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USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Wednesday, July 29, 2015
Inching Toward Trade with Cuba
Everyone's waiting 

WASHINGTON, DC -- Yesterday, Representative Tom Emmer (R-MN) introduced a bill in the House of Representatives to end the embargo on Cuba.  Called the "Cuba Trade Act of 2015," the bill mirrors a Senate bill introduced in June by Senator Jerry Moran (R-KS).  Emmer and Moran's bills completely lift the restrictions to trade and travel with Cuba and have bipartisan support, including legislators from key rice-producing states. 

 

Last week, Moran's bill was introduced as an amendment to the Senate's Financial Services Appropriations Bill, along with two other amendments that would ease banking restrictions with Cuba and eliminate an obstacle to shipping goods to the Island.  The Senate Appropriations Committee approved the Financial Services Appropriations Bill along with all three pro-Cuba amendments.

 

Emmer's bill will face opposition from House Speaker John Boehner, who has said he will not encourage the House to address the embargo due to government and human rights issues in Cuba.

 

The new House bill comes after last week's historic opening of a Cuban embassy in Washington.  Secretary of State John Kerry is scheduled to raise the American flag at the new U.S. Embassy in Havana next month. 

 

The U.S. Agriculture for Cuba Coalition (USACC), of which USA Rice is a founding member, has come out in support of the three amendments to the Senate Financial Services Appropriations bills, as well as Emmer's Cuba Trade Act of 2015.

 

"USA Rice has been at the forefront of the push to open up trade with Cuba, and we're encouraged by this flurry of legislative activity," said USA Rice President & CEO Betsy Ward.  "Cuba was our number one export market before the embargo, and I believe with our superior product and clear logistical advantages, it will be again one day."

 

Contact:  Kristen Dayton (703) 236-1464

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
15.22
9.86   
0.00
Medium/Short Grain
14.83
9.99   
0.00
Brokens
  9.18  
----
----

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 August 5, 2015.    
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for July 29

Month
Price
Net Change
September 2015$11.200
 + $0.220
November 2015$11.465
+ $0.220
January 2016$11.735
+ $0.220
March 2016$11.935
+ $0.220
May 2016$12.120
+ $0.220
July 2016
$12.120
+ $0.220
September 2016
$11.950
+ $0.040

In the News 

Around Washington

Section 179 Extension Part of Senate Finance Committee Bill Delta Farm Press

The Senate Finance Committee has introduced a tax bill that would extend the Section 179 small-business expensing and bonus depreciation through 2016. Section 179 allows farmers to expense and depreciate property they have purchased or repaired for their operations.

 

 

Tariffs and Trade

Dairy Trade Impasse Holding Up Pacific Trade Deal Reuters

One TPP diplomat said countries were closing out issues of less importance, which boded well for reaching agreement on more contested issues this week.

 

Old and Tired, Some Japan Farmers See Trade Pact Jolt as Only Answer Fiscal Times

Japan's reluctance to open up to more imports, including of rice, has been a major stumbling block to the TPP, and Tokyo held bilateral talks with Washington to resolve that and other obstacles, including access to the U.S. auto parts market.

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