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USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Wednesday, June 17, 2015
Canada Requests Retaliation in COOL Case
Rice in the WTO crosshairs 
GENEVA, SWITZERLAND -- Canada today reportedly asked the World Trade Organization (WTO) for permission to retaliate against the United States because of the U.S. country-of-origin labeling regulation (COOL) on certain muscle cuts of meat. Press reports indicate that Canada's request to impose almost $2.5 billion in additional tariffs on imports from the United States was immediately challenged by the U.S. representative at a meeting of the WTO's Dispute Settlement Body (DSB). This objection moved the dispute to an arbitration panel, which has up to 60 days to decide on the level of retaliation that Canada can apply. 

"Today's action underscores the need for the U.S. Congress to reform the COOL regulation," said Betsy Ward, USA Rice President and CEO. "The U.S. has lost multiple WTO challenges to COOL by Canada and Mexico, and Canada has taken the long-expected next step towards retaliation."

Canada is targeting a cross section of imports from the United States for retaliatory duties, including a duty of 100 percent on U.S. rice. The duty is currently zero. Mexico is also threatening retaliation, but has not published a list of imports subject to increased duties.  Mexico was reportedly not able to request retaliation today because the country only late last week revised upward its retaliation request to $713 million. The next meeting of the DSB is June 29.

USA Rice is an active participant in the COOL Reform Coalition whose goal is to bring the United States into compliance with WTO decisions on COOL. "Canada and Mexico are in the driver's seat, and it's critical that the Senate follow the House lead and reform COOL," said Ward. The House voted 300-131 on June 10 to repeal portions of the COOL regulation successfully challenged by Canada and Mexico.

 

Contact:  Bob Cummings (703) 236-1473

Rice Leadership Development Session II, First Stop:  CBOT and John Deere
From left: Hudgens Jeter, Paul Johnson, Nat McKnight, Nicole Creason, Collin Holzhauer,
Greg Van Dyke, Dutin Harrell, and Kevin Ripple with John Deere.
 

MOLINE, ILLINOIS -- The 2015/17 Rice Leadership Development Program class began the week in Chicago at the Chicago Board of Trade (CBOT), where the class met with Fred Seamon, Senior Director, Commodity Research & Product Development.  Seamon provided an overview on using the CBOT as a tool to reduce risk.

 

"CBOT really opened my eyes to what is happening after the rice leaves my farm," said class member Paul Johnson, a rice farmer from Welsh, Louisiana. "Because farmers tend to concentrate on producing a safe and abundant crop while focused on water and environmental stewardship, we forget there are market forces beyond our immediate control that can help a farmer who is paying attention, or hurt a farmer who doesn't know what to consider."

 

The class also visited the world headquarters here of program sponsor John Deere where they met with company executives and toured the combine factory.

 

This is the second of four week-long sessions in the two-year leadership program.  It includes personal development workshops on presentation skills, media training and business etiquette. The class will now travel to Arkansas and Mississippi to study those state's rice farming practices and processing industries.

 

The seven class members are rice producers Johnson; Nicole Creason, Jonesboro, AR; Greg Van Dyke, Pleasant Grove, CA; Nat McKnight, Cleveland, MS; and Hudgens Jeter, Stuttgart, AR; and rice industry representatives Dr. Dustin Harrell, Rayne, LA with LSU AgCenter, and Collin Holzhauer, Harrisburg, AR with Southern Rice & Cotton.

 

The Rice Leadership Development Program is sponsored by John Deere Company, RiceTec Inc., and American Commodity Company through The Rice Foundation and is managed by the USA Rice Federation.

 

Contact:  Chuck Wilson (870) 673-7541

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 24, 2015.    
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for June 17

Month
Price
Net Change
July 2015$9.730
 - $0.070
September 2015$9.975
- $0.085
November 2015$10.250
- $0.095
January 2016$10.515
- $0.090
March 2016$10.705
- $0.085
May 2016
$10.705
- $0.085
July 2016
$10.705
- $0.085

In the News 

Around the Country

LSU Rice Stations Field Day Set for July 1 Delta Farm Press

Field tours start at 7:15 a.m., and the last tour will leave the rice dryer warehouse no later than 9 a.m. On the field tour, speakers will cover topics that include rice breeding, hybrid development, agronomy, and control of weeds, diseases and insects. A poster session will be held from 7:15 a.m. until 10:30 a.m., followed by the program in the rice dryer building.

 

South Louisiana Farmers Taking Severe Hit from Heavy Rains Daily Comet

Relentless rain is also threatening to take its toll on rice crops. The wet, warm conditions are favorable for development of leaf blast and other disease.

 

Urban Water Districts Accuse Delta Farmers of Stealing Water Sacramento Bee

The tension between California farm interests and the state's urban water users ratcheted up Tuesday, as a consortium of mostly urban water districts filed a complaint alleging Delta farmers are stealing water.

 

 

Around the World

India: Tackling Pollution by Turning Rice Waste into a Boon Shout Out UK

With several applications, increasing demand and competitive prices, it seems farmers have no dearth of options for managing the agro-waste in a profitable way. However, convincing them of the economic viability of the options could be a challenge. Farmers will give up burning rice straw only if they receive a lucrative incentive.

 

 

Tariffs and Trade

Failure of Obama's Trans-Pacific Trade Deal Could Hurt U.S. Influence in Asia  

New York Times

The defeat of a sweeping trade and investment pact being negotiated between the United States and 11 other Pacific Rim nations would weaken Washington's already strained claim to leadership in Asia and undermine a commitment by Mr. Obama to devote more attention and resources to a group of countries contending with the growing power of China.

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