11th February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

Indonesia Develops Superior Rice Seedlings Using Nuclear Technology

Feb 11, 2015

Indonesia's National Atomic Energy Agency (BATAN) has developed two varieties of rice seedlings, which can withstand pests and yield about 10.5 tons per hectare, using nuclear technology, according to local sources. BATAN is planning to release one of the two varieties, Tropiko, once they get an approval from the Agriculture Ministry. The Head of the BATAN Radiation and Isotopic Application Center told local sources that since Tropiko has been developed using different applications of nuclear technology such as gamma rays and electron radiation, huge volumes of seedlings can be grown compared to traditional methods of growing seedlings.

He added that Tropiko can meet up to 10% of the national rice seedling demand.Some farmers who demonstrated Tropiko noted that the Tropiko seedlings grew faster than usual and had strong roots with a survival rate of 95%.BATAN developed 17 superior rice seedlings from 1982 to 2014.The Indonesian government is keen on achieving self-sufficiency in rice production and ending rice imports within the next two years. In line with its targets, the government is planning to rehabilitate around one million hectares of tertiary irrigation channels for paddy production and distribute 25,000 tons of subsidized seeds and subsidized fertilizer for around one million hectares of paddy fields.

The government has allocated around Rp 2 trillion ($163.8 million) for the purpose. Last year, Indonesia imported 425,000 tons of rice from Thailand and Vietnam.USDA estimates Indonesia to produce around 36.5 million tons of rice, basis milled (around 57.48 million tons, basis paddy), and import around 1.3 million tons of rice in MY 2014-15 (January 2014 - December 2014. Consumption in 2015 is estimated at around 39.2 million tons.  

Brazil Paddy Rice Index Declines 1% from Last Week

Feb 10, 2015

The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 38.07 real per 50 kilograms as of February 09, 2015, down about 1% from around 38.43 real per 50 kilograms recorded on February 02, 2015.In terms of USD per ton, the index reached around $273 per ton on February 09, 2015, down about 4.8% from around $286.9 per ton recorded on February 02, 2015

Global Rice Quotes

February 11th, 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             425-435           ↔

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 305-315           ↓

Cambodia 25% broken           410-420           ↔

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    385-395           ↓

India parboiled 5% broken stxd         390-400           ↔

U.S. parboiled 4% broken       550-560           ↔

Brazil parboiled 5% broken    570-580           ↔

Uruguay parboiled 5% broken            NQ      ↔

Long grain fragrant rice

Thailand Hommali 92%          920-930           ↓

Vietnam Jasmine         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    275-285           ↓

Cambodia A1 Super   335-345           ↔

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

Italy Needs General National Paddy Pricing System, Says Antitrust Agency

Feb 10, 2015

Italy's National Antitrust Agency, which is responsible for market liberalization in the country, has urged the Ente Nazionale Risi (ENR), the National Agency for Rice, to formulate common paddy pricing rules as the current paddy pricing system does not provide balanced pricing acceptable to both farmers and millers, according to local sources.

In a document on rice growing sector, the agency noted that the current paddy pricing system is controlled by selected millers' commissions and sets prices favorable to them and is damaging the interests of rice growers. The agency reportedly drafted the document after taking into account the prevailing prices in the main rice growing regions of Novara, Vercelli, Pavia, Mortara and Milan. It found that paddy rice prices have been varying across different regions and has recognized the need for a general telematic quotation system to help generate a common national price thereby reducing the influence of millers on the pricing system.

The draft also noted that rice growers have been preferring a common national price in order to attain a balanced presence of the farming and milling sectors.However, the General Manager of the ENR denied the role of some millers in setting the paddy prices and the Board of Directors act independently in this regard. He reiterated that the ENR always ensures a balance between the farming and milling sector and no sector is allowed to prevail on the pricing aspects.

