Wednesday, January 28, 2015

28th January (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Fiji Seeks Support from India to Revamp its Rice Sector

Jan 27, 2015

Fiji is likely to sign a Memorandum of Understanding (MoU) with India seeking support for revamping its rice sector, according to a press release by India's Agriculture Ministry. A Fijian delegation led by their Minister for Agriculture, Fisheries & Forests Minister met the Indian Agriculture Minister today to seek India's support in a number of issues, including revamp of rice sector.India's Agriculture Minister said he was keen on strengthening bilateral ties with Fiji. He also noted that India would extend support in training the Fijian Agriculture students, farmers and members of the Ministry through the Indian Council of Agriculture Research (ICAR).A MoU on Development Cooperation was signed by India's External Affairs Ministry in 2006, which also included development of Fijian Agriculture, Fisheries & Forests sector as an item.Fiji is a net importer of rice and imports about 70% of its rice consumption needs of around 44,000 tons annually. Annually Fiji spends around $40 million on rice imports, according to data from the Ministry of Agriculture. Fiji imports rice majorly from Thailand and India.

Global Rice Quotes
January 28th, 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    355-365           ↓
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 330-340           ↓
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%         925-935           ↑
Vietnam Jasmine        475-485           ↑
India basmati 2% broken       NQ      ↔
Pakistan basmati 2% broken NQ      ↔
Cambodia Phka Mails            795-805           ↔

Brokens
Thailand A1 Super     320-330           ↔
Vietnam 100% broken           305-315           ↓
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


Brazil Paddy Rice Index Increases Slightly from Last Week

Jan 27, 2015
The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 38.42 real per 50 kilograms as of January 26, 2015, up about 0.05% from around 38.4 real per 50 kilograms recorded on January 20, 2015.In terms of USD per ton, the index reached around $296 per ton on January 26, 2015, up about 1% from around $293 per ton recorded on January 20, 2015.

Madagascar Imports 363,424 Tons of Rice in 2014; Down 11% from Last Year

Jan 27, 2015

Oryza.com - 
Madagascar imported around 363,423 tons of rice in 2014, down about 11% from around 410,373 tons imported in 2013, according to local  sources.
Madagascar produced around 4.3 million tons of rice in 2014, up about 19% from around 3.6 million tons produced in 2013 due to well distributed rains in the 2013-14 cropping season.
An anti-locust campaign by the government and the Food and Agricultural Organization (FAO), which began in November 2013, provided fruitful results. A Rice area of around 1.2 million hectares was treated and the campaign largely prevented the spread of locust plague thereby limiting large crop losses, according to the FAO.Average rice prices of local rice and imported rice started increasing after they declined for four consecutive months from March 2014. Generally prices in 2014 have been lower than those in 2013 due to improved supplies.
Average prices of imported rice in December 2014 stood at around 1.32 million Malagasy Ariary (around $510), up about 2% from around 1.3 million Malagasy Ariary (around $480) in November 2014 and down about 4% from around 1.38 million Malagasy Ariary (around $620) in December 2013. Average prices of local rice in December 2014 stood at around 1.29 million Malagasy Ariary (around $490), up about 2% from around 1.28 million Malagasy Ariary (around $470) in November 2014 and down about 9% from around 1.41 million Malagasy Ariary (around $630) in December 2013.

Myanmar Plans to Export 2.5 Million Tons of Rice in FY 2015-16; Up 67% from 2014-15

Jan 27, 2015

The Myanmar government is planning to export around 2.5 million tons of rice in FY 2015-16 (April - March), up about 67% from an estimated 1.5 million tons in FY 2014-15, local sources quoted the Chief Executive Officer (CEO) of the Myanmar Rice Federation (MRF) was quoted as saying.  Myanmar exported about 1.2 million tons of rice in FY 2013-14, according to Commerce Ministry data.
The government is keen on increasing rice exports to the European Union, Japan and Africa along with China, according to the MRF. Exporters are planning to increase parboiled rice exports in 2015-16. They exported around 914,969 tons of parboiled rice worth $343 million in 2014, according to data from the Commerce Ministry.Currently, Myanmar government and the MRF are negotiating with the Chinese authorities to begin legal exports to China from April 2015.
About nine exporting companies have been permitted to export rice to China. The China Certification & Inspection Group (CCIC) will open offices in Yangon, Mandalay and Muse to monitor the quality of Myanmar rice before exporting to China, according to MRF officials. China has officially ordered 2 million tons of rice in 2015 and quality inspection is likely to begin by the end of January 2015, according to the Joint Secretary of the MRF.
The government is keen on increasing rice exports to around 3 million tons over the next few years and has announced plans to prioritize rice in its National Export Strategy.
USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million tons, milled basis) and export around 1.4 million tons of rice in MY 2014-15 (January - December 2015).

