The Rice Advocate Volume 7, Issue 28 July 16, 2010 In this issue: - Support Grows for Restoring Americans’ Right to Travel and Sell Food to Cuba - School Lunch Program Ends for the Spring Period with Great Success - US Rice Producers Summer Board Meeting Takes Aim at Next Farm Bill - Former Dallas Cowboy Star D.D. Lewis Highlights Mississippi Field Day in Stoneville - General Market Update - House Agriculture Committee Continues Farm Bill Hearings - From Dr. Stephen D. Linscombe at LSU AgCenter Rice Research Station ----------------------- *Support Grows for Restoring Americans’ Right to Travel and Sell Food to Cuba* ----------------------- Major U.S. and international newspapers ranging from the Los Angeles Times to the Financial Times have endorsed the effort pending in Congress to restore the rights of U.S. citizens to travel to Cuba and of U.S. agriculture to sell food to the island nation. In addition, a University of Miami poll of Cuban-Americans released this month confirmed that 64 percent of the Cuban-American community favors lifting the travel ban and restoring Americans’ rights to travel to Cuba. An excellent story on restoring Americans’ right to travel to Cuba aired on CNN this week (July 15). The story pointed out that lifting the ban could drive $1 billion in U.S. exports and create 6,000 U.S. jobs. You can view the news segment at the following link: http://cnn.com/video/?/video/world/2010/07/15/am.dougherty.cuba.travel.ban.cnn Despite these obvious signs of the will of the American people that these rights to travel and to sell food to Cuba should be restored, the Miami “old guard” in Congress continue to insist that U.S. farmers and the American people bear the cost of the failed policies of the past 50 years. The following exchange that took place on the floor of the United States Senate Thursday evening June 15th illustrates well the intransigence of the embargo supporters, and their tendency to unfairly blame U.S. farmers for the actions of Fidel Castro: Senator Menendez of Florida (5:18 PM): "Madam President, I come and have come to the floor many times to speak out about the Castro regime abuses of the Cuban people and today I come to the floor once again, this time in strong opposition to any attempt in this chamber to pass any bill that in any way lifts or lessens the travel ban on Cuba. I want to make it absolutely clear that I will oppose and filibuster if I need to any effort to ease regulations that stand to enrich a regime that denies its own people basic human rights...The fact is that big corporate interests behind this misguided attempt to weaken the travel ban could not care less whether the Cuban people are free or not. They care only about opening a new market, increasing their bottom line. This is about the color of money, not the desire for freedom. The very fact that a travel bill has moved through the House Agriculture Committee makes one wonder why American agricultural interests would even care about tourist travel to Cuba. One can only assume that it's about generating increased tourism dollars for the Castro regime to buy more agricultural products. That would only serve to enrich the regime and do absolutely nothing to bring democracy to the island. Let's be clear. Those who believe that increasing travel will magically breed democracy in Cuba are simply dead wrong." Senator Dorgan of North Dakota (5:48 PM): "I was the person who changed the law ten years ago that allowed for the first time just a crack in this embargo that allows us to sell food into Cuba if it's paid for with cash. I think it's immoral for a country to use food as a foreign policy weapon. I don't think food ought to be part of any embargo. That I think is immoral. By the way, using food as a part of an embargo, that just hurts poor, sick and hungry people. You think the Castro brothers missed breakfast, lunch or dinner because we had an embargo on food shipments to Cuba? Hardly. So, ten years ago I got the law changed. In fact, it was the Dorgan-Ashcroft amendment. Got a law changed that allowed us to begin selling food into the country of Cuba. And that is the first opportunity to begin to make any changes at all in this embargo. Now the question is travel to Cuba by the American people. Should we continue to say to the American people, you have no right to travel to Cuba? We don't like the Cuban government, so what we're going to do is restrict the rights of the American people. We've been doing that for 50 years, and it's time, long past the time for it to change." YOU CAN HELP TO INCREASE US AGRICULTURE EXPORTS, CREATE JOBS, AND RESTORE AMERICANS’ RIGHT TO TRAVEL BY URGING CONGRESS TO CHANGE OUR FAILED CUBA POLICY. H.R. 4645, the Travel Restriction Reform and Export enhancement Act, eases exports of U.S. agricultural goods to Cuba and restores the right of Americans to travel to Cuba. After having been approved by the House Agriculture Committee, the bill is pending in the House Foreign Affairs Committee. We need your help to secure more support for this important legislation by asking members from rice producing states on the Foreign Affairs Committee to support the measure. [CLICK HERE-1] to access phone call talking points and contact information. Link 1: http://www.usriceproducers.com/files/247_2010.07.16_CubaTalkingPoints_StaffContact.pdf ----------------------- *School Lunch Program Ends for the Spring Period with Great Success* ----------------------- This spring’s school period from January to July 2010 has ended and the program, MAS POR MENOS, was a fundamental part of food and nutrition among school children. We held promotional activities in four states: State of Mexico, Morelos, Queretaro and Hidalgo. 