Wednesday, January 07, 2015

7th January (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

California Rice Producers Urged to Adopt Water Management Techniques to Overcome Drought

Jan 06, 2015

Description: http://oryza.com/sites/default/files/field/image/150106californiadrought.jpgWith prolonged drought conditions, rice growers in the U.S. state of California are urged to adopt water management techniques to overcome the effects of dry weather conditions in the long run, according to local sources.Some researchers from the University of California (UC) told local sources that proper water management and reduction of herbicide run-off would help increase paddy yields. They noted that crop rotation serves as one of the best water management techniques. Crop rotation using safflower and sunflower crops would help soil retain moisture as well as nutrients. Use of tomato crop in rotation would help in the control of weeds an diseases. They say using this technique, paddy yield would increase significantly.
Researchers from UC Davis Department of Plant Science noted that though rice seems to be a crop requiring heavy water flow, methods to retain moisture in clay soil (top layer) would certainly help farmers because water is needed primarily to only soak the rice plants' top few inches and not deep below. They are also exploring water management techniques like alternate wetting and drying (AWD) in which rice farmers can alternately dry out and re-flood their fields reducing the water usage by about 30% while not impacting yields. 
Scientists are also working on developing rice varieties that are drought-resistant, need lesser water and produce higher yield. They are also keen on developing rice varieties that have long-term sustainability traits.However, another year of drought is most likely to depress the California rice growers as well as the sector. Unless they adopt water management techniques and drought-resistant varieties, it would mean much lesser production.
California's paddy rice acreage in 2014 had declined to around 420,000 hectares, down about 25% from around 525,000 hectares planted in 2013 due to prolonged dry conditions and water shortages. California is the second largest rice producing state in the U.S. after Arkansas, and contributes to around 2 million tons of paddy rice annually or about 25% of the total rice grown in the U.S. The state's rice sector employs about 25,000 people. Nearly 80% of the rice grown in California is medium-grain rice and is exported. Currently, export prices of the U.S. medium grain rice stand at around $915 per ton. 

Europe Struggles to Compete: EU Rice Production and Exports Slow as Rice Imports Increase

Jan 06, 2015
For the 2013/2014 crop year, rice was planted on 425,000 hectares in all of the European Union (EU), down from 467,000 hectares the previous year, according to data supplied by Copa-Cogeca, the federation of European farmers and farmers' cooperatives. EU rice production in the 2013/2014 crop year totaled 1.77 million tons (basis milled), down from 1.89 million tons (basis milled) the previous marketing year.Forecasts for the 2014/2015 marketing have been projected downwards, with production predicted to be 1.73 million tons (basis milled) with acreage unchanged from 2013/2014.
Exports to non-EU countries are set to fall in 2014/2015 to 160,000 tons from 212,000 tons (basis milled) in 2013/2014. In 2014/2015, imports of rice from non EU countries are set to fall slightly from 1.06 million tons in 2013/2014 to 1 million tons (basis milled). India is the biggest exporter to the EU (18.9%), followed by Cambodia (18.6%) and Thailand (15.9%). In particular, exports from Cambodia to the EU continue to increase, reaching 255,654 tons in 2013/2014, and equivalent to over 60% of Cambodia’s rice exports. In addition, over the last three marketing years, exports from Myanmar to the EU have risen from 35,938 tons to 140,919 tons.The increase in production costs, the lack of effective phytosanitary alternatives, and rice imports from non EU countries are the main factors which have an impact on rice production in the EU, according to local sources.

Can an Agricultural Zoning System Improve the Thai Rice Sector?

Jan 06, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150106thairicesector.jpg
The Thailand government planned to adopt agriculture zoning system for various crops, including rice, last year to avert future oversupply of any commodity and price crashes. The decision was mainly to curb excess rice production and supply, which mainly led to fall in prices. The rice pledging scheme introduced by the previous government led to over accumulation of rice stocks eventually snubbing down the prices over the last couple of years.According to local sources, experts are divided over the likely success of the land zoning system in Thailand. While some support the government's decision, some say extra care has to be taken for the program to yield desired benefits.
The Chairman of the Board of Trade and the Thai Chamber of Commerce noted that the government should consider promoting alternative commercial crops where rice cultivation is not suitable. This would help reduce huge financial burden on the government to subsidize rice farmers every year. He also noted that around 4.32 million hectares of the total 11.2 million hectares of rice land in the country is not suitable to grow rice as does not have proper irrigation facilities and its soil quality is not up to the mark. Farmers of this land should be encouraged to grow other cash crops such as maize, cassava, sugar cane, palm nuts and rubber, and increase their incomes, he said.
The Honorary President of the Thai Rice Exporters Association (TREA) suggested that the zoning system should be used to cater some specific regions for growing particular types of rice. For instance, jasmine rice can be grown in the Northeast region, hard-grained rice can be grown in the upper North and Pathum rice can be grown in the Central region. This would help millers and exporters to differentiate the quality easily and also would help Thailand to maintain adequate quality standards, he said. Currently, all types of rice are mixed up leading to lower quality of cooked rice.
Some experts noted that long-term development in infrastructure such as irrigation facilities, transport and logistics systems, technological improvements in farming and soil-quality improvement for effective implementation of the land zoning system. They said each area should be well scrutinized for sufficient availability of labor and the impact of natural disasters like floods, monsoons and drought.
A researcher from the Thailand Development Research Institute (TDRI) noted that the government could divide the rice farmers into four groups depending on their financial resources and encourage each group to cater to grow a particular type of rice for a specific group.  
Global Rice Quotes

