Monday, February 16, 2015

10th February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

Myanmar Rice Millers Collaborate with China Firm to Build Modern Rice Mills

Feb 09, 2015

Description: http://oryza.com/sites/default/files/field/image/150209myanmarrice.jpgThe Myanmar Rice Miller Company (MRMC), a part of the Myanmar Rice Millers Association (MRMA), has entered into an agreement with China CAMC Engineering Company Limited (CAMCE) to construct modern and advanced rice mills in the country, according to local sources. According to the agreement, both the sides have agreed to build two 200-ton rice mills in Myanmar by 2017. According to the Joint Secretary of MRMA, the two companies have already acquired land required for one mill in Sarmalauk in Nyaungdone and will shortly begin the construction work. They will begin construction of the second mill after the completion of the first mill, he said.
The collaboration is part of the two countries' understanding on rice exports. Myanmar is planning to produce rice in line with the Chinese specifications and export the same to China. The Myanmar Rice Federation (MRF) is understood to have entered into a deal with China's state-owned COFCO to export around 100,000 tons of rice at the market price after the completing the construction of the mills.Myanmar exported nearly one million tons of rice to China in the FY 2014-15 (April - March) .
China has reportedly ordered 2 million tons of rice from Myanmar. in 2015 and about nine companies have been shortlisted to export rice to China from April 2015. In the mean time, 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.Some Thai millers and exporters are also understood to be keen on developing rice production and processing companies, including large-scale rice mills, in Myanmar. They are also planning to form joint ventures with local Myanmar firms and invest in rice production.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).

Argentina Exports 499,007 Tons of Rice in First Eleven Months of 2014; Up 1.25% from Previous Year

Feb 09, 2015
Description: http://oryza.com/sites/default/files/field/image/150206argentinariceexports.jpg
Argentina has exported around 499,007 tons of rice in the first eleven months (January – November) of 2014, down about 1.25% from around 492,807 tons exported during the same period in 2013, according to data from the Ministry of Agriculture in Argentina.  Argentina exported around 40,067 tons of rice in November 2014, about 3.4 times or 245% more from around 11,607 tons exported in October 2014; and up about 61% from about 24,812 tons exported in November 2013.  
Argentina exported around 28,728 tons of rice to Cuba (about 72% of total November 2014 exports), around 4,043 tons of rice to Chile (about 10% of November exports), and around 3,852 tons of rice to Brazil (about 10% of November exports). It exported the remaining 9% or around 3,444 tons of rice to Bolivia (1,839 tons), Costa Rica (532 tons), Italy (70 tons), Denmark (61 tons), Germany (120 tons), Paraguay (11 tons), Canada (218 tons) and the U.S. (594 tons).
Argentina exported around 535,722 tons of rice in 2013, down about 16% from around 635,938 tons exported in 2012.USDA estimates Argentina's milled rice production at about one million tons in MY 2014-15 (April – March), against consumption of around 440,000 tons. It estimates Argentina to export around 600,000 tons of rice in MY 2014-15.

India Rice Stocks in Central Pool Stand at 24.88 Million Tons as of February 1, 2015; Down 20% from Last Year

Feb 09, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150209indiaricestocks1.jpg
India’s rice stocks in the central pool as of February 1, 2015 stood at around 24.88 million tons (including a milled equivalent of about 17.43 million tons of paddy), down about 20% from around 31.27 million tons recorded during the same period 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 9% from around 22.79 million tons recorded on January 1, 2014. However, current rice stocks are about 80% 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. However, the new government has revised the buffer norms for the rice and wheat stocks in January this year and according to the revised norms, the required buffer norm for this part of the year is around 13.5 million tons.
Total food grain stocks (including rice and wheat) in the central pool stand at around 47.215 million tons as of February 1, 2014, down about 15% from last year's stock of around 55.54 million tons and down about 2% from last month's stock of around 48.158 million tons. Wheat stocks stand at around 22.014 million tons, down about 9% from last year's stock of around 24.2 million tons and down about 12% from last month's stock of around 25.113 million tons.


