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USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Wednesday, June 10, 2015
USA Rice and Coalition Urge COOL Reform
COOL
Still not COOL with Canada 

OTTAWA, CANADA - USA Rice joined 108 other agriculture and food businesses on a letter to Member of Congress today urging support for H.R. 2393, a bipartisan bill to reform the controversial Country of Origin Labeling (COOL) regulations.

 

The World Trade Organization (WTO) has consistently ruled against the United States on the COOL regulation, most recently on May 29, paving the way for legal tariff retaliation by Canada, Mexico, and other countries. 

The Canadian government here issued a preliminary list of targeted commodities and foods, and rice is at the top with a 100 percent tariff threatened.

 

"If Congress doesn't fix COOL to bring it into compliance with our international obligations, the cost to American business will be staggering, and the rice industry could take a significant hit," said Betsy Ward, President & CEO of USA Rice.

 

According to the coalition letter, retaliatory tariffs could total more than $3.5 billion in just the first year.

 

A vote on the bill, the Country of Origin Labeling Amendments Act of 2015 is expected in the House this week.  The Senate is yet to act on the issue.

 

Canada is the fourth largest market for U.S. rice, with imports last year valued at $185 million.

 

Contact: Michael Klein (703) 236-1458

USA Rice Takes Messages to the Sky
USA Rice takes messages to the sky
50,000 Foot View of Rice from 35,000 Feet! 

FORT WORTH, TX - Passengers on American Airlines and Frontier Airlines will be able to learn a lot about rice this summer thanks to a unique partnership between USA Rice and the airlines.

 

The U.S. rice industry is being highlighted by Talk Business 360, the service that produces original programming for the airlines. The two and a half minute video gives viewers a quick primer on the rice industry - including where rice is grown, how much is exported, and how efficient and environmentally responsible U.S. rice farmers are. The video also includes interviews with Arkansas growers Jennifer James and Joe Rennicke and Louisiana's Kevin Berken.

 

The video will air on American Airlines on demand in First and Business Class, and be available online as well. With only one cabin class on Frontier, the video will be one of several playing for all passengers prior to take-off, and then be available to passengers on demand in flight. The USA Rice video is expected to reach more than 750,000 passengers this summer.

 

Contact: Michael Klein (703) 236-1458

WASDE Report Released
WASHINGTON, DC-- U.S. rice 2015/16 supply and use balance sheets are little changed from last month. All rice beginning stocks are raised 2.5 million cwt with long-grain rice stocks raised 0.5 million, and medium- and short-grain stocks raised 2.0 million. All rice imports are raised 0.5 million cwt to 25.0 million (all long-grain), up 2 percent from revised 2014/15. Medium- and shortgrain exports are raised 2.0 million cwt to 34.0 million as a large outstanding sales balance to Northeast Asia in 2014/15 will likely be shipped in 2015/16. The large balance was caused in part due to work slowdowns and stoppages at ports along the West Coast earlier this year. This labor dispute has since been resolved, but a large backlog at the ports still exists. Additionally, Turkey has not accepted some U.S. medium-grain rice shipments in 2014/15 for phytosanitary reasons in recent months.

The long-grain export projection is unchanged at 76.0 million cwt, but up 4 percent from the previous year. Long-grain ending stocks for 2015/16 are raised 1.0 million cwt to 35.1 million, up 23 percent from 2014/15, and the largest since WASDE-542-3 2010/11. Medium- and short-grain ending stocks are forecast at 11.0 million cwt, unchanged from last month, but 24 percent below the previous year's revised estimate.

The U.S. 2015/16 long-grain rice season-average farm price is projected at $10.00 to $11.00 per cwt, unchanged from last month compared to $11.90 to $12.10 for the previous year. The combined medium- and short-grain price is unchanged at $17.80 to $18.80 per cwt compared to $17.80 to $18.20 for the year earlier. The 2015/16 all rice price is projected at $12.30 to $13.30 per cwt, compared to $13.20 to $13.60 per cwt for 2014/15. The California and Other States medium-and short-grain prices are unchanged from last month.

Global 2015/16 rice supply and use is little changed from a month ago. Global rice production is projected at a record 481.7 million tons, 0.4 million below a month ago. Brazil's rice crop is forecast at 8.0 million tons, down 0.3 million from last month, a result of a reduction in area. This crop will not be planted until October-December 2015. The change is based mostly on a reduction in the 2014/15 rice crop based on recent estimates from the government of Brazil. Global consumption is nearly unchanged at a record 489.0 million tons. Global 2015/16 trade (imports and exports) are also nearly unchanged from a month ago. World export projections are raised slightly for Guyana and the United States. Global ending stocks are forecast at 91.4 million tons, down slightly from last month, down 7.2 million from the previous year, and the smallest stocks since 2007/08. The global stocks-to-use ratio at 18.7 percent is unchanged from a month ago, but down 1.7 points from the previous year, and the lowest since 2006/07.

Read the complete report here.
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 will become 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
14.93
9.67 
0.00
Medium-/Short-Grain
14.55
9.80 
0.00
Brokens
  9.01
----
----

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 June 17, 2015.    
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for June 10

Month
Price
Net Change
July 2015$9.870
 - $0.110
September 2015$10.150
- $0.105
November 2015$10.415
- $0.100
January 2016$10.675
- $0.095
March 2016$10.875
- $0.090
May 2016
$10.875
- $0.090
July 2016
$10.875
- $0.090

In the News 

Around Washington

House Ag Committee Leadership Touts Support for COOL Reform Agri Pulse

As the House of Representatives gears up for floor action on a bill to repeal meat labeling country-of-origin labeling (COOL), supporters are voicing their backing of the bill, hoping to avoid billions in economic sanctions.

 

Spending Bill Blocks WOTUS Rule, Limits Species Listings Agri Pulse

House Republicans turned up their attack on President Obama's regulatory agenda, releasing a new spending bill that would block the new Clean Water Act.

 

Around the Country

Arkansas Farmers Focus on Work after Flood Recedes Delta Farm Press

Extension agents and agronomists, along with representatives from the U.S. Department of Agriculture Farm Service Agency, spoke to more than 40 producers assembled in Morrilton, Ark., about options available to those who have suffered extensive crop loss due to repeated flooding.

 

Let's Help Create More Farmers New York Times (Opinion)

Just about everyone agrees that we need more farmers. Currently, nearly 30 percent are 65 or older, and fewer than 10 percent are under 35

 

Tariffs and Trade

Fast-Track Holdouts in House Play 'Let's Make a Deal' The Hill

Dozens of lawmakers are withholding their support for fast-track legislation ahead of a possible Thursday vote in the House - but their votes could be in play for the right deal.

 

House Oks Bills to Avert Shutdowns of Grain Inspection, Price Reporting Agri Pulse

The House passed a pair of bills aimed at avoiding future disruptions of export grain inspections and livestock market reports.

 

USTR Touts Agriculture Leaders Supporting TPA Passage Agri Pulse

In anticipation of a close House vote on Trade Promotion Authority, the U.S. Trade Representative is putting on a full court press to let undecided members know that the majority of American agriculture is firmly behind passage of one of President Obama's key initiatives.

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