Friday, January 23, 2015

23rd January (Friday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes
January 22nd, 2015
Long grain white rice - low quality
India 25% broken       360-370           ↔
U.S. 15% broken         485-495           ↓
Thailand 25% broken NQ      ↔
Vietnam 25% broken 340-350           ↔
Pakistan 25% broken 320-330           ↔
Cambodia 25% broken           430-440           ↔

Brokens
Cambodia A1 Super   355-365           ↔
India 100% broken stxd         300-310           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 405-415           ↔
Brazil half grain          NQ      ↔
Thailand A1 Super      320-330           ↔
Vietnam 100% broken            315-325           ↔
Pakistan 100% broken stxd    290-300           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd            405-415           ↔
Pakistan parboiled 5% broken stxd    400-410           ↔
India parboiled 5% broken stxd         390-400           ↔
U.S. parboiled 4% broken       550-560           ↓
Brazil parboiled 5% broken    570-580           ↔
Uruguay parboiled 5% broken            NQ      ↔

Long grain white rice - high quality
Thailand 100% B grade          415-425           ↔
Vietnam 5% broken    365-375           ↔
India 5% broken         395-405           ↔
Pakistan 5% broken    360-370           ↔
Cambodia 5% broken             440-450           ↔
U.S. 4% broken           495-505           ↓
Uruguay 5% broken    NQ      ↔
Argentina 5% broken NQ      ↔

Long grain fragrant rice
Thailand Hommali 92%          920-930           ↔
Vietnam Jasmine         500-510           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             805-815           ↔
All prices USD per ton, FOB vessel, oryza.com


India Government Receives Recommendations for FCI Restructuring

Jan 22, 2015
The High Level Committee set up the Government of India to look into the present structure and operational aspects of the Food Corporation of India (FCI) and make necessary recommendations has today submitted its recommendations to the Prime Minister, according to a press release by the Ministry of Consumer Affairs, Food & Public Distribution. The government is keen on making the food grain procurement and management more efficient by streamlining the role of FCI in procurement, storage and distribution of grains under Targeted Public Distribution System (TPDS). The Committee recommends that the FCI hand over all procurement operations of paddy, rice and wheat to states, including Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab, that have requisite infrastructure; and focus on procurement in states such as Eastern Uttar Pradesh, Bihar, West Bengal, Assam, where farmers suffer from distress sales.
It also suggested that surplus in any state should be moved to deficit states.It suggested the Centre to enter into agreement with states before every procurement season regarding costing norms and procurement rules, including bonus over minimum support price (MSP) and statutory levies and commissions. It recommends to remove levy rice procurement. The Committee also recommended the government to relook at the commitments and implementation of the National Food Security Act (NFSA).It recommends to set up Negotiable Warehouse Receipt System (NWRs) on a priority basis. The system allows farmers to deposit their output with registered warehouses and get 80% advance from banks against their output valued at MSP, and later sell at prices agreeable to them. It also suggested the government to reframe the basis for MSP formulation.
 It suggested the FCI to outsource stocking operations through competitive bidding process to create competition and bring down costs. It recommended proper liquidation process for the buffer stocks of the FCI as well as proper streamlining of worker policies, including the number of permanent and contract workers and their pay.The Committee recommended that the government provide direct cash subsidies to farmers rather than subsidies on fertilizers in order to help them deal with cash crunches. Finally, it recommended a total computerization of all FCI operations for effective implementation of policies and monitoring for any deviations.

Oryza Afternoon Recap - Chicago Rough Rice Futures Slide as Dollar Strength Punishes US Grain Prices

Jan 22, 2015
Chicago rough rice futures for Mar delivery settled 21 cents per cwt (about $5 per ton) lower at $11.160 per cwt (about $247 per ton). Rough rice futures erased gains earned yesterday and once again confirming a bearish tilt to the market. Prices are now within 10 cents per cwt (about $2 per ton) of the contract low of $11.060 per cwt (about $244 per ton), and appear prepared to ultimately test the psychologically significant $11.000 per cwt (about $243 per ton) level.
Rice futures felt downward pressure from the other grains as announcements made by the ECB pulled the Euro lower and strengthened the USD, making US grain exports effectively more expensive; Soybeans closed about 0.7% lower at $9.7775 per bushel; wheat finished about 0.6% lower at $5.3475 per bushel, and corn finished the day about 1.1% lower at $3.8475 per bushel.U.S. stocks climbed on Thursday, extending gains into a fourth session, after the European Central Bank unfurled expanded stimulus. ECB President Mario Draghi said the central bank would make monthly bond purchases of as much as $70 billion starting in March, and running through September of next year.
Draghi's announcement came after the ECB held benchmark rates unchanged at record lows. After falling 71 points and jumping 155, the Dow Jones Industrial Average was lately up 150.72 points, or 0.9 percent, at 17,705.00. The S&P 500 gained 17.82 points, or 0.9%, to 2,049.94, with financials leading sector gains and telecom faring the most poorly among its 10 major industries. The Nasdaq rose 45.81 points, or 1%, to 4,713.24. Gold is trading about 0.6% higher, crude oil is seen trading about 3.8% lower, and the U.S. dollar is seen trading about 1.2% higher at about  1:00pm Chicago time.Wednesday, there were 240 contracts traded, down from 312 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 49 contracts to 8,756.

