Wednesday, December 03, 2014

3rd December (Wednesday),2014 Daily Exclusive ORYZA E-newsletter by Riceplus Magazine

Oryza Afternoon Recap – Chicago Rough Rice Futures Rebound Slightly, but Close off of Session High as Selling Increases in Afternoon Trade

Dec 02, 2014
Chicago rough rice futures for Jan delivery settled 4.5 cents per cwt (about $1 per ton) higher at $12.185 per cwt (about $269 per ton). Rough rice futures attempted to mount a bit of a recovery today, following yesterday’s steep decline. The market was up as much as 11.5 cents per cwt (about $3 per ton) during mid-session trading, however the bulls were unable to maintain this price level and an afternoon selloff saw prices dip back closer to where they had begun the day.

 The market has formed an inside day today, as prices were unable to trade beyond yesterday’s trading session, and thus the significance of today’s price direction will be limited and thus the market will likely remain in a technically bearish condition in coming days. The other grains closed sharply lower today; Soybeans closed about 2.1% lower at $9.9575 per bushel; wheat finished about 0.6% lower at $6.0325 per bushel, and corn finished the day about 2.2% lower at $3.8125 per bushel.

 U.S. stocks rose on Tuesday, rebounding from the prior day's drop, as investors considered better-than-expected November sales from Ford Motor, General Motors and Fiat Chrysler. Stocks maintained gains after the Commerce Department reported construction spending rose 1.1% in October. Energy costs were on the retreat again, with crude futures for January delivery falling $1.02, or 1.5%, to $67.95 a barrel. At or near session highs, the Dow Jones Industrial Average rose 95.65 points, or 0.5%, to 17,872.45. The S&P 500 advanced 12.39 points, or 0.6%, to 2,065.83, with energy pacing sector gains and telecommunications the sole laggard of its 10 major industries. The Nasdaq gained 16.86 points, or 0.4%, to 4,744.21. Gold is trading about 1.5% lower, crude oil is seen trading about 1.8% lower, and the U.S. dollar is seen trading about 0.8% higher at about  1:00pm Chicago time.Monday, there were 1,701 contracts traded, up from 748 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 418 contracts to 10,182.

Taiwan Lifts Eight-Year Ban on U.S. Long Grain Rice Imports; Invites Tenders for 3,000 Tons of Long-Grain Brown Rice

Dec 02, 2014
Taiwan has removed the longstanding eight-year ban on U.S. long grain rice imports and has scheduled tender for importing around 3,000 tons of U.S. long grain brown rice for December 10, 2014, according to USDA Post.Taiwan imposed ban on U.S. long grain rice imports in summer 2006 and has not heeded to requests by the U.S. several times. Taiwan's Agriculture and Food Agency (AFA) scheduled two tenders of 1,500 tons each on December 10. According to the Post, this is the first time Taiwan has issued tender for U.S. long grain after it opened its rice market in January 2002.

Taiwan's AFA issued a tender for 1,500 tons of U.S. origin long grain brown rice with amylose content greater than or equal to 24% for delivery between May 1 - June 30, 2014. It issued another tender for 1,500 tons of U.S. origin long grain brown rice for delivery between May 1 - June 30, 2014.According to the Post, Taiwan primarily purchases California-grown short/medium grain rice and high California rice prices are said to have given an impetus to lift the long-standing ban on U.S. long-grain rice imports.

Oryza Overnight Recap – Chicago Rough Rice Futures Remain Under Pressure as Cash Market Remains Quiet Going into Holiday Season

Dec 02, 2014
Chicago rough rice futures for Jan delivery are currently trading 6 cents per cwt (about $5 per ton) lower at $12.080 per cwt (about $266 per ton) during early floor trading in Chicago. The other grains are seen mostly higher: soybeans are currently seen unchanged, wheat is listed about 0.9% higher and corn is noted about 0.5% lower.
 U.S. stocks looked set for a higher open on Tuesday, after oil prices rose and Asian shares closed at multi-year highs. U.S. and Brent crude oil, as well as gold, rallied overnight, following weeks of declines. This helped mining and commodity stocks post strong gains early on Tuesday, with an additional boost coming from reports that the Chinese central bank might cut bank reserve requirements. Reuters reported early on Tuesday that the People's Bank of China might unveil a cut to banks' reserve requirements on the back of recent weak economic data.

