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Up-to-the-Minute News on Issues and Activities
Wednesday, April 8, 2015
USA Rice Briefs Press on Trade Distorting Practices
Brief The Press

WASHINGTON, DC -- According to a new study, several key advanced developing countries have ramped up subsidies to their producers of rice, corn, and wheat, dramatically changing the global trading environment as a result.

 

Subsidies in Brazil, China, India, Thailand, and Turkey exceed each country's commitment to the World Trade Organization (WTO) and must be addressed as part of a renewed push to complete the Doha Round of trade negotiations, said representatives of the USA Rice Federation and U.S. Wheat Associates at a media briefing here today.

 

"Our joint study showed that these five advanced developing countries have steadily increased subsidies to their producers to the point of being out of compliance with their WTO obligations," said USA Rice COO Bob Cummings who led off today's briefing. "While we support the WTO and global trade agreements because they work for our members, WTO negotiators must address the trade distortions in today's trading environment if the long-running Doha Round of negotiations is to conclude successfully. Several of these countries are also very likely using export subsidies to dispose of surplus production."

 

The group delivered this same message earlier this year to more than 50 representatives from WTO member countries at meetings in Geneva, Switzerland, including representatives from Canada, New Zealand, and Australia's missions to the WTO, the Director of the WTO's Agriculture Division, and Ambassador Michael Punke, head of the U.S. Mission.

 

"Our message is clear - we support the WTO, but the environment has changed and negotiators must deal with the situation in advanced developing countries. It's hard to talk about a new trade agreement when countries are ignoring their existing obligations," said Cummings. "The United States is meeting all international commitments, while many of our trading partners are going in the opposite direction. It's neither fair nor sustainable."

 

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).  Rough rice prices decreased $0.09 per cwt for both long grain and medium/short grain.

 
World Price
MLG/LDP Rate
 
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
15.44
10.00   
0.00
Medium-/Short-Grain
15.04
10.13
0.00
Brokens
  9.31
----
----

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
57.21/12.55
6.64
Medium-/Short-Grain
61.89/8.83
6.51
 
The next program announcement is scheduled for April 15. 
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for April 8

Month
Price
Net Change
May 2015$10.575
- $0.105
July 2015$10.830
- $0.105
September 2015$11.060
- $0.080
November 2015$11.275
- $0.065
January 2016$11.495
- $0.060
March 2016
$11.545
- $0.060
May 2016
$11.545
- $0.060

In the News 

Around the Country

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Lawsuit Challenges U.S.D.A. Rule Change on Organic Farming New York Times

A coalition of grocers, seed growers and consumer and environmental advocates filed suit on Tuesday against the Department of Agriculture over a change it made to the process used to determine which substances may be used in organic farming.

 

U.S. Farmers Take a Gamble with Belt-Tightening as Incomes Slide New York Times

Bracing for their leanest season in eight years, U.S. farmers are skimping on everything from machinery to fertilizers, betting that they can go down-market and yet maintain crop production and quality.

 

 

Science and Technology

IMRAC Group Launches a New Prefeasibility Report on Rice Bran Oil Processing Plant Bloomberg Business

A new prefeasibility report published by IMARC Group provides a robust analysis on the global rice bran oil market.

 

 

Tariffs and Trade

For Eager Cubans, Big Opening in U.S. Relations is More Like a Crack New York Times

Business experts say that a lack of clarity on the new rules, lingering questions about financial transactions and remaining provisions of the longstanding trade embargo - coupled with the Cubans' slow approach to making deals - have made the big opening more like a crack.

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