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					                       The Rice Advocate
                       US Rice Producers Association
                         Volume 8, Issue 26                                                                          Friday, July 01, 2011

Free Trade Agreements Stumble Out of Congressional Starting Gate
This week, the leaders of the House and Senate reached                  markup. I’m very disappointed that my colleagues did not
agreement with the White House on language for Congress                 join us today. This choice is a strict departure from the
to consider to enact the three pending Free Trade Agree-                years of bipartisan work of this committee.”
ments with South Korea, Colombia and Panama. As a result,                         The committee held a brief recess, but then never
the Senate Finance Committee scheduled a “mock” markup                  reconvened. Republican committee members instead wrote
of the draft implementing bills for this Thursday June 30.              a letter to President Obama expressing their opposition to
But when the markup convened, the Committee could not                   the inclusion in the implementing bill of TAA. To read the full
achieve a quorum, so action on the FTAs will wait until at              text of the letter, click here. “We are united in our opposi-
least next week.                                                        tion to inclusion of expanded Trade Adjustment Assistance in
         The difficulty arose because the South Korea draft             this implementing bill submitted to Congress under Trade
implementing bill includes an extension of Trade Adjustment             Promotion Authority. We believe each trade agreement
Assistance (TAA) through December 31, 2013. The current                 and Trade Adjustment Assistance should be debated and
TAA authority expired in February 2011. The Republican                  considered in the Senate on its own merits,” the Finance
Members of the Senate Finance Committee oppose the ex-                  Committee Republicans declared.
tension of TA, and hence boycotted the markup and denied                          According to the American Farm Bureau Federation,
the Committee a quorum (at least one Republican Member                  the three trade agreements are estimated to increase U.S.
must attend the markup to achieve a quorum).                            agricultural exports by $2.5 billion per year after full im-
         At what would have been the beginning of the                   plementation. Those additional exports would generate
markup, Chairman Max Baucus (D-Montana) said, “Senator                  support for as many as 22,500 American jobs.
Hatch informed me that no Republicans will attend this                                                                  (Continued on page 2)

Rice Market Reacts to This Week's Highly Anticipated USDA Rice Report
USDA released both acreage updates and stocks reports on                seen as a negative when considering the upcoming smaller
Thursday and set off strong reactions around the market                 crop. There were also some figures in the report that have
place. Southern rice plantings were cut by almost a million             some thinking the carry in from last year may be lowered
acres from last year’s big numbers, with the biggest de-                by as much as 6 million cwts of long grain. With much (if not
creases being estimated in Arkansas, Mississippi, and Mis-              most) of the remaining old crop being low milling/low qual-
souri. In speaking with folks in various areas, the feeling             ity, new crop high quality long grain may find itself in
was that USDA’s figures were probably fairly good except                higher demand this year.
in Arkansas. Those we talked with in Arkansas feel like                          USDA left the World Market Price rough rice fac-
more cuts will be made – that USDA was too high. The                    tors alone again this week. The long grain on farm WMP
strongest reactions to the various acreage estimates came               value calculation remains at $11.83 per cwt.
when corn acres were guessed to be much larger than the                          Net sales registered this week with USDA were all
trade had expected, causing corn futures to dive their 30               for the current marketing year and made a good showing
cent limit, stay there all day, and close with well over                at 66,600 metric tons. Long grain rough posted a total of
350,000 contracts offered at limit-down between the Sep                 31,200 tons for Mexico, Honduras, Costa Rica, and Nicara-
and Dec corn futures. Of interest and importance to rice,               gua. This was followed by 30,000 tons of long grain milled
however, is the fact that while the grains and cotton were              split among Haiti (19,400 tons), “unknown” (4,500 tons,
being slammed down, rice futures moved up steadily all day              likely parboiled), Mexico (2,500 tons), and the United King-
and finished limit-up fifty cents and locked in the Sep posi-           dom (1,200 tons). Medium/short grain milled finished out
tion. When the question of whether this was “funds” or                  the report at 3,900 tons where the main buyers were Syria,
“fundamentals” is asked, this absolutely speaks to funda-               Jordan, and Canada. For this late in the year, these are
mental strength in the rice.                                            good sales figures.
         A rice stocks report was also released this week                        Exports for the week came in at 44,800 tons, more
which showed total stocks in the South up around 16 million             than half of which was long grain rough for Mexico and
cwts compared to last year at this time. That report was not                                                            (Continued on page 2)

