About 631,058 Tons of
Italy's 2014-15 Paddy Crop Sold as of January 5, 2015; Up 17% from Last Year
Jan 08, 2015
Around
631,058 tons, or about 44.7% of total Italian 2014-15 (September 2014 - August
2015) paddy crop is sold out as of January 5, 2014, up about 17% from around
540,993 tons sold during the same period last year. Around 278,453 tons of
Long-A varieties; 145,026 tons of Long-B varieties; 40,943 tons of round
paddies and 255,369 tons of medium varieties have been sold since the beginning
of this crop year.
Sales have remained sluggish during the
week December 29, 2014 - January 5, 2015 due to the New Year. A total of around
5,416 tons of paddy were sold during the week. The week's sales included about
1,316 tons of Long A, about 2,927 tons of Long B, about 1,075 tons of round
paddy and 98 tons of medium paddy. Baldo, with 576 tons and Arborio-Volano,
with 499 tons remained the best sold varieties during the week.
A total of around 1.42 million tons of
paddy are available as beginning stocks for 2014-15, down about 2% from around
1.45 million tons available last year. Around 781,271 tons or about 55.3% of
total stocks are yet to be sold.
Bangladesh Releases Two New Hybrid Rice Varieties to
Boost Production
Jan 08, 2015
Bangladesh
government has released two new hybrid rice varieties - BADC Hybrid Dhan 2 and
Buyer Hybrid Dhan 4 - on Monday, according to local sources.Of the two
varieties, BADC Hybrid Dhan 2 has been sourced from China and can yield up to
6.5 - 7.2 tons per hectare; and Buyer Hybrid Dhan 4 has been sourced from India
and can yield up to 6 - 6.5 tons per hectare, according to the Ministry of
Agriculture.Currently, yield from hybrid rice varieties is about 4.7 tons per
hectare. The Director General of the Ministry of Agriculture's Seed Wing noted
that currently, production from hybrid seeds in the country is very meagre
(about 10-12% of total production) and the government is keen increasing it
significantly in the years to come by. He noted that the government is also
keen on reducing agricultural land and at the same time ensure food security in
the country.
Of the total 132 hybrid paddy introduced in
the country, six were developed by the Bangladesh Rice Research Institute
(BRRI), two were developed by the Bangladesh Agriculture Development
Corporation (BADC) and the rest were developed by private companies, he added.Bangladesh
produced around 34.449 million tons of rice, basis milled, in FY 2013-14 (July
- June), up about 2.7% from around 33.833 million tons produced in FY 2012-13,
according to Department of Agriculture Extension (DAE) data.
USDA
estimates Bangladesh to produce around 34.6 million tons of milled rice in MY
2014-15 (May - April), up about 1% from an estimated 34.39 million tons in MY
2013-14. It estimates Bangladesh to import around 500,000 tons of rice in 2015,
down about 26% from an estimated 678,000 tons in 2014.
Global Rice
Quotes
January 9th, 2015
Long grain white rice - high quality
Thailand 100% B grade 420-430
↔
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 330-340
↔
Vietnam 100% broken 325-335
↔
Pakistan 100% broken stxd 290-300
↔
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
↔
All prices USD per ton, FOB vessel, oryza.com
Government Report Recommends Increase of Hybrid Rice Seed
Production in India
Jan 08, 2015
A report by the Agriculture Ministry has
recommended increased use of hybrid rice seed varieties to increase rice
production in country to meet the increasing demand arising from the National
Food Security Mission (NFSM), according to local sources.The report noted that
hybrid rice seed varieties have a significant role to play in increasing rice
production especially in rain fed rice areas. It suggested that the government
should develop about five million hectares with shallow lowland and coastal
ecosystem for additional rice production using hybrid rice seed varieties,
which are tolerant to floods and salinity. It noted that flood prone areas of
Assam, West Bengal, Bihar and Odisha could be used for increasing hybrid rice
production.
The Ministry report slammed the government
to providing subsidies for distribution, marketing and transport but not for
production. It noted that due to this many farmers have been using farm saved
seeds instead of producing certified seeds and the production is being impacted.
It therefore recommended the government should start providing production
subsidies to encourage production of certified seeds, inbred high yielding
varieties and hybrid seeds of pulses and cereals, including rice, in the
country.According to the report, total production of rice has increased from
around 93.36 million tons in 2006-07 (before introducing NFSM) to around 106.54
million tons in 2013-14.
USDA estimates India's 2014-15 (October -
September) production at around 102 million tons, down about 4% from an
estimated 106.29 million tons in 2013-14. It estimates India’s rice exports to
decline about 16% y/y to around 8.7 million tons in MY 2014-15.
Oryza December 2014 Rice Market Review
Jan 08, 2015
The Oryza
White Rice Index (WRI), a weighted average of global white rice export quotes,
ended the month of December at about $431 per ton, down about $6 per ton from a
month ago and down about $32 per ton from a year ago.
Thailand
Thailand 5%
broken rice ended the month of December at about $410 per ton, unchanged from a
month ago, and down about 4% per ton from a year ago.
FAO has
forecast Thailand will reclaim the world's top rice exporter status in 2014.
According to the agency, Thai rice exports to West and Southern African
countries and Far Eastern nations have increased significantly. FAO is
estimating Thailand's rice exports will increase about 53% y/y to about 10.2
million tons in 2014. The agency noted that Thai exports will further increase
to 11 million tons in 2015 despite a likely dent in local production due to
water shortages. Meanwhile, the Thai Rice Exporters Association (TREA)
President said that Thailand's rice exports would reach about 10.2-10.5 million
tons in 2014 and expressed confidence that the Southeast Asian nation would
reclaim the world's top rice exporter this year. Thailand exported about 10.07
million tons of rice between January 1 - December 2, 2014, up about 67% over 6
million tons exported last year, according to TREA.
