Tuesday, December 30, 2014

30th December(Tuesday),2014 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Bangladesh Receives China Support to Boost Rice Production

Dec 29, 2014
Description: http://oryza.com/sites/default/files/field/image/141229bangladeshrice.jpgBangladesh will receive China’s support to boost rice production in the country under an agricultural cooperation agreement, according to local sources.Under the agreement, China has agreed to transfer the technology of its indigenous high-yielding rice variety to Bangladesh and will also set up a rice research center in Bangladesh.The decision was taken during the recent visit of the Chinese Foreign Minister to Dhaka, according to local sources. The Bangladesh Foreign Minister told local media sources that discussions with his Chinese counterpart have been successful and would help Bangladesh in increasing food production significantly. China agreeing to transfer technology of high-yield rice is "a big development," he said.
The China-Bangladesh collaboration also includes several other trade and bilateral issues.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).  

Italian Rice Farmers Prefer Re-use of Self Produced Seeds Over Certified Seeds

Dec 29, 2014
Description: Description: http://oryza.com/sites/default/files/field/image/141229italyricefield.jpgItalian rice farmers are reportedly reducing the use of certified seeds for the last couple of years, according to the data from Nazionale Risi, the National agency for rice, the use of certified seeds in the crop year 2013-14 remained unchanged from the previous year despite an increase in the rice acreage. The data also shows that area for growing certified seeds in 2013-14 has declined by about 20% y/y due to reduction in the usage of certified seeds. Total area for seed production (including certified seeds and self-produced seeds) in Italy during the year stood at around 9,581 hectares. Italy produced 42,884 tons of seeds and exported around 8.470 tons during 2013-14. The European country also imported around 241 tons of rice seeds during the year.
Farmers are understood to be preferring the re-use of self-produced seeds to reduce production costs. However, analysts say though re-use of self-produced seeds reduce production costs, they may affect the quality of paddy output as they may need increased use of chemical fertilizers to reduce infections transmitted through the seeds. They also noted that with the use of such seeds, it becomes difficult to test for the absence of genetically modified (GM) contaminations.
Global Rice Quotes
December 29th, 2014

Long grain white rice - high quality
Thailand 100% B grade   420-430                ↔
Vietnam 5% broken        380-390                ↓
India 5% broken               385-395                ↔
Pakistan 5% broken        375-385                ↑
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      335-345                ↑
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          405-415                ↑
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%   895-905                ↑
Vietnam Jasmine             510-520                ↓
India basmati 2% broken              NQ         ↔
Pakistan basmati 2% broken       NQ         ↔
Cambodia Phka Mails     805-815                ↔

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                 295-305                ↔
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 Overnight Recap - Chicago Rough Rice Future Sharply Lower this Morning as Buying Interest Disappears

Dec 29, 2014
Chicago rough rice futures for Jan delivery were trading 33.5 cents per cwt (about $7 per ton) lower at $11.830 per cwt (about $261 per ton) during early floor trading in Chicago. The other grains are seen trading mixed: soybeans are currently seen 0.4% higher, wheat is listed unchanged and corn is currently trading unchanged.U.S. stocks traded in a narrow range on Monday, amid some pressure on European stocks from Greece's failure to elect a president in a third round of elections. The Russell 2000 and the Dow Utility Average traded at new highs, up 4.84% and 31% for the year, respectively.
Both indices have led market gains since the S&P 500 closed at a 1.5-month low on Dec. 16. Oil prices edged higher on concerns about disruption to output from Libya. U.S. stock index futures signaled a softer open on Monday, with stocks in Europe trading lower after third-round elections in Greece failed to secure a new president. Volumes are expected to be light after the Dow Jones Industrial Average and the S&P 500 posted record gains last week. The Dow advanced 1.4 percent in light volume on the week after consistent record closes, but uncertainty in Europe weighed on stocks amid the political turmoil in Greece. Gold is currently trading about 1.1% lower, crude oil is seen trading about 0.6% higher,  and the U.S. dollar is currently trading slightly lower at 10:10am Chicago time.

Oryza Afternoon Recap - Chicago Rough Rice Futures Tumble as Iraq Passes on US Rice in Latest Tender Announcement

