USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Thursday, July 30, 2015

USA Rice Producers' Group Grows into USA Rice Farmers        

 
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ARLINGTON, VA -- The USA Rice Producers' Group, the largest sector of USA Rice with representation by farmers from each of the six rice-growing states, has voted to change the group's name to "USA Rice Farmers" effective August 1, 2015.

 

Members of the almost 60-member Board of Directors discussed the change at their recent annual business meeting in Dallas, Texas and concluded that on Capitol Hill and amongst the non-agricultural sector, 'farmers' was more universally recognized than the term 'producers.' 

 

Missouri rice farmer and incoming chairman of USA Rice Farmers, Blake Gerard, said, "This change is appropriate because it will help identify exactly who we are and what we do and help us clearly and effectively tell our story."

 

USA Rice's Vice President of Marketing and Communications Michael Klein, added that the Producers' Group name change coincides with the umbrella organization, USA Rice Federation, dropping the word "Federation" from their logo and common usage.

 

"It's all about communicating clearly and as succinctly as possible with our audiences," Klein said.  "The words 'Federation' and 'producers' did neither and so we're retiring them."

 

Contact:  Peter Bachmann (703) 236-1475

At A Glance:  Indian Export Market        

Data Source: FAS Global Agricultural  

Trade System; United Nations

ARLINGTON, VA -- Over the past several years, Asian exporters have looked to diversify their export markets and with relatively low prices, have grown their market share in many areas in Africa, the Western Hemisphere and in developing countries.  India has had phenomenal growth in their exports, particularly to developing countries which now account for nearly 80 percent of their exports.  In particular, least developed countries (LDCs) have become increasingly important markets for Indian exporters and the Indian agricultural trade surplus with these markets has soared.  India is now the world's seventh-largest agricultural exporter, up from 13th a decade ago.  In 2013, India became the top agricultural supplier to LDCs, with overall sales of $5.2 billion.  This is nearly $1 billion more than the European Union, which is the second largest supplier.

 

Rice is one of India's largest agricultural exports.  Indian rice exports grew from $2.4 billion in 2009 to more than $8 billion in 2013 and shipments have been particularly strong to LDCs.  In 2009, rice exports to LDCs accounted for only 3 percent of India's total rice exports; by 2013, it accounted for 22 percent!  Ironically, this increase in Indian exports has come at the same time many of these countries are seeking to attain rice self-sufficiency.

 

Rapidly increasing government support for both production and exports has contributed to India's surge in exports.  India's public stockholding program has been especially instrumental in increasing rice exports to LDCs.   As noted in the recent Section 332 study on Rice: the Global Competitiveness of the U.S. Industry, the Indian government purchases rice at minimum support prices that are announced well before the planting seasons.  There are also several types of subsidies for inputs, including fertilizer, irrigation, electricity, seeds, and machinery.

 

"Ensuring that there is a level playing field is becoming more important as many of our competitors are ramping up production and increasing their market share in our export markets," says Jim Guinn, USA Rice vice president for international promotion.  "That is why research which monitors our competitors, such as this Section 332 study, and a constant reevaluation of potentially new or growing markets is an important part of what we do."

 

Contact:  Sarah Moran (703) 236-1457

Weekly Rice Sales, Exports Reported        

WASHINGTON, DC -- Net rice sales of 8,400 MT for 2014/2015 were down 11 percent from the previous week and 82 percent from the prior four-week average, according to today's Export Sales Highlights report.  Increases were reported for Japan (3,000 MT), unknown destinations (2,000 MT), Canada (1,200 MT), the United Kingdom (600 MT), and Mexico (400 MT).  Net sales of 49,000 MT for 2015/2016 were reported for Venezuela (30,000 MT), unknown destinations (5,900 MT), El Salvador (5,500 MT), and South Korea (5,000 MT). 

Exports of 105,900 MT were up 15 percent from the previous week and 60 percent from the prior four-week average.  The primary destinations were Japan (31,800 MT), Venezuela (29,900 MT), South Korea (17,800 MT), Mexico (12,000 MT), and Haiti (10,000 MT).

This summary is based on reports from exporters from the period July 17-23, 2015.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for July 30

Month
Price
Net Change
September 2015$11.435
+ $0.235
November 2015
$11.700
+ $0.235
January 2016
$11.970
+ $0.235
March 2016$12.180
+ $0.245
May 2016$12.365
+ $0.245
July 2016$12.365
+ $0.245
September 2016
$11.950
UNCH

In the News 

Around the Country

California Farmers Aren't the Water Hogs Wall Street Journal

Commentary: We grow crops to feed people. We don't consume water as much as invest it. Our return on investment is the food supply that benefits everyone, including reporters who wolf down takeout lunches at their desks inside the D.C. Beltway.

 

 

Tariffs and Trade

Rice Price Hike Forecast Due to El Nino Rakyat Post

Global rice prices are likely to surge by 10-20% in the next few months as an El Nino weather pattern grips top producers in Asia, baking the region's croplands and whittling down stocks of the grain to multi-year lows.

 

Why Opening Up Canadian Dairy and Japanese Rice Markets During TPP Talks is Harder Than it Sounds ABC News Australia

Protection of these markets are a contentious political issue in each country, and if they are forced to reform as a result of this week's negotiations, politicians would be seen as selling out the farmers, affecting their chances in upcoming elections.

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