Thailand has also signed a memorandum of
understanding (MoU) with China to export two million tons of rice next year in
Bangkok during the two-day Greater Mekong Sub-region (GMS) summit December
2014, according to local sources.
While Thailand’s rice stocks remain high,
Thailand sold about 348,000 tons of rice worth 3.6 billion baht (about $81
million) in the last three auctions. Meanwhile, the Thai Commerce Ministry has
also approved to sell about 273,295 tons of rice worth 2.22 billion baht (about
$67.5 million) in fourth auction, which was scheduled in late December,
according to Bloomberg. The government still has about 17.8 million tons of
rice in its stockpiles. Of the stockpiled rice, about 16.7 million tons of rice
is fit to be sold, the Thai Prime Minister said.
The Thailand government is planning to
speed up the stockpiled rice sales process, according to local sources. The
Commerce Ministry has reportedly submitted a rice sales framework for 2015 to
the National Rice Policy and Management Committee (NRPMC). It is keen on
selling the entire stock of rice as early as possible as well as increasing the
efficiency of rice management.
Separately, the Rice Policy and Management
Committee, headed by the Thai Prime Minister, has approved the on-farm pledging
program for paddy main-crop (October 2014 - September 2015) for fragrant
and glutinous rice on November 5, 2014, to limit downward pressure on prices
during the harvest time, according to the USDA. The program is called “Farmer
Loans to Delay the Sales of Rice Paddy for MY2014/15 Main-Crop Fragrant and
Glutinous Rice Paddy” and is open till February 2015. The government expects to
collect about 2 million tons of paddy under the program due to high
intervention prices. The government is planning to buy fragrant rice paddy at
prices about 23% higher than market prices and glutinous rice paddy at prices
about 41% higher than market prices and auction the collected rice in after
February 2015 when the program ends. The government is expected to spend about 29
billion baht (about $921 million) on the program.
A “nail-in-the coffin” statement says, the
recent government intervention schemes in Thailand have proved to be short-term
measures to appease farmers and lacked focus on sustainable long-term measures
to increase competitiveness of the sector, said experts from the International
Trade Studies Center of the University of the Thai Chamber of Commerce
(ITSC-UTCC) and the Thailand Development Research Institute (TDRI).
India
India 5%
broken rice ended the month of December at about $390 per ton, down about 1%
per ton from a month ago and down about 5% per ton from a year ago.
India
average wholesale rice prices have declined in December 2014 for the second
consecutive month amid increasing supplies from the ongoing harvests of the
kharif main rice crop (June - December). Average monthly wholesale rice prices
in India declined to about Rs.2,730 per quintal (about $427 per ton) in
December 2014, down about 1.8% from about Rs.2,779 per quintal (about $448 per
ton) in November 2014, and down about 7% from about Rs.2,941 per quintal (about
$476 per ton) in December 2013.
The USDA has
estimated India's MY 2014-15 (October - September) rice exports at about 8.7
million tons, down about 16% from an estimated 10.3 million tons last year due
to anticipated decline in supplies from low production and competition from
other rice exporting countries. Based on preliminary export figures, India's
rice exports during January-October 2014 stood at about 8.8 million tons, down
about 1% from about 8.9 million tons exported during the same period last year.
Separately,
Iran imposed ban on rice import in November citing excess stocks as reason
which hurt Indian exporters very badly. Iran's basmati rice exports from India
have been increasing significantly for the last few years. In 2013-14, Iran's
basmati rice imports from India accounted for about 1.45 million tons or about
85% of its total rice imports of about 1.7 million tons. Indian Basmati rice
export prices this year fell to about $900 per ton, down about 36% from about
$1,400 per ton last year, according to local sources. The decline is largely
attributed to an expected increase in basmati rice production and decline in
export demand, particularly from Iran.
Separately,
the USDA estimates MY 2014-15 rice production at about 102 million tons based
on government procurement and early market arrival trends. Harvesting of the
Kharif rice crop is almost complete and planting for Rabi rice crop is just
beginning in north-eastern states. The government of India procured about
14.918 million tons of rice as of January 1, 2015 in KMS 2014-15 (October 2014
- September 2015). The government is targeting to procure 30.05 million tons of
rice, from the Kharif crop only, during the KMS 2014-15.
Meanwhile,
India’s rice stocks in the central pool as of December 1, 2014 stood at about
21.57 million tons (including a milled equivalent of about 16.89 million tons
of paddy), down about 23% from about 28.19 million tons recorded during the
same time last year, according to data from the Food Corporation of India
(FCI). However, current rice stocks are about 45% more than the required buffer
and strategic reserve norms of about 11.8 million tons for this time of the
year, according to the FCI.
Vietnam
Vietnam 5%
broken rice ended the month of December at about $385 per ton, down about 1%
per ton from a month ago and down about 6% per ton from a year ago.
Vietnam
exported about 6.036 million tons of rice during January 1 - December 26, 2014,
down about 10% from about 6.71 million tons of rice exported in full year of
2013, according to data from the Vietnam Food Association (VFA). The average
rice export price so far in this year stands at about $440 per ton (FOB), up
about 1.6% per ton from about $433 per ton recorded same time last year.
