Italy Paddy Production Fell 4% in 2014 Due to Adverse
Weather
Nov 26, 2014
More rice
paddy acreage and reduced paddy yield, due to cold and damp weather; this is
the final result of Italian crop year 2014. Ente Nazionale Risi, the National
Agency for Rice, in its annual report on Italian production reports that the
total 2014 paddy harvest reached 1,372,878 tons, down about -4% from 1,426,789
tons one year ago. In 2014, total planted area was 219,534 hectares, up +1.3%
compared to 216,019 hectares in 2013.
The cold and
very rainy summer deeply influenced the yields, varying from 6.8 tons per
hectare for round varieties to 4.7 tons per hectare for medium ones with an
average yield of about 6.3 tons per hectare.Medium grain paddy production
totaled 33,183 tons (+27% y/y) despite low yields; Long A for parboiling and
for risotto reached 616,594 tons (yield at 5.9 tons per hectare), up +19% from
2013 production. There was a big decrease for Indica varieties: Long B dropped
to 364,968 tons, down -26% from 2013 (yield at 6.6 tons per hectare). Round
grain paddy fell to 358,132 tons, down -7% y/y (yield at 6.8 tons per
hectare).
As for
Italian rice exports to EU countries, they reached 524,000 tons in September
2014, down 5.6% y/y. Meanwhile Italian rice exports outside EU almost doubled
at 28,933 tons in September (up +83%). Rice imports into Italy were firm at
9,505 tons in September (down -7.3% y/y).
Bangladesh Rice Farmers Give Up High-Yielding Hybrid
Varieties for Climate Smart Ones
Nov 26, 2014
Bangladesh
rice farmers are abandoning high-yielding hybrid rice varieties and are
adopting old traditional rice varieties, which are more resilient to climate
changes such as floods and drought, according to Reuters.
According to
the Director General of the Bangladesh Rice Research Institute (BRRI), nearly
20% of rice fields in the southern part of the country are replaced with
indigenous rice varieties that can withstand drought, flooding and other
stresses.
Since 1960s,
when the Bangladesh government introduced high-yielding hybrid rice varieties,
farmers have adopted them with an intention to increase yields and income.
However, these high-yielding varieties are not able to withstand extreme
climatic conditions like irregular rainfall, floods and droughts, and
farmers have been facing decline in incomes.
In this
backdrop, they again started using old traditional varieties, which they say
are more adaptable to climatic vagaries. Some of them are using both side by
side. Several non-governmental organizations encouraged farmers to readopt old
traditional varieties to cope with adverse climate conditions as well as o
protect "heritage" species. Such an initiation by farmers has helped
the return of some varieties, which had almost vanished. 'Saika' and 'Sashi
Mohon' are two such varieties.
The
government, which had previously encouraged the use of high-yielding hybrid
varieties is now promoting the use of old traditional varieties to help farmers
cope with climate changes. Farmers also feel these varieties are more easy to
grow as they need lesser amounts of fertilizers and pesticides and produce
decent yields in unpredictable conditions as well. They see them as minimum
guarantee varieties.
Global Rice
Quotes
November 26th, 2014
Long grain white rice - high quality
Thailand 100% B grade 420-430
↔
Vietnam 5% broken 385-395 ↓
India 5% broken 390-400
↓
Pakistan 5% broken 380-390 ↔
Cambodia 5% broken 455-465
↔
U.S. 4% broken 540-550
↔
Uruguay 5% broken 595-605 ↔
Argentina 5% broken 595-605 ↔
Long grain white rice - low quality
Thailand 25% broken NQ ↔
Vietnam 25% broken 350-360 ↔
Pakistan 25% broken 335-345 ↔
Cambodia 25% broken NQ
↔
India 25% broken 355-365
↓
U.S. 15% broken 515-525
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 405-415
↔
Pakistan parboiled 5% broken stxd 420-430
↔
India parboiled 5% broken stxd 375-385
↓
U.S. parboiled 4% broken 580-590
↔
Brazil parboiled 5% broken 570-580
↔
Uruguay parboiled 5% broken NQ
↔
Long grain fragrant rice
Thailand Hommali 92% 865-875
↔
Vietnam Jasmine 525-535
↔
India basmati 2% broken NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Malis 835-845
↔
Brokens
Thailand A1 Super 330-340
↔
Vietnam 100% broken 325-335
↑
Pakistan 100% broken stxd 305-315
↔
Cambodia A1 Super NQ ↔
India 100% Broken stxd 300-310
↓
Egypt medium grain brokens NQ
↔
U.S. pet food 445-455 ↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon Recap – Chicago Rough Rice Futures
Continue to Drift Lower on Reduced Trade Volume and Silent Cash Market
Nov 25, 2014
Chicago rough rice futures for Jan delivery
settled 7.5 cents per cwt (about $2 per ton) lower at $12.370 per cwt (about
$273 per ton). Rough rice futures traded lower again today, as the market
continues to suffer from a lack of interest likely due to the shortened holiday
week. Little is expected in the way of trade volume over the rest of the week,
a fact that could trigger price swings in either direction but will likely
provide little in the way of technical or fundamental significance for future
trading direction.