Global Rice Quotes
February 10th, 2015

Long grain white rice - high quality
Thailand 100% B grade           415-425           ↔
Vietnam 5% broken     350-360           ↔
India 5% broken          395-405           ↔
Pakistan 5% broken     345-355           ↔
Myanmar 5% broken   410-420           ↔
Cambodia 5% broken 430-440           ↔
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   325-335           ↔
Pakistan 25% broken   310-320           ↔
Cambodia 25% broken            415-425           ↔
India 25% broken        360-370           ↔
U.S. 15% broken         485-495           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd             405-415           ↔
Pakistan parboiled 5% broken stxd      395-405           ↔
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         445-455           ↓
India basmati 2% broken         NQ       ↔
Pakistan basmati 2% broken    NQ       ↔
Cambodia Phka Mails 785-795           ↔

Brokens
Thailand A1 Super       320-330           ↔
Vietnam 100% broken             305-315           ↔
Pakistan 100% broken stxd     290-300           ↔
Cambodia A1 Super    340-350           ↔
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

India Government Decides to Sell Excess Rice Stocks in Open Market

Feb 09, 2015

The Indian government has decided to sell about 2-3 million tons of excess rice stocks under the Open Market Sale Scheme (OMSS) to bulk buyers and traders through e-auctions, according to local sources.The Food Corporation of India (FCI) sources told local sources that the rice is expected to be sold at around Rs.2,340 per quintal (around $376 per ton) to private buyers. They noted that the auction price would include the minimum support price (MSP) and the freight cost to destinations from the FCI warehouses.
According to the FCI sources, the minimum and maximum auction quantity would in the range of 50 tons to 3,500 tons. They noted that state governments are also allowed to participate in the auctions.
Description: http://oryza.com/sites/default/files/field/image/150209indiaricestocks.jpgThis is the first time the Indian government has decided to sell excess rice stocks through the OMSS though it had been selling excess wheat stocks under this scheme since 2009-10. According to FCI's estimate, rice stocks with the corporation would reach around 15.5 million tons as of March 1, 2015, while the new buffer norms prescribe a rice stock of around 13.5 million tons. Therefore, the excess stocks of about 2-3 million tons are to be sold in the open market. 
According to local sources, an inter-ministerial group consisting of the Food, Expenditure and Consumer Affairs would shortly seek a formal approval from the Food and Finance Ministries before beginning the rice sales through OMSS.India’s rice stocks in the central pool as of February 1, 2015 stood at around 24.88 million tons (including

Mauritius Tenders to Buy Up to 6,000 Tons of Long-Grain White Rice

Feb 09, 2015
Mauritius' state grains purchasing agency has invited tenders to buy up to 6,000 tons of long-grain white rice from optional origins, Reuters quoted European traders as saying.According to Reuters, the last date for submitting tenders is February 18, 2015 and the company is seeking delivery of rice in containers between March 31, 2015 and July 31, 2015.Mauritius previously issued tenders to buy 6,000 tons of rice on August 22, 2014.

Asia Rice Quotes Unchanged Today

Feb 09, 2015
 Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $55 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is quoted at around $395 - $405 per ton, about $50 per ton premium on Pakistan 5% rice quoted at around $345 - $355 per ton.
25% Broken Rice
Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $360 - $370, about $50 per ton premium on Pakistan 25% rice quoted at around $310 - $320 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $390 - $400 per ton, about $5 per ton discount to Pakistan parboiled rice quoted at around $395 - $405 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $15 per ton premium on Vietnam 100% broken rice shown at around $305 - $315 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.

Jamaica Government Plans to Speed up Revival of Rice Cultivation

Feb 09, 2015

Description: Description: http://oryza.com/sites/default/files/field/image/150209jamaicarice.jpgThe Jamaica government is planning to speed up the process of revival of rice cultivation in the country as part of its efforts to ensure food security, according to local sources.The Agriculture Minister told local sources last week that the Agriculture Ministry is looking into the viability of reviving rice cultivation in the country. He noted that the Ministry would be shortly evaluating all the earlier plans relating to the revival of rice cultivation and highlight lapses in them.
The governments have been keen on reviving rice cultivation in the country for the past five years. About 2,000 acres (around 800 hectares) of land has been allotted in Amity Hall and Hill Run in St Catherine; some sections of Clarendon; Brumdec in St Elizabeth; and four areas in Westmoreland through funding from Development Bank of Jamaica (DBJ). However, no visible results have been seen so far.
Rice cultivation actually began in Jamaica in 1935 with around 2,000 acres (around 800 hectares), which increased to 5,400 acres (around 2,160 hectares) by 1950. However, rice cultivation was later neglected and the country has been importing rice to meet its annual consumption needs.Currently, Jamaica imports about 95,000 – 100,000 tons of rice to meet the annual consumption needs, according to USDA. 

