23rd December (Tuesday),2014 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Mexico Reinstates Import Tariffs on Paddy and Rice to Increase Competitiveness of Rice Sector

Dec 22, 2014

Mexico has imposed a 9% tariff on imported paddy rice and a 20% tariff husked, long grain and other imported rice from all the countries that do not have free trade agreements (FTAs), according to USDA Post. The U.S. is exempted from the tariff because of the North America Free Trade Agreement (NAFTA).The Mexican government has announced the reinstatement of tariffs in a decree that was published in the Diario Official (Mexico's Federal Register) on December 10, 2014. The decree is reported to have modified the Tariff of the General Import and Export Tax Law for the Secretariat of Economy (SE).

According to the Post, the import Law has been modified based on requests from the Mexican Rice Council (MRC) for the re-establishment of import tariffs, which were discontinued in 2008 to reduce rice prices in the country. The government has decided to reinstate import tariffs as Mexico's paddy rice production declined by about 50%, while domestic consumption has increased about 12%, according to the new decree. The decision was necessary to promote production, processing, and marketing of domestic rice and thus strengthen the overall competitiveness of Mexico’s rice industry, says USDA Post.

Mexico produces only 17% of its annual consumption needs of around 890,000 tons and imports the rest. USDA estimates Mexico to import around 775,000 tons of rice, basis milled in 2014-15 (October - September), up about 11% from an estimated 700,000 tons in 2013-14. 

Global Rice Quotes

December 22nd, 2014

Long grain white rice - high quality

Thailand 100% B grade   420-430                ↑

Vietnam 5% broken        385-395                ↔

India 5% broken               385-395                ↔

Pakistan 5% broken        370-380                ↔

Cambodia 5% broken     460-470                ↔

U.S. 4% broken                 510-520                ↔

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      330-340                ↔

Cambodia 25% broken   435-445                ↔

India 25% broken             350-360                ↔

U.S. 15% broken               495-505                ↔

Long grain parboiled rice

Thailand parboiled 100% stxd     405-415                ↑

Pakistan parboiled 5% broken stxd          395-405                ↔

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%   890-900                ↔

Vietnam Jasmine             525-535                ↑

India basmati 2% broken              NQ         ↔

Pakistan basmati 2% broken       NQ         ↔

Cambodia Phka Mails     820-830                ↔

Brokens

Thailand A1 Super            330-340                ↔

Vietnam 100% broken   330-340                ↔

Pakistan 100% broken stxd          300-310                ↔

Cambodia A1 Super        385-395                ↔

India 100% broken stxd                 300-310                ↔

Egypt medium grain brokens      NQ         ↔

U.S. pet food     390-400                ↔

Brazil half grain NQ         ↔

All prices USD per ton, FOB vessel, oryza.com

Oryza U.S. Rough Rice Recap - Little Enthusiasm to Trade During Holiday Week; U.S. Offers 105K MT for IGB Tender

Dec 22, 2014

The U.S. cash market was extremely quiet today as neither buyer nor seller showed any enthusiasm to trade.Analysts insist that those who need rice for immediate shipment have likely already covered their needs through the end of the year and those that have needed to sell before the end of the year have also likely done so.Meanwhile, U.S. exporters offered 105,000 MT of LG milled rice at more competitive prices than were offered from South American origins; however, offers from Thailand and Vietnam were still more attractive.It is anyone’s guess who the Iraqi Grain Board will chose to award; however, many in the industry are hopeful that they will as least buy one cargo from the U.S. which may give the market the boost that many are looking for.

Bangladesh Government Urged to Impose Import Duty on Rice

Dec 22, 2014

In the light of increasing rice imports by the private sector, a Parliamentary Standing Committee advised the Bangladesh government to curb rice imports, particularly from India, in order to protect the competitiveness of the country's rice sector, according to local sources.Based on data from the National Board of Revenue, the Committee noted that the government has been following zero-duty policy for rice imports since 2006-07 and suggested that the government should withdraw this policy to encourage rice farmers as well as the other stakeholders.

The Committee informed the Parliament that the imports have surged despite a bumper harvest from the 2014 Aman crop. Increase in cheap imports and increasing supplies from the Aman harvest have been putting a downward pressure on local prices affecting incomes of farmers and millers. Retail prices of all types of rice have registered a decline of about 1%-3.5% over the last few months. If this situation continues, farmers may be discouraged to plant for the upcoming Boro season, the Committee noted. Already, millers are restraining from milling fearing stiff competition from cheap imports, according to the Committee.

Bangladesh's private sector has imported around 448,730 tons of rice so far (July - December 18) in FY 2014-15 (July - June), compared to cumulative imports of around 374,560 tons (371,500 tons by private sector and 3,060 tons by the government) in FY 2013-14 according to local sources.