Oryza Overnight Recap - Chicago Rough Rice Futures Look to Recover Overnight and Return to $11.00/cwt Mark

Jan 27, 2015
Chicago rough rice futures for Mar delivery are currently listed 11.5 cents per cwt (about $3 per ton) higher at $11.000 per cwt (about $243 per ton) ahead of floor trading in Chicago. The other grains are all seen higher: soybeans are currently seen a tick higher, wheat is listed about 0.2% higher and corn is currently noted about 0.2% higher.
U.S. stocks index futures furthered already steep declines after data had orders for U.S. durable goods unexpectedly falling in December, adding to a bearish view as corporate earnings disappointed. Earnings season is poised to gather steam this week, with some of Wall Street's biggest names lined up to report. Apple releases its earnings after the close on Tuesday, with analysts expecting the tech firm to beat consensus. Poor weather conditions have brought New York and other areas in the north-east to a standstill; however extreme forecasts have been downgraded, with some meteorologists predicting less snowfall than initially expected.
The travel ban on all non-emergency vehicles enforced in New York City and surrounding counties on Monday night, was lifted early on Tuesday. Also due for release will be the Conference Board's consumer confidence index for January at 10:00 am ET, which is expected to record its sixth consecutive monthly rise to a new post-crisis high. In Europe, the new anti-austerity Greek prime minister Alexus Tsipras was sworn in Monday and is set to meet with finance ministers from his fellow euro zone countries to begin negotiations on financial support and debt repayments. Gold is currently trading about 0.6% higher, crude oil is seen trading about 0.4% higher,  and the U.S. dollar is currently trading about 0.5% lower at 8:30am Chicago time.

Oryza U.S. Rough Rice Recap - Prices Hold Steady ahead of IGB Tender Announcement

Jan 27, 2015
The U.S. cash market was unchanged today with little to no trading to report.Market participants are eagerly awaiting the results of the latest Iraqi tender which will be announced later this week as it very well could determine the direction of U.S. rice prices in the near term.Confidence that the U.S. will be awarded remains limited; however, some are hopeful that renewed political pressure on the Iraqi Grain Board could lead to more business. 

Mali 2014 Paddy Rice Production Estimated at 2.3 Million Tons; Up 4% from Last Year

Jan 27, 2015
The UN's Food and Agricultural Organization (FAO) has forecasted Mali 2014 paddy rice production at around 2.3 million tons (around 1.55 million tons, basis milled), up about 4% from around 2.2 million tons in 2013. Though most parts of the country witnessed erratic and below-average rains until mid-July, rainfall improved from the last week of July leading to better crop conditions, according to the FAO.
Harvesting of the 2014 rice crops is about to conclude and the country's National Agricultural Statistics Service is forecasting above-average harvest this year.Mali's agriculture sector had been affected seriously in recent times due to civil strifes, labor shortages and lack of agricultural support services. These problems coupled with lower rainfall affected the production of all cereals, including maize and millets, in 2013. However, paddy rice production increased by about 15% to around 2.2 million tons from around 1.9 million tons in 2012.
Rice prices (both imported and local) remained stable since last few months due to ample regional supplies from guinea, Ivory Coast and Burkina Faso as well as local harvests. In Mali's capital city, Bamako, average wholesale prices of imported rice in January 2015 remained at their October 2014 levels of around 329,999.99 CFA Franc (around $594) per ton, and unchanged from their year ago levels. Average wholesale prices of local rice also remained unchanged from their November levels of around 324,999.99 CFA Franc (around $585) per ton, and unchanged from their year ago levels.
According to the FAO, food security in the nation has been severely impacted due to last year's civil strifes and most people need food and non-food assistance to help them restore their livelihoods.
USDA estimates Mali to produce around 2 million tons of paddy (around 1.35 million tons, basis milled) and import around 150,000 tons of rice in MY 2014-15 (October - September) to meet a consumption demand of around 1.5 million tons.

Oryza Afternoon Recap - Chicago Rough Rice Futures Erase Losses Sustained Yesterday but Close Far from Overnight High to Finish Below $11.000/cwt for Third Consecutive Session

