Tuesday, December 09, 2014

8 December,2014 (Monday),2014 Daily Exclusive ORYZA E-Newsletter by Riceplus Magazine

Oryza Afternoon Recap - Chicago Rough Rice Futures Slip Lower despite Rally in Neighboring Grain Pits

Dec 05, 2014
Chicago rough rice futures for Jan delivery settled 5.5 cents per cwt (about $1 per ton) lower at $12.065 per cwt (about $266 per ton). The other grains closed higher today; Soybeans closed about 2.5% higher at $10.3675 per bushel; wheat finished about 0.7% higher at $5.9400 per bushel, and corn finished the day about 1.4% higher at $3.9500 per bushel.

U.S. stocks rose on Friday, lifting the S&P 500 and Dow industrials into uncharted terrain, as investors embraced a stronger-than-forecast November payrolls report as backing the view the economy can handle rate hikes by the Federal Reserve in 2015. U.S. employers created 321,000 jobs last month, the largest gain since January 2012, and topped the most cheery estimates. The unemployment rate remained unchanged at a six-year low of 5.8%, and hourly earnings increased 0.4%.Another report Friday had orders for U.S. factory goods falling 0.7% in October. After a 91-point advance lifted it to a record and less than 9 points from the psychological milestone of 18,000, the Dow Jones Industrial Average was lately up 66.85 points, or 0.4%, at 17,966.95.

 Also climbing to a record, the S&P 500 advanced 5.42 points, or 0.3%, to 2,077.34, with financials pacing sector gains, as higher interest rates would boost bank earnings, and utilities performed most poorly among its 10 major industry groups. The Nasdaq added 13.62 points, or 0.3%, to 4,783.05. Gold is trading about 1.4% lower, crude oil is seen trading about 1.3% lower, and the U.S. dollar is seen trading about 0.7% higher at about  1:00pm Chicago time.
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India Basmati Rice Exports Decline 26% y/y to 1.4 Million Tons in First Six Months of FY 2014-15

Dec 05, 2014
Description: http://www.oryza.com/sites/default/files/field/image/141205basmatirice.jpg
India exported around 1.4 million tons of basmati rice in the first six months of FY 2014-15 (April - March), down about 26% from around 1.9 million tons exported during the same period in FY 2013-14, according to Commerce Ministry sources.
In value terms, India's basmati rice exports earned around Rs.13,848 crore (around $2.24 billion), down about 2% from around Rs.14,111 crore (around $2.3 billion) earned during the same period last year.
The decline in basmati rice exports is attributed to a significant decline in basmati rice shipments to Iran, which accounts to over 30% of India's total basmati rice exports. India also exports basmati rice to Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, European Union and the United States.
India's basmati rice exports to Iran dwindled after the Middle East country revised the accepted level of arsenic content in basmati rice from 150 parts per billion (ppm) to 120 ppb in March this year. Later, Iran's decision to increase the import duty for basmati rice to 45% from 22% in September has further snubbed down India's basmati rice exports to Iran.
Recently, local sources in Iran said the Middle East Nation is likely to cut down on further imports in 2014 as it has surplus stocks that accrued from high imports last year as well as high seasonal yield this year.
India exported around 420,000 tons of basmati rice to Iran in April - September 2014, down about 51% from around 850,000 tons exported during the same period last year.
India exported around 1.44 million tons to Iran in FY 2013-14 (April - March), up about 33% from around 1.08 million tons exported in FY 2012-13, according to data from Agricultural and Processed Food Products Export Development Authority (APEDA). India exported around 3.76 million tons of basmati rice in FY 2013-14, up about 9% from around 3.46 million tons exported in FY 2012-13.
Indian basmati exporters have been trying to negotiate with the Iranian authorities over resuming basmati exports to the Middle East nation. Meanwhile, a Commerce Ministry official told local sources that India's basmati rice sector needs to explore new markets rather than depending on fewer countries.
India exported a total of 10.78 million tons of rice (including basmati and non-basmati) in FY 2013-14, up about 6% from about 10.15 million tons exported last year.