The government has so far not imported any rice in this fiscal year though it has set a target of importing around 200,000 tons of rice in the fiscal year 2014-15 to replenish falling stocks in the country, according to the Directorate of Food.Bangladesh produced around 34.36 million tons of rice in 2013-14, up about 2% from around 33.76 million tons last year, according to data from Bangladesh Bureau of Statistics (BBS). USDA estimates Bangladesh to produce around 34.6 million tons of milled rice and import around 500,000 tons in MY 2014-15 (July – June).  

Cambodia May Not Reach One Million Ton Rice Export Target in 2015

Dec 22, 2014

Lack of sufficient milling capacity and funding are major hurdles for Cambodia to achieve one million ton export target by 2015, according the country's Prime Minister, report local sources.Based on the current pace of rice exports so far this year, the Prime Minister noted that is unlikely for the country to meet the one million ton rice export target by 2015. He reminded that the government set the target in 2010 but had been improving the rice milling and storage facilities, which are crucial to enhance rice exports in the country.

The Prime Minister was quoted as saying that the government had failed in attracting investment in rice milling facilities. He noted that the current milling capacity is far below the production level. The government does not dare to procure more rice from farmers for export due to lack of sufficient storage facilities. Due to this, Cambodia is losing most of the export orders, he said. The PM also noted that farmers are forced to sell their paddy output to traders. Most of the rice traders are understood to sell rice informally to Vietnam and Thailand rice traders accounting for a huge amount of informal rice exports.

However, based on data from the Council Development for Cambodia (CDC), he expressed optimism that a number of approved investments in rice milling facilities are in pipeline and once completed may give Cambodia an advantage in expanding its export capacity.The President of the Cambodia Rice Federation (CRF) also supported the PM's view regarding Cambodia's rice export target. However, he stated that the CRF has been striving to improve the country's rice infrastructure. He added that the CRF is also considering additional loans to procure rice and stock in large amounts to ensure uninterruptable supplies for exports. He said the CRF is planning to bring the export figure next year close to the target even if it

cannot meet it. The CRF is reportedly exploring new export markets for its rice to help the country reach its export target.A recent report by the Asian Development Bank (ADB) also highlighted the need for enhancing rice milling and storage facilities to increase the competitiveness of the country's rice sector. The recently launched Cambodia's first large-scale paddy rice bank is expected to ensure uninterrupted supplies to millers and exporters. The Chinese government is also understood to have approved financial assistance of about $300 million to help Cambodia enhance its rice infrastructure such as warehouses and post-harvest facilities. Cambodia exported around 335,925 tons of rice in the first eleven months of 2014, up about 1% from around 332,009 tons exported during the same time last year, according to the Secretariat One Window Service (SOWS-REF) under the Ministry of Trade.

Pakistan Exports 459,419 Tons of Rice in November 2014; Up 58% m/m and Up 65% y/y

Dec 22, 2014

Pakistan exported around 459,419 tons of rice (including basmati and non-basmati) in November 2014, up about 58% from around 289,884 tons exported in October 2014, according to provisional data from the Pakistan Bureau of Statistics (PBS).  In terms of value, Pakistan's rice export earnings increased to around $221.2 million in November 2014, up about 43% from around $154.7 million earned in October 2014.

Year-on-year, Pakistan’s exports increased about 65% from around 278,425 tons exported in November 2013. In terms of value, they increased about 61% from around $137.6 million in November 2013.

Pakistan exported around 47,090 tons of basmati rice in November 2014, slightly down from around 47,459 tons exported in October 2014 and up about 88% from around 25,094 tons in November 2013. In terms of value, Pakistan's basmati rice exports earned $46.2 million in November 2014, down about 1% from around $46.8 million earned in October 2014, and up about 62% from around $28.5 million earned in November 2013.

Pakistan exported around 412,329 tons of non-basmati rice in November 2014, up about 70% from around 242,415 tons exported in October 2014 and up about 63% from around 253,331 tons in November 2013. In terms of value, Pakistan's non-basmati rice exports earned $175 million in November 2014, up about 62% from around $107.85 million earned in October 2014, and up about 61% from around $109 million earned in November 2013.

Pakistan has exported around 1.35 million tons of rice (around 239,773 tons of basmati and around 1.11 million tons of non-basmati) in the first five months of FY 2014-15 (July 2014 - June 2015), up about 16% from around 1.16 million tons exported during the same period in FY 2013-14. In terms of value, Pakistan's exports  earned around $738.66 million (around $231.27 million from basmati and around $507.39 million from non-basmati) in July - November 2014  up about 8% from around $681.86 million (around $233.18 million from basmati and around $448.68 million from non-basmati) earned during the same period in 2013.