Dec 29, 2014
Chicago rough rice futures for Jan delivery settled 34.5 cents per cwt (about $8 per ton) lower at $11.820 per cwt (about $268 per ton). Rough rice futures tumbled on news that the Iraqi Grain Board has passed on US origin rice in its latest tender awards, instead turning to Brazil and Argentina in its latest round of buying. The US futures market immediately reacted to the negative news as prices once again slipped below $12.000 per cwt (about $265 per ton). The other grains closed mostly lower today; Soybeans closed about 0.5% lower at $10.4875 per bushel; wheat finished about 0.8% higher at $6.1550 per bushel, and corn finished the day about 0.5% lower at $4.1275 per bushel.
U.S. stocks traded slightly higher on Monday, shaking off declining oil prices and earlier pressure from Greece's failure to elect a president. The Dow Jones Industrial Average held to the smallest trading range of December. The Russell 2000 and the Dow Utility Average traded near new highs, up about 4.7% and 31% for the year, respectively. Both indices have led market gains since the S&P 500 closed at a 1.5-month low on Dec. 16. On the S&P 500, the defensive utilities sector rose more than 1.20% to lead gains. After edging higher on concerns about disruption to output from Libya, WTI Crude hit $53.32 a barrel, the lowest since 2009.
 Low oil prices have hurt the energy-sensitive region of Texas, according to December figures from the Dallas Manufacturing Survey. The general business activity index fell to 4.1 from 10.5, the weakest level since March. With many traders on vacation between the Christmas and New Year's holidays, composite volume on the New York Stock Exchange was 1.3 billion in early afternoon trade. Earlier, stocks opened lower, following the lead of U.S. stock index futures, amid some pressure on European stocks from Greece's failure to elect a president in a third round of elections. Greek stocks fell as much as 11% on the news, paving the way for a snap election on January 25, 2015.
 The result did not come as a surprise, with many analysts saying prior to the vote that the Greek government needed a "miracle" to avoid a general election. The Dow Jones Industrial Average traded down 6 points, or 0.03%, to 18,047. The S&P 500 reversed opening losses to trade up 2.5 points, or 0.11%, at 2,091, with utilities leading gains in half of the sectors and telecommunications the greatest laggard. The Nasdaq traded down 1.3 points, or 0.03%, to 4,805. Gold is trading about 1.1% lower, crude oil is seen trading about 2.6% lower, and the U.S. dollar is seen trading about 0.2% higher at about  1:00pm Chicago time.Friday, there were 634 contracts traded, down from 672 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Friday decreased by 218 contracts to 9,000.

Nigeria's New Rice Policy Criticized for Creating $216 Million Losses to Exchequer

Dec 29, 2014
Description: Description: http://oryza.com/sites/default/files/field/image/141229nigeriarice.jpgExperts have slammed Nigeria's new rice policy of granting waivers and concessions to importers as part of efforts to bridge supply-gap of import-grade rice of around 1.5 million tons in the country, according to local sources. In order to encourage investment in the rice sector and support its rice self-sufficiency plan, the Federal government has decided to provide duty waivers to existing millers as well as new investors in the country. According to the new rice policy, existing millers and investors have been receiving a preferential levy of 20% and duty of 10% while other importers are required to pay a higher levy of 60% and 10% duty to the government. Accordingly, the Federal Ministry of Agriculture and Rural Development has been allocating rice import quotas to various importers, millers and investors.
Experts say this policy has some flaws. First, investors who do not have a strong base in the country's rice sector have been applying for preferential import quotas. They noted that of the 28 beneficiaries so far, only 16 have invested in mills and the remaining 12 did not have investment in mills but have accounted for higher imports than those who really have mills. They also noted that most of the investors who got import allocations have been trading their quota, which they got at 20% levy, to other stakeholders between 60 - 80% levy. They have slammed the government for granting import quotas indiscriminately and creating losses to the extent of N20 billion (around $108 million) to the exchequer.They said the new policy of the government would encourage rice smuggling in the country leading to another N20 billion (around $108 million) losses.
However, the Agriculture Minister denied the experts' claims saying the Ministry has not been granting import quotas indiscriminately and they have been following a specific methodology to do so. He noted that that importers/millers/investors applying for preferential import levy are required to submit a  Domestic Rice Production Plan (DRPP) to prove that they have been working towards increasing rice production in the country.

Oryza U.S. Rough Rice Recap - Market Softens after IGB Passes on U.S. in Favor of South American Origin

Dec 29, 2014
The U.S. cash market was softer today, despite extremely limited buy/sell interest, after it was announced that the Iraqi Grain Board overlooked U.S. origin rice in favor of more expensive South American rice.It was reported that IGB purchased 40,000 MT of Brazilian rice at $669 per MT CIF Liner Out Umm Qasr as well as 30,000 MT of Argentine rice at $675 PMT CIF Free out where as the offer 75,000 MT at $624 PMT CIF Liner out and 30,000 MT at $647 CIF Free out.
With IGB passing on the U.S. offer, analysts expect prices to remain subdued until the U.S. is able to secure some more export business from either Iraq or Venezuela however at the moment no one in the industry is holding their breath.

