Tuesday, January 27, 2015

27th January (Tuesday),2015 Daily Exclusive ORYZA ice E_Newsletter by Riceplus Magazine

Ghana Trade Ministry Rules Out Total Rice Import Ban

Jan 26, 2015
Description: http://oryza.com/sites/default/files/field/image/150126ghanarice.jpgGhana's Ministry of Trade and Industry ruled out a total rice import ban saying the decision would violate the World Trade Organization (WTO) rules, according to local sources.The Ministry responded to the call by the Small Scale Rice Dealers Association of Ghana (SSIRDA- GH) to ensure an outright ban on rice importation or reconsider ban on inland rice importation to protect the interests of small scale rice traders from large foreign traders. The report quoted the Deputy Minister for Trade and Industry as saying that the government is currently focussing on achieving self-sufficiency in rice production as Ghana imports nearly 70% of its consumption needs. He also noted that the government is striving to enhance the quality of rice production.
Ghana imposed ban on inland rice importation in November 2013 and said it would allow rice imports only through the Kotoka International Airport (KIA), and Tema and Takoradi ports to restrict rice smuggling and ensure that imported rice is levied with the proper import duties and taxes.
The National Coordinator of SSRIDA-GH noted that the current ban on inland rice importation is severely impacting small scale rice traders and is favoring major players in the industry. It is particularly encouraging foreign traders to dominate the local rice industry as small traders do not have sufficient capital base to carry out their businesses through air or sea.Ghana's annual rice import bill stood at $306 million in 2013 and the government is planning to increase rice production by about 20% per annum over the next four years to make Ghana self-sufficient in rice.
According to the USDA, Ghana’s rice production is estimated at about 330,000 tons (milled basis) in MY 2014-15 (October - September). The U.S. agency expects Ghana to import 620,000 tons of rice during the year to meet consumption needs of around one million tons of rice.

Oryza Overnight Recap - Chicago Rough Rice Futures Tumble to New Lows Overnight and Remain Below $11.000/cwt This Morning

Jan 26, 2015
Chicago rough rice futures for Mar delivery are currently listed 8 cents per cwt (about $2 per ton) lower at $10.925 per cwt (about $241 per ton) during early floor trading in Chicago. The other grains are seen mostly lower: soybeans are currently seen 0.1% lower, wheat is listed about 0.3% lower and corn is currently noted about 0.8% lower.U.S. stocks fell on Monday, with telecommunications leading the drop, as investors considered the results from Greek elections and winter weather in the East Coast. In Greece, the anti-austerity Syriza party won 149 out of a 300 possible seats in Parliament.
 In New York, officials urged residents to remain indoors with blizzard conditions forecast. The Dow Jones Industrial Average declined 0.2%, as did the S&P 500. The Nasdaq fell 0.3%.U.S. stocks mainly fell on Friday, with the S&P 500 halting a four-session winning run, as investors considered economic data, energy costs and a reduced 2014 earnings estimate from United Parcel Service. Gold is currently trading about 0.9% lower, crude oil is seen trading about 0.7% lower,  and the U.S. dollar is currently trading about 0.1% higher at 8:30am Chicago time.
Global Rice Quotes
January 27th, 2015

Long grain white rice - high quality
Thailand 100% B grade           415-425           ↔
Vietnam 5% broken     360-370           ↔
India 5% broken          395-405           ↔
Pakistan 5% broken     360-370           ↔
Cambodia 5% broken 435-445           ↔
U.S. 4% broken           495-505           ↔
Uruguay 5% broken    NQ       ↔
Argentina 5% broken   NQ       ↔

Long grain white rice - low quality
Thailand 25% broken 365-375           ↔
Vietnam 25% broken   335-345           ↔
Pakistan 25% broken   320-330           ↔
Cambodia 25% broken            420-430           ↔
India 25% broken        360-370           ↔
U.S. 15% broken         485-495           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd             410-420           ↑
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 fragrant rice
Thailand Hommali 92%           920-930           ↔
Vietnam Jasmine         470-480           ↔
India basmati 2% broken         NQ       ↔
Pakistan basmati 2% broken    NQ       ↔
Cambodia Phka Mails 795-805           ↔

Brokens
Thailand A1 Super       320-330           ↔
Vietnam 100% broken             310-320           ↔
Pakistan 100% broken stxd     290-300           ↔
Cambodia A1 Super    345-355           ↔
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 Afternoon Recap - Chicago Rough Rice Futures Close Below $11.000/cwt as Selloff Continues amid Lack of Demand