Jan 27, 2015
Chicago rough rice futures for Mar delivery settled 8.5 cents per cwt (about $2 per ton) higher at $10.970 per cwt (about $242 per ton). Rough rice futures recovered slightly today, but were unable to close near session highs or above $11.000 per cwt (about $242 per ton) a level that is seen as psychologically significant. This point will act as resistance to further attempts by bulls to mount a recovery from steep recent losses. Although prices did rally to a 34.5 cent per cwt (about $8 per ton) gain overnight, its inability to hold these gains diminishes its importance and the current bearish trend remains intact and the outlook remains for lower prices in coming sessions.
It is likely that only a firm uptick in demand will likely spark a reversal higher. The other grains finished the day in the red; Soybeans closed about 1% lower at $9.7475 per bushel; wheat finished about 0.3% lower at $5.1900 per bushel, and corn finished the day about 0.7% lower at $3.8125 per bushel.U.S. stocks dropped sharply on Tuesday, with the Dow positioned for its worst hit since October, as corporations reported earnings that disappointed and orders for U.S. business equipment unexpectedly declined in December. Orders for business equipment fell 3.4% last month, illustrating the impact of the slowing global economy on U.S. multinationals. Consumer confidence came in at 102.9 in January, the best read since August of 2007, while new-home sales came in at 481,000 in December. Separately, home prices in 20 cities rose 4.3% in November, according to the S&P/Case-Shiller index of property values.
After dropping nearly 400 points, the Dow Jones Industrial Average was lately down 254.56 points, or 1.4%, at 17,324.14. The S&P 500 dropped 21.31 points, or 1%, to 2,035.78, with technology, industrials and materials the leading laggards among its 10 major sectors. The Nasdaq shed 64.41 points, or 1.4%, to 4,707.35. Gold is trading about 1.1% higher, crude oil is seen trading about 1.7% higher, and the U.S. dollar is seen trading about 0.7% lower at about  1:00pm Chicago time.Monday, there were 555 contracts traded, down from 731 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 174 contracts to 9,070.

Rice Crop in Portugal’s Baixo Mondego Area Devastated by Rice Blast; Paddy Prices Said to be Below Cost

Jan 27, 2015
Rice blast (Pyricularia Oryzae) has reportedly devastated Portuguese paddy production in the region of Baixo Mondego, where about 25% of total domestic production is concentrated. Rice farmers of this area say 30-70% of 2014 crop has been lost.Farmers have asked the government for compensation for the damages caused by rice blast; damages are estimated at about 13 million euros (about $ 14.6 million). The problem has intensified in the latest three years, because of excessive dampness and lack of sunlight.
 Farmers are also asking for financial support because Portuguese rice prices are depressed; on January 20 quotations for Long B paddy varieties were fixed at 287 euros (about $ 322) per ton, and for Long A paddy at 308 euros (about $ 346) per ton. Isménio Oliveira, head of Portuguese Rice producers, says production costs are around 350 euros (about $ 393) per ton so current quotations are not granting farmers any profit.In 2014, the total acreage for Portuguese rice production reached  about 27,500 hectares, including: about 7,000 hectares located in Baixo Mandego; 20,000 hectares in Sado and Sorraia Valleys; and about 500 hectares in Vouga Valley.

Spanish Farmers Bemoan Higher Fertilizer Prices, Despite Falling Crude Oil Prices

Jan 27, 2015
In Spain, the cost of fertilizers and herbicides for agriculture has increasing over the last six months, despite lower crude oil prices. Miguel Blanco, the general secretary of the Coordination of Organizations of Farmers and Ranchers of Spain (COAG)  said that Spanish farmers cannot take advantage of lower crude oil prices, blaming high fertilizer and herbicide prices on price speculation in the industry.
A study by COAG showed that during the latter half of 2014 while prices of of Brent crude oil futures declined 46% and prices of gas futures fell 25.5% the price of urea registered an increase of 14%, passing from 38.7 euros (about $ 43) per 100 kgs in July 2014 to 44 euros (about $ 49) per 100 kgs in December 2014. Meanwhile the price of other fertilizers followed this same trend; prices of DAP (diammonium phosphate) increased by 21.4% over that period and the costs of ammonium nitrate rose by 10.6%.
In 2014, in order to get a production valuable 1 euro (about $ 1.12) Spanish farmers had to spend 0.49 euros in chemical supplies, the highest level since 1990.The Ministry of Agriculture summoned a meeting on February 12 to monitor the cost of energy and of chemicals habitually used in agriculture.

Taiwan Imports 9,100 Tons of Rice from U.S. Under 2015 CSQ SBS Tender

Jan 27, 2015

Taiwan has imported around 9,100 tons of rice from the U.S. under the first tranche of 2015 Country Specific Quota (CSQ) Simultaneous Buy and Sell (SBS) tender, according to the USDA Post.Taiwan has conducted the first tranche of SBS tender of the 2015 U.S. rice CSQ for about 17,600 tons on December 2014. But had allocated only 9,1000 tons for six bidders. The details of the bidders, tonnage allocated to them and the price offered by them are given below.
About 18,000 tons will be tendered in the second tranche SBS tender of the 2015 U.S. rice CSQ, the date for which is still not specified. Remaining 29,034 tons of rice will be imported under the 2015 U.S. rice CSQ normal tender scheme, according to the Post. Taiwan has to still complete the 2014 U.S. rice CSQ.
The Post also reports that Taiwan also tendered for about 2,000 tons of rice under Thai 2015 CSQ on the same day, and allotted around 570 tons, 800 tons, 500 tons and 130 tons to four bidders at around NT$7.066 per kilogram (around $222.74 per ton).Taiwan will import about 64,634 tons of rice from the U.S., about 2,500 tons from Egypt, about 8,300 tons from Thailand, and about 18,634 tons from Australia in 2015 under their respective CSQs.