The VFA is
targeting to export between 7 million tons and 7.5 million tons of rice
(including about 6.7 million tons of official and about 300,000 - 800,000 tons
of non-official exports to China) in 2015, according to Reuters. According to
the information on the Vietnam Customs Department website, Vietnam is expected
to export about 2.4 million tons of rice to China (both official and
unofficial), about 1 million tons to Indonesia, about 500,000 tons - 1.1
million tons to Malaysia and about 1.5 million tons of rice to the Philippines
this year. Meanwhile, the Agriculture Ministry of Vietnam said that Vietnam's
total paddy production in 2014 would reach about 44.84 million tons (about 28
million tons, basis milled), up about 1.8% from about 44 million tons (about
27.5 million tons, basis milled) produced in 2013. The Ministry added Vietnam's
rice exports in 2014 are expected to reach about 6.53 million tons, down about
0.9% from about 6.59 million tons in 2013 due to a stiff competition from other
exporting nations such as Thailand and India.
Separately,
the World Trade Organization (WTO) Center in Vietnam has urged the government
of Vietnam to reduce and eventually stop cross-border export and import
transaction with China in order to reduce its ballooning trade gap with China,
according to local sources.
Pakistan
Pakistan 5%
broken rice ended the month of December at about $385 per ton, unchanged from a
month ago and down about 1% per ton from a year ago.
Pakistan
exported about 459,419 tons of rice in November 2014, up about 58% from about
289,884 tons exported in October 2014, according to provisional data from the
Pakistan Bureau of Statistics (PBS). In terms of value, Pakistan's rice
export earnings increased to about $221.2 million in November 2014, up about
43% from about $154.7 million earned in October 2014. Meanwhile, the National
Space Agency of Pakistan (SUPARCO) and FAO have estimated Pakistan FY 2014-15
(July - June) paddy rice production to decline about 19% to about 8.437 million
tons (about 5.65 million tons, basis milled) from about 10.04 million tons
(about 6.72 million tons, basis milled) produced last year. The decline is
attributed to floods that hit the Punjab state in the month of August having
damaged about 116,700 hectares of paddy fields. Over 217,000 tons of paddy was
said to be lost in the Punjab state.
Separately,
Pakistan rice exporters are hopeful of resuming basmati rice exports to Mexico,
which banned basmati rice shipments from Pakistan in June 2013 after finding
traces of Khapra beetle in some shipments of Pakistan, according to local
sources.
The Rice
Exporters Association of Pakistan (REAP) is also seeking government support to
increase rice exports to existing markets such as China, Malaysia, Indonesia,
Kenya, Iran and Iraq as well as in exploring new markets, according to local
sources.
Cambodia
Cambodia 5%
broken rice ended the month of December at about $465 per ton, up about 1% per
ton from a month ago and unchanged from a year ago.
Cambodia
exported about 387,061 tons of rice in calendar year 2014, up about 2% from
about 378,856 tons rice exported in the same period last year, according to
local sources. Cambodia is targeting to export about one million tons rice in
2015. However, Price Minister of Cambodia said that the country is unlikely to
achieve the self-imposed target due to a lack of milling capacity and funding.
South & Central
America
Brazil 5% broken rice ended the month of December
at about $550 per ton, unchanged from a month ago and down about 20% per ton
from a year ago. Brazil’s National Grains Supply Company (Conab) has forecasted
the country's 2014-15 paddy rice production at about 12.21 million tons,
slightly up from about 12.12 million tons in 2013-14. Conab lowered its projections
for Brazil 2014-15 paddy rice production by about 2.3% from its last month's
projection of about 12.51 million tons. Separately, Brazil has exported about
1.19 million tons of rice in January - November 2014, according to data
released by the country's Rice Institute Rio Grande do Sul.
Five percent
broken rice from Uruguay and Argentina ended the
month of December at about $600 per ton, unchanged from a month ago and down
about 5% per ton from a year ago. Argentina has
exported about 447,333 tons of rice in the first nine months (January –
September) of 2014, up about 9% from about 411,294 tons exported during the
same period in 2013, according to data from the Ministry of Agriculture in
Argentina. The USDA estimates Argentina's milled rice production at about one
million tons in MY 2014-15 (April – March), against consumption of about
440,000 tons. It estimates Argentina will export about 600,000 tons of rice in
MY 2014-15.
The
government of Venezuela has announced it will subsidize paddy rice
prices at about 6.10 bolivars per kilogram (about $960.69 per ton), according
to Bloomberg. The subsidy details have been published in the official gazette
number 40,567 and the subsidy is applicable in the states of Barinas and
Portuguesa. In November, the Venezuelan government fixed maximum retail price
(MRP) of rice at about 9.63 Bolivars per kilogram (about $1,532 per ton) for
the producer in order to help them increase their incomes.
Guyana has exported about 501,208 tons of rice in
2014, up about 27% from about 394,000 tons exported in 2013, Agriculture
Minister said. Guyana produced about 633,000 tons, up about 18% from about
535,212 tons from last year, according to the Agriculture Ministry.
Mexico has imposed a 9% tariff on imported paddy
rice and a 20% tariff husked, long grain and other imported rice from all the
countries that do not have free trade agreements (FTAs), according to USDA
Post. The U.S. is exempted from the tariff because of the North America Free
Trade Agreement (NAFTA). The government has decided to reinstate import tariffs
as Mexico's paddy rice production declined by about 50%, while domestic
consumption has increased about 12%, according to the new decree.
Separately, Mexico's
Secretariat of Agriculture, Livestock, Rural Development, Fisheries and
Foodstuffs (SAGARPA) has decided to provide support payments to rice farmers to
help them overcome losses from declining rice prices since August 2012,
according to the USDA. Rough rice prices on the Chicago Board of Trade (CBOT)
have declined about 14% to about $300 per ton in August-September 2014 from
about $350 per ton in August 2012, the USDA said.