Oryza Overnight Recap - Chicago Rough Rice Futures Slightly Lower Overnight as Market Awaits Release of USDA S&D Report

Feb 10, 2015

Chicago rough rice futures for Mar delivery are currently listed 3.5 cents per cwt (about $1 per ton) lower at $10.560 per cwt (about $229 per ton) during early floor trading in Chicago. The other grains are seen trading mostly lower ahead of today’s release of the latest USDA S&D update: soybeans are currently seen about 0.3% lower, wheat is listed about 0.7% lower and corn is currently noted about 0.4% lower.U.S. stock index futures signaled a higher open on Tuesday, as negotiations over Greece's bailout program continue to keep investors cautious.

Rumors of a possible six-month extension for Greece briefly sent futures to session highs. Concerns over the Greek debt negotiations continue to weigh on market sentiment. Speaking from Washington, German Chancellor Angela Merkel said she was looking for a "viable recommendation" from Greece on Monday, after Prime Minister Alexis Tsipras reiterated his pledge to end Greece's current bailout Sunday. The bodies making sure Greece sticks to the bailout's rules —the troika of the European Central Bank, International Monetary Fund and European Commission – have said Greece will not receive a final tranche of aid under the current bailout plan.

 The ECB has also refused Greece's request for a bridging loan to tide it over once its bailout officially ends February 28. European equities were mixed on Tuesday as the impasse between Greece and its international creditors continues. The week continues with a fairly light data schedule Tuesday, when wholesale inventories figures for December are due at 10:00 am ET. JOLTS job opening data for December, also released at 10:00 am ET, may be of interest in the context of last week's robust labor market data. US stock index futures are currently noted about 0.7% higher. Gold is currently trading about 0.3% lower, crude oil is seen trading about 1.1% lower,  and the U.S. dollar is currently trading about 0.3% higher at 8:30am Chicago time.

Oryza Afternoon Recap - Chicago Rough Rice Futures Continue Lower as Tumbling Crude Weighs on US Grain Prices and USDA S&D Provides Little in Way of Support

Feb 10, 2015

Chicago rough rice futures for Mar delivery settled 20 cents per cwt (about $4 per ton) lower at $10.235 per cwt (about $226 per ton). Rough rice futures suffered another round of selling as the USDA S&D update did little to provide support to prices and was more or less seen as a non-even by market participants. Although the net effect on all rice ending stocks was a 1m cwt increase, long-grain stocks were lowered by 1m cwt thanks solely to an increase in estimated exports for the product. Despite the release of what was seen as a neutral report, prices charted another leg lower as outside markets weighed down on prices and as technical indicators continue to forecast lower prices.

 Some analysts are calling for a testing of the spike low of $10.010 per cwt (about $221 per ton) in coming sessions. The other grains finished the day lower as the USDA S&D update was seen as bearish to neutral and as a fresh round of crude selling exerted downward pressure on grain prices; Soybeans closed about 1% lower at $9.6900 per bushel; wheat finished about 1.5% lower at $5.2175 per bushel, and corn finished the day about 0.8% lower at $3.8800 per bushel.U.S. stocks traded higher on Tuesday despite renewed uncertainty in developments in the Greece-euro zone standoff.

The Dow Jones Industrial Average recovered to trade more than 100 points higher after falling to single-digit gains on Tuesday morning reports that said the German Finance Minister would not agree to a new Greek debt program on Wednesday. Investors are watching closely for a possible Greek debt deal when the euro group of finance ministers meets in Brussels on Wednesday where Greece's Finance Minister Yanis Varoufakis is expected to detail new reform proposals. Futures touched session highs on speculation that the European Commission could be ready to table a compromise on Greece's bailout program and propose a six-month extension to the country's bailout which is due to end on February 28. The Athens stock exchange was trading up about 8% on Tuesday.

The Dow Jones Industrial Average traded up 76 points, or 0.46%, to 17,805. The S&P 500 gained about 13 points, or 0.63%, to 2,059, with health care leading all sectors higher except energy. The Nasdaq gained 42 points, or 0.91%, to 4,768. Gold is trading about 0.8% lower, crude oil is seen trading about 4.8% lower, and the U.S. dollar is seen trading about 0.3% higher at about  1:00pm Chicago time.Monday, there were 795 contracts traded, down from 1,055 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 144 contracts to 10,546.