The other grains rallied today; Soybeans
closed about 1.7% higher at $10.5100 per bushel; wheat finished about 1.7% higher
at $5.5150 per bushel, and corn finished the day about 1.8% higher at $3.7425
per bushel. U.S. stocks rose on Tuesday, with the S&P 500 hitting
another peak, as data had the economy growing more than previously forecast in
the third quarter, mostly offsetting an unexpected drop in consumer confidence
in November. The energy sector weighed on the broad market, with oil prices on
the decline two days ahead of an OPEC meeting that has investors considering
prospects for the first reduction in production quotas since 2008. Crude erased
initial Tuesday gains after the head of Russia's state oil producer said a drop
below $60 a barrel would not mean Russia would have to ease its output.
Crude-oil futures were lately down $1.01, or 1.3%, at $74.77 a barrel on the
New York Mercantile Exchange.
Already modestly higher, stock futures
furthered their gains after the Commerce Department reported gross domestic
product climbed at a 3.9 percent annualized rate, up from an initial 3.5%
estimate. Separately, a gauge of home prices in 20 cities climbed at a reduced
pace in September. After fluctuating on either side of neutral, the Dow Jones
Industrial Average was up 24.53 points, or 0.1%, at 17,842.43. After setting
another intraday record, the S&P 500 was lately up 1.01 point at 2,070.42,
with industrials the best performing and energy hardest hit among its 10 major
sectors. The Nasdaq.added 3.15 points, or 0.1%, to 4,758.05. Gold is trading
about 0.1% higher, crude oil is seen trading about 2% lower, and the U.S. dollar
is seen trading about 0.3% lower at about 1:00pm Chicago time.Monday,
there were 413 contracts traded, up from 253 contracts traded on Friday. Open
interest – the number of contracts outstanding – on Monday decreased by 29
contracts to 9,654.
Tags: Rice Prices, global rice news
Oryza Afternoon Recap - Chicago Rough Rice Futures Fail
to Maintain Early Session Gains as Selling Pressure Picks up During Afternoon
Trading
Nov 26, 2014
Chicago rough rice futures for Jan delivery
settled 9 cents per cwt (about $2 per ton) lower at $12.280 per cwt (about $271
per ton). The other grains closed mostly higher today; Soybeans closed about 0.4%
lower at $10.4700 per bushel; wheat finished about 1.9% higher at $5.6200 per
bushel, and corn finished the day about 1.1% higher at $3.7825 per bushel.U.S.
stocks fluctuated on Wednesday, with benchmarks not far from record highs, as
investors considered reports on manufacturing and housing in assessing the
strength of the U.S. economy. With the price of oil trading at four-year lows,
the energy sector continued its recent downward trend. The government reported
orders for durable goods rose in October, while a separate report had
applications for unemployment benefits rising by 21,000 to 313,000 last week.
Consumer spending rose 0.2% last month after
holding steady in September, while a gauge of business activity in the Chicago
area came in below expectations. The Dow Jones Industrial Average shed 9.14
points, or 0.1%, to 17,805.77. The S&P 500 added 3.27 points, or 0.2%, to
2,070.30, with telecommunications the strongest performer and energy hardest
hit among its 10 major sectors. The Nasdaq gained 21.99 points, or 0.5%, to
4,780.24. The U.S. market is closed Thursday for the Thanksgiving holiday. Gold
is trading about 0.1% lower, crude oil is seen trading about 0.5% lower, and
the U.S. dollar is seen trading about 0.3% lower at about 1:00pm Chicago
time.Tuesday, there were 429 contracts traded, up from 413 contracts traded on
Monday. Open interest – the number of contracts outstanding – on Tuesday
deceased by 32 contracts to 9,622.
Oryza U.S. Rough Rice Recap - Muted Market as Participants
Get Head Start on Thanksgiving Holiday
Nov 26, 2014
The U.S.
cash market was muted today as many in the industry took off early to get a
head start on the holiday weekend. Cash prices were slightly weaker falling
again in sympathy with the futures market; however, the trade was extremely
limited.
In other
news, it was reported that the U.S. did not offer on the latest Iraqi tender;
however, the IGB did receive offers from Thailand, Vietnam, Uruguay, and India.Analysts
contend that the tender required shipment within 21 days of opening a letter of
credit and that the U.S. would not have been able to ship the rice in the time
frame required.
Tags: U.S. rice prices, U.S. rice market
Oryza Overnight Recap - Chicago Rough Rice Futures Shed a
Couple Cents Overnight ahead of Mid-week Holiday Break
Nov 26, 2014
Chicago rough rice futures for Jan delivery
are currently paused 2 cents per cwt (about $0.44 per ton) lower at $12.350 per
cwt (about $272 per ton) ahead of floor trading in Chicago. The other grains
are seen mixed: soybeans are currently seen about 0.2% lower, wheat is listed
about 0.9% higher and corn is noted about 0.5% higher. U.S. stocks looked
set to open flat to slightly lower on Wednesday as futures digested higher
jobless claims and other weak economic data.
