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USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Wednesday, January 28, 2015

Missouri's Smith Questions USTR Froman on Rice Trade 

 
Rep. Smith (l) receives  
'Friend of Rice' award from  
MO producer Paul Combs
at 2014 GAC

WASHINGTON, DC -- Congressman Jason Smith (R-MO), for whom rice is an important issue, took the opportunity to ask a pointed rice question of U.S. Trade Representative Michael Froman, who was testifying before the House Ways and Means Committee yesterday on expanding export markets for American-made goods and services, trade agreements currently under negotiation, and Trade Promotion Authority.

 

Smith, a newly appointed member of the Committee, reminded attendees that his district is one of the most agriculturally diverse in the nation, growing everything but citrus and sugar.  And lots of rice.

 

"Congressman Smith is committed to helping farmers find and develop markets for their commodities and he has been very helpful in key trade issues, most recently in Iraq and Cuba," said Betsy Ward, President & CEO of the USA Rice Federation.  "We're pleased he stressed the importance of developing this market to Ambassador Froman."

 

"Before the 1962 embargo, Cuba was the number one importer of U.S. rice," Smith said to Ambassador Froman during the hearing.  "Cuba is currently the second largest importer of rice in the Americas.  What do you think the benefits of normalizing relations with Cuba would be to the U.S. agricultural community, and crops like rice?"

 

While Ambassador Froman said he would look into the specifics and follow up with the Congressman, USA Rice is well aware of how important normal commercial relations are between the U.S. and Cuba.

 

"A normalized commercial relationship is vital to growing the Cuban economy to a place where they can import U.S. products, like rice," said Ward.

 

Contact:  Deborah Willenborg (703) 236-1444

Ag Interests Frustrated by West Coast Port Slowdowns 

 
All packed and
nowhere to go


WASHINGTON, DC -- The USA Rice Federation, along with more than 90 groups representing food, agriculture, and trade, released an open letter expressing "deep disappointment" that unresolved contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union are causing shipping slowdowns at West Coast ports.  The letter asks that the two parties "resolve their differences as quickly as possible" and also urges "the federal government to consider all available remedies to bring this dispute to a rapid end."

 

Last May, the parties began negotiating a new six-year contract covering 29 West Coast container ports in anticipation of the July 2014 expiration of the previous contract.  After nine months and no resolution, the parties recently requested the assistance of a federal mediator.  The West Coast port strike is a concern in California, causing delays and significant additional costs.  Typically up to half of the California rice crop is exported and more than half of that is in containers. 

 

"As these negotiations drag on, the movement of commerce slows," said USA Rice COO Bob Cummings.  "We are concerned that these delays have a direct effect on export sales for rice and so we joined with others encouraging a quick settlement that will allow everyone to get back to work."

 

Contact:  Deborah Willenborg (703) 236-1444

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).  Rough rice prices decreased $0.27 per cwt for both long grain and medium/short grain.

 
World Price
MLG/LDP Rate
 
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
16.33
10.36
0.00
Medium-/Short-Grain
15.79
10.63
0.00
Brokens
9.85 
----
----

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 February 4. 
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for January 28

Month
Price
Net Change
March 2015$10.735
- $0.235
May 2015$10.985
- $0.240
July 2015$11.200
- $0.265
September 2015$10.880
- $0.265
November 2015$10.980
- $0.265
January 2016
$11.070
- $0.265
March 2016
$11.070
- $0.265


In the News 

Around the Country

California Montna Rice Farm America's Heartland

Video: The Montna family has been growing rice in the Sacramento Valley for generations. The Montna rice fields provide the ground on which the crop is raised and provides an important watershed for birds in the region.

 

Restaurant Industry Outlook Bright for 2015 and Beyond Agri-Pulse

What's hot in the table-service restaurants: locally served meats and seafoods, locally grown produce, environmental sustainability, healthful kids' meals, and natural ingredients and minimally processed foods.

 

Time Running Out to Sign Up for Farm Programs Southwest Farm Press

Deadlines are close. Producers have until Feb. 27 to make decisions on base acreage reallocation or to update yield histories. According to Joe Outlaw, professor and Texas AgriLife Extension economist, "This is not a coffee shop farm bill!  The best decision for one farm may not be the best decision for another farm in the same county, even if it's similar. Yield history and other factors will be different."

 

 

Around the World

Toyota Affiliate to Sell Higher-Yielding Rice Wall Street Journal

Toyota Tsusho, working with an agricultural venture company, says it has a strain of Japan's popular Koshihikari rice that produces about 30% to 50% more rice in the same plot size.

 

 

Trade and Tariffs

Boustany Backs LA Rice Producers in Letter to Kerry Ripon Advance

The letter was authored by Senate Appropriations Committee Chairman Thad Cochran (R-MS). It essentially asks Kerry to consult with the Iraqi Minister of Trade to make sure that American rice producers can successfully compete in the Iraqi market.

 

Port Officials Plan Trade Trips to Take Advantage of New Cuba Strategy  

Fox News New Orleans

Fifty years ago, before the Cuban trade embargo, 60 percent of all imports and exports to the island nation came through New Orleans. Prior to 1961, New Orleans was the largest trading partner with Cuba.

 

US, Japan Trade Negotiators Seen as Close to Striking Key Deal Voice of America

The Nihon Keizai Shimbun, the largest financial daily in reports Japan will agree to boost its tariff-free quota for imported rice and import "tens of thousands" of tons of additional rice from the United States. However, Japan reportedly will keep its existing rice tariffs.

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