Thailand, Vietnam Rice Sellers Increase Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Dec 22, 2014

Thailand rice sellers increased their quotes for 5% broken rice  and Parboiled rice by about $5  per ton to around $405 - $415 per ton, each today. Vietnam rice sellers increased their quotes for Jasmine rice by about $10 per ton to around $525 - $535 per ton today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is quoted at around $405 - $415 per ton, up about $5 per ton from Friday and about $20 per ton premium on Vietnam 5% rice shown at around $385 - $395 per ton. India 5% rice is quoted at around $385 - $395 per ton, about $15 per ton premium on Pakistan 5% rice quoted at around $370 - $380 per ton.

25% Broken Rice 

Thailand 25% rice was last quoted at around $350 - $360 per ton, on par with Vietnam 25% rice shown at around $350 - $360 per ton. India 25% rice is quoted at around $350 - $360, about $20 per ton premium on Pakistan 25% rice quoted at around $330 - $340 per ton.

Parboiled Rice

Thailand parboiled rice is quoted at around $405 - $415 per ton, up about $5 per ton from Friday. India parboiled rice is quoted at around $375 - $385 per ton, about $20 per ton discount to Pakistan parboiled rice quoted at around $395 - $405 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is quoted at around $330 - $340 per ton, on par with Vietnam 100% broken rice shown at around $330 - $340 per ton. India's 100% broken rice is shown at around $300 - $310 per ton,  on par with Pakistan broken sortexed rice quoted at around $300 - $310 per ton.

Vietnam Exports 5.96 Million Tons of Rice During January 1 – December 18, 2014

Dec 22, 2014

        

Vietnam exported around 5.961 million tons of rice in January 1 - December 18, 2014, down about 11% from around 6.71 million tons of rice exported in full year of 2013, according to data from the Vietnam Food Association (VFA). Average rice export price so far in this year stands at about $439 per ton (FOB), up about 2% per ton from same time last year.

During December 1- 18, 2014, Vietnam exported around 118,642 tons of rice, down about 78% from around 540,378 tons rice exported in full month of December 2013, and down about 75% from around 484,513 tons rice exported in full month of November 2014. Average export price so far in December stands at around $459 per ton, up about 1% from a year ago, and down about 1.3% per ton from a month ago.

Thailand Approves Sale of About 250,000 Tons of Rice in Auction

Dec 22, 2014

The Thai Commerce Ministry has approved to sell around 273,295 tons of rice worth 2.22 billion baht (around $67.5 million) in today's auction to about 23 traders, according to Bloomberg. The Ministry has offered around 400,000 tons of rice, including around 330,000 tons of broken white rice, around 52,000 tons of glutinous rice and 18,100 tons of white rice, in the auction.

According to the initial result from the Department of Foreign Trade, 15% broken white rice was offered at 11,230 baht per ton (around $341.69 per ton). Bidding price for  25%-broken white rice was between10,810 - 11,330 baht per ton (around $328.91 - $344.73 per ton); bidding price for 10%-broken glutinous rice was between 13,200 - 15,100 baht per ton (around $401.63 - $459.44 per ton); and bidding price for A1 broken rice was between 6,355 - 8,350 baht per ton ($193.36 - $254.06).

Official result needs to be approved by the Chairman of the Rice Policy Management Committee. It is understood that the Ministry will ask bidders to re-submit their bids for the remaining rice offered for sale as their proposed prices were below expected. The date of the bid is not decided yet.

According to Reuters, Thailand has approved sale of around 247,000 tons of rice to 21 bidders; and according to Dow Jones report, Thailand has approved sale of around 250,000 tons for 21 bidders.

Thailand sold around 348,000 tons of rice worth 3.6 billion baht (around $81 million) in the last three auctions. The government still has around 17.8 million tons of rice in its stockpiles. Of the stockpiled rice, around 16.7 million tons of rice are fit to be sold, the Thai Prime Minister was quoted as saying on last Friday after attending a meeting of the Rice Management and Policy Committee. He told local sources that around 2.1 million tons of rice was up to standard, around 14.4 million tons would need to be re-graded and around 6.94 million tons was spoilt or has no clear origin.The Thai Rice Exporters Association (TREA) President noted that Thailand's rice exports would reach around 10.2-10.5 million tons in 2014 and expressed confidence that the South East Asian nation would reclaim the world's top rice exporter this year. Thailand exported around 10.07 million tons of rice between January 1 - December 2, 2014, up about 67% over 6 million tons exported last year.

Contents are published with permission of ORYZA.com

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