U.S.
U.S. 4%
broken rice ended the month of December at about $545 per ton, down about 5%
per ton from a month ago and down about 13% per ton from a year ago. CBOT
near month's rough rice future ended the month at about 11.64 per cwt (about
$257 per ton, down about 6% from a month ago and down about 24% from a year
ago.
The USDA has
forecasted U.S. MY 2014-15 all rice exports at about 4.67 million tons, up
about 10% from an estimated 4.24 million tons last year and slightly up from
its last month's forecast of about 4.63 million tons. USDA lowered estimates
for U.S. MY 2014-15 all rice ending stocks by about 3% to about 1.81 million
tons from its last month's estimates of about 1.86 million tons. It estimates
U.S. all rice ending stocks to increase about 21% y/y in MY 2014-15.
The U.S'
eased existing financing and banking restrictions on food items from the
50-year embargo with Cuba in December. Now from this stance it is likely to
increase U.S. exports of agricultural products, including rice, with the Cuba,
according to local sources. Cuba imported about 30% of its annual rice import
needs from the U.S. between 2001 and 2004.However, U.S. rice exports to Cuba
started declining till 2008 and have stopped since then due to certain
financing and banking restrictions imposed by the U.S. government with Cuba.
Cuba imports about 50% of its annual rice consumption needs.
Africa
The USDA has forecasted Ghana's MY
2014-15 (October - September) rice imports at about 600,000 tons, down about 7%
from about 644,000 tons last year due to increasing prices of imported rice
resulting from the rapid depreciation of Ghana currency against the U.S.
dollar. The agency finds that demand for rice has been increasing due to
persisting shortfall in production. Share of U.S. rice in Ghana's rice imports
has declined by about 77% to about $16.9 million in 2013-14 from about $73.3
million in 2011-12 due to high prices of U.S. rice, according to the USDA.
The agency forecasts, Ghana's MY 2014-15
rice production at about 300,000 tons, up about 3% from about 290,000 tons last
year and about 9% lower than USDA's official estimates of about 330,000 tons
due to adequate and timely rains in all rice-growing regions as well as the
government support by way of introducing improved high yielding, disease
resistant rice varieties to producers and assisting them to adopt low cost
water management techniques. Separately, the Ghana Rice Inter-Professional Body
(GRIB) has urged the government to adopt new strategies to boost rice
production in the country, according to local sources.
The FAO has estimated Sierra Leone's 2015 rice, basis milled, imports at
about 215,000 tons, slightly from 2014. The expected increase in imports is
attributed to shortfalls in 2014 production levels. The FAO estimates Sierra
Leone's 2014 milled rice production at about 770,000 tons (about 1.15 million
tons, basis paddy), down about 8% from about 831,600 tons (about 1.25 million
tons, basis paddy) last year, despite favorable weather conditions and timely
rains due to the Ebola Virus Disease (EVD) outbreak, which has severely
affected the country since the beginning of this year.
The FAO has estimated Guinea's 2015
rice, basis milled, imports at about 320,000 tons, up about 7% from about
300,000 tons in 2014. The probable increase in imports is attributed to
shortfalls in 2014 production levels. The UN agency estimates Guinea's 2014
milled rice production at about 1.315 million tons (about 1.976 million tons,
basis paddy), down about 4% from about 1.368 million tons (about 2.075 million
tons, basis paddy) last year, despite favorable weather conditions and timely
rains due to the EVD outbreak, which has severely affected the country since
the beginning of this year. The FAO estimates that the country to have very
little ending stocks in 2014 assuming increased domestic utilization.
China
The USDA has
estimated China's rice imports at about 3.7 million tons in MY 2014-15 (July -
June), down about 3% from an estimated 3.8 million tons in MY 2013-14 due to an
expected increase in production. The agency estimates China to produce 144
million tons of rice in MY 2014-15, up about 1% from an estimated 142.53
million tons in the previous year due to an estimated increase in paddy rice
acreage. Separately, the FAO has forecasted China's rice imports at about
2.4 million tons in calendar year 2014, unchanged from last year due to an
expected increase in production. The FAO estimates China’s paddy rice
production at about 205 million tons (about 143.3 million tons, basis milled)in
calendar year 2014, up about 1% from about 203.6 million tons last year (about
142.3 million tons, basis milled) . The increase is attributed to a slight
increase in area planted, prompted by higher minimum purchase/support prices
(MSP) and other government support measures, including direct payments to
farmers and subsidies for seed and machinery as well as other agricultural
inputs.
China has imported about 2.014 million tons
of rice in the first ten months of 2014 (January - October), up about 7% from
about 1.874 million tons imported during the same period last year, according
to data from China Customs General Administration. Meanwhile, China has
exported about 345,369 tons of rice in January - November 2014, down about 24%
from about 455,970 tons exported during the same period last year, according to
data from the Customs.
The government of China is also planning to
take advantage of the prevailing lower global rice prices by importing more
rice at the current lower prices, according to a post on the government
website.Extra imports would help in boosting local rice stocks and supplies
thereby ensuring food security in the country, according to National
Agricultural Officers.Separately, China's Ministry of Agriculture has renewed
bio-safety certificates to two varieties of pest-resistant genetically modified
(GM) rice for another five years, according to Reuters. The Ministry renewed
the certificates contrary to its earlier decision not to renew them.