Oryza U.S. Rough Rice Recap - Prices Continue Downward Slide amid Limited Trade Interest

Jan 22, 2015
The U.S. cash market fell today in tandem with the futures market as bids and offers dropped in lock step; as a result there were no trades to report.Buyers remain hand-to-mouth and are showing very little interest inland or on the river while most sellers are still hopeful that prices will recover, especially if the U.S. snags some of the Iraqi Grain Board business.In the meantime, USDA export sales data will be reported tomorrow instead of today due to the Martin Luther King, Jr., Holiday on Monday.

Former Thai Premier Impeached in Rice Case; Faces Criminal Charge

Jan 22, 2015
Description: http://oryza.com/sites/default/files/field/image/150123ricestocks.jpg
Thailand's National Legislative Assembly (NLA) members have voted to impeach the former Prime Minister (PM) Yingluck Shinawatra for encouraging corruption in the controversial rice pledging scheme introduced by her government in October 2011, according to Reuters. The government offered to pay 50% above market prices under the scheme, which brought losses of about 518 billion baht (around $16 billion) to the exchequer.While the decision required three-fifths of majority , 190 of 220 members voted to impeach the former PM, eighteen voted against her impeachment and twelve abstained from voting. 
The decision of impeachment bans her from politics for five years. Just hours before impeachment voting, the Office of the Attorney General (OAG) announced that it will file criminal charge against the former PM for her role in the corruption-plagued rice-pledging scheme. The Director-General of the OAG's Litigation Department told local sources that the Attorney General has agreed to prosecute the ex-Premier for her negligence to honour the NACC's suggestions to halt the program after finding irregularities in it.
The OAG has announced its intention to present Ms.Yingluck before the Supreme Court's Criminal Division for Political Office Holders. She could face a jail term up to ten years if found guilty. The former PM also defended herself and the rice pledging scheme twice before the NLA.
Meanwhile, the Thai Prime Minister clarified that he hadn’t influenced any NLA member before voting. However, Yingluck's supporters blame the NLA for being biased and politically aligned with the interests of the military coup. The military government has reportedly taken necessary actions to control protests from Yingluck’s supporters.    

IFAD Warns of Acute Food Crisis in Ebola Affected Countries

Jan 22, 2015

Description: Description: http://oryza.com/sites/default/files/field/image/150122ebola.jpgThe UN's International Fund for Agriculture Development (IFAD) has warned of acute food shortages in Ebola affected countries such as Guinea, Liberia and Sierra Leone as farmers have been abandoning their agricultural fields fearing spread of the virus, according to local sources.Quarantine measures taken by the respective governments have led to restricted movements by people and there by severe shortages of labor.
Due to this large parts of rice fields have been left unharvested in all the three countries. Agricultural lands growing vegetables and other crops have also been left abandoned in many areas.These developments have led to a huge increase in the retail prices of rice and other commodities in the local markets. The Food and Agricultural Organization (FAO) data also shows that prices of food, including rice, have increased on average from 30% to 75% in the virus affected regions. The IFAD noted that if the situation continues for a long, time, the virus affected regions will have to face acute food shortages.Since agriculture accounts for about 20-40% of gross domestic product (GDP) of the three countries, the IFAD is urging the respective governments to build food stockpiles to be able to provide food assistance as and when needed. He noted that the countries should try to increase production in non-affected areas to compensate for the shortfall. According to the FAO, about $30 million would be needed to provide food relief to about 90,000 households in the three countries.

Thai Rice Losses Estimated to Cross $21 Billion

Jan 22, 2015
Losses from rice subsidy/pledging schemes between 2004 and 2014 are estimated to cross the earlier estimations of around $682 billion baht (around $21 billion) if depreciation and missing rice stocks are also considered, local sources quoted the Finance Permanent Secretary as saying.
The Finance Secretary noted that Subcommittee overseeing accounting affairs of all subsidy schemes had not taken into account depreciation of rice stocks as well as missing stocks from warehouses while estimating losses from 11 subsidy schemes covering 15 harvests from 2004-14. Earlier, the Thai Finance Ministry had estimated that losses from the rice pledging scheme introduced by the previous government alone account to about 518 billion baht (around $15.8 billion).
The Finance Ministry had issued long-term bonds with three to ten years maturity in the beginning of this year to clear the debts associated with the rice pledging schemes.According to the rice stock audit report, of the 17.8 million tons of rice with the government, only about 2.35 million tons are of standard quality, about 14.4 million tons are of sub-standard quality, around 694,000 tons of rice are rotten and the remaining 390,000 tons of rice are missing.
The government is keen on selling the 17 million tons of rice stocks within the next two years. It already sold around 681,740 tons of rice in four tenders last year after the military government took over on May 22, 2014. The Commerce Ministry is planning to sell around one million tons of rice in a tender on January 29, 2015.Thailand exported around 10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons in 2013. 

Thai Government Assures Transparency in Future G2G Rice Deals

Jan 22, 2015
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The Thailand government would maintain transparency in all future government-to-government (G2G) contracts following misdealings that occurred in entering into G2G contracts during the Yingluck-led government, local sources quoted the Thai Commerce Minister as saying.He told local sources that the government is striving to ensure that all upcoming G2G contracts would be conducted legally to provide maximum benefit to the State.

He noted that currently, the military government, which took charge on May 22, 2014, has finalized G2G contracts with China for exporting 1 million tons of rice. The government has to finalize G2G contracts for another 2 million tons with China and 200,000 tons with Malaysia, according to local sources.The Commerce Minister has urged the Department of Foreign Trade and the Trade Negotiations Department to finalize the pending G2G contracts as soon as possible.The government is keen on selling the 17.8 million tons of rice in its warehouses within the next two years while ensuring that there is no downward pressure on prices


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