Wednesday, January 14, 2015

14th January (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletterby Riceplus Magazine

Australia Government to Fund Rice Projects in Eastern Gangetic Plains

Jan 13, 2015
Description: http://oryza.com/sites/default/files/field/image/150113nepalricefields_0.jpgThe Australian government is working closely with the research scientists from Australia, Bangladesh, India and Nepal towards improving rice productivity as well as profitability of around 7,000 small scale farmers in the Eastern Gangetic plains of Nepal, Bangladesh and India, according to local sources.It will provide funds of about $6.7 million to implement the program over a period of five years in eight districts - two districts of North-west Bangladesh, two districts in East Nepal and two districts each in Indian states of Bihar and West Bengal. Rice farmers in these districts will be particularly guided to use water and other resources efficiently, adapting to climate change as well as connecting with new markets.
The Australian Center for International Agricultural Research (ACIAR) will manage the program with the support of Pakistan National Agricultural Research Council (NARC), the Bangladesh Agricultural Research Council (BARC), the Indian Council of Agricultural Research (ICAR), and agricultural universities in India.According to the South Asia regional manager of ACIAR, rice productivity in the Eastern Gangetic Plains has been low due to poorly-developed markets, inadequate development of water resources, efficient service networks and lack of sufficient agricultural knowledge. He noted that the program will help farmers in the selected districts to adopt technologies from Australia, Canada and Brazil by  modifying them accordingly. The program particularly aims to "identify different ways to optimise
Brazil Paddy Rice Index Increases Slightly from Last Week
Description: Description: http://oryza.com/sites/default/files/field/image/150113brazilpaddyriceindex.jpgJan 13, 2015
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The Brazilian paddy rice index maintained by CEPEA reached around 38.08 real per 50 kilograms as of January 12, 2015, up about 0.40% from around 37.93 real per 50 kilograms recorded on January 5, 2015.In terms of USD per ton, the index reached around $286.65 per ton on January 12, 2015, up about 2.4% from around $280 per ton recorded on January 5, 2015.

Cambodia Hopes to Reduce Unofficial Exports with Rice Bank

Jan 13, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150113crb_0.jpgA major quantity of Cambodian paddy/rice is exported to Vietnam and Thailand through unofficial channels during the harvest season as the country lacks proper storage facilities. Due to this, millers face severe shortages of paddy for milling during lean months of April and May.In order to address this issue, Cambodia Rice Bank (CRB) has been set up as Cambodia's first large-scale paddy rice bank in August 2014 to ensure uninterrupted supplies to millers and exporters. The Bank collected 20,000 tons of paddy and 7,000 tons of milled rice worth $12 million in three months (October - December) of the harvest period, according to local sources.
The Chairman and CEO of the CRB told local sources that they are expecting to collect three times more paddy and rice in the 2015-16 harvest season. He noted that the Bank is primarily targeting to reduce the informal, over-the-border paddy rice sales during the harvest season and is aiming to have adequate paddy for millers to access during the lean season.  The CRB was set up by private millers with about $30 million investment to better manage market fluctuations in Cambodia's rice industry. The Bank is equipped with sufficient number of silos, rice dryers and storage sheds to carry out the purpose more effectively.
The Senior Advisor of the Cambodia Rice Federation (CRF) noted that the private sector has been successful in starting this project while the government had failed many times. However, he said since the private sector has limited resources, he called on the government and donors to offer support to them in further developing the Bank as well as the country's rice sector. The Bank is also considering to introduce the concept of "warehousing receipt," under which it can lend loans to farmers using paddy stock as collateral.These measures along with effective irrigation systems and support to farmers are expected to increase the competitiveness of Cambodian rice in the global market and help the government to reach its export target. Lower sales through borders is also expected to help increase the foreign exchange income to the government.  
Cambodia has exported about 387,100 tons of rice in 2014, up about 2% from around 378,856 tons exported in 2013, according to local sources. USDA estimates Cambodia to export 1.2 million tons of rice (including official and unofficial exports to Vietnam and Thailand through borders) in 2015, up about 20% from around 1 million tons in 2014.