Philippines
The government of the Philippines aimed to
achieve self-sufficiency in rice production in 2013, but could achieve only 92%
of the self-sufficiency target due to a series of typhoons that hit the
country. Now the government has temporarily put off the rice self-sufficiency
target and is planning to import sufficient rice to ensure adequate stocks and
control price hikes. The Philippines has imported about 1.8 million tons of
rice since the beginning of 2014 to replenish rice stocks and control price
hikes. It has recently allowed the private sector to import another 187,000
tons of rice under the minimum access volume (MAV) program, with delivery on or
before February 28, 2015.
However, Typhoon Hagupit (Ruby) which
reportedly damaged about 52,034 tons of paddy rice worth P890.92 million (about
$20 million), may not impact the overall paddy rice output in the first quarter
of 2015, the Agriculture Undersecretary said.
Separately, the Philippines Department of
Agriculture (DA) is targeting to produce about 20 million tons of paddy rice in
2015, up about 6% from an estimated 18.8 million tons in 2014, according to
local sources.
Myanmar
Myanmar
exported about 915,000 tons from April 1 - December 15, 2014, up about 75% from
about 522,857 tons exported during the same period last year, according to the
Ministry of Commerce. Separately, Myanmar is targeting to export more than 1.5
million tons of rice in FY 2014-15 (April - March), up about 25% from about 1.2
million tons exported last year, the Myanmar Rice Federation (MRF) Joint
Secretary said. Myanmar rice exports to China through its northern borders have
reached about 716,272 tons accounting for nearly 78% of the total rice exports
since the beginning of this fiscal year, which began on April 1, according to
local sources.
The Myanmar
government is also planning to release its National Export Strategy, which aims
to promote the main export commodities, including rice, hotels and tourism
sector and supporting services, in January 2015, according to local sources.
The National Export Strategy, which is prepared by the officials from the
Ministry of Commerce, Customs Department, Myanmar Port Authority and exporters,
will be submitted for government approval in the last week of December 2014,
according to the Advisor to the Commerce Minister.
Europe
The European Union's (EU) rice imports from the Least
Developed Countries (LDCs) of Asia such as Cambodia, Laos and Myanmar under the
Everything But Arms (EBA) Agreement have increased about 5% to about 65,280 in
first three months of 2014-15, from about 62,253 tons imported during the same
period last year.
Italy has exported about 632,930 tons of rice,
basis milled, in the crop year 2013-14 (September 1, 2013 - October 31, 2014),
down about 6.3% from about 675,434 tons exported in the crop year 2012-13,
according to data from the Ente Nazionale Risi, the National agency for rice.
Separately, Italian rice farmers are reportedly reducing the use of certified
seeds for the last couple of years, according to the data from Nazionale Risi,
the use of certified seeds in the crop year 2013-14 remained unchanged from the
previous year despite an increase in the rice acreage. The data also shows that
area for growing certified seeds in 2013-14 has declined by about 20% y/y due
to reduction in the usage of certified seeds.
Other Markets
The USDA has
estimated Indonesia to import about 1.225 million tons of rice
in MY 2013-14 (January 2014 - December 2014), up about 88% from an estimated
650,000 tons in MY 2012-13. Based on the forecasts by the Indonesian National
Statistics Agency (Badan Pusat Statistik, BPS), the agency estimates Indonesia's
milled rice production at about 36.3 million tons (about 57.16 million tons,
basis paddy), slightly down from an estimated 36.55 million tons (about 57.56
million tons, basis paddy) and up about 0.8% from USDA's official estimates of
about 36 million tons (about 56.69 million tons, basis paddy). Separately, the
Agriculture Minister of Indonesia said that the country needs to produce over
80 million tons (about 52.8 million tons, basis milled) of paddy rice in 2015
to achieve food self-sufficiency target in the next three years. The Minister
said the government is planning to increase the allocation for farming in the
2015 budget to about Rp20 trillion (about $1.6 billion) from the current Rp4.1
trillion (about $330 million) as part of efforts to achieve the food
self-sufficiency target.
Indonesia's new President is targeting to achieve
self-sufficiency in rice, corn and soybean production by 2017 and is
accordingly planning to build 47 water reservoirs as well as renovate the
existing irrigation canals.
Indonesia is hoping to import no rice in 2015 given
good prospects for paddy production during the year, according to local
sources.
Bangladesh's private sector has imported about
405,000 tons of rice so far (July - December 9) in FY 2014-15 (July - June), up
about 8% from about 374,560 tons imported last year according to local sources.
Meanwhile, the government has so far not imported any rice in this fiscal year.
But it has set a target of importing about 200,000 tons of rice in the fiscal
year 2014-15 to replenish falling stocks in the country, according to the
Directorate of Food of Bangladesh.
Separately,
in the light of increasing rice imports by the private sector, a Parliamentary
Standing Committee advised the Bangladesh government to curb rice imports,
particularly from India, in order to protect the competitiveness of the
country's rice sector, according to local sources. Based on data from the
National Board of Revenue, the Committee noted that the government has been
following zero-duty policy for rice imports since 2006-07 and suggested that
the government should withdraw this policy to encourage rice farmers as well as
the other stakeholders.
Bangladesh will receive China’s support to boost rice
production in the country under an agricultural cooperation agreement,
according to local sources. Under the agreement, China has agreed to transfer
the technology of its indigenous high-yielding rice variety to Bangladesh and
will also set up a rice research center in Bangladesh.
