USA Rice Daily
Up-to-the-Minute News on Issues and Activities
Thursday, November 12, 2015
USA Rice Participates in Havana Trade Show, Meets with Alimport  
Group meeting with ALIMPORT
Group meeting with Alimport
HAVANA, CUBA -- USA Rice participated in the American Pavilion of the International Havana Trade Show (FIHAV) here last week.  The American pavilion this year was composed of 26 companies and trade associations, a sharp increase compared to the last several years, no doubt as a result of policy changes here and in the United States.
 
USA Rice was represented here by consultants Ernesto Baron and Ana Vettorazzi and by Chairman Dow Brantley and Riceland's Kevin McGilton.
 
During the show, the USA Rice delegation met with Director General Ariel Fiallo and Vice President of Operations Alejandro Cardet of Alimport, the Cuban government's purchasing arm.

"There is a clear interest in resuming imports of U.S.-grown rice and our quality and the transportation logistics make the U.S. an ideal supplier of rice for Cuba," said Brantley. "However, the Alimport folks were loud and clear that the main challenge remains the lack of credit terms and other policies still in effect due to the embargo."
 
The delegation also visited several local grocery stores where both locals and tourists are able to purchase common food items and a supply warehouse where only locals are allowed to obtain their monthly government supplied rations.
 
"This trip was eye-opening and there is a definite and immediate need for high quality rice because a lot of the rice we saw on store shelves was not good quality," said Brantley.  "And with an increasing number of trade delegations, and eventually American tourists coming down - which is what it's going to take to get two-way trade going - they are going to need our commodities sooner rather than later."
 
Contact:  Sarah Moran (703) 236-1457
Weekly Rice Sales, Exports Reported  
WASHINGTON, DC -- Net rice sales of 35,700 MT for 2015/2016 were down 56 percent from the previous week and 55 percent from the prior four-week average, according to today's Export Sales Highlights report.  Increases were reported for Japan (15,700 MT), Taiwan (11,000 MT), New Guinea (3,000 MT), El Salvador (2,100 MT), and Canada (2,100 MT).  Reductions were reported for Yemen (500 MT).

Exports of 34,200 MT, down 25 percent from the previous week and 47 percent from the prior 4-week average, were reported to Japan (16,100 MT), El Salvador (4,200 MT), Mexico (4,000 MT), Canada (3,500 MT), and New Guinea (3,000 MT).

This summary is based on reports from exporters from the period October 29-November 5, 2015.
CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for November 12

Month
Price
Net Change
November 2015$12.110
+ $0.475
January 2016
$12.360
+ $0.480
March 2016
$12.625
+ $0.475
May 2016$12.910
+ $0.465
July 2016$13.165
+ $0.465
September 2016$12.730
+ $0.275
November 2016
$12.730
+ $0.275
In the News
Around Washington
Reps. Ron Kind, D-Wis., and Jim Sensenbrenner, R-Wis., last week introduced the Assisting Family Farmers through Insurance Reform Measures Act. It caps at $40,000 the amount of subsidy an individual can get to buy their insurance.

   
Around the Country
Agriculture agreed to keep millions of gallons of extra water in Shasta reservoir this year in an effort to keep the releases cold for the salmon. As a result, rice farmers in the Sacramento Valley fallowed about 25 percent of their land.
 
Wild rice is one of America's great regional ingredients, and this is a terrific time of year to celebrate it in all its glory. Earthy and elegant, wild rice makes a superb side dish for the holiday turkey, as well as for game and roast chicken, and can even be the main course.
 

Tariffs and Trade
The Castro government is using its purchasing power as a tool to try and get more concessions from the U.S. as the process of easing sanctions moves forward.
 
The deal cuts Japanese rice tariffs moderately, and increases the amount of rice the US and Australia can export to Japan with no tariff by 84,700 metric tons. But Japan has agreed to offset that by purchasing 84,700 metric tons of domestic rice each year "for stockpiling.
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