Jan 26, 2015
Chicago rough rice futures for Mar delivery settled 12.5 cents per cwt (about $3 per ton) lower at $10.885 per cwt (about $240 per ton). Rough rice futures slipped further, closing below $11.000 per cwt (about $242 per ton) for the first time and have confirmed the bearish setup noted on Friday. Today’s move adds further negativity to the market and likely signals a continuation lower in coming sessions. Nearby support is noted at the day’s low of $10.810 per cwt (about $238 per ton), a level that traders will keep an eye on during tomorrow’s trading session. A close lower will likely see prices continue the current trend of reduced prices. The other grains finished the day with mixed results today; Soybeans closed about 1.1% higher at $9.8350 per bushel; wheat finished about 1.8% lower at $5.2050 per bushel, and corn finished the day about 0.7% lower at $3.8400 per bushel.
U.S. stocks wavered on Monday, with an advance by energy companies neutralizing declines in technology as investors mulled results from Greek elections and winter weather on the East Coast. In Greece, the anti-austerity Syriza party won 149 out of a 300 possible seats in Parliament. In New York, officials urged residents to remain indoors with blizzard conditions forecast. The New York Stock Exchange said it planned to run on a normal schedule. After falling more than 100 points, the Dow Jones Industrial Average was lately off 33.08 points, or 0.2%, at 17,640.52. The S&P 500 held steady at 2,052.11, with energy the best performing and technology the worst of its 10 major industry groups. The Nasdaq gained 3.08 points, or 0.1%, to 4,760.93. Gold is trading about 1% lower, crude oil is seen trading about 0.3% higher, and the U.S. dollar is seen trading about 0.1% lower at about  1:00pm Chicago time.
Friday, there were 731 contracts traded, down from 800 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 150 contracts to 8,896.

Japanese Rice Variety Becomes Popular in China

Jan 26, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150126japanrice.jpgReports that nearly 16.1% of soil in China is contaminated by heavy metals like Cadmium are inculcating fears among the Chinese to use their locally produced rice, as it is also feared to be contaminated with the metal, which is proven to damage liver and kidneys.Officials from the Guangdong Province, supposed to be one of the rich rice growing regions in the country, found that 44% of the rice samples grown in this region contained excessive levels of Cadmium, according to local source.
Pollutants from factories are said to contaminate soil and water of many agricultural lands in China. Nearly 16.1% of soil in China is contaminated, according to a 2014 study by the Ministry of Environmental Protection.Consumers have also been complaining of Chinese farmers using more pesticides to increase yields. This they say has been leaving pesticide residues leading to many health problems.
Chinese are of late preferring Japanese grown rice as a safer alternative to locally grown rice. They told local sources that Japanese rice is not polluted with heavy metals like Chinese rice and Japanese farmers use less of pesticides compared to their Chinese counterparts. Especially, Echizen rice variety that is considered to be free of lead, cadmium, mercury, pesticides and other chemicals and is grown with water from pure sources, has become more popular among the Chinese.
However, this variety of Japanese rice is sold at much higher prices compared to the locally grown Chinese rice and is found in very few stores and super markets, according to local sources. They say Japanese rice sold at around 74 Yuan (around $12) per kilogram while Chinese rice is sold at around 7.5 Yuan per kilogram (around $1.2).
Therefore Chinese rice producers are encouraged to use the seeds of Echizen rice variety in their fields to meet the rising demand, according to the Zhejiang Xinxie Yueguang Agricultural Science and Technology.China is the largest rice consumer and importer in the world. The Asian nation imported around 2.244 million tons of rice in the first eleven months of 2014 (January - November), down about 1% from around 2.267 million tons imported during the same period last year, according to data from China Customs General Administration.

Stunning New Movie: “The Songs of Rice” by Thai Film Maker

Jan 26, 2015
As ubiquitous as rice is on tables around the globe, there have been few movies made about the simple grain.The latest film about rice, The Songs of Rice (“Pleng Khong Kao”) by Thai filmmaker Uruphong Raksasad, just might be one of the best, with its stunning visual images, vivid sound design, and simplistic approach.  Critics agree: it won the Fipresci Award at last year’s International Film Festival in Rotterdam.The third agricultural film from Uruphong (the first two, Stories from the North (2007) and Agrarian Utopia (2010) also feature impressive camerawork and celebrate rural Thailand), The Songs of Rice takes the viewer on a poetic tour of rice-growing villages in Thailand.  But its focus isn’t so much the rice as it is the traditions, spirituality, and livelihoods of people who live in these rice regions. 
Uruphong filmed up and down the countryside, visiting places like Chon Buri, Hat Yai, Amnat Charoen, Roi Et, and Loei to capture powerful images of people playing traditional instruments, preparing somtum-and-sticky-rice, and dancing and singing with delight.One of the most stunning visual sequences in the film features the bang-fai (rocket) festival in Yasothon, where the viewer sees homemade rockets set off into the sky.  Because Uruphong omits any textual signifiers, this scene melds seamlessly with the ones before and after it, so that the hula-hooping granny, buffalo-driven beauty queen, and singing villagers all blur together to create an impressionistic audiovisual collage that reflects the culture of this rice-region. 
Once the viewer has freed him- or herself from expectations of a narrative, it’s easy to sit back and appreciate the visual celebration Uruphong created.  And that’s what this film is – an audiovisual celebration of rice, an oft taken for granted crop whose connection with Thai life is political, cultural, and spiritual, and this film serves as an attempt to remind people that the simplest things in life are also often the most beautiful.