 

Vietnam Rice Sellers Increased Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Dec 05, 2014
Vietnam rice sellers increased their quotes for Jasmine rice by about $10 per ton to around $525 - $535 per ton today. Thailand rice sellers are out today on national holiday. Other Asia rice sellers kept their quotes mostly unchanged.
5% Broken Rice
Thailand 5% rice was last quoted at around $405 - $415 per ton, about $20 per ton premium on Vietnam 5% rice shown at around $385 - $395 per ton. India 5% rice is quoted at around $395 - $405 per ton, 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. India 25% rice is quoted at around $355 - $365, about $20 per ton premium on Pakistan 25% rice quoted at around $335 - $345 per ton.
Parboiled Rice
Thailand parboiled rice was last quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $380 - $390 per ton, about $40 per ton discount to Pakistan parboiled rice quoted at around $420 - $430 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, was last quoted at around $330 - $340 per ton, about $5 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, on par with Pakistan broken sortexed rice quoted at around $300 - $310 per ton.

Oryza U.S. Rough Rice Recap - Prices Unchanged ahead of USA Rice Outlook Conference

Dec 05, 2014
There is little news to report on the U.S. cash market other than the fact that prices remain unchanged and buyers and sellers show little interest in trading at the current price level.
Next week, farmers, millers, and merchants will descend upon Little Rock, Arkansas for the USA Rice Federations’ annual USA Rice Outlook Conference where participants will address the multifaceted issues facing the U.S. rice industry. 

Oryza Overnight Recap - Chicago Rough Rice Futures Unchanged Overnight as Market Continues to Drift Sideways

Dec 05, 2014
Chicago rough rice futures for Jan delivery were paused 6.5 cents per cwt (about $1 per ton) lower overnight at $12.050 per cwt (about $266 per ton) ahead of trading in Chicago. The other grains are seen lower: soybeans are currently seen 0.1% lower, wheat is listed about 0.6% lower and corn is noted about 0.3% lower.
U.S. stocks wavered near record highs on Friday, with equities fluctuating as investors debated the implications of a stronger-than-expected November payrolls report on the timing of interest-rate hikes ahead by the Federal Reserve. Stock-index futures reversed direction several times in the wake of the data, and benchmark Treasury yields shoot higher, after the monthly jobs report had the economy adding 321,000 jobs in November, exceeding expectations. The unemployment rate remained unchanged at 5.8 percent, with nonfarm payrolls posting their tenth consecutive month above a 200,000 reading. After shooting up 9 basis points, the yield on the 10-year Treasury note was lately up 5 basis points at 2.2879 percent. The Dow Jones Industrial Average opened about 0.1% higher. The S&P 500 and the Nasdaq were both little changed. Gold is currently trading about 0.9% lower, crude oil is seen trading about 0.5% lower,  and the U.S. dollar is currently trading about 0.5% higher at 8:10am Chicago time.

Oryza White Rice Index - Higher India Rice Quotes Lift Index on the Week

Dec 05, 2014
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The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $438 per ton, up about $1 per ton from a week ago, down about $17 per ton from a month ago and down about $25 per ton from a year ago.

The Food and Agriculture Organization’s (FAO) Global Rice Price Index declined 1.3% from October to 232 points in November 2014.  Most Indica and Aromatic sub-indices declined, but Japonica sub-index increased.

Australia’s Bureau of Meteorology and New Zealand’s National Institute of Water & Atmospheric Research have pointed to a possible El Nino weather pattern between December and February, according to the Financial Times.

Thailand

Thailand 5% broken rice is  today shown at about $410 per ton, unchanged from a week ago, down about $5 per ton from a month ago, up about $15 per ton from a year ago.

A rice miller in the country has developed a method called the “Ozone Treatment” that can be used to restore the freshness of rice that is decaying in quality, offering hope for the massive rice stocks the country has, many of which are in poor quality.

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.  The aim is to increase the value of Thai rice exports significantly next year.

Thailand’s National Legislative Assembly has initiated the impeachment case against former Prime Minister Yingluck Shinawatra with the first hearing scheduled for January 9.

India

India 5% broken rice is today shown at about $400 per ton, up about $5 per ton from a week ago, down about down about $15 per ton from  a month ago and down about $20 per ton from a year ago.
 India’s basmati rice exports in the first six months of FY 2014-15 (April-March) were down about 26% from last year, reaching only 1.4 million tons, according to Commerce Ministry sources.  In terms of value, basmati rice exports were down about 2% from last year.
 The restructuring of the Food Corporation of India may be delayed, as the High Level Committee set up by the government to investigate it has asked for two more months to complete their task, according to Bloomberg.
 Climate change may reduce India’s rice yields by as much as 6% over the next six years, according to local sources.
 Vietnam 
Vietnam 5% broken rice is today shown at about $390 per ton, unchanged from a week ago and down about $45 per ton from a month and a year ago.
 Pakistan 
Pakistan 5% broken rice is today shown at about $385 per ton, unchanged from a week ago, down about $15 per ton from a month ago and up about $5 per ton from a year ago.
 The Rice Exporters Association of Pakistan (REAP) is seeking government support to boost exports to existing markets like China, Malaysia, Indonesia, Kenya, Iran, and Iraq, and to explore new markets.
 Central & South America 
Brazil 5% broken rice is today shown at about $550 per ton, unchanged from a week and a month ago, down about $135 per ton from a year ago. 
Five percent broken rice from Uruguay and Argentina is today shown at about $600 per ton, unchanged from a week and a month ago and down about $30 per ton from a year ago.