Oryza Afternoon Recap - Chicago Rough Rice Futures Give Back Friday's Gains as Traders Prepare for Tomorrow's USDA S&D Update

Feb 09, 2015
Chicago rough rice futures for Mar delivery settled 30.5 cents per cwt (about $7 per ton) lower at $10.435 per cwt (about $230 per ton). The other grains finished the day higher as traders made last minute adjustments ahead of tomorrow’s USDA S&D update; Soybeans closed about 0.5% higher at $9.7850 per bushel; wheat finished about 0.5% higher at $5.2975 per bushel, and corn finished the day about 1.4% higher at $3.9125 per bushel.
U.S. stocks traded lower on Monday on continued concern about the Greece situation, while firming oil prices boosted the energy sector. In midday trade the Nasdaq dipped in and out of positive territory for the day and was the only major index in the black for the year. Greece's new leftist Prime Minister Alexis Tsipras said on Sunday in his election pledge that he would end the country's "cruel" austerity program and ruled out an extension of international bailout. Starting Wednesday, Greek banks will not be able to use Greek government bonds as collateral in daily refinancing operations with the European Central Bank. The Organization of the Petroleum Exporting Countries (OPEC) hiked its demand forecast for 2015, predicting that low prices would help boost demand later in the year.
However, the organization still said in a report on Monday that oil demand growth was "yet to show any signs of accelerating." The Dow Jones Industrial Average traded down 69 points, or 0.39%, or 17,753. The S&P 500 traded down 2 points, or 0.09%, at 2,052, with health care the greatest laggard and energy leading four advancing sectors. The Nasdaq traded up 2 points, or 0.04%, at 4,746. Gold is trading about 0.6% higher, crude oil is seen trading about 3.8% higher, and the U.S. dollar is seen trading about 0.3% lower at about  1:00pm Chicago time.
Friday, there were 1,055 contracts traded, up from 359 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 158 contracts to 10,402.

Oryza U.S. Rough Rice Recap - Prices Fall ahead of WASDE; Some Expect Increased Carry Out

Feb 09, 2015
The U.S. cash market was softer today ahead of the USDA’s World Agriculture Supply and Demand Estimate report due out on Tuesday morning.Some analysts believe that the USDA will likely cut U.S. exports and increase ending stocks due to weaker than expected demand from Iraq and Venezuela.

Cambodia Rice Federation Seeks Alternate Means to Raise Development Fund

Feb 09, 2015

Description: Description: http://oryza.com/sites/default/files/field/image/150209cambodiarice.jpgThe Cambodia Rice Federation (CRF) is also planning to approach the government, banks and financial institutions within the country as well as explore overseas means to raise the requisite $777,000 towards the rice sector development fund, according to local sources. The CRF President was quoted as saying that they are planning to explore other means of raising finance if they cannot raise the targeted amount from exporters through an export fee of about $0.50 per ton of long-grain white rice and about $1 per ton of fragrant rice. He noted that they are considering credit from commercial banks, the Rural Development Bank (RDB), Finance Ministry as well as some international organizations.
Speaking at the CRF's annual conference on February 6, 2015, he expressed some doubts against being able to raise the targeted funds soles through export fees.The development fund is aimed at strengthening the rice processing sector and enhancing storage and drying facilities in the country as well as educating farmers about the latest rice growing techniques an increasing the competitiveness of the Cambodian rice in the international market. It also aims to reduce the unofficial rice exports to Thailand and Vietnam through borders.Recently, the CRF also sought a loan of around $300 million from China to develop warehouses, which can store a total of 1.2 million tons of paddy/rice, in the country to ensure uninterrupted supplies to millers and exporters. Chinese authorities are yet to respond to a draft memorandum of understanding (MoU) sent by Cambodia's Ministry of Economy and Finance.
Balanced funding from exporters as well as from other sources seems to be available option for the CRF to avoid unnecessary price hikes. An introduction of export fee is said to force the exporters to increase their export quotes (or accept lower margins) thereby making Cambodian rice less competitive in the global market, potentially reducing the nation’s rice exports.  USDA estimates Cambodia to produce around 7.656 million tons (around 4.9 million tons, milled basis) and export around 1.2 million tons of rice (including official exports and unofficial exports to Vietnam and Thailand) in 2015.