In this issue:
FTA Stumble Out of Congressional Starting Gate ............... pg. 1 Rice Market Reacts to USDA Rice Report .......................... pg. 1
Costa Rica Celebrates VII National Rice Congress.............. pg. 2 GBI Rice, Soy and Poultry SNP in Mexico......................... pg. 2
Central Advocate, Volume 8, Issue Program (SNP) ............... pg.Page Krielow: Farmer of the Year/Field Days are Here ......... pg. 5
The Rice America: School Nutrition 26                               3 1                                                   July 01, 2011
Free Trade Agreements Stumble out of Congressional Starting Gate (continued)
(Continued from page 1)                                           and cost U.S. farmers market share in these countries.
         While on balance these Agreements are good for                     It is expected that the Senate Finance Committee
American agriculture, the news is mixed for U.S. rice produc-     will reconvene in the near future to consider the Agreements,
ers. The Colombian Agreement will provide duty free ac-           perhaps as early as next week. The House Ways and
cess for 79,000 tons of U.S. rice the first year that the         Means Committee could also convene to consider the Agree-
Agreement is in force. This duty free amount grows each           ments as early as next week.
year until, in 19 years, the Colombian market will be open                  Under “fast track” implementation procedures, the
to US rice without any duty. This is a significant reduction      Finance Committee must consider the draft implementing
from the current 80 percent tariff that U.S. rice must pay        bills during a "mock" markup because Congress cannot offer
upon entering Colombia.                                           amendments to the final implementing bills submitted by the
         By contrast, the FTA with South Korea provided no        Administration under the Trade Promotion Authority. The
new access for U.S. rice—U.S. rice was specifically excluded      Committee mock markups are the only opportunities for
from the deal. This is especially disappointing because the       Congress to offer amendments to the Administration’s pro-
South Korean market has such potential for substantial U.S.       posals. Following a review by the Administration of any
rice exports.                                                     amendments that the Finance and Ways and Means Com-
         Implementation of the trade agreements negotiated        mittees eventually approve to the draft implementing bills in
between the United States and South Korea, Colombia and           the mock markups, final versions of the implementing bills
Panama have each been stalled for four years or more.             will be submitted to Congress for an up-or-down vote.
They were initially negotiated and agreed to when George          Once officially submitted, the bills will be subject to the fast
W. Bush was President. Inaction by Congress since they            track timetables and procedures for consideration by Con-
were initially agreed to has opened the door to competitors       gress.