U.S.

U.S. 4% broken rice is today shown at about $545 per ton, unchanged from a week and a month ago and down about $45 per ton from a year ago.
There was very limited trading in the U.S. cash market this week with the spread between the bid and the ask around $0.25-$0.50 per cwt (about $6-$11 per ton).
 Chicago rough rice futures for January delivery dropped steadily throughout the week, reaching a high of $12.415 per cwt (about $274 per ton) on Monday before dropping to a low of $12.000 per cwt (about $265 per ton) on Friday and closing at $12.055 per cwt (about $266 per ton).
 Other Markets 
Cambodia 5% broken rice is today shown at about $465 per ton, up about $5 per ton from a week ago, and down about $5 per ton from a month ago.
 The USDA Post estimates China will import 3.7 million tons of rice in MY 2014-15, down 3% from last year, due to anticipated increases in production. 
South Korea’s state-run Agro-Fisheries & Food Trade Corporation has purchased 90 tons of long-grain milled non-glutinous rice of Thai origin at $1,045 per ton in a tender that closed November 25. 
The FAO has forecasted Haiti’s 2014-15 (July-June) rice imports to increase by about 8%, due to an expected decline in production. 
The USDA Post estimates that Indonesia will import 1.225 million tons of rice in MY 2013-14, an increase of about 88% from MY 2012-13. 
Bangladesh has signed a government-to-government deal with Sri Lanka to export 50,000 tons of rice, according to Reuters.
Taiwan has finally lifted the eight-year ban on U.S. long grain rice imports and has scheduled a tender for importing about 3,000 tons of U.S. long grain brown rice for December 10, according to the USDA Post. 
The National Food Authority in the Philippines plans to import 600,000 tons of rice in efforts to replenish 2015 stocks, according to local media.


Pakistan Rice Exporters Seek Government Support to Boost Exports

Dec 05, 2014
The Rice Exporters Association of Pakistan (REAP) is seeking government support in increasing exports to existing markets such as China, Malaysia, Indonesia, Kenya, Iran and Iraq as well as in exploring new markets, according to local sources.

The REAP Chairman met the Chief Minister (CM) and the Agriculture Minister of Sindh province along with a 13-member delegation and apprised them of the problems faced by the rice exporters due to power shortages and lack of adequate infrastructure. He noted that farmers should be trained and encouraged to understand the international standards demanded by foreign buyers and adopt modern production techniques to produce quality rice. He added that this would enable the country to earn more from the rice exports as well as enhance the standard of living of rice farmers.

The Sindh government agreed to jointly work with the REAP to promote rice cultivation, increase capacity building of rice growers and thereby boost rice exports. They will focus on educate farmers through seminars and workshops, encourage them to increase their production capacity, introduce newer rice varieties, encourage use of new farm technologies and reduce postharvest losses. They will lay more stress on encouraging farmers to grow export competitive rice varieties, according to local sources.
The Sindh government also promised the REAP delegation to support them in finding new markets for Pakistan rice exports, especially exports of varieties grown in Sindh, which is one of the important rice growing regions of Pakistan. The provincial government reportedly told the REAP delegation that it would take up the matter with the Central government as well.
Pakistan has exported around 892,633 tons of rice (192,683 tons of basmati and 699,950 tons of non-basmati) in the first four months of FY 2014-15 (July 2014 - June 2015), up about 1% from around 882,161 tons (189,353 tons of basmati and 692,808 tons of non-basmati) exported during the same period in FY 2013-14.

Philippines Plans to Import 600,000 Tons of Rice to Cover Damages from Typhoon Hagupit

Dec 07, 2014
The National Food Authority (NFA) of the Philippines is planning to import another 600,000 tons of rice this year, to cover damages caused by Typhoon Hagupit (Ruby), according to Reuters.Initial rice crop losses from the Typhoon are estimated at around 20,000 tons, worth around P312.87 million (around $7 milion). The imports are to maintain buffer stocks after the NFA was forced to release stocks on an emergency basis to boost stocks in areas expected to be hit by the Typhoon. The agency is likely to release more stocks in the coming week, according to local sources.

