that the head of the IGB, Hassan Ibrahim, who toured Arkansas, Mississippi, and Louisiana in May, and was so upbeat about U.S. rice, has been sacked and replaced by his deputy.

 

Earlier today, Ward led a small group to meet with USDA Under Secretary Michael Scuse and his staff to discuss the situation and impress upon them the need for immediate intervention with the Trade Minister in advance of this weekend's tender.

 

"Secretary Scuse indicated they would re-engage with U.S. State Department personnel in Baghdad on this issue now, and over the long term," Ward reported.

 

Ward says USA Rice is also working with leaders in Congress to ensure they are aware of the situation and letting them know what pressure they can bring to bear on the government of Iraq.

 

"Given that U.S. taxpayers have a significant investment in Iraq, I would hope the government there, from the Prime Minister on down, understands how important it is for American rice farmers to be fairly considered to win this business," she said.

 

Officially the current tender is for 30,000 metric tons of rice, but as Iraq is behind on rice purchases this year, insiders expect the actual tender to exceed 100,000 metric tons. Winning bids for this tender are expected to be announced next week.

 

Contact:  Michael Klein (703) 236-1458

CCC Announces Prevailing World Market Prices 
WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced the following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop, which became effective today at 7:00 a.m., Eastern Time (ET).  Prices are unchanged from the previous announcement.

 
World Price
MLG/LDP Rate
 
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
17.56
11.14
0.00
Medium-/Short-Grain
16.99
11.44
0.00
Brokens
10.59
----
----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates:

 
U.S. Milling Yields
Whole/Broken
(lbs/cwt)
Loan Rate
($/cwt)
Long-Grain
55.83/12.59
6.50
Medium-/Short-Grain
62.39/7.92
6.50
 
The next program announcement is scheduled for November 19. 
CME Group/Closing Rough Rice Futures   
CME Group (Preliminary):  Closing Rough Rice Futures for November 13


Month
Price
Net Change
November 2014
$11.715
- $0.070
January 2015
$11.940
- $0.075
March 2015
$12.210
- $0.070
May 2015
$12.460
- $0.070
July 2015
$12.665
- $0.045
September 2015
$12.030
- $0.045
November 2015
$11.930
- $0.045


In the News  

Around Washington

U.S. Business, Industry Groups Urge Congressional Action on Trade Reuters

In a letter to House and Senate leaders, a coalition of more than 200 industry groups and major companies said so-called trade promotion authority (TPA), which allows lawmakers to set priorities for trade deals in return for a yes-or-no vote, would help U.S. firms access global markets.

 

 

Around the Country

Farm Groups, Ag Tech Companies Outline Data Privacy Protocols Agri-Pulse

USA Rice Federation joined a group of 12 major farm organizations and agriculture technology providers (ATPs) today announced an agreement on data privacy and security principles designed to protect farmers in the age of Big Data.

 

Rice, Rice Baby Sacramento News & Review

Profile of rice farmer Michael Bosworth who grew one of the Sacramento Valley's most abundant crops from lowly side dish into a farm-to-fork star.

 

Young American Farmers Brim with Optimism American Farm Bureau

Results of annual survey of 1,000 farmers nationwide show over 90 percent of young farmers are more optimistic about farming than they were five years ago.

 

 

Around the World

Thai Rice Subsidy Loss Set at $15.7 Billion Wall Street Journal

The $15.7 billion loss represents annual depreciation and the difference between the above-market prices the government paid farmers from 2011 to February of this year for their rice to be largely stored in warehouses versus its value today.

 

 

Trade and Tariffs

Interview with Phil Karsting, Administrator of Foreign Agricultural Service  

World Ag Network

Q and A with Karsting focuses on global export markets, MAP and FMD funding, TPP, and the mission of the Foreign Agricultural Service.

 

 

Science and Technology

Genetically Modified Crops - Field Research The Economist

The biggest study so far finds that GM crops have large, widespread benefits.

 

Japan's Tech Firms Rush into Agriculture Business Japan Times

A growing number of Japanese information and communications technology firms and manufacturers have entered the agribusiness sector, looking to use their technologies to gain new commercial opportunities at a time when Japan is aiming to make its farming industry more efficient, competitive and profitable.

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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

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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

Copyright © 2014. Please direct comments or questions to the editor or contact name listed for each story.