Rice Market Reacts to This Week's Highly Anticipated USDA Rice Report (continued)
(Continued from page 1)                                           crop bids for minimum 55 lb rice have been reported at
Central America – Mexico also took a small amount of me-          $11.40 per cwt for early shipment to as high as $11.90 per
dium grain rough. Small quantities of both long grain brown       cwt for shipment as far out as March.
and medium/short grain brown also moved this week to                        Thai prices remain in the $515 to $525 range per
Canada and Pacific island destinations. Long grain milled         ton fob vessel for 100% Grade B long grain milled; Thai
saw loadings for Mexico, Canada, and Saudi Arabia, while          parboiled is quoted at $515. Elections in Thailand are this
medium grain milled exports went to Libya, Saudi Arabia,          weekend, and all are waiting to see how this will affect rice
and Germany.                                                      prices – the changes could be substantial. Prices in Vietnam
          Things are quiet in Texas this week, with bids for      have firmed a little with Viet 5% now quoted between
old crop long grain at $13.00 per cwt down to $12.00 per          $470 and $480 per ton, and Pakistani 5% long grain
cwt depending on variety. Remaining stocks of about               milled is still at $500 per ton. India has sold some rice to
250,000 cwts are being firmly held in first hands. Harvest        Bangladesh, but there has been no decision on opening com-
is expected to start in the next two weeks. South Louisiana       mercial exports of rice out of that country. We still think
saw some decent rains over the week but not enough to help        that is too hot a subject to see much exporting done even if
the salt situation south of I-10. Some rice down there has        the ban is lifted.
already been abandoned. Bids for old crop long grain                        Rice futures sort of leveled off into Wednesday, but
rough are still at the $20.00 per bbl level but new crop          when the acreage and stocks reports were released, buyers
bids are reported at $21.00 per bbl now. The harvest              took the market limit-up on Thursday. That 50 cent move
schedule for south Louisiana is on the same time table as         was complemented by another 6.5 cents in the September
expected in Texas.                                                contract on Friday to leave that position at 14.91. We feel
          Mississippi is reporting hot and dry conditions, but    that this was definitely fundamentally motivated buying, but
the rice there seems to be the best rated in the South. Bids      a large gap has been left on the continuation chart. How
have eased to around $11.50 per cwt delivered barge               and when that gets filled is now the question. Regardless of
facility – the rice has to be a minimum 55 lb; discounts of a     that gap, the action was strong, especially in the face of
dollar per cwt (some say maybe more) are being seen on            corn crashing 71-1/4 cents during the same two days. Vol-
50 lb or lower milling yields. What old crop rice not sold        ume was mediocre at about 11,400 contracts for the week,
by now seems to be destined for carrying over into next           but open interest continued to ease down to 17,437, a fur-
year. Interest in new crop is noted at $11.65 to $11.75 per       ther reduction of 815 contacts bases Thursday to Thursday.
cwt delivered barge loading facility. Conditions in Arkan-        In other markets, even after a 168 point loss in Friday’s ses-
sas are said to be very difficult with thin stands and lots of    sion, the Dow was still up about 254 points for the week at
grass being seen. Old crop bids are in the $11.20 to              12188.69; the Euro was up for the week at 1.4530 against
$11.65 per cwt range delivered for 55 lb rice; bids for 50        the Dollar; and nearby crude futures were up on the week
lb or lower are around $10.15 per cwt, and pet food qual-         at 94.75 per bbl. Grains and cotton finished the week with
ity is quoted at $8.80 per cwt or lower, all delivered prices.    Sep corn settling at 6.06-3/4, Nov beans at 13.12-1/2,
We hear the spread between 55 lb rice and lower milling           Dec wheat at 6.60, and Dec cotton at 117.81.
quality is widening and is expected to widen further. New
The Rice Advocate, Volume 8, Issue 26                        Page 2                                                July 01, 2011
Costa Rica Celebrates VII National Rice Congress
Rice farmers from throughout Costa Rica gathered in the                According to COMEX (Costa Rica's Ministry of Foreign
capitol city of San Jose this week to discuss a wide variety           Commerce), pressure by the international community be-
of topics. With a high per capita consumption rate in                  gan in September of 2009 when member countries of the
Costa Rica of approximately 118 pounds per person, rice                WTO recognized that Costa Rica was exceeding the
is the foundation of the diet and as a result, a hot topic of          maximum limit of internal agricultural subsidies to $15.9
discussion with regards to government policies. The well               million per year. During a meeting of the Agricultural
attended conference consisted of presentations on pro-                 Committee of the WTO last week, Costa Rica received
duction, technology, marketing, policy, research and post              strong criticism from a number of countries where they
harvest management. Current government fixed prices to                 demanded specific action and a deadline for a new rice
the farmer at just over $26/cwt has drawn the attention                policy that would eliminate WTO violations. Countries
of many other rice producing countries around the world                supporting the position include Australia, Chile, Colombia,
that are complaining about Costa Rica's non-compliance                 Philippines, New Zea-
with its domestic support commitment. Costa Rica's Aggre-              land, Pakistan and the
                                                      gate             United States. Dwight
                                                      Measurement      Roberts, President &
                                                      of Support       CEO of the US Rice Pro-
                                                      (AMS) has        ducers Association rep-
                                                      broken its       resented the U.S. rice
                                                      $16 million      industry at the congress.
                                                      binding since    Roberts also met with
                                                      2007. Each       Kevin Smith, Agricultural
                                                      year it has      Counselor and Victor Patricio Mendez del Villar, economist
                                                      gone up and      Gonzalez, Agricultural with the CIRAD Agricultural Research &
                                                                                                  Development in France and Jose Anto-
The Costa Rica VII National Rice Congress took in 2010 was             Specialist with the For- nio Martinez, Executive Director for
place in San Jose, Costa Rica this week and began
with the election of officers, left to right of Oscar $109 or al-      eign Agricultural Service ANINSA, Costa Rica's rice milling asso-
Campos (President), Eduardo Rojas (Vice President) most 7 times        of the U.S. Embassy in ciation during a break at the Costa
and Javier Castro (Vice President).                   its limit.       Costa Rica.                Rica National Rice Congress.