369 schools were reached, training more than 10,000 housewives, having an indirect impact of more than 100,000 people among family, friends, and neighbors of our trainees. During the last week of training sessions in schools we went to end of year ceremonies and commemorative events in the schools. Our training program, MAS POR MENOS, is now a “gift for housewives”, a reward for parents looking to improve their families’ nutrition. During the summer, we continue the program in Community Development Meetings and Aid Meetings, where housewives and their kids go to sessions to learn different activities during the summer school break. Thanks to our program, MAS POR MENOS, rice consumption continues to increase; people are eating better, learning to increase nutrition, value and health by including U.S. rice in their everyday meals. ----------------------- US Rice Producers Summer Board Meeting Takes Aim at Next Farm Bill ----------------------- Members of the US Rice Producers Association (USRPA) Board of Directors met in Branson, Missouri this week for their annual summer board meeting and six rice states meeting with a particular emphasis on the outlook for the next farm bill that is generating concern among farmers as we head for the November elections. Gary Murphy, USRPA Chairman and a rice farmer from Missouri, who recently testified on behalf of the U.S. rice industry before the House Agriculture Committee on the next farm bill, agreed with his fellow board members for a need of enhanced communication in order to achieve the needed goals and objectives for rice farmers. As a result the USRPA will select a Farm Policy Committee over the next few days to serve as an advisory link between rice producers and the organization's representatives in Washington D.C. The two day board meeting in Branson included state reports from each of the six rice states, financial and budget reports, a market outlook from Dennis DeLaughter of Progressive Futures and a thorough look at farm and trade policy on Capitol Hill from Cornerstone Government Affairs representatives. The board also heard an update of the organization's international market promotion activities with a focus on the Western Hemisphere especially in Mexico, Central America and Venezuela. The USRPA will be conducting some new activities with both funding from the Foreign Agricultural Service and the rice industry itself in coordination with new additional partners in several markets. The outlook for increased exports in the most important markets for U.S. rice continue to show promise. A special thanks to Mr. Corey Davis of Syngenta for their sponsorship of the evening board dinner. Mr. Davis gave a presentation regarding the "Crusier Maxx" rice seed treatment to the board. Photo Caption 1: Left to right, USRPA officers Donald Gant (secretary-treasurer from Mississippi), Gary Murphy (chairman from Missouri) and Ray Stoesser (vice-chairman from Texas led the organization's annual summer board meeting in Branson, Missouri this week. Photo Caption 2: Two long time supporters of the rice farming industry catch up on the current rice crop. Above are Board Member Sonny Martin (left) from Missouri and International Marketing Chairman Penn Owen (right) from Mississippi. Photo Caption 3: Louisiana was well represented at the USRPA meeting with members (left to right) Chris Krielew, Glenden Marceaux, Phillip Watkins and Lucas Berzas. An update on the Southwest Louisiana Rail Facility project was of great interest to the US Rice Producers Association board of directors. Photo Caption 4: Scott Wheeler (left), a board member from Missouri is the Syngenta contest winner and receives a special duck call from Corey Davis of Syngenta.  The USRPA appreciated Corey's presentation on "CruiserMaxx Rice" seed care and for their sponsorship of the special board dinner. ----------------------- Former Dallas Cowboy Star D.D. Lewis Highlights Mississippi Field Day in Stoneville ----------------------- Mississippi rice farmers gathered at the Delta Research & Extension Center (DREC) for the annual Agronomic Crops Field Day and were treated to a special catfish luncheon speech by former Dallas Cowboy, the great D.D. Lewis. An SEC Player of the Year in 1967, D.D. had everyone's ear as he told his life story that included a number of life's bumps along the way, the challenges he endured and the inspirations he received. His touching remarks were met with a standing ovation. Steve Martin, head of DREC welcomed the crowd to kick off the field day along with Dr. Greg Bolach, Vice-President of Agriculture, Forestry and Veterinary Medicine for Mississippi State University. Rice farmers were brought up to date with presentations from specialists Nathan Buehring (production update), Tim Walker (soil and sensor-based N management for rice), Jason Bond (herbicide issues), Dwight Kanter (new rice varieties for 2011) and Jeff Gore (rice insect research). DREC provides excellent research and education services to farmers, helping them overcome the challenges in the field. Congratulations on a great field day! Photo Caption 1: Left to right, Mississippi rice farmers Gip Carter, Marvin Cochran and Gary Fioranelli talk about the upcoming rice harvest.  