Senegal Imports 871,100 Tons of Rice First Eleven Months of 2014; Up 6% from last year

Jan 26, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150126sengalrice.jpgSenegal has imported around 871,100 tons of rice in the first eleven months (January - November) 2014, up about 6% from around 821,300 tons imported during the same period in 2013, according to data from the Dakar-based Economic Analysis and Forecasts Branch (DEPEE).In November 2014, Senegal imported around 81,200 tons of rice, down about 3% from around 84,100 tons imported in October 2014.
The West African country is a net importer of rice and imports about 80% of its annual rice consumption needs. The government, like other West African governments, is keen on increasing local rice production in the country and reduce the volume of imports. It imports rice from India, Thailand and Vietnam.India's Export Import Bank (Exim Bank) as till date extended financial assistance to the extent of about $269.36 million to the Senegal government through its Letter of Credit (LoC) mechanism to support various export and development projects.  USDA estimates Senegal to produce around 289,000 tons of rice in MY 2014-15 (October - September) and import around 1.15 million tons to meet the consumption needs of around 1.45 million tons during the year.

Oryza U.S. Rough Rice Recap - Prices Continue to Slide amid Limited Demand and Increased Selling Interest

Jan 26, 2015
The U.S. cash market continues to weaken in the face of limited demand and increased selling interest, especially for nearby shipment.Analysts note that many sellers are looking to move their rice before they get ready for planting next year’s crop; however, they are finding it difficult to get bids as most buyers are well-covered.Many are now just hoping that prices will stabilize if the U.S. is awarded at least a portion of the latest Iraqi tender. We expect to have the results from that tender on Thursday, January 29.

U.S. State Department Urged to Promote Rice Exports to Iraq

Jan 26, 2015
U.S. farmers and members of the Mississippi Congressional Delegation urged the Secretary of State to assist the U.S. rice farmers and exporters in enhancing rice exports to Iraq, which have been declining in recent times, Bloomberg quoted local media reports.U.S. farmers, Senators and Mississippi State Representatives submitted a letter to the State Secretary ahead of a new tender for 30,000 tons of rice to be floated by the Iraqi Grain Board (IGB).
The letter stated that the IGB had been rejecting the U.S. rice in recent times and preferring to buy high-priced rice from other origins. It also noted that the IGB has been rejecting the U.S. bids despite offering competitive bids, adding that the IGB had provided no explanation for their decision. They cited the recent instance where the IGB purchased 170,000 tons of rice from Thailand (80,000 tons), Uruguay (60,000) and Brazil (30,000) and rejected bids from the U.S. despite offering bids lower by about $24 per ton compared to the bids offered by Thailand, Argentina, Brazil and Uruguay.
It urged the State Department to convince the IGB officials to buy U.S. rice, including that from Mississippi, for protecting the interests of the U.S. farmers as well as the U.S. rice sector."The State Department has a responsibility to ensure our farmers are not shut out of important markets for their products. I urge the Administration to engage with the Iraqi government to help reopen its doors to high-quality, affordable American-made rice," a Mississippi State representative was quoted as saying. He noted that the State Department has an obligation to seek fairness on the behalf of American rice producers.The Mississippi state produced about 616,892 tons of rice worth $174 million in 2014, up about 514,077 tons worth $145 million tons produced in 2013.According to the USDA, milled rice production in the U.S. is expected to increase to around 7 (around 10 million tons, basis paddy) in MY 2014-15 (August - July), export about 3.3 million tons of rice and import about 699,000 tons.

