2012 FAMILY MEETING DATES

The Wilmot meeting will be held at NOON on Feb 1 & the Cleveland meeting will follow

at 6:00 p.m. that same evening.

The other meetings will all begin at 6:00 p.m.

  Following a catered meal, there will be a short meeting to provide an update on your cooperative and information regarding the rice industry.

- Members at Eudora are invited to the Wilmot meeting.

- Members at Tyronza, Wilson , Fair Oaks and Trumann are all invited to the Wynne meeting.

- If you have questions about a meeting location, please call your local elevator manager for directions.

Arkansas Rice Annual Meeting

The joint annual membership meeting of the Arkansas Rice Council and Arkansas Rice Producers' Group is scheduled for January 27 at the Grand Prairie Center in Stuttgart, beginning at 9:00 a.m. The meeting will feature reports from each of the rice organizations, an update on key issues that affect Arkansas rice farmers and a report on USA Rice Federation activities and accomplishments presented by USA Rice Federation President and CEO Betsy Ward.

This year's meeting will be held in a new location and will feature exhibits displaying products, services and information for the rice industry. Miss Arkansas, Kristen Glover, will provide a video welcome to attendees.

Ed Swaim, Water Resources Division Manager for the Arkansas National Resources Commission will be the featured speaker and will address the state's planning for management, conservation and development of current water resources now and into the future.
If planning to attend, please register online at: www.arkansasricefarmers/org/registration .

On January 12th USDA released its annual production and December 1 stocks reports. In this Manager's Message, I will share with you our thoughts on these reports and their implications on the rice market.

2011 Field Yields – According to USDA, 2011 Arkansas field yields were 150 dry bushels per acre, up 6 bushels per acre or 4% from the previous year. This is a rebound from the disastrous 2010 crop, but still considerably below the record field yields of the 2007 rice crop. In Mississippi, USDA reported 2011 average field yields the same as the previous year at 152 dry bushels per acre.

2011 Production – USDA's final overall production estimate for the 2011 rice crop was 185.0 million cwts. The overall 2011 U.S. rice crop was 58.1 million cwts., or 24% lower than the 2010 rice crop.

In comparing the 2011 production by grain type, the U.S. long grain crop was only 116.4 million cwts., down a whopping 66.9 million cwts., or 36%, from a year ago. The 2011 U.S. long grain crop was the smallest in 15 years. On the other hand, the U.S. medium and short grain production was a record 68.6 million cwts., which was up 8.8 million cwts., or 15%, from the previous year.

December 1, Rice Stocks – In our opinion, one of the most important reports released on January 12 was the U.S. rough rice stocks on December 1. The December 1 rice stocks report gives a more up-to-date picture of the supply of rice available to the U. S. rice industry for the balance of the 2011/12 marketing year.

This year, USDA reported overall U. S. rough rice stocks on December 1, 2011, were 146.9 million cwts., down 26.6 million cwts., or 15%. In analyzing the numbers by grain type, U. S. long grain stocks were down 30.5 million cwts., or 25% from a year ago, due to a dramatic drop in long grain production. Even though the U.S. long grain rice stocks were the lowest in 8 years, many rice analysts were expecting the number to be even 7-10 million cwts. lower than reported.

Medium and short grain stocks on December 1 were 53.8 million cwts., up only 3.9 million cwts, or 8%, despite a record U.S. medium and short grain crop. Many rice analysts expected the U.S. medium/short grain stocks to be higher than reported.  

Market Implications - Typically in marketing years where U.S. long grain production is the smallest in 15 years, and U.S. long grain stocks are the tightest in 8 years, U.S. long grain prices would have been strong. However, that hasn't been the case since late October. The spark missing to ignite such a scenario has been the lack of export demand. Compared to last year's pace, U.S. long grain export commitments are running a whopping 529,000 metric tons or 35% behind. Weak export demand for U.S. long grain has been primarily due to aggressive export pricing from the Mercosur countries of South America as a result of a record rice crop in the spring of 2011, and India lifting of a 3 year ban on exporting non-basmati rice. The U.S. long grain market should begin to focus its attention on the very real possibility of a further cut back in U.S. long grain acres in 2012. We have a hard time believing the U.S. rice industry can allow a back to back U.S. long grain crop of only 116 million cwts. or less! The only way such a scenario can be avoided is for the U.S. long grain market to dramatically improve during the next few months.

In February and March we will once again be holding our annual grower meetings at which we will share with you our latest market information. We hope you will be able to attend a meeting in your area. We look forward to seeing you and your family there.

Sincerely,

Keith Glover

Producers Rice Mill, Inc., P. O. Box 1248, Stuttgart , AR, 72160, Telephone: 870-673-4444