All three gentlemen serve on the Mississippi Rice Promotion Board and Mr. Fioranelli is a member of the USRPA board of directors including a past chairman. Photo Caption 2: The Mississippi rice field day is not complete without the famous catfish luncheon cooked on the grounds.  They have it down to an art! Photo Caption 3: D.D. Lewis, the former Dallas Cowboy who played in five super bowls and was the 1967 SEC Player of the Year from Mississippi State that led to his induction into the College Football Hall of Fame thoroughly entertained the crowd as the field day luncheon speaker that resulted in a standing ovation.  He is currently the manager of customer relations for the Potash Corporation in Plano, Texas. Photo Caption 4: Mississippi rice farmer Bubba Smith (left) asks Nathan Buehring, rice specialist for the Delta Research & Extension Center in Stoneville about an attack of army worms on rice during a break at the annual Mississippi Agronomic Crops Field Day. ----------------------- General Market Update ----------------------- World Market Price factors were left unchanged again this week – hopefully a sign that Asian prices are at or near the bottom. After a few small reductions in previously registered sales, net export sales posted for the week by USDA totaled 22,000 tons. This was not a bad figure considering the time of year with the pending harvest pressuring the market and also remembering last week’s sales figure of over 122,000 tons – the 2009/10 marketing year is coming to a close on very solid figures with another three weeks of reporting yet to be posted. Net long grain paddy sales were light last week with only a little over 3,000 tons being reported for Mexico, Honduras, and Guatemala, while the big number in long grain came from the milled side at 20,500 tons most of which was for Haiti and Saudi Arabia (parboiled) followed by Mexico, Guinea-Conakry, and Canada as well as a small amount for the United Kingdom for the 2010/11 marketing year – more sales for that period will begin showing up very soon now. No medium/short grain paddy sales were noted this week, while 8,600 tons of milled were posted mostly for Syria, Israel, Jordan, and Turkey. Exports for the week totaled 79,200 tons with just under 30,000 tons being long grain rough to Mexico and Central America, 23,600 tons of long grain milled loading for Ghana, Haiti, Saudi Arabia, Canada, and Mexico, and nearly the same tonnage – 23,200 tons – of medium/short milled loading for Japan, Jordan, Israel, and South Korea. There has been a good bit of chatter about the Iraqi tender of two weeks ago, but there is no official word on results. The speculation is that little, if any, US long grain was booked. If this is the case, it will be a bit of a surprise and a definite disappointment, since the price levels offered were said to be quite competitive with Thai rice. The US is not participating on a level playing field in the Iraq tenders, with Asian governments very pro-actively subsidizing their farmers while the US government stands by and does nothing to even diplomatically encourage the government of Iraq to purchase a large portion of its rice import needs from US suppliers. Hopefully the legislation regarding unrestricted travel to and open banking arrangements with Cuba will get through Congress soon. There are few large milled long grain markets in which the US can compete under the present circumstances, and this industry absolutely has to have more long grain milling being done – producers need to see more mill-destined buying. There is no question that rough rice exports are a welcome and necessary mainstay of US long grain export business, but pricing is always stronger when mills enter the market for large quantities of paddy. Generally the paddy market is quiet, but with talk that harvesting will get underway as early as next week, there still seems to be some small interest in Texas rough rice at $4.00 and $3.50 premiums for traditional varieties and hybrids respectively. South Louisiana is reporting very sporadic buying interest at premiums just between the Texas bids, while Delta/Arkansas bids are reported to a dollar under the September futures with no selling interest at such drastically low levels. Buyers will certainly hold off as long as possible with the hope that harvest pressure will yield some good bargains, especially in the up-river areas, before selling locks up while farmers and their bankers hold for better prices once the drying and storage situation is under control. In Texas a fair amount of the new crop will be taken immediately as green rice. Producers there are also waiting to find out what affect the heavy tropical rains may have had on pollination, and there is some untreatable panicle blight showing up in the crop as well. Asian prices slipped a little this week with Thai 100% Grade B being quoted at $450 to $460 per metric ton fob vessel and parboiled down as well to around $465 per ton. There is talk of some crop loss due to the extreme dryness in Vietnam, but quotes there are still in the $345 to $350 range per ton for 5% long grain. Pakistani 5% is indicated as low as $405 and as high as $420 per ton, and exports from there continue to be steady to East Africa in particular. In spite of the Indian government’s prediction of a record 100 million ton crop this year, some important growing areas there are experiencing a shortfall as high as 16% in the monsoon thus far in the