Vietnam Adopts New Rice Cultivation Methods to Reduce Greenhouse Gas Emissions

Jan 26, 2015
The Institute for Agricultural Environment (IAE) under the Ministry of Agriculture and Rural Development (MARD) is promote new and efficient rice farming techniques that will allow the reduction of greenhouse gas emissions from wet rice production by 15-20% by 2020, according to local sources.
Description: http://oryza.com/sites/default/files/field/image/150126vietricefields.jpgThe IAE and the Philippines-based International Rice Research Institute (IRRI) have launched a project on "Reduced Methane Emissions in Wet Rice Cultivation in Vietnam". Speaking at a conference held as part of the first phase of the Project (October 2014 - June 2016) on January 23, 2014, the Director of the IAE stated that the Institute is planning to promote the use of System of Rice Intensification (SRI), which is a proven method to increase productivity, quality and economic effectiveness. It also reduces the use of pesticides and nitrogenous fertilizers.
However, some speakers pointed out some problems related with the implementation of SRI in Vietnam. Conditions such as unfavorable terrain in most rice growing regions, fragmented rice fields and a lack of coordination between irrigation staff and farmers are likely to pose challenges to SRI implementation.The IAE Director also noted that the Alternate Wetting and Drying (AWD) method has already been introduced in several rice growing regions under the first phase of the project on reducing Methane in wet rice cultivation.The project coordinator noted that efficient irrigation methods can help effective implementation of AWD and thereby reduce greenhouse gas emissions more effectively. He added that the Institute is currently in the process of gathering data on land and infrastructure in each province in order to prepare a water-efficient irrigation map, which can show which lands are suitable for implementing AWD as all lands are not suitable for implementing this technology.The second phase of the project is likely to consider more technologies, said the speakers.

Thai Commerce Ministry and Exporters to Jointly Promote Rice Exports to New Prospective Markets

Jan 26, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150126thaijasminerice.jpgThai Commerce Ministry and the Thai Rice Exporters Association (TREA) are planning to carry out business missions to potential new rice import markets such as Iran, Iraq and other Middle East nations as part of efforts to promote Thai rice exports amid fears that falling oil prices would affect the purchasing power of major importers and consequently their purchases of Thai rice, according to local sources.The TREA President was quoted as saying that Thailand needs to aggressively push its rice exports to potential new importers to maintain its pace of exports. Increasing global rice supplies as well as stiffening competition with other rice exporters, including India, Vietnam and Pakistan, are also said to be posing challenges to Thailand, which is planning to export about 11 million tons of rice this year.
The TREA President noted that falling oil prices may prompt major rice importing countries such as Nigeria, which depend on oil exports, to cut down on their imports. This short fall has to be compensated by sales to newer markets, according to him.The Commerce Minister will reportedly visit Hong Kong, the UAE, Kuwait, Oman, Egypt, Italy and Indonesia to promote Thai rice. The Commerce Ministry and the TREA is planning to particularly promote rice exports to Iran, which suspended imports from Thailand in 2013 following a defaulted contract with a private Thai rice exporter. He told local sources, they would make of the current situation to again revive rice trade with the Middle East nation.
The TREA President noted that they are expecting Thai rice export prices to be steady this year. Currently, export prices of Thai 5% rice stand at around $410 per ton compared to around $370 per ton of Viet 5% rice, around $400 per ton of India 5% rice, around $365 per ton of Pakistan 5% rice and around $415 per ton of Myanmar 5% rice.Thailand exported around 10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons in 2013. 

Vietnam Rice Sellers Lower Their Quotes Today; Other Asia Rice Quotes Unchanged

Jan 26, 2015
Vietnam rice sellers lowered most of their quotes by about $5 per ton today. Thailand and Pakistan rice sellers kept their quotes mostly unchanged. India rice sellers are out today due to national holiday.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $45 per ton premium on Vietnam 5% rice shown at around $360 - $370 per ton, down about $5 per ton from Friday. India 5% rice was last quoted at around $395 - $405 per ton, about $35 per ton premium on Pakistan 5% rice quoted at around $360 - $370 per ton.
25% Broken Rice 
Thailand 25% rice is quoted at around $365 - $375 per ton, about $30 per ton premium on Vietnam 25% rice shown at around $335- $345 per ton, down about $5 per ton from Friday. India 25% rice was last quoted at around $360 - $370, about $40 per ton premium on Pakistan 25% rice quoted at around $320 - $330 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice was last quoted at around $390 - $400 per ton, about $10 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 $10 per ton premium on Vietnam 100% broken rice shown at around $310 - $320 per ton, down about $5 per ton from Friday. India's 100% broken rice was last shown at around $300 - $310 per ton,  about $10 per ton premium on Pakistan broken sortexed rice quoted at around $290 - $300 per ton.

Vietnam Exports About 65,780 Tons Rice During January 1 – 22, 2015

Description: Description: http://oryza.com/sites/default/files/field/image/150126vietriceexports.jpgJan 26, 2015
Vietnam exported about 65,780 tons of rice in January 1  - 22, 2015, down about 79% from about 307,255 tons of rice exported in full month of January 2014 and down about 86% from about 472,575 tons of rice exported in December 2014, according to data from the Vietnam Food Association (VFA). Average rice export price so far in this year stands at about $468 per ton (FOB), up about 13% per ton from same time last year and down about 2% from last month .Vietnam exported about 6.316 million tons of rice in 2014, according to the VFA.




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