With this, the Philippines 2014 rice imports will be at around 2.4 million tons. The NFA imported around 1.8 million tons of rice (including 1.5 million tons of this year's imports and 300,000 tons of last year's residual imports) so far this year to replenish rice stocks and control price hikes. The NFA is still authorized to import another 500,000 tons of rice this year, if need arises.The NFA Administrator was quoted as saying that the NFA is seeking to increase volume of imports under the standing order by another 100,000 tons and the recommendation will be discussed at the NFA Council shortly.However, he noted that it was too early to release a timetable for the new imports. He also denied to confirm whether the imports would be through government-to-government contracts or through open tenders.

Last week, the NFA Council and the Agriculture Secretary were reportedly planning to recommend to the President the need to import around 600,000 tons of rice to replenish stocks and ensure adequate supply during the lean months (June - August) of 2015 after the Philippine Statistics Authority (PSA) lowered forecasts for paddy rice in the first quarter of 2105 by about 0.6% q/q to around 4.28 million tons. According to local sources, NFA was planning to issue tenders for the 2015 rice imports in December 2014 or January 2015.

Analysts are expecting that impending huge demand from the Philippines may exert downward pressure on global rice prices. Rice export prices in Asia have already gone down significantly in the past two months due to increasing supplies from harvest season.USDA estimates Philippines MY 2014-15 (July - June) paddy rice production at around 19.365 million tons (around 12.2 million tons, basis milled), up about 3% from an estimated 18.822 million tons (around 11.8 million tons, basis milled) in the previous year. It estimates Philippines 2014-15 milled rice imports at around 1.6 million tons, up about 10% from last year's 1.45 million tons.

USDA Post Estimates China to Import 3.7 Million Tons of Rice in MY 2014-15; Down 3% from Last Year

Dec 05, 2014
Description: http://www.oryza.com/sites/default/files/field/image/141205chinapsd.jpg
USDA Post has estimated MY 2014-15 (July - June) rice imports at around 3.7 million tons, down about 3% from an estimated 3.8 million tons in MY 2013-14 due to an expected increase in production.
The Post estimates China to produce 144 million tons of rice in MY 2014-15, up about 1% from an estimated 142.53 million tons in the previous year due to an estimated increase in paddy rice acreage.
Paddy rice acreage in MY 2014-15 is estimated to reach 30.6 million hectares, up about 1% from an estimated 30.312 million hectares in MY 2013-14, according to the Post.

The Post estimates China's MY 2014-15 rice exports to increase to around 350,000 tons, up about 36% from an estimated 257,000 tons in the previous year.USDA Post estimates rice ending stocks to decline to around 46 million tons in MY 2014-15, down about 1.4% from an estimated 46.7 million tons last year due to an estimated increase in consumption by about 1% to around 148 million tons.

Swiss Scientists Find Rice a Better Alternative to Cholera Treatment

Dec 05, 2014
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Scientists from the Swiss Federal Institute of Technology or Ecole Polytechnique Fédérale de Lausanne (EPFL) have found that rice is more effective in reducing the toxicity of cholera bacterium Vibrio cholerae.

Since cholera infects small intestine, it often leads to severe diarrhoea and vomiting resulting in dehydration and death. Therefore the normal treatment consists of oral rehydration therapy in which the patient is given water mixed with salts and glucose in regular intervals. Though this treatment is proved to be effective, too much intake of glucose is likely to increase the toxicity of the cholera bacterium by increasing the expression of its genes and thereby intensifying the disease further.


The EPFL scientists have found that replacing glucose with starch as in rice powder would reduce the toxicity of the cholera bacterium by about 75%.According to the study published in PLOS Neglected Tropical Diseases, EPFL scientists correlated data from a recent cholera outbreak in Haiti with the effectiveness of oral rehydration therapy. They found that the activity of genes as well as the multiplication of the cholera toxin increased when the bacterium was treated with glucose, and they reduced considerably when treated with starch from rice. They explained that the type of sugar present in glucose/starch is influencing the mechanism of toxin-producing genes in the cholera bacterium.However, the scientists are not recommending immediate withdrawal of the oral rehydration therapy given its success rate. They say the effectiveness of treatment could be discussed and be considered gradually.


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