Philippines Plans to Import 500,000 Tons of Rice in Government-to-Government Deals

Jan 27, 2015

The National Food Authority (NFA) of the Philippines is planning to import about 500,000 tons of rice for delivery by May 2015 to boost its stockpiles ahead of the lean season (June - August), according to Reuters. A NFA official was quoted as saying that the government is planning to import rice in two batches of 200,000 tons and on batch of 100,000 before May. He also noted that the NFA is likely to import the rice in government-to-government (G2G) deals.
The NFA imported more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons of 2013 residual imports) in 2014 to replenish rice stocks and control price hikes. Of these, 187,000 tons were allowed to be imported by private traders at 35% duty under the government's Minimum Access Volume (MAV) - Omnibus Rice Importation programme.According to Reuters, the NFA Secretary has not revealed any plans of imports.
USDA estimates the Philippines to import around 1.6 million tons of milled rice in 2015, up about 10% from an estimated 1.45 million tons in 2014. USDA estimates the South-East Asian nation to produce around 19.36 million tons of paddy (around 12.2 million tons, basis milled) in MY 2014-15 (July - June), up about 3% from an estimated 18.82 million tons (around 11.86 million tons, basis milled) in MY 2013-14.

Thailand Rice Sellers Increase Some of Their Quotes; India Rice Sellers Lower Some of Their Quotes Today

Jan 27, 2015
Thailand rice sellers increased their quotes for parboiled rice by about $5 per ton to around $410 - $420 per ton today. India rice sellers lowered their quotes for 100% broken rice by about $5 per ton to around $295 - $305 per ton. Other Asia rice quotes mostly unchanged today.
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. India 5% rice is 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. India 25% rice is 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 $410 - $420 per ton, up about $5 per ton from yesterday. India parboiled rice is 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. India's 100% broken rice is shown at around $295 - $305 per ton,  down about $5 per ton from yesterday and about $5 per ton premium on Pakistan broken sortexed rice quoted at around $290 - $300 per ton.

Taiwan and IRRI Collaborate to Augment Rice Research

Jan 27, 2015
Taiwan's Council of Agriculture (CoA) and the Philippines-based International Rice Research Institute (IRRI) have collaborated to carry out rice and other related agricultural research, according to local sources.Both the COA and the IRRI signed a Memorandum of Understanding (MoU) in this regard on January 26, 2015. Both sides have agreed to promote rice research as well as collaborate on rice breeding and varietal improvement, according to the MoU.
The COA Deputy Minister was quoted as saying that they would contribute their experiences with best practices in rice cultivation to the IRR's pool of knowledge. They would also work towards the development of newer rice production techniques for the benefit of rice producing countries in East Asia.Taiwan has been closely associated with the IRRI for a number of years and the current MoU would allow the COA and the IRRI to engage in advanced cooperation and take relations to the next level, according to the IRRI Director General.
Taiwan produces about 85% of its annual rice consumption needs of about 1.3 million tons and imports the rest. USDA estimates Taiwan to produce around 1.13 million tons of rice, basis milled, in MY 2014-15 (January 2015 - December 2015) and import around 125,000 tons.

USDA Post Forecasts Argentina 2015 Rice Exports at 580,000 Tons, Down 3% from Last Year

Jan 27, 2015

USDA Post estimates Argentina to export around 580,000 tons of milled rice in 2015, down about 3% from an estimated 600,000 tons exported in 2014 and down about 3% from the official USDA estimates of about 600,000 tons. The decline is attributed to a slight decline in the paddy rice output in MY 2013-14 (April 2014 - March 2015)
Harvesting of the 2014 crop has begun. Cloudy weather during the flowering stage as well as floods from the Corrientes river are likely to lower the paddy output to a certain extent, according to the USDA Post. The Post forecasts Argentina's MY 2013-14 (April 2014 - March 2015) paddy rice production at around 1.462 million tons (around 950,000 tons, basis milled), down about 6% from around 1.56 million tons (around 1.014 million tons, basis milled) in MY 2012-13
However, the USDA Post forecasts Argentina's MY 2014-15 (April 2015 - March 2016) paddy rice production at around 1.5 million tons (around 975,000 tons, basis milled), up about 3% from an estimated 1.46 million tons (around 950 million tons, basis milled) in MY 2013-14 due a slight increase in planting area.The Post estimates Argentina's paddy planting area to in to around 236,000 hectares in MY 2014-15, up about 2% from around 232,000 hectares in MY 2013-14.


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