Maldives Tenders to Buy 9,000 Tons of Parboiled Rice

Jan 13, 2015
Maldives is seeking to purchase 9,000 tons of parboiled rice in an international tender, according to Reuters.European Traders were quoted as saying that tender offers would be opened on February 8, 2015.They noted that the stated amount of rice would be sourced optionally from India, Pakistan, Turkey, Singapore, Indonesia, Malaysia, Thailand, the Philippines, United Arab Emirates, Australia, Canada, Sri Lanka, United States, South America and Europe.

Indian Researchers Develop New Drought Tolerant Rice Varieties

Jan 13, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150113riceseeds_0.jpgResearchers at the Central Rice Research Institute of India (CRRI) have developed four new drought-resistant paddy varieties - Ankit, Sachala, Gopinath, Maudamani - and another variety - Chakaakhi - that can sustain in less water conditions suitable to grow in India's Eastern state Odisha, according to local sources.According to the Chief Scientist at the CRRI told local sources that Ankit (CR Paddy-101), Sachala (CR Paddy-203) and Gopinath are suited for high lands and require less water and can be harvested in 110 days.
Ankit can yield about 4 tons per hectare in normal conditions and about 2.8 tons per hectare under drought conditions. Maudamani (CR-307) is more suited for irrigated lands and can yield up to 5 tons per hectare, according to him. All the four varieties are also pest-tolerant and immune to certain diseases, according to the Chief Scientist.The fifth variety Chakaakhi (CR-408) can also withstand flood conditions and pest attacks apart from sustaining drought conditions. This a fatty and longer variety and its harvest period is around 160-165 days. Since rice plants of this variety has dark colored roots different from the color of grass that grows around paddy, it is very easy for farmers to clean weeds and unwanted grass from the fields. The variety is also suitable for preparation of watered rice (Pakhala), according to the researchers.
In November 2014, the CRRI developed three climate-resilient varieties. According to CRRI, it would take about two years to make these varieties available to farmers.  Odisha produces accounts for about 7.5% of total India's rice production. The state produced about 7.6 million tons of rice in 2013-14, up about 3% from around 7.3 million tons in 2012-13, according to the Indian Ministry of Agriculture. India produced around 106.54 million tons (91.69 from kharif and 14.85 from rabi) of rice in 2013-14 (October – September), up about 1% from around 105.31 million tons in 2012-13.     
Global Rice Quotes
January 14th, 2015

Long grain white rice - high quality
Thailand 100% B grade           415-425           ↔
Vietnam 5% broken     375-385           ↔
India 5% broken          390-400           ↔
Pakistan 5% broken     370-380           ↔
Cambodia 5% broken 450-460           ↔
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   345-355           ↔
Pakistan 25% broken   325-335           ↔
Cambodia 25% broken            430-440           ↔
India 25% broken        355-365           ↔
U.S. 15% broken         495-505           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd             405-415           ↔
Pakistan parboiled 5% broken stxd      400-410           ↔
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%           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       320-330           ↔
Vietnam 100% broken             325-335           ↔
Pakistan 100% broken stxd     290-300           ↔
Cambodia A1 Super    355-365           ↔
India 100% broken stxd          295-305           ↓
Egypt medium grain brokens   NQ       ↔
U.S. pet food   405-415           ↔
Brazil half grain           NQ       ↔
All prices USD per ton, FOB vessel, oryza.com

Oryza Overnight Recap - Chicago Rough Rice Futures Lifeless as Traders Mull over Yesterday's USDA S&D Update

Jan 13, 2015
Chicago rough rice futures for Mar delivery are currently trading 1.5 cents per cwt (about $0.33 per ton) lower at $11.445 per cwt (about $252 per ton) during early floor trading in Chicago. The other grains are seen trading higher this morning: soybeans are currently seen 0.6% higher, wheat is listed about 1% higher and corn is currently noted about 0.6% higher.U.S. stocks rallied on Tuesday, with equities bouncing back after a two-session drop, after aluminum-producer Alcoa kicked off the fourth-quarter earnings season by beating estimates. With the fourth-quarter earnings season started, investors are on the lookout for the effect of crude's decline on the S&P 500's collective bottom line.
 On Tuesday, oil prices fell to near six-year lows as a major OPEC producer stuck to the cartel's decision not to reduce output. Jumping as much as 281 points, the Dow Jones Industrial Average was lately up 264.33 points, or 1.5%, at 17,905.17, lifting the blue-chip index back into positive terrain for the year. The S&P 500 rose 26.12, or 1.3%, to 2,054.38, with technology leading a broad advance that included all 10 major industry groups. Also erasing its loss for 2015, the Nasdaq gained 73.94 points, or 1.6%, to 4,738.65. Gold is currently trading about 0.2% higher, crude oil is seen trading about 1.7% lower,  and the U.S. dollar is currently trading about 0.4% higher at 10:10am Chicago time.