current season while two of the country’s largest rice producing states have reported crop losses of up to 15% due to severe flooding from too much rain. About 60% of India’s rice depends solely on the seasonal rains, and while the Indian government continues to predict a better than average monsoon season, that has not been the case so far. With the large government stocks on hand, however, it appears that only a massive crop failure would have a vastly positive effect on prices of global rice. Rough rice futures had a very narrow range for the week – only 37 cents from Monday’s high basis the September at 10.09 to the low made on Tuesday at 9.72. The week settled at 9.855 in the lower half of the range with the chart moving sideways in a consolidation pattern. This price area could be the bottom of the slide, and it is certainly far below production costs. Some on the cash buying side of the trade thought futures prices would go even lower given the supplies on hand, the very high (too high) USDA stocks figures, and the very weak situation in Asia, but the high $9.00/low $10.00 futures territory appears to attract buyers in fairly substantial volume. Thursday to Thursday open interest figures saw a good pick-up of close to 1,200 contracts to 15,100 on the week, and daily volume averaged nearly 1,750 contracts per session. As an aside, it is interesting to note that the July 2011 rice futures contract settled at 11.225 on Friday, and even though there is a lot of ground to cross between now and July, this hardly seems to be a price level that reflects the 54 million cwt long grain carry over that USDA is predicting. In other markets, the Dow took a big hit on Friday in continued weak and worried stock market action, the Euro advanced to just over 1.29 to the Dollar (this may help US exports slightly), and nearby crude futures were just below $76 per bbl. ----------------------- House Agriculture Committee Continues Farm Bill Hearings ----------------------- The House Agriculture Committee has announced they will hold more hearings next week to review U.S. agriculture policy in advance of the 2012 Farm Bill. The Committee has had 9 hearings so far on the topic. In the hearings next week, topics to be covered include: the state of the crop insurance industry, rural development programs, livestock programs, and specialty crop and organic agriculture programs. Producers’ thoughts and comments about the future of farm policy will be considered as part of the Farm Bill field hearing record if submitted through the committee website by July 28th, 2010. To access the Farm Bill Feedback Form, [click here 2]. Link 2: http://agriculture.house.gov/inside/feedbackform.html ----------------------- From Dr. Stephen D. Linscombe at LSU AgCenter Rice Research Station ----------------------- The rice in the photo below is currently growing on the LSU AgCenter Rice Research Station. The purple leaf rice line is a marker that was developed by Dr. Kenneth Gravois (AgCenter Sugarcane Specialist) while he was working as a rice breeder with the University of Arkansas. The gold leaf line is an induced mutant that was selected from a indica population that Dr. Neil Rutger developed. This line was obtained from the Oryza (GSOR) Collection at Dale Bumpers National Rice Research Center in Stuttgart, Arkansas. Photo Pictured with Article ----------------------- Additional Links ----------------------- Texas A&M AgriLIFE Research Center: The latest Texas Rice Crop Survey reports are available through the Beaumont Center web-site: http://beaumont.tamu.edu/CropSurvey/CropSurveyReport.aspx University of Arkansas Division of Agriculture, Cooperative Extension Service: Arkansas Rice (07/15): http://www.usriceproducers.com/files/259_2010.07.15_Arkansas_Rice.pdf University of Arkansas Rice Research and Extension Center News Summer 2010 is available Online: Rice Research News (V2 N4) http://aaes.uark.edu/pdf_files/RREC_News-Summer2010.pdf RiceFax: Midsouth/Texas; 07/14 Coastal Harvest Nears, Diseas and late insects build (Full Report) http://agfax.com/ricefax/reports/10/reports/0715.htm ----------------------- Upcoming Events ----------------------- July 22, 2010 Progeny Rice & Soybean Field Day, Wynne, AR July 27 - 29, 2010 The 3rd Africa Rice Outlook, Cape Town, South Africa July 28, 2010 Export Letter of Credit Documentation Training, Houston, TX August 5, 2010 Horizon Ag Field Day, Ruleville, MS August 11, 2010 Arkansas Rice Research & Extension Field Day, Stuttgart, AR August 12, 2010 RiceTec Field Day, RiceTec Station, Harrisburg, AR August 18, 2010 Cache River Valley Seed Company Field Day, Cash, AR August 26, 2010 Missouri Rice Council Field Day, Glennoville, MO September 21 - 24,2010 Rice Challenges in the 21st Century, Cali, Colombia October 12 - 14, 2010 TRT World Rice Conference, Phuket, Thailand February 1 - 2, 2011 14th Annual NCSCRC “Tillage Conf.”; Baton Rouge, LA For more information visit USRPA’s online calendar at: www.usriceproducers.com/calendar ----------------------- USDA Reports Next Week ----------------------- Crop Progress (NASS) Monday, July 19, 4:00 pm Weather Crop-Summary (NASS) Tuesday, July 20, 12:00 pm U.S. Export Sales (FAS) Thursday, July 15, 8:30 am All USDA reports are available by visiting http://www.usda.gov/wps/portal/?navid=AGENCY_REPORTS=RT. The US Rice Producers Association 2825 Wilcrest Dr., Ste. 505 Houston, TX 77042 P. (713) 974-7423 F. (713) 974-7696 E. rice_advocate@usriceproducers.com