Oryza Overnight Recap - Chicago Rough Rice Futures Back-off of Highs Put in Late Last Week as Follow-through Buyers Have Yet to be Found; Analysts Wonder if Market Will Return to Low $10 Level

Feb 09, 2015
Chicago rough rice futures for Mar delivery are currently listed 18 cents per cwt (about $4 per ton) lower at $10.560 per cwt (about $233 per ton) during early floor trading in Chicago. The other grains are seen trading mostly higher: soybeans are currently seen about 0.2% higher, wheat is listed about 0.2% lower and corn is currently noted about 0.1% higher.U.S. stocks opened lower on Monday on continued concern about the situation between Greece and the euro zone. Greece's new leftist Prime Minister Alexis Tsipras said on Sunday in his election pledge that he would end the country's "cruel" austerity program and ruled out an extension of international bailout.
Starting Wednesday, Greek banks will not be able to use Greek government bonds as collateral in daily refinancing operations with the European Central Bank. Shares on the Athens Stock Exchange tumbled about 5 percent on Monday. Over the weekend, China reported that exports fell 3.3% in January from a year earlier, while imports slumped by 19.9%, both missing expectations by a wide margin, and resulting in a record monthly trade surplus of $60 billion. U.S. stocks closed down on Friday, but ended the week significantly higher on stabilizing oil prices, amid continued concerns over Greece and a strong jobs report that renewed the possibility of an earlier Fed rate hike.
 The Organization of the Petroleum Exporting Countries (OPEC) hiked its demand forecast for 2015, predicting that low prices would help boost demand later in the year. However, the organization still said in a report on Monday that oil demand growth was "yet to show any signs of accelerating." The Dow Jones Industrial Average opened down 78 points, or 0.44%, at 17,745.86. The S&P 500 opened down 4.87 points, or 0.24%, at 2,050, with financials the greatest laggard and energy leading two advancing sectors. The Nasdaq opened down 15 points, or 0.32%, at 7,730.24. Gold is currently trading about 0.4% higher, crude oil is seen trading about 2.4% higher,  and the U.S. dollar is currently trading about 0.2% lower at 8:30am Chicago time.

Thailand May Sell 700,000 Tons of Rice from One Million Tons Auctioned

Feb 09, 2015

Description: Description: http://oryza.com/sites/default/files/field/image/150209thairice.jpgThailand may sell about 700,000 tons of rice to winning bidders from the one million tons, including about 850,000 tons of white rice and about 150,000 tons of jasmine rice, auctioned on January 29, 2015, according to Bloomberg.According to the Commerce Permanent Secretary, the government received bids for 700,000 tons and all the offers exceeded the minimum prices set by the government. Floor price for white rice was fixed at around 8-10 baht per kilogram (around $250-$310 per ton), while the market price is quoted at around 12 baht per kilogram (around $370 per ton). On the other hand, while the floor price for Hom Mali rice was fixed at around 20-21 baht per kilogram (around $610-$640 per ton) compared to market price of around 30 baht per kilogram (around $920 per ton).

The Department of Foreign Trade will reportedly submit the names of the winning bidders to the Rice Policy Committee after examining their credentials.The Thai Commerce Ministry is keen on selling around 10 million tons of stockpiled rice in 2015 and around 7 million tons in 2016 through tenders. Thailand's military government sold around 681,740 tons of rice in last four auctions raising around 6.36 billion baht (around $195 million) after it took charge on May 22, 2014. The Thai government currently holds around 17.8 million tons of rice in its stockpiles.Thailand exported around 10.97 million tons of rice in 2014, up about 66% from around 6.6 million tons in 2013.

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