January 6th, 2015

Long grain white rice - high quality
Thailand 100% B grade           420-430           ↔
Vietnam 5% broken     375-385           ↓
India 5% broken          385-395           ↔
Pakistan 5% broken     375-385           ↔
Cambodia 5% broken 455-465           ↔
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   330-340           ↔
Cambodia 25% broken            435-445           ↔
India 25% broken        350-360           ↔
U.S. 15% broken         495-505           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd             405-415           ↔
Pakistan parboiled 5% broken stxd      405-415           ↔
India parboiled 5% broken stxd           375-385           ↔
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       330-340           ↔
Vietnam 100% broken             325-335           ↔
Pakistan 100% broken stxd     300-310           ↔
Cambodia A1 Super    365-375           ↔
India 100% broken stxd          295-305           ↔
Egypt medium grain brokens   NQ       ↔
U.S. pet food   390-400           ↔
Brazil half grain           NQ       ↔










All prices USD per ton, FOB vessel, oryza.com


Oryza Overnight Recap - Chicago Rough Rice Futures Come under Pressure Once Again as Falling Crude Weighs on Market

Jan 06, 2015
Chicago rough rice futures for Mar delivery were trading 2 cents per cwt (about $0.44 per ton) lower at $11.565 per cwt (about $255 per ton) during early floor trading in Chicago. The other grains are seen trading higher: soybeans are currently seen 0.3% higher, wheat is listed about 1.3% higher and corn is currently trading about 0.5% higher.U.S. stocks mostly rose on Tuesday, a day after the market's biggest rout since October, as considered reports that offered a mixed view on the momentum of U.S. economy.
 A measure of the service sector came in below expectations in December, and factory orders fell 0.7% in November versus a forecast of a 0.8% dip. Crude prices fell further, with U.S. oil down 2% and below $49 a barrel. The Dow Jones Industrial Average added 24.43 points, or 0.2%, to 17,526.08. The S&P 500 advanced nearly 2 points, or 0.1%, to 2,022.39, with health care leading sector gains. The Nasdaq dropped 5.52 points, or 0.2%, to 4,647.05. Gold is currently trading about 0.6% higher, crude oil is seen trading about 1.9% lower,  and the U.S. dollar is currently trading about 0.1% higher at 10:10am Chicago time.

Myanmar Illegal Rice Exports to China Reach 800,000 Tons in First Nine Months of FY 2014-15

Jan 06, 2015

Myanmar's rice exports to China through northern borders, especially the Muse border, have surged during the last month due to reduced seizures by the Chinese authorities, according to local sources.
Description: Description: http://oryza.com/sites/default/files/field/image/150106myanmarrice_0.jpgAround 4,500 tons of rice and 1,500 tons of broken rice are being exported to China through the Muse border every day, according to the data provided by the Vice-Chairman of the Muse Paddy Wholesale Center. Total exports through borders have reached around 800,000 tons in the first nine months of FY 2014-15. Total rice exports of the country reached around 915,000 tons from April 1 - December 15, 2014, up about 75% from around 522,857 tons exported during the same period last year, according to the Ministry of Commerce.
The rice trade through northern borders of Myanmar declined significantly after China, which had been demanding a phyto-sanitary agreement with Myanmar, had officially banned rice imports through Myanmar's northern borders in August this year. Following this ban, the Chinese authorities have been seizing the rice consignments of traders if found exporting to China through the northern borders.
Myanmar government has been negotiating with the Chinese authorities to chart a formal trade agreement between the two countries. In November, on the sidelines of the ASEAN summit, the Chinese Premier reportedly promised to import one million tons of rice from Myanmar in 2015 as well as legalize imports through borders. According to the Myanmar Rice Federation, three Chinese companies will each buy around 280,000 tons of rice this year.
The Chairman of the Myanmar Farmers Association said last week that China Certification and Inspection Company (CCIC) is planning to set up an office in Rangoon soon in order to monitor the quality of Myanmar rice before exporting to China.The South-East Asian nation expects to export over 1.5 million tons of rice in FY 2014-15, up about 25% from around 1.2 million tons exported in FY 2013-14. 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 Afternoon Recap - Chicago Rough Rice Futures Finish Little Changed as Market Faces Conflicting Outside Pressure from Rising Grains and Falling Crude

