Selling Rice Amidst Chaos in Iraq
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BAGHDAD, IRAQ -- Iraq's public tendering system is a mess. The Iraqi Grain Board (IGB) has extended, or "renewed," tenders on several occasions, most recently with the current tender initially set to close on September 9, but now extended until September 29. The IGB's contracts committee has not met as scheduled, leading to the current delay.
Adding to the turmoil are unrealistic offers of U.S. origin rice from Indian companies. There were four offers of U.S. rice in the current tender, three of which were from India-based companies that are reportedly not among the first tier of Indian exporters. One of the companies has a history of providing basmati rice to Iraq under public tenders; the other two are either small time exporters or serve as an export front for a miller (typically Indian millers register more than a few companies as exporters and use them specifically where government contracts are involved). Finally, we learned earlier today that a new Trade Minister has reportedly been named.
To say the least, a difficult market to navigate, but navigate it USA Rice will.
"USA Rice remains engaged with the Trade Ministry through several channels, including the U.S. Embassy here, to ensure U.S. origin rice gets fair consideration under the public tendering system," said USA Rice President & CEO Betsy Ward. "If indeed a new minister has been named, we will redouble our efforts to develop meaningful relationships with the Minister as well as members of the Grain Board, which is also likely to see some changes in personnel. Obviously, we can't control the outcome of this or future tenders, but we will make every effort to keep the spotlight on U.S. rice as a viable option for purchase by Iraq."
Contact: Jim Guinn (703) 236-1474
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USA Rice Awarded Funding to Bring Chinese Officials to the U.S.
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ARLINGTON, VA -- USA Rice was notified today that our Emerging Markets Program (EMP) proposal budgeted at $61,000 to bring Chinese officials to the U.S. has been approved for funding in FY 2015. The purpose of the visit, scheduled to take place soon after a phytosanitary protocol has been reached with the Chinese, is for the officials to survey a number of rice mills interested in exporting rice to China. This market survey is required by the protocol and envisioned as the last step before rice can be legally imported by buyers in China.
As USA Rice reported last week, the U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) has said the phytosanitary agreement is still in an administrative review process in China.
"We are hopeful that an agreement will be reached soon," said USA Rice President & CEO Betsy Ward. "This has not been an easy negotiation for APHIS because many of the Chinese demands are considered less than reasonable since they are not based on plant health issues. However, China is an important export market and we believe our patience during this process will pay off eventually."
Contact: Jim Guinn (703) 236-1474
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RCPP EQIP Sign-up Period Closing Soon in Arkansas and Mississippi
|  WASHINGTON, D.C. -- There are less than four weeks left until the Environmental Quality Incentives Program (EQIP) sign-up period closes in both Arkansas and Mississippi on Friday, October 16. This special EQIP sign-up is being held as part of the National Rice Regional Conservation Partnership Program (RCPP) Project, led by the USA Rice - Ducks Unlimited (DU) Stewardship Partnership.
RCPP is funded through the 2014 Farm Bill and administered by the USDA's Natural Resources Conservation Service (NRCS). The USA Rice-DU project matches private and federal funding to help pay for conservation work completed through NRCS's EQIP and Conservation Stewardship Program (CSP).
USA Rice and DU were awarded $10 million in Federal funding with $6.8 million contributed by nearly 40 partner organizations and businesses earlier this year.
Ben Mosely, USA Rice's vice president of government affairs, said "this EQIP sign-up is focused on rice acres and farmers who regularly plant rice crops. Ranking of applications addresses three priority concerns - water quantity, water quality, and waterfowl habitat." Mosely continued, "applications that address all three concerns will be ranked as a high priority for funding. Within the concern of water quantity, Irrigation Water Management (EQIP Practice 449) is a focal point."
Mosely is encouraging Arkansas and Mississippi rice farmers to get their applications in to their local NRCS offices as soon as possible to ensure they are considered for funding. A flyer outlining the project's acceptable practices and a brief summary can be found here.
Contact: Peter Bachmann (703) 236-1475
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| CME Group/Closing Rough Rice Futures | CME Group (Prelim): Closing Rough Rice Futures for September 23
| November 2015 | $12.910 |
+ $0.165
| | January 2016 | $13.190 |
+ $0.160
| | March 2016 | $13.405 |
+ $0.160
| | May 2016 | $13.590 |
+ $0.155
| | July 2016 | $13.710 |
+ $0.120
| September 2016
| $12.845
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UNCH
| November 2016
| $12.845
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UNCH
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In the News
| Around the Country
No More Plain Grain Clarion Ledger
Rice was the blank canvas for creativity at the recent 25th anniversary National Rice Month Luncheon at Delta State University, where old friends like red beans and new pals like dried apricots and grapes rode the little grain to goodness.
Rice is Nice as a Commodities Bet as Prices Soar Financial Review
Rough rice traded in Chicago is up 22 per cent in the third quarter, the best performer among commodities futures tracked by Bloomberg.
Tariffs and Trade
Local Rice Farmers Hope to See Cuban Embargo Lifted KPLC-TV
Randy Jemison, director of Louisiana field services for USA Rice, said, "If we could get the sanctions lifted, it would open up a huge market, which would greatly benefit the Louisiana rice industry."
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| Mission Statement | | USA Rice is the global advocate for all segments of the U.S. rice industry with a mission to promote and protect the interests of producers, millers, merchants and allied businesses. |
| About Us | Editor: Michael Klein
(703) 236-1458
mklein@usarice.com
Fax (703) 236-2301
2101 Wilson Boulevard, Suite 610
Arlington, VA 22201
This report is time-sensitive, based on information available at press time. Content is derived from facts and sources believed to be reliable. Reprinting and/or distribution may be done with permission of USA Rice.
Copyright © 2015. Please direct comments or questions to the editor or contact name listed for each story. |
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