GBI Rice, Soy and Poultry School Nutrition Program in Mexico
USRPA in collaboration with USARF, American Soybean                    vitamins and miner-
Association, USA Poultry and Egg Export Council and the                als, they provide a
Agriculture Trade Office in Mexico City began their                    nutritious meals for
School Nutrition Program in June.                                      the whole family,
          Mexico continues to be the world leader in obe-              they are a good
sity of its young population and number two in obesity of              sources of healthy
adults. The trend of reducing costs in daily meals and the             protein when com-
focus on healthy food to fight obesity and malnutrition are            bined, they in-
a factor in Mexico, now more than ever. Rice, poultry and              creases the quality
soy represent a great option for families searching for                of the total protein,
excellent nutrition with a low cost.                                   they are easy to
          The aim of this program is to increase use and               use and economical.
consumption of these products and to communicate and                            Our promo-
educate the consumers in socio economic classes B, C and               tional efforts are present in the most populated cities of
D about all the benefits that rice, poultry and soy bring to           Mexico: Monterrey, Guadalajara, Queretaro, Puebla and
their families. Such as, the products are a good sources of            Mexico City. This program is aimed to train housewives in
                                                                       their children’s schools on how to cook delicious, nutritious
                                                                       and low cost dishes so they can adopt these recipes at
                                                                       home and increase the use of the products.
                                                                                This program involves federal, state and munici-
                                                                       pal government agencies such as SEP (Education),
                                                                       SEDESOL (Social Development) and DIF (Family Develop-
                                                                       ment), having great impact in the number of people di-
                                                                       rectly reached, indirectly informed and with the recogni-
                                                                       tion of our campaign by a large number of consumers.

The Rice Advocate, Volume 8, Issue 26                             Page 3                                                 July 01, 2011
Central America: School Nutrition Program
Since 2004, the US Rice Producers Association has been
conducting a School Nutrition Program in Central America.
At its peak funding levels from 2004 until 2010, the pro-
gram was conducted in countries of Guatemala, El Salva-
dor, Honduras, Costa Rica and Nicaragua. During this
time period, the program was conducted in schools and
taught school cooks, mothers in the villages, how to pre-
pare low-cost, nutritious meals using rice. From 2004 to
the end of 2010, this program has trained 173,745 moth-
ers in 7,988 schools and served a nutritious meal to 2.5
million children.

                                                                             Conducting the promotions in schools also introduces the next genera-
                                                                             tion of rice buyers/consumers – the children - to rice.

                                                                             4,560 mothers in 200 schools and served a nutritious meal
        The effect of this program has resulted in an in-                    of rice to 54,745 children.
crease of use of rice in the schools and homes in the com-                             In 2010, Central America imported 576,651 MT
munities where the programs were conducted. In Guate-                        of U.S. rice, up from 562,676 in 2009. Guatemala im-
mala for example, the number of homes using 4 or more                        ported 66,992 MT up from 65,007 in 2009. Honduras
pounds of rice per week before the school promotion was                      imported 122,210 in 2010 down from 2009 imports of
only 18%*. After the promotion, the percentage in-                           131,530. Rice imported by the Central American coun-
creased to 44%*.                                                             tries is virtually all in rough rice form. Currently, the U.S.
        In 2011, decreased funding for the USA Rice                          maintains an almost 100 percent share of this market.
School Nutrition Program resulted in the program being                                 Increasing consumption through promotional pro-
cut back to two countries, Guatemala and Honduras,                           grams is an important strategy for maintaining market
where the focus continues to be to teach village mothers                     share. These markets are income elastic markets with high
how to prepare low-cost, nutritious meals using U.S. rice.                   population growth that will become increasingly deficit in
Through May, this year’s program, has trained more than                      food supplies, including rice. The “cause-marketing” ap-
                                                                             proach to promotion - doing good by helping feed school
                                                                             children – enhances the image of U.S. rice, the U.S. rice
                                                                             industry, and the U.S. government, as well as local rice
                                                                             industries – the importers of U.S. rice by demonstrating
                                                                             social responsibility while cultivating the future market of
                                                                             these commodities to future consumers. The unique rela-
                                                                             tionship the US Rice Producers Association has cultivated
                                                                             with the Central American rice industries, through promo-
                                                                             tions like the School Nutrition Program, is a key component
                                                                             to keeping lower-cost Asian rice out of these markets. This
                                                                             market continues to import 100 percent U.S. rice despite
                                                                             increasing market pressures from low-cost milled rice in

                                                                             *2011 data from research conducted by AVANSA.

Teaching the school cooks, mothers from the village, how to prepare                                RiceFax: Midsouth/Texas
low-cost, nutritious meals using rice has resulted in measurable increase        RiceFax 6/30: Texas Harvest Nears, Heat Pushing Delta Crop
in rice usage in the homes. In 2010, the number of homes in Guate-                      Free subscriptions are available to U.S. farmers,
mala using 4 or more pounds of rice per week before the school pro-                         crop advisors and ag industry workers.
motion was only 18%*. After the promotion, the percentage in-                              Subscribe at:
creased to 44%*.