The USDA has
forecasted South Korea's rice imports to more than double to
about 560,000 tons in MY 2014-15 (November - October) from an estimated 240,000
tons last year, and up about 37% from USDA's official estimates of about
410,000 tons. The South Korean government, which decided to liberalize its rice
import market from the beginning of this year, seems not to have a smooth
going. The government as planned started imposing 513% tariff on imports over
and above its minimum market access (MMA) quota of about 409,000 tons under WTO
regulations from January 1, 2015. Imports under the MMA quota would attract a
tariff of 5%.
Separately,
the USDA estimates South Korea's MY 2014-15 milled rice production at
about 4.24 million tons, slightly up from an estimated 4.23 million tons last
year; and about 1.4% up from USDA's official estimates of about 4.18 million
tons due to continued favorable weather conditions until the completion of the
harvest.
Mustapha
Pakzad, global business consultant and Chairman of U.K.-based Pakzad Consulting
Group, told Oryza that Iran will resume rice import from February
2015. He said the ban is due to the fact that the new government wants to clear
the over-stock.
Nepal's 2014 paddy rice production is likely to
decline about 5.1% to about 4.78 million tons from about 5 million tons last
year due to a late monsoon and untimely rainfall, sources from the Ministry of
Agricultural Development (MAD) said. Separately, The FAO estimates Nepal 2014
paddy production at about 4.6 million tons (about 3.1 million tons, basis
milled), down about 9% from about 5 million tons (about 3.35 million tons,
basis milled) due to an estimated 6% decline on planted area as a result of
late and below-average monsoon rains, which delayed sowing process and thereby
leading to reduced yields. Meanwhile, The agency has forecasted Nepal 2014-15
(July - June) rice imports to surge to about 500,000 Tons, up about 11% from
about 450,450 tons in 2013-14 due to an expected decline in 2014 production and
sustained demand.
Research and Scientific
Development:
Scientists
from the Swiss Federal Institute of Technology or Ecole Polytechnique Fédérale
de Lausanne have found that rice is more effective in reducing the toxicity of
cholera bacterium Vibrio cholera.
Scientists
of the Bihar Agriculture University, India, have developed a new
drought-resistant rice variety known as "Sabour Ardhjal" for
rain-deficient areas in the state.
A study by
the India-based Central Rice Research Institute under the Indian Agriculture
Ministry has found that the low land flooded rice ecosystem, which is often
viewed as a source of methane emissions contributing to global warming, can
store carbon in soil and behave a net carbon sink.
The
Philippine Rice Research Institute is developing new rice varieties that can
endure high temperatures and provide high yields.
December Tenders:
South Korea
bought about 90 tons rice in a tender.
Iraq issued
a tender to buy at least 30,000 tons rice.
Pakistan Rice Sellers Lower Some of Their Quotes Today;
Other Asia Rice Quotes Unchanged
Jan 08, 2015
Pakistan
rice sellers lowered their quotes for 100% broken rice by about $10 per ton to
around $290 - $300 per ton 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. 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. India 25% rice is quoted
at around $350 - $360, about $25 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 $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 premium on Pakistan broken sortexed rice quoted at around $290 - $300
per ton, down about $10 per ton from yesterday.
Thailand May Sign MOU with Hong Kong to Export 100,000
Tons of Jasmine Rice in 2015
Jan 08, 2015
Thailand is
likely to sign a Memorandum of Understanding (MoU) with Hong Kong to export
around 100,000 tons of jasmine rice this year, according to Reuters.The Thai
Commerce Minister will reportedly visit Hong Kong this month to sign the MoU.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 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).
Thai Military Legislature to Begin Impeachment Hearing
Against Former Prime Minister on January 9, 2015
Jan 08, 2015
Thailand's
National Legislature Assembly (NLA) will begin impeachment hearing against the
former Prime Minister (PM) Yingluck Shinawatra on January 9, 2015 for her
alleged negligence in the management of the paddy rice pledging scheme, which
her government introduced in October 2011, according to Bloomberg.The hearing
was initially scheduled on November 12, 2014, but the NLA deferred it based on
the request of the former PM.
The former PM is facing charges of ignoring
warnings against misdealing in the controversial rice pledging scheme, which
brought losses of over 500 billion baht (around $15.6 billion) to the
exchequer. The Thai Prime Minister noted that his government would exercise
full extent of martial law, if protests occur during these meetings.The final
outcome of the proceedings is expected by the end of this month. If impeached,
the former PM could face a five year political ban, according to experts.
Thailand 2014-15 Paddy Rice Output Estimated at 33.8
Million Tons; Down 8% from Last Year
Jan 08, 2015
Thailand's Office of Agricultural Economics
(OAE) has estimated the country's paddy rice output for 2014-15 at around 33.8
million tons (around 22.3 million tons, basis milled), down about 8% from
around 36.8 million tons (around 24.3 million tons, basis milled) last year,
according to a notice on its website.The OAE estimates output from the 2014-15
main crop at around 27.1 million tons (around 17.89 million tons, basis
milled), slightly up from around 27.09 million tons (around 17.88 million tons,
basis milled) in 2013-14. It estimated output from the 2014-15
secondary/off-season crop at around 6.7 million tons (around 4.4 million tons,
basis milled), down about 31% from around 9.75 million tons (around 6.4 million
tons, basis milled) last year.
The decline
is attributed to an expected decline in paddy rice acreage of the secondary
crop. The OAE estimates paddy rice acreage of 2014-15 main crop to decline
slightly to around 9.88 million hectares from around 9.93 million hectares last
year. It estimates paddy rice acreage of 2014-15 secondary crop to decline
about 29% to around 1.7 million hectares from around 2.4 million hectares last
year.The OAE estimates per hectare yield from the 2014-15 main crop to increase
slightly to 2.74 tons from 2.73 tons last year; and per hectare yield from the
2014-15 secondary crop to decline 2.5% to 3.91 tons from around 4.01 tons last
year.