Market sentiment has been boosted by the
upgrade to third-quarter GDP growth published on Tuesday. The figure was
revised up to an annualized 3.9% from 3.5% and offset a separate report showing
an unexpected drop in consumer confidence in November. Durable goods orders
fell for the second straight month in October as expected from a further
decline in aircraft orders at Boeing. Initial jobless claims rose back above
300,000 last week. There will be two housing indicators out on Wednesday.
The
weekly MBA Mortgage Index showed a drop in application numbers. Later in the
morning home sales for October will be reported. In addition, there will be the
Chicago purchasing managers' index (PMI) and the final Michigan sentiment
survey. U.S. stock-index futures are currently seen about 0.1% lower. Gold is
currently trading a touch lower, crude oil is seen trading about 0.6%
lower, and the U.S. dollar is currently trading about 0.2% lower at
8:10am Chicago time.
Thai Government Issues $1.5 Billion Worth Bonds to Cover
Losses from Rice Pledging Schemes
Nov 26, 2014
The BAAC will issue bonds in two tranches.
In the first tranche, it will issue bonds worth 42 billion baht (around $1.28
billion) with a maturity period of three years and ten months, with an interest
rate of 2.75% per annum. In the second tranche, it will issue bonds worth 8
billion baht (around $244 million) with a maturity period of seven years, with
an interest rate of 3.01% per annum.
The Director-General of the Public Debt
Management Office told local sources that the current bond issue is the largest
single bond issue by a government-owned institution.Earlier this month, the
Finance Permanent Secretary was quoted as saying that the Thailand government
has incurred losses of around 680 billion baht (around $21 billion) from 11
rice pledging programs covering 15 harvests since 2004. He noted that losses
from the rice pledging scheme launched by the Yingluck-led government alone
accounted for about 518 billion baht (around $15.8 billion), or 82% of the
total losses from rice subsidy schemes.
The National
Anti-Corruption Commission (NACC) is investigating the level of corruption in
the rice pledging scheme. It ruled that the former Prime Minister ignored
warnings against misdealing in the controversial rice pledging scheme.
Vietnam Collaborates with IRRI to Redefine Rice Strategy
Nov 26, 2014
The collaboration is in line with the
government's approval of the "Project on Agricultural Restructuring Toward
Raising Added Values and Sustainable Development" in June 2013. Other
government agencies such as the Vietnam Academy of Agriculture Sciences and the
Vietnam National University of Agriculture, as well as key industry players
like Vinafood and the Vietnam Food Association (VFA) will also play a vital
role in implementing the new strategy.The new strategy is important in the
light of Vietnam being criticized for focusing on low quality rice production
and exports. Experts have been urging the government to shift focus to
producing higher quality rice with high export demand.Vietnam's partnership
with the IRRI dates back to 1963, since when the IRRI contributed significantly
to the growth of the Vietnamese rice
Tags: Vietnam rice sector, Vietnam rice production, Vietnam rice exports, Vietnam Food Association
(VFA)
Unique Branding Key to Boost Cambodian Rice Exports
Nov 25, 2014
The "World's Best Rice" award
presented to the Cambodian jasmine rice for third consecutive year at the Sixth
World Rice Conference has boosted the confidence of the Cambodian rice
exporters, who are keen on increasing exports to over one million tons by 2015.
They are now planning to use the award to expand the scope of their rice
exports.Increasing exports is also very important to raise the standard of
living of the Cambodian rice farmers, say local rice experts.
Cambodia
accounts for only 1% of world's total rice production but its fragrant rice
varieties are popular in many countries. However, inefficiencies in production
and export management are impacting the country's rice exports to a large
extent. Lack of efficient seed distribution, collection, storage, logistics and
marketing are the issues that need to be primarily addressed for promoting
Cambodian rice as one of the top brands in the world, according to the
President of the Cambodian Rice Federation (CRF).
The CRF
President is also keen on streamlining export procedures as huge
quantities of rice is exported unofficially to Vietnam and Thailand through
Cambodia’s borders every year.One of the top rice exporters noted that the
Cambodian jasmine rice should be uniquely branded in order to be differentiated
from the Thai fragrant rice as customers often tend to compare between the two
fragrant rice varieties. He suggested that Cambodia's "romduol"
jasmine variety has been voted thrice as the "World's best rice" and
a unique brand could be developed based on "romduol".
Keeping
aside the challenges at home, some issues on the global front are also posing
challenges to the Cambodian rice exporters, say experts. Thailand's huge rice
stocks coupled with above-expected outputs in many rice producing countries has
put a downward pressure on global rice prices. Cambodian exporters say they
cannot afford to compromise on prices to sell rice overseas. Cambodia
exported around 304,788 tons of rice in the first ten months of 2014, up about
3% from around 295,154 tons exported during the same period in 2013, according
to data from the Secretariat of One Window Service for Rice export Formality
(SOWS-REF). Cambodia exported 379,856 tons of rice in 2013.
USDA
estimates Cambodia to export 1 million tons of rice (including official and
unofficial exports to Vietnam and Thailand through borders) in 2014, down about
7% from around 1.075 million tons in 2013.
Contents are published with permission of ORYZA
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