31st December (Wednesday),2014 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

India Average Wholesale Rice Prices Decline in December 2014 Amid Increasing Supplies

Dec 30, 2014

India average wholesale rice prices have declined in December 2014 for the second consecutive month amid increasing supplies from the ongoing harvests of the kharif main rice crop (June - December), according to local sources.Average monthly wholesale rice prices in India declined to around Rs.2,730 per quintal in December 2014, down about 1.8% from around Rs.2,779 per quintal in November 2014, and down about 7% from around Rs.2,941 per quintal in December 2013.In terms of USD per ton, wholesale rice prices in India stand at around $427 per ton (using current exchange rates) in December 2014, down about 5% from around $448 per ton (using historical exchange rates) in November 2014, and down about 10% from around $476 per ton (using historical exchange rates) in December 2013.     

The average wholesale rice price in January - December 2014 stands at around Rs.2,869 per quintal, up about 6% from around Rs.2,710 per quintal during the same period in 2013. In USD per ton terms, the average wholesale price in January - December 2014 stood at around $470 per ton (using historical exchange rates), up about 1.7% from around $462 per ton during the same period in 2013.

Average wholesale rice prices increased sharply between July and August 2014 due to delayed monsoons and fears of lower production in 2014-15 crop year (October 2014 - September 2015)

The Indian government has estimated 2014-15  kharif rice production at around 88.02 million tons, down about 4% from around 91.69 million tons produced during the same time in 2013-14, according to a statement from the Agriculture Ministry.USDA estimates India's 2014-15 (October - September) production at around 102  million tons, down about 4% from an estimated 106.29 million tons in 2013-14. It estimates India’s rice exports to decline about 16% y/y to around 8.7 million tons in MY 2014-15.

Oryza Overnight Recap – Chicago Rough Rice Futures Continue Lower as Market Fails to Find Buying Interest

Dec 30, 2014

Chicago rough rice futures for Jan delivery are currently trading 8 cents per cwt (about $2 per ton) lower at $11.740 per cwt (about $259 per ton) during early morning floor trading in Chicago. The other grains are seen trading mostly lower: soybeans are currently seen about 0.1% higher, wheat is listed about 1.3% lower and corn is noted about 1.1% lower. U.S. stocks traded lower on Tuesday, weighed in the absence of other news by continued concern over Greece's failure to elect a president on Monday. Stocks held to a narrow trading range in light volume trade on Monday, closing the day with the S&P and Russell 2000 at records and the Dow Jones Industrial Average ending its 8-day win streak.

The December reading of the Conference Board's consumer confidence index came in slightly lower-than-expected at 92.6. The Dow Jones Industrial Average traded down 38 points, or 0.21%, to 18,000. The S&P 500 traded down 5.7 points, or 0.27%, at 2,084, with utilities leading declines in all 10 sectors. On Monday, the utilities sector had led the S&P 500 to its 53rd record close for the year. The Nasdaq traded down 18 points, or 0.39%, at 4,788. The Russell 2000 also traded lower, after closing at a record on Monday. Gold is currently trading about 2% higher, crude oil is seen trading about 0.9% higher,  and the U.S. dollar is currently trading about 0.4% lower at 10:00am Chicago time.

Long-Term Development Plan Imperative for Thailand Rice Sector

Dec 30, 2014

The recent government intervention schemes in Thailand have proved to be short-term measures to appease farmers and lacked focus on sustainable long-term measures to increase competitiveness of the sector, said experts from the International Trade Studies Center of the University of the Thai Chamber of Commerce (ITSC-UTCC) and the Thailand Development Research Institute (TDRI).According to local sources, the Director of the ITSC-UTCC said sustainable long-term measures are needed to encourage Thai rice farmers to focus on quality rice production while reducing their cost of production and logistics. He noted that the government should facilitate the development of the whole rice supply chain to ensure overall benefit for the sector.

According to a report by the ITSC-UTCC, Thailand's rice productivity as well as profit earned by rice farmers are lowest among the other ASEAN rice producers such as Vietnam and Myanmar.The President of TDRI noted that the rice-pledging scheme introduced by the previous government cost the exchequer heftily to the extent of about 500 billion baht (around $15.6 billion) but failed to help farmers in the long-run.

The experts noted that the government has to help farmers grow in a sustainable way rather than providing subsidies or money. They lauded the military government's "rice strategy", which is aimed at improving production, marketing and quality of Thai rice with very less market intervention, but expressed doubts over its proper implementation.The former President of the Thai Rice Millers Association (TRMA) suggested that the government, academia, farmers and traders should work closely to develop the rice industry. He noted that the government needs to invest nearly 20 billion baht (around $606 million) annually in rice research to increase yields and competitiveness of Thai rice in the world market. He added that the government should expand irrigated land that is devoted to rice growing.The President of the Thai Rice Farmers Association (TRFA) also stressed the need for long-term development plans rather that short-term handouts. 

Brazil Paddy Rice Index Slightly Up from Last Week

Dec 30, 2014

The Brazilian paddy rice index maintained by CEPEA reached around 38.11 real per 50 kilograms as of December 29, 2014, up about 0.24% from around 38.02 real per 50 kilograms recorded on December 22, 2014.

In terms of USD per ton, the index reached around $285.7 per ton on December 29, 2014, down about 0.2% from around $286.5 per ton recorded on December 22, 2014

Oryza U.S. Rough Rice Recap – Prices Fall With Futures Market Amid Limited Holiday Trade

Dec 30, 2014

The U.S. cash market was weaker yet again today falling in sympathy with the futures market however there is still little to no trading to report.The market is still in holiday mode and things will not likely pick up until people get back to work on Monday however analysts do not expect a spike in farmers to be falling over themselves to sell at these levels

Pakistan Rice Quotes Up Today; Other Asia Rice Quotes Unchanged

Dec 30, 2014

Pakistan rice sellers increased their quotes for 5% broken rice and 100% broken rice by about $5 per ton each to around $380 - $390 per ton and around $305 - $315 per ton, respectively.  Other Asia 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. India 5% rice is quoted at around $385 - $395 per ton, about $5 per ton premium on Pakistan 5% rice quoted at around $380 - $390 per ton, up about $5 per ton from yesterday.

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.

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.

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 $10 per ton discount to Pakistan broken sortexed rice quoted at around $305 - $315 per ton, up about $5 per ton from yesterday.

Global Rice Quotes

December 30th, 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     380-390           ↑

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     305-315           ↑

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

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31st December (Wednesday),2014 Daily Exclusive ORYZA RiceE-Newsletter by Riceplus Magazine