Oryza Afternoon Recap - Chicago Rough Rice Futures Settle Little Changed as Falling Crude Weighs on US Grain Prices

Jan 13, 2015
Chicago rough rice futures for Mar delivery settled 1.5 cents per cwt (about $0.33 per ton) lower at $11.445 per cwt (about $253 per ton). Rough rice futures closed slightly lower after spending the majority of the morning trading steadily lower before turning to recover in afternoon trading. Prices remain trapped in a sideways trading range between support at $11.395 per cwt (about $251 per ton) and resistance around $11.750 per cwt (about $259 per ton).
A breakout below the previously mentioned point of support would be viewed as a bearish development and likely trigger additional technical selling. The other grains closed sharply lower today; Soybeans closed about 1.2% lower at $10.0400 per bushel; wheat finished about 1.4% lower at $5.4800 per bushel, and corn finished the day about 4% lower at $3.8575 per bushel.U.S. stocks took a stiff detour lower on Tuesday, with a near 300-point rally on the Dow fading into a triple-digit decline amid falling commodity prices and as Germany reportedly threw cold water on hopes that the European Central Bank would take additional steps to bolster the region's economy.
With the fourth-quarter earnings season started, investors are on the lookout for the effect of crude's decline on the S&P 500's collective bottom line, with oil prices on Tuesday falling to near six-year lows as a major OPEC producer stuck to the cartel's decision not to reduce output. Scaling back from a 282-point jump, the Dow Jones Industrial Average was lately down 68.50 points, or 0.4%, at 17,572.34. The S&P 500 shed 10.09 points, or 0.5%, to 2,018.17, with materials and energy hardest hit among its major sectors. The Nasdaq declined 11 points, or 0.2%, to 4,653.71. Gold is trading about 0.1% higher, crude oil is seen trading about 0.7% lower, and the U.S. dollar is seen trading about 0.4% higher at about  1:00pm Chicago time.Monday, there were 413 contracts traded, up from 174 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday decreased by 319 contracts to 8,448.

Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Today

Jan 13, 2015
Thailand rice sellers lowered their quotes for 100% B grade white rice  by about $5 per ton to around $415 - $425 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $30 per ton premium on Vietnam 5% rice shown at around $375 - $385 per ton. India 5% rice is quoted at around $390 - $400 per ton, about $20 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, about $5 per ton premium on Vietnam 25% rice shown at around $345 - $355 per ton. India 25% rice is quoted at around $355 - $365, about $30 per ton premium on Pakistan 25% rice quoted at around $325 - $335 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 $20 per ton discount to Pakistan parboiled rice quoted at around $400 - $410 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $5 per ton discount to Vietnam 100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown at around $300 - $310 per ton,  about $10 per ton premium on Pakistan broken sortexed rice quoted at around $290 - $300 per ton.