Jan 06, 2015
Chicago rough rice futures for Mar delivery settled 2 cents per cwt (about $0.44 per ton) higher at $11.605 per cwt (about $256 per ton). Rough rice futures ended slightly higher after a session of back-and-forth trading as the market continues to drift sideways. Trade participants expect prices to remain lifeless barring a clear directional signal from the cash market. The other grains also closed mostly higher today; Soybeans closed about 1% higher at $10.5575 per bushel; wheat finished about 0.5% higher at $5.9175 per bushel, and corn finished the day about 0.3% lower at $4.0500 per bushel.
U.S. stocks dropped sharply on Tuesday, with the S&P 500 falling below 2,000 for the first time in nearly four weeks, as investors fretted the implications of crude's failure to find a floor. Crude prices fell further, with U.S. oil down 4% and just above $48 a barrel. Erasing a 79-point gain, the Dow Jones Industrial Average dropped as much as 239 points, and was lately off 210.77 points, or 1.2%, at 17,290.88.
Dipping beneath 2,000 for the first time since Dec. 17, the S&P 500 was lately off 25.95 points, or 1.3%, to 1,994.63, with energy and financials hardest hit among its main sectors. The Nasdaq declined 75.39 points, or 1.6%, to 4,577.18. Gold is trading about 1.2% higher, crude oil is seen trading about 4.5% lower, and the U.S. dollar is seen trading a touch higher at about  1:00pm Chicago time.Monday, there were 590 contracts traded, up from 543 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday decreased by 103 contracts to 8,824.

Oryza U.S. Rough Rice Recap - Lifeless Market as Bid/Ask Spread Widens

Jan 06, 2015
The U.S. cash market was lifeless today as seller price ideas continue to hold around $12.22 per cwt fob farm (about $270 per ton) while most buyers are bidding about $0.50-$0.75 per cwt lower which generated little to no interest.Analysts contend that prices will not stabilize or firm without big purchases from Venezuela or Iraq and that the window for that potential business is shrinking with new crop in South America on the horizon.

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

Jan 06, 2015
Vietnam rice sellers lowered their quotes for 5% broken rice and 25% rice by about $5 per ton each to around $375 - $385 per ton and around $345 - $355 per ton, respectively, today. Other Asia rice sellers kept their quotes 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, down about $5 per ton from yesterday. India 5% rice is quoted at around $385 - $395 per ton, about $10 per ton premium on Pakistan 5% rice quoted at around $375 - $385 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, down about $5 per ton from yesterday. India 25% rice is quoted at around $350 - $360, about $20 per ton premium on Pakistan 25% rice quoted at around $330 - $340 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $375 - $385 per ton, about $30 per ton discount to Pakistan parboiled rice quoted at around $405 - $415 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is 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 $295 - $305 per ton,  about $5 per ton discount to Pakistan broken sortexed rice quoted at around $300 - $310 per ton.

Description: Description: http://oryza.com/sites/default/files/field/image/150106thairiceexports.jpgThailand Exports 9.49 Million Tons of Rice in First Eleven Months of 2014; Up 60% from Last Year

Jan 06, 2015

Thailand has exported around 9.49 million tons of rice in the first eleven months (January - November) of 2014, up about 60% from around 5.92 million tons exported during the same period in 2013, according to data from Thai Rice Exporters Association (TREA). In value terms, Thailand’s rice exports earned about $4.69 billion from total rice exports in January - November 2014, up about 18% from around $3.97 billion earned during the same period in 2013.
In November 2014, Thailand exported around 721,955 tons of rice, down about 41% from around 1.2 million tons exported in October 2014; and up about 39% from around 519,700 tons exported in November 2013. Of the total November sales, white rice accounted for around 375,176 tons (about 52% of total November exports), Hom Mali rice accounted for about 125,081 tons (about 17% of total November exports), brokens accounted for 51,235 tons (about 7% of total November exports), glutinous variety accounted for 9,680 tons (about 1% of total November exports), parboiled rice accounted for about 157,427 tons (about 22% of total November exports) and husked/brown rice accounted for about 3,356 tons (about 0.5% of total November exports).  

Thailand's November 2014 exports earned around $379.39 million, down about 35% from around $580.12  million earned in October 2014; and up about 7% from around $353.7 million earned in November 2013. In November 2014, average export prices of white, Hom Mali, brokens, parboiled and glutinous rice varieties declined, while prices of brokens and husked rice varieties increased over those in October 2014. Average export prices of husked rice witnessed the highest increase of about 17% month-on-month in November 2014. On the other hand, average export prices of Thai Hom Mali rice witnessed the highest decline of about 6% m/m.The TREA expects, Thailand to export around 11 million tons of rice in 2014.

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