The Thai
government had discouraged rice farmers from planting for off-season crop due
to drought and water shortages in reservoirs. The government is also planning
to reduce acreage by about 4.44 million hectares (or about 39% of the total
rice area of around 11.34 million hectares) under an agricultural zoning system
to grow other cash crops, such as sugarcane, in 3-4 years.
Lower
production this year is being considered as a blessing in disguise for the Thai
government, which is already struggling to sell its huge rice stockpiles
accumulated from the rice pledging scheme introduced by the previous
government. 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).USDA estimates Thailand to produce
around 31 million tons of paddy rice (around 20.5 million tons, basis paddy)
and export around 11 million tons in MY 2014-15.
India Rice Stocks in Central Pool Stand at 22.79 Million
Tons as of January 1, 2015; Down 24% from Last Year
Jan 08, 2015
India’s rice
stocks in the central pool as of January 1, 2015 stood at around 22.79 million
tons (including a milled equivalent of about 16.996 million tons of paddy),
down about 24% from around 29.85 million tons recorded during the same time
last year, according to data from the Food Corporation of India (FCI).Month-over-month,
India's rice stocks in the central pool are up by about 6% from around 21.57
million tons recorded on December 1, 2014. However, current rice stocks are
about 65% more than the required buffer and strategic reserve norms of around 
13.8 million
tons for this time of the year, according to the FCI.Total food grain stocks
(including rice and wheat) in the central pool stand at around 48.158 million
tons as of January 1, 2014, down about 17% from last year's stock of around
58.273 million tons and down about 2% from last month's stock of around 49.381
million tons. Wheat stocks stand at around 25.113 million tons, down about 10%
from last year's stock of around 28.047 million tons and down about 9% from
last month's stock of around 27.569 million tons.
13.8 million
tons for this time of the year, according to the FCI.Total food grain stocks
(including rice and wheat) in the central pool stand at around 48.158 million
tons as of January 1, 2014, down about 17% from last year's stock of around
58.273 million tons and down about 2% from last month's stock of around 49.381
million tons. Wheat stocks stand at around 25.113 million tons, down about 10%
from last year's stock of around 28.047 million tons and down about 9% from
last month's stock of around 27.569 million tons.
Oryza Afternoon Recap - Chicago Rough Rice Futures Slide
under Pressure from Falling Grains; Euro Weakens on ECB Statements
Jan 08, 2015
Chicago rough rice futures for Mar delivery
settled 12.5 cents per cwt (about $3 per ton) lower at $11.525 per cwt (about
$254 per ton). Rough rice futures turned negative today, weighed down by
outside markets, prices showed little sign of what appeared to be an uptick in
buying interest noted yesterday. Technically today’s move is yet another
bearish sign for future price action as the market has broken the previous
day’s low. Traders will keep a close eye on Friday’s low of $11.395 per cwt
(about $251 per ton) as this level now acts as nearby support. The grain
complex as a whole traded lower today; Soybeans closed about 0.8% lower at
$10.4825 per bushel; wheat finished about 2.2% lower at $5.6700 per bushel, and
corn finished the day about 0.5% lower at $3.9425 per bushel.
U.S. stocks surged for a second day on
Thursday, with the Dow turning higher for the year, as the price of oil
steadied and on thinking the Federal Reserve and the European Central Bank
would buttress the global economy. Comments late Wednesday by Fed Bank of
Chicago President Charles Evans helped the bullish slant, with Evans saying he
did not believe the central bank should be in a rush to hike interest rates. In
a letter to European lawmakers, ECB President Mario Draghi said the ECB would
reassess its monetary-policy stance early this year, and that ECB moves could
include sovereign bond purchases, Bloomberg reported on Thursday. Data Thursday
had jobless claims dropping by 4,000 to 294,000 last week, with the
better-than-expected number coming a day before the payrolls report for
December. Recouping a 461-point deficit tallied on Monday and Tuesday, the Dow
Jones Industrial Average rose as much as 306 points, and was lately up 301.46
points, or 1.7%, to 17,885.98, with all 30 of its components advancing. The
S&P 500 added 34.08 points, or 1.7%, to 2,059.98, with all 10 of its major
industry groups rising. The Nasdaq gained 83.12 points, or 1.8%, to 4,733.52.
Gold is trading about 0.2% higher, crude oil is seen trading about 1.4% lower, and
the U.S. dollar is seen trading about 0.4% higher at about 1:00pm Chicago
time.Wednesday, there were 255 contracts traded, up from 228 contracts traded
on Tuesday. Open interest – the number of contracts outstanding – on Wednesday
decreased by 94 contracts to 8,763.
Oryza Overnight Recap - Chicago Rough Rice Futures
Continue to Trade Sideways in Tight Trading Range
Jan 08, 2015
Chicago rough rice futures for Mar delivery
are currently trading 3.5 cents per cwt (about $1 per ton) lower at $11.615 per
cwt (about $256 per ton) during early floor trading in Chicago. The other
grains are seen trading lower: soybeans are currently seen 0.4% lower, wheat is
listed about 0.9% lower and corn is currently noted about 0.5% lower.U.S.
stocks surged on Thursday, extending the prior day's robust gains, as the price
of oil steadied and on thinking the Federal Reserve and the European Central Bank
would buttress the global economy.
Comments late Wednesday by Fed Bank of
Chicago President Charles Evans helped the bullish slant, with Evans saying he
did not believe the central bank should be in a rush to hike interest rates.
