The Rice Growers Association of California

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Latest News and Updates in the California Rice Industry

Egypt Rice and new Nile Dam

Source: Reuters: Egypt/DUBAI (Reuters) - Rice farmers in Kafr Ziada village in the Nile River Delta have ignored planting restrictions aimed at conserving water for years, continuing to grow a medium-grain variety of the crop that is prized around the Arab world. A decision thousands of kilometers to the south is about to change that, however, in another example of

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RGA Spring Market Update

Source: RGA: California rice prices have been steadily increasing as we enter the spring planting season. There is only a small amount of uncommitted rice from the 2017 crop in grower’s hands. Cash prices for the 2017 crop have improved to $17 over, with some trades reportedly at higher values. Our state received a wet March and first half of

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Delta Tunnels Project Receives Backing

Source: Sacramento Bee: After a decade of planning and debate, the controversial Delta tunnels project got a huge cash infusion Tuesday and took a giant step toward becoming reality. In a historic decision, the wealthy Metropolitan Water District of Southern California voted to take a majority stake in the $16.7 billion twin-tunnels project, a plan championed by Gov. Jerry Brown as a

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Rice Data

World Rice Stocks Data
Australia Harvested Acres Data
World Rice Production Data
U.S Rice Planted Acres
Southern Medium Grain Planted Acres
CA Rough Rice Stocks
CA Rough Rice Production
CA Rice Harvested Acres
California’s rice growing region is located in the Sacramento Valley spanning an area 100 miles North of Sacramento. Every year California’s estimated 2,500 rice growers produce mostly Medium Grain Calrose Japonica rice on around 500,000 acres of land producing around 45 million cwt, or over 2 million metric tons (MMT) of paddy rice. California rice is typically planted from mid-April through late May and harvested from mid-September through early November.

USA Rice is grown in 6 states: California, Louisiana, Missouri, Texas, Mississippi, and Arkansas. On average about 3 million acres are planted with California planting around 550,000 per year. About 7-8 MMT of milled rice is produced per year in the United States which is around 2% of the world’s production. Rice is a primary staple for about half of the world’s population and about 480 MMT of milled rice is consumed annually.

rga-market-update

RGA Market Update

Our worldwide efforts taking your rice into Premium Markets

RGA of California Market Update: Spring 2018

California rice prices have been steadily increasing as we enter the spring planting season. There is only a small amount of uncommitted rice from the 2017 crop in grower’s hands. Cash prices for the 2017 crop have improved to $17 over, with some trades reportedly at higher values.

Our state received a wet March and first half of April, which has boosted storage in our major reservoirs. 2018 crop CA planted acres are still uncertain at this point. There are 2 main factors that can lead to a decrease in planted acres.

  • A proposed water transfer on the east side of the valley with some of the Feather River water districts would lead to the fallowing of many rice acres. The total number of acres that will be fallowed is still uncertain at this point. Water transfer prices are reported to be attractive.
  • If the spring season continues to stay wet, there is the potential we could see some rice acres go to prevented planting. The weather over the next month will be the determining factor.

The USDA released its Prospective Plantings report on March 29. They estimated total California rice acres at 440,000, of which 385,000 acres will be medium grain, 50,000 acres will be short grain and 5,000 acres will be long grain rice. The general consensus of most in the CA rice industry is that USDA’s estimate is lower than reality. Many believe acres will be at or near 500,000. For a more thorough update on the Prospective Plantings report please click here.

The USDA issued its March 1 Stocks report a few weeks ago. California rough rice stocks in all positions on March 1, 2018 totaled 19.31 million cwt, down roughly 32 percent from the total on March 1, 2017 which was 28.51 million cwt. Milled rice stocks on March 1, 2018 totaled 950 thousand cwt, which is up slightly from the total on March 1, 2017 of 924 thousand cwt. California rice stocks are currently well below average and we expect minimal carryover as we enter the 2018 marketing year.

For the United States, rough rice stocks in all positions on March 1, 2018 totaled 83.4 million cwt, down 22 percent from the total on March 1, 2017. Stocks held on farms totaled 12.6 million cwt and off-farm stocks totaled 70.8 million cwt. Long grain varieties accounted for 70 percent of the total rough rice, medium grain accounted for 28 percent, and short grain varieties accounted for 2 percent. Milled rice stocks in all positions totaled 5.46 million cwt, down 12 percent from a year ago.

 

about-us

About Us

The Rice Growers association of California will provide consumers the ultimate Farm to Fork™ experience with a 100% guaranteed high-quality product.

The Rice Growers Association of California LLC was founded and forged on strength and success in order to provide consumers the best quality and safest rice in the world. The Rice Growers Association of California is a vertically integrated company working from the farm to the consumer and will provide consumers the ultimate Farm to Fork™ experience with a 100% guaranteed high-quality product by closely managing the supply chain of rice from the first soil-prep, through the farming, warehousing, transportation and milling processes, all of the way in to the consumer’s table.


With this said, we will quickly earn our own place in the California rice industry by opening markets for California’s premium rice around the world. We look forward to working with local rice producers and processors to maximize the value and market presence of California’s premium quality rice.

The RGA name has historical importance in the California rice industry. We are an innovative new company with first hand know-how to produce premium rice. That know-how was earned by the generations of farming families that came before us. We humbly honor and acknowledge that deep, long and rich heritage. We respect the name of our company and the long history of the RGA name and we will assuredly continue the tradition of innovation that the former company brought to the rice-farming community.

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CA Bulls and Bears

Updated April 12, 2018

Bulls:

  • USDA projected planted acres in California will be 440,000 acres for the 2018 rice crop. However, planted acreage for the 2018 CA rice crop is still uncertain. There are talks of a water transfer with some of the Feather River water districts, and there is the potential for acreage to go to prevented planting if the spring season sees more significant rainfall.
  • Cash prices for 2017 crop rice have now risen to $17+ over loan. A very small amount of uncommitted 2017 crop is in grower’s hands today.
  • Carryover of the 2017 CA crop will be well below average. The March 1 USDA stocks report showed that CA rough rice stocks are down 32% from last year.
  • Carryover of the U.S. Rice crop will be below last year’s levels. The March 1 USDA Stocks Report showed that U.S rough rice stocks are down about 22% from last year.
  • California 2017 crop rice acreage was down about 20%, or about 443,000 acres, and yields were down around 10% from average- About 37 million cwt were produced for the 2017 crop.
  • Japan has purchased the expected amount of CA rice for the 2017-2018 marketing year.
  • Egypt controlling rice production and trade. Not planning to export rice.
  • On July 19, 2017 China and the U.S. signed the phytosanitary agreement allowing U.S. rice imports to enter China for the first time in history.

Bears:

  • California market structure, conduct and performance.
  • World rice production for the coming year is expected to be at or near record levels.
  • World rice stocks are currently the highest since 2001/02.
  • International rice prices remain relatively weak.
  • The USDA prospective plantings report estimates increased acreage of 2018 crop Southern Medium Grain compared to 2017.
  • Australia’s 2018 rice crop is expected to be about the same size as the 2017 crop, which will give them some exportable supplies.
  • Vietnam gaining traction in their production of medium grain Japonica rice
  • The value of the U.S. dollar continues to remain high making our exports more expensive for other countries.
  • The world grains complex remains weak.
  • China market opening is taking longer than anticipated. It is still unknown when U.S. rice will enter China.

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