Oryza U.S. Rough Rice Recap - Prices Fall despite Decreasing Ending Stocks

Feb 10, 2015

The U.S. cash market was weaker today despite a slightly neutral to bullish WASDE report as selling interest continues to mount amid limited buy interest.Today’s USDA WASDE report showed a 1.0 million cwt (45,359 tons) increase in U.S. long grain exports which in turn decreased U.S. long grain ending stocks by the same amount, putting their 2014/2015 carry over projection at 28.1 million cwts (1,274,596 tons). 

Public Invited to Try GM Rice to Prove It's Safe

Feb 10, 2015

A science website in China had organized an event on Sunday, February 8, 2015, to promote the safety of genetically modified (GM) rice amid concerns that it is harmful to humans and the environment.As part of the event hundreds of people were invited to taste GM rice in restaurants in 23 cities across the country. The idea behind this campaign is remove certain misconceptions among the public over the GM rice.The restaurants reportedly used the rice grown from the genetically modified Bt 63 strain developed by the Huazhong Agricultural University in Wuhan, Hubei province. The Bacillus thuringiensis gene embedded in the plant is known to produce a natural pesticide that protects the plant.

Safety certificates for Bt 63 and Huahui 1 were renewed in January for another four year from the bio safety committee of the Agriculture Ministry. However, the Ministry has not given its nod for commercial production of these varieties.Last month, the Communist Party of China Central Committee reportedly noted that China "will strengthen research and manage the safety of GM foods."The Deputy Director of Central Rural Work Leading Group, noted that the science has proved the safety of GM rice, it is the turn of the public to trust the science.

Philippines to Decide Over Rice Import Volume on February 13, 2015

Feb 10, 2015

The National Food Authority (NFA) Council is likely to decide over this year's rice importation volume on February 13, 2014, Business World quoted the Presidential Assistant for Food Security and Agricultural Modernization as saying.The NFA planned to import rice this year also to ensure adequate stocks in the lean season (June – August).

However, the Presidential Assistant, who is also the NFA Council Chairman, did not specify the actual volume of rice that the NFA will import but noted that the NFA is authorized to import 500,000 tons of rice in government-to-government (G2G) deals from Thailand, Vietnam and Cambodia, with whom the Philippines has import agreements.

 He noted that revealing the figure would impact prices as Philippines is a major importer of rice.He noted that the actual import figure will depend on the last harvest volume and the current supply. The Philippines 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.

Turkey to Reduce VAT on Milled Rice to 1% to Control Price Hikes, Says USDA Post

Feb 10, 2015

The government of Turkey has announced on December 9, 2014 that it would reduced the value added tax (VAT) on milled rice to 1% from the existing 8% and make it equal with the VAT on paddy rice, according to the USDA Post. However, the Post reports that the government has so far not announced the effective date. The tax reduction is expected to discourage unregistered millers from undertaking milling activities as well as reduce retail prices.The Post reports that Turkish millers and retailers have been facing problems due to high taxes.

Also declining consumption levels in recent times are have been leading to lesser sales and have been forcing millers to operate below their capacities resulting in substantial production inefficiencies.Turkey produces only 60% of total annual consumption and imports the rest. USDA Post has estimated Turkey's rice imports at around 300,000 tons in MY 2014-15 (September - August), down about 12% from an estimated 341,000 tons imported in the previous year. According to data from the Turkish Grain Board (TMO), Turkey imported around 413,932 tons of rice in MY 2013-14. The U.S. was the top exporter to Turkey with around 172,872 tons followed by India with 67,338 tons.

The Post reports the TMO has not procured any domestic rice since 2013, but has imported 35,000 tons of paddy rice and 33,000 tons of milled rice in 2013. The TMO has opened rice sales in the retail market in 2014 to control price hikes. As prices of most popular variety Osmancik again plummeted in January 2015 to around 3,50 TL/ton (around $1,281 per ton) from around 2,300 TL/ton (around $1,161 per ton) in October 2014, the