 China mainland shares closed at a fresh three-year peak, resuming their gains after snapping a seven-session winning streak on Monday. Official factory activity data earlier this week fell to an eight-month low, prompting talk of further stimulus. No major earnings are due on Tuesday. Economic data out include construction spending for October, which is expected to increase. Gold is currently trading about 1% lower, crude oil is seen trading about 1.5% lower,  and the U.S. dollar is currently trading about 0.5% higher at 8:10am Chicago time.

Vietnam and India Rice Sellers Increase Some Quotes Today; Thailand Rice Sellers Lower Some Quotes Today

Dec 02, 2014
Vietnam rice sellers increased their quotes for 25% broken rice and jasmine rice by about $2 per ton and about $5 per ton respectively to around $355 - $360 per ton and around $530 - $540 today. India rice sellers increased their quotes for 5%, 25% and parboiled varieties by about $5 per ton each to around $395 - $405 per ton, around $350 - $360 per ton and around $380 - $390 per ton respectively. Thailand rice sellers lowered their quotes for Thai Ai Super rice variety by about $5 per ton to around $355 - $365 per ton. Other Asia rice sellers kept their quotes mostly unchanged.
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, unchanged from yesterday. India 5% rice is quoted at around $395 - $405 per ton, about $5 per ton premium from yesterday and about $15 per ton premium on Pakistan 5% rice quoted at around $380 - $390 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 and unchanged from yesterday. India 25% rice is quoted at around $350 - $360, about $5 per ton premium from yesterday and 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 $380 - $390 per ton, about $5 per ton premium from yesterday and about $40 per ton discount to Pakistan parboiled rice quoted at around $420 - $430 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is quoted at around $355 - $365 per ton, down about $5 per ton from yesterday and about $30 per ton premium on Vietnam 100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown at around $300 - $310 per ton, unchanged from yesterday and about $5 per ton discount to Pakistan broken sortexed rice quoted at around $305 - $315 per ton.


Global Rice Quotes
December 2nd, 2014

Long grain white rice - high quality
Thailand 100% B grade          420-430           ↔
Vietnam 5% broken    380-390           ↔
India 5% broken         395-405           ↑
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 355-365           ↑
Pakistan 25% broken 335-345           ↔
Cambodia 25% broken           NQ      ↔
India 25% broken       350-360           ↑
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         380-390           ↑
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%          915-925           ↔
Vietnam Jasmine         530-540           ↑
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Malis             835-845           ↔

Brokens
Thailand A1 Super      355-365           ↓
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 U.S. Rough Rice Recap – Prices Hold as Interest in Market Fizzles

Dec 02, 2014
The U.S. cash market was unchanged today as both buyers and sellers continue to be unimpressed with the prices they are seeing. Analysts report that the spread between the bid in the ask was roughly $0.25-$0.50 per cwt (about $6-$11 per ton).
 Buyers contend that there is little to no demand at these levels and they intend to remain hand to mouth as it has worked out well for them this marking year while sellers would prefer hold on to their rice until they are forced to sell rather selling at these levels today.

Thai Commerce Ministry Initiates Business Matching Project to Boost Rice Exports

Dec 02, 2014

Thailand's Commerce Ministry has arranged for a business matching project where nearly 40 rice importers from 15 countries will meet with nearly 100 Thai rice exporters to discuss rice trade for the next few years, according to local sources. 

The project, which is scheduled for December 02-03, 2014, is expected to increase the value of Thai rice exports significantly next year. A wide group of importers from North America, Europe, Latin America and Africa.The Commerce Minister told local sources that importers represent department stores, retail stores, super markets and general traders from various countries and are inclined for purchasing rice and rice-based products as well as food and beverages, household appliances and home decor from Thailand. He noted that importers are guided through Thai rice farms and mills to give them assurance about the quality of Thai rice. He also added that the government is keen on adding newer export markets while retaining the existing ones.

He hinted at a possible government-to-government (G2G) contract with China, which will be signed later this month. China is expected to buy nearly 2 million tons of rice from Thailand starting next year.The Minister added that the Department of International Trade Promotion is planning to release export strategies for various products, including rice, for 2015 by the end of this month. He said the government targets to increase country's next year's exports, including those of rice, by about 4%.
Thailand has exported around 7.56 million tons of rice in the first nine months (January - September) of 2014, up about 15% from around 6.6 million tons exported during the same period in 2013, according to data from Thai Rice Exporters Association (TREA).  The TREA is expecting Thailand to export over 11 million tons of rice in 2014.



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