Italy Exports 632,930 Tons of Rice in 2013-14; Down 6% from Previous Year

Dec 29, 2014

Description: Description: http://oryza.com/sites/default/files/field/image/141229italyrice.jpgItaly has exported around 632,930 tons of rice, basis milled, in the crop year 2013-14 (September 1, 2013 - October 31, 2014), down about 6.3% from around 675,434 tons exported in the crop year 2012-13, according to data from the Ente Nazionale Risi, the National agency for rice.Italy's rice exports to EU countries during 2013-14 accounted for around 524,604 tons, down about 5.6% from around 555,924 tons exported last year. Exports to non-producing EU countries declined about 7.6% y/y.
 Exports to non-rice producing countries declined by about 1%. Among rice producing countries, exports to France registered highest decline of about 11.1% y/y.Italy's rice exports to Non-EU countries during the year accounted for around 108,326 tons, down about 9.4% from around 119,510 tons exported during the previous year. While exports to European non-EU countries increased about 17.3% y/y, those to Asia, including Turkey and Syria, declined about 21.7% y/y. Exports to Africa, America and Oceania also witnessed a downward trend.

Thailand, Pakistan Rice Quotes Up Today; Vietnam Rice Quotes Down

Dec 29, 2014
Thailand rice sellers increased their quotes for Hommali rice by about $5 per ton to around $895- $905 per ton today. Vietnam rice sellers lowered their quotes for 5% broken rice and Jasmine rice by about $5 per ton and $15 per ton to around$380 - $390 per ton and around $510 - $520 per ton, respectively, today. Pakistan rice sellers increased most of their quotes.  India rice sellers kept their quotes unchanged today.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $25 per ton premium on Vietnam 5% rice shown at around $380 - $390 per ton, down about $5 per ton from Friday. India 5% rice is quoted at around $385 - $395 per ton, about $10 per ton premium on Pakistan 5% rice quoted at around $375 - $385 per ton, up about $5 per ton from Friday.
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 $15 per ton premium on Pakistan 25% rice quoted at around $335 - $345 per ton, up about $5 per ton from Friday.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton.
India parboiled rice is quoted at around $375 - $385 per ton, about $30 per ton discount to Pakistan parboiled rice quoted at around $405 - $415 per ton, up about $10 per ton from Friday.
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 $295 - $305 per ton,  about $5 per ton discount to Pakistan broken sortexed rice quoted at around $300 - $310 per ton.

Vietnam Exports About 6.04 Million Tons Rice During January 1 – December 26, 2014

Dec 29, 2014
Description: http://oryza.com/sites/default/files/field/image/141229vietnamriceexports.jpg
Vietnam exported around 6.036 million tons of rice during January 1 - December 26, 2014, down about 10% 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 around $440 per ton (FOB), up about 1.6% per ton from about $433 per ton recorded same time last year.
During December 1- 26, 2014, Vietnam exported around 195,747 tons of rice, down about 64% from around 540,378 tons rice exported in full month of December 2013, and down about 60% from around 484,513 tons rice exported in full month of November 2014. Average export prices in so far in December stand at around $478 per ton, up about 5% from a year ago, and up about 3% per ton from a month ago.

Philippines Plans to Release New Heat-Tolerant Rice Varieties by 2017

Dec 29, 2014
Description: Description: http://oryza.com/sites/default/files/field/image/141229philrice.jpgThe Philippine Rice Research Institute (PhilRice) is developing new rice varieties that can endure high temperatures and provide high yields, according to a news release on its website.Normally, rice grows optimally between 20-35 degrees centigrade and becomes sensitive to increasing temperatures especially during the flowering stage and eventually, yields may be affected.
A team of researchers from PhilRice have been developing new rice genotypes that can tolerate and adapt to temperatures as high as 37-39 degrees centigrade under irrigated lowland conditions. They identified N22 (Nagina 22 from India), Dular (India), and Nipponbare (Japan) as donor parents and generated new high temperature tolerant breeding varieties using conventional breeding and molecular marker-assisted selection processes. The lead researcher of the project noted that they established breeding nurseries in high temperature regions under field conditions. They set the timing of planting such that the flowering stage coincided with the highest temperature during the growing season.  
They researchers identified twenty five new breeding lines which are tolerant to high temperatures. These breeding lines will be evaluated for other traits and depending on the results, they will be nominated to the National Cooperative Test for Multi-Environment testing, said the lead researcher of the project.He expressed confidence that a new heat-tolerant rice variety would be released in 2016-17. Developing rice varieties that can tolerate high temperatures is important part in dealing with climate change in rice growing areas, he added.

Separately, the Philippines Department of Agriculture (DA) is planning to incorporate climate smart technologies in its programs to help local agriculture sector adapt to extreme weather conditions.The DA is currently testing the adaptability of three varieties of Green Super Rice, which is jointly developed by the International Rice Research Institute (IRRI) and the PhilRice, for different climatic conditions. Green Super Rice is developed by combining the superior traits of 250 rice varieties and hybrids for tolerating extreme weather/growing conditions such as drought, floods and low inputs, including zero pesticides and less fertilizers. The National Seed Industry Council has to certify thper Rice for commercial use.  

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