The Rice Advocate, Volume 8, Issue 26                                   Page 4                                                    July 01, 2011
Chris Krielow Earns Farmer of the Year                                                           Field Days Address Farmer Concerns
USRPA Board Member, Chris                                                                         It’s field day season
Krielow was named the Jeff                                                                        in Texas and Louisi-
Davis Business Alliance                                                                           ana with Mississippi
Farmer of the Year this past                                                                      and Arkansas follow-
Tuesday, June 28th. Krielow                                                                       ing close behind.
has been an active USRPA                                                                                    Texas A&M
board member and strong                                                                           System’s AgriLife
supporter of the U.S. rice                                                                        Research held it’s
farmer for many years.                                                                            37th Annual Field
When many were left                                                                               day this Tuesday, Ray Stoesser, USRPA BOD Vice-Chairman
stranded, Krielow was one                                                                         June 28th at the
of the USRPA Board Mem-                                                                           David R. Wintermann Rice Research Station in Eagle
bers who braved the                                                                               Lake, Texas. Speakers included Steve Balas, who is on
weather in Washington, D.C.                                                                       the Board of Directors of the Lower Colorado River Au-
to meet with U.S. Senate                                                                          thority, speaking to farmers on water issues.
representatives during the Chris Krielow, USRPA BOD                                                         The next Texas AgriLife Rice Field day will be at
2010 record breaking storm.                                                                       the Beaumont Center on July 14, 2011.
        To view the announcement that ran in Southwest                                                      Field days are a great source of information and
Louisiana’s American Press, Click Here.                                                           a great place to see fellow farmers and share a wealth
                                                                                                  of knowledge acquired over the seasons. USRPA lists
                                                                                                  known field days in the ‘Upcoming Events’ section of the
                                                                                                  weekly Rice Advocate. (below). If you know of an upcom-
                                                                                                  ing field day not listed below or would like some more
                                                                                                  information, please feel free to contact us at:

                                                                                                    Texas A&M AgriLIFE Research Center: The latest Texas
                                                                                                    Rice Crop Survey reports are available through the Beau-
                                                                                                    mont Center web-site

2825 Wilcrest Drive, Suite 505                    Upcoming Events
Houston, Texas 77042                  July 5, 2011                                         Vermilion Parish Rice Field Day; Gueydan area, LA
Phone: 713-974-RICE                   July 11, 2011                                        North LA Crops Field Day; Rayville, LA
Fax: 713-974-7696                     July 13, 2011                                        Northeast LA Rice/Soybean Field Day               July 13, 2011                                        RiceTec TX East Side Grower Tour; Winnie, TX                      July 13 - 14, 2011                                   USRPA Board of Directors Meeting; Branson, MO
                                      July 14, 2011                                        Beaumont Ctr. Field Day; Texas AgriLife Research & Ext. Ctr., TX
            Find us on                July 21, 2011                                        Agronomic Crops Field Day; Stoneville, MS
                                      July 25 - 27, 2011                                   The 4th Rice Africa Outlook; Durban, South Africa
            Facebook!                 August 3, 2011                                       RiceTec Arkansas Field Day; Harrisburg, AR
                                      August 4, 2011                                       Univ. of Arkansas Field Day; Stuttgart, AR
  Additional Resources                September 2, 2011                                    49th Annual Delta Center Field Day; Portageville, MO
For economic analysis on agricultural September 8-10, 2011                                 European Rice Convention 2011; Monte Carlo, Monaco
efficiency, efficacy, and equity      September 16, 2011                                   21st Annual Delta Rice Promotions Inc. Rice Lunch, Cleveland, MS
issues:              Jan. 31 - Feb. 1, 2012                               15th Annual NCS Cotton & Rice Conference, Tunica Resorts, MS
Texas Rice from A&M AgriLife
Research Ctr. at Beaumont: http://                For more information visit USRPA’s online calendar at:
AgFax - Editor: Owen Taylor:
                                                  USDA Reports Next Week                                     Crop Progress (NASS)                                                                            Tuesday, July 5, 4:00 pm
USRPA News & TRA Archives:                        U.S. Export Sales (FAS)                                                                           Friday, July 8, 8:30 am                      All USDA reports are available by visiting

USRPA does not discriminate in its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, or marital/family status. Persons with dis-
   abilities who require alternative means for communication of information (such as Braille, large print, sign language interpreter) should contact USRPA at 713-974-7423.

The Rice Advocate, Volume 8, Issue 26                                                   Page 5                                                                         July 01, 2011

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