Data Thursday had jobless claims dropping by 4,000 to 294,000 last week, with
the better-than-expected number coming a day before the payrolls report for
December. The Dow Jones Industrial Average rose 196.74 points, or 1.1%, to
17,781.26. The S&P 500 added 20.49 points, or 1%, to 2,046.42. The Nasdaq
gained about 0.8%. Gold is currently trading about 0.8% lower, crude oil is
seen trading nearly unchanged, and the U.S. dollar is currently trading
about 0.5% higher at 10:10am Chicago time.
Oryza U.S. Rough Rice Recap - Sell Interest Picks up at
Lower Prices in 2015
Jan 08, 2015
The U.S.
cash market saw an uptick in sell interest today, albeit limited, as some in
the industry are beginning to think that the U.S. rice market could be headed
for even lower prices before the end of the marketing year if there
is not an increase in export demand.Analysts note that the new prices that have
been seen trading in 2015 are roughly $0.50 per cwt (about $11 per ton) lower
than the prices that were seen trading before the market went dormant for
holidays.
In the
meantime, the USDA reported that cumulative net export sales for the week
ending on January 1 totaled 28,600 tons, which was considerably higher
than last week but 53% lower than the prior 4-week average.Increases were
reported for the following destinations: 9,500 tons to Haiti, 6,000 tons to
unknown destinations, 2,600 tons to Turkey, 2,500 tons to Saudi Arabia, and
2,400 tons to Jordan. Decreases of 600 tons were reported for Iraq.U.S. rice
exporters shipped 50,500 tons, which was 45% lower than last week and 34% lower
than the prior 4-week average. The primary destinations included 28,100
tons to Turkey, 10,500 tons to Haiti, 4,400 tons to Mexico, 3,300 tons to
Canada, and 1,700 tons to Jordan.
Vietnam Rice Exporters Foresee Tough Year Ahead
Jan 08, 2015 
Vietnam rice exporters have
clinched export contracts for one million tons of rice for delivery this year,
up about 25% from same period last year, according to local sources. Most of
the contracts were signed by the members of the Vietnam Food Association (VFA)
last year.However, exporters say they have to face a stiff competition this
year from Thailand, India and Pakistan. While Thailand is expected to offload
more stocks from its warehouses into the market, India and Pakistan have
already reduced prices of low and medium quality rice varieties to compete with
Vietnam. Currently export prices of India 5%, Pakistan 5% and Thai 5% rice
stand at around $390 per ton, $380 per ton and $410 per ton respectively
compared to around $380 per ton of $Vietnam 5% rice.Due to these reasons, it
may be difficult for Vietnam to take advantage of a likely increase in demand
from Malaysia, Indonesia and the Philippines, say experts. Vietnam has
yesterday lowered the floor prices of high quality 5% rice and medium quality
10% and 15% rice to $385 per ton, $375 per ton and $365 per ton respectively to
meet the Philippine demand for 187,000 tons of rice, which is to be delivered
by February 28, 2015.Vietnam's Ministry of Industry and Trade (MOIT) noted that
the rice exporters need to find new markets for Vietnamese rice in order to
sustain competition. The Ministry also urged VFA as well as other relevant
agencies to help exporters to deal with the challenges smoothly. Experts are
also suggesting the government to increase production of higher quality rice
and focus on attracting high-end markets. This would increase competitiveness
of the Vietnamese rice as well raise farmers and exporters' incomes.Vietnam
exported around 7.5 million tons of rice, including about 6.5 million tons of
official rice exports and around 1 million tons of unofficial rice exports to
China through borders) in 2014, according to the VFA. The South-East Asian
nation is targeting to export between 7 million tons and 7.5 million tons of
rice (including both official and non-official exports to China) in 2015.
Vietnam rice exporters have
clinched export contracts for one million tons of rice for delivery this year,
up about 25% from same period last year, according to local sources. Most of
the contracts were signed by the members of the Vietnam Food Association (VFA)
last year.However, exporters say they have to face a stiff competition this
year from Thailand, India and Pakistan. While Thailand is expected to offload
more stocks from its warehouses into the market, India and Pakistan have
already reduced prices of low and medium quality rice varieties to compete with
Vietnam. Currently export prices of India 5%, Pakistan 5% and Thai 5% rice
stand at around $390 per ton, $380 per ton and $410 per ton respectively
compared to around $380 per ton of $Vietnam 5% rice.Due to these reasons, it
may be difficult for Vietnam to take advantage of a likely increase in demand
from Malaysia, Indonesia and the Philippines, say experts. Vietnam has
yesterday lowered the floor prices of high quality 5% rice and medium quality
10% and 15% rice to $385 per ton, $375 per ton and $365 per ton respectively to
meet the Philippine demand for 187,000 tons of rice, which is to be delivered
by February 28, 2015.Vietnam's Ministry of Industry and Trade (MOIT) noted that
the rice exporters need to find new markets for Vietnamese rice in order to
sustain competition. The Ministry also urged VFA as well as other relevant
agencies to help exporters to deal with the challenges smoothly. Experts are
also suggesting the government to increase production of higher quality rice
and focus on attracting high-end markets. This would increase competitiveness
of the Vietnamese rice as well raise farmers and exporters' incomes.Vietnam
exported around 7.5 million tons of rice, including about 6.5 million tons of
official rice exports and around 1 million tons of unofficial rice exports to
China through borders) in 2014, according to the VFA. The South-East Asian
nation is targeting to export between 7 million tons and 7.5 million tons of
rice (including both official and non-official exports to China) in 2015.
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