Thailand Plans to Sell 10 Million Tons of Stockpiled Rice in 2015

Jan 13, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150113thairice.jpgThe Thai Commerce Ministry is planning to sell around 10 million tons of stockpiled rice in 2015 and around 7 million tons in 2016, Reuters quoted the Permanent Secretary of the Ministry as saying.The Secretary noted that the Ministry has planned to sell about 17.8 million tons of rice within the next two years. She noted that the Ministry will announce details of tenders to sell around 1 million tons of rice between January and March this year.
Last month, the Thai Prime Minister noted that the government is planning to sell the rice stocks without impacting prices.Thailand sold around 681,740 tons of rice in four tenders last year after the military government took over on May 22, 2014; and the government has struck government-to-government deals for about 570,000 tons last year, she said.
According to the stock audit report released by the government, of the 17.8 million tons of rice stocks, of which 2.35 million tons are of good quality, 14.4 million tons are sub-standard, around 694,000 tons are rotten and around 390,000 are missing. The former Prime Minister is facing impeachment hearing for her role in the management and implementation of the controversial rice pledging scheme.Thailand exported around 10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons in 2013.
Separately, the Ministries of Agriculture and Commerce discussed on rice production adjustment considering the current in-stock rice, exports, domestic consumption and rice market information, according to local sources. They are planning to adjust rice production structure so as to balance the demand and supply of rice by 2019. They will present the outcome of their meeting to the National Rice Policy Committee (NRPC).

Thailand To Sign MOU with Hong Kong to Export 100,000 Tons of Rice

Jan 13, 2015

Description: http://oryza.com/sites/default/files/field/image/140909thairice1.jpgThai rice exporters will sign a Memorandum of Understanding (MoU) with Hong Kong's rice importers to export around 100,000 tons of rice to Hong Kong this year, in presence of the Thai Commerce Minister in this week, according to the Thai News Agency.The Thai Commerce Minister is reportedly visiting Hong Kong this week from January 16 - 17 to promote Thai rice as well as discuss trade relations, especially related to rice, with Hong Kong's Secretary for Commerce and Economic Development. He will also meet the Chairs of Hong Kong's three rice importers' associations.
Thai rice exporters will also sign a letter of intent (LOI) on bilateral cooperation and trade with Hong Kong's rice importers. Both the LOI and the MOU will signify a likely increase in market share for Thai rice in Hong Kong, say Thai rice exporters.Hong Kong is one of the main destinations for Thai Jasmine rice. However, Thailand's share in Hong Kong's rice market declined to around 46% in 2013 from about 86% in 2008 due to the increase in Thai rice prices following the introduction of rice pledging scheme, under which the Thai government bought paddy from farmers at 50% above market prices, in 2011.
Thailand has been keen on regaining its share in Hong Kong Jasmine rice market since last year. Thailand exported around 156,000 tons of Jasmine rice to Hong Kong in 2011, around 134,000 tons in 2012 and around 142,000 tons in 2013.The Thai government is planning to sell over 17 million tons of rice stocks as soon as possible without impacting prices. Thailand exported around 10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons in 2013, according to data from Thai Rice Exporters Association (TREA).   

Philippines Rice Stocks Stand at About 3 Million Tons as of December 1, 2014; Up 3% m/m and Up 22% y/y

Description: http://oryza.com/sites/default/files/field/image/150113philricestocks.jpgJan 13, 2015



Total rice stocks in the Philippines as of December 1, 2014 reached around 3.03 million tons, up about 3% from around 2.95 million tons recorded in November 2014, and up about 22% from around 2.49 million tons recorded during the same period last year, according to the Bureau of Agricultural Statistics (BAS).
According to the BAS, household stocks (which account for about 51.7% of total rice stocks in the country) have reached around 1.57 million tons as of December 1, 2014, up about 9% from year-ago levels of around 1.44 million tons. Commercial warehouse rice stocks (which account for about 32.3% of total stocks) have reached around 980,000 tons as of December 1, 2014, up about 29% from their year-ago levels of around 760,000 tons. The rice stocks with the National Food Authority (NFA) (which account for 16% of total stocks) stood at around 490,000 tons, up about 63% from around 300,000 tons recorded in December 2013.
Month-on-month, household rice stocks are down about 3%, commercial warehouse rice stocks are up about 9% and NFA rice stocks - in which about 96.5% are imported rice - are up about 14%, according to the BAS.
The BAS says that the Philippines' rice stocks as of December 1, 2014 are enough to last for 89 days (household stocks are enough for 46 days, commercial warehouses stocks are enough for 29 days and stocks with NFA are enough for 14 days).
The NFA had imported about 1.8 million tons of rice since the beginning of 2014 (including 1.5 million tons of this year's imports and 300,000 tons of last year's imports) to replenish rice stocks and control price hikes. In December 2014, it allowed the private sector to import another 187,000 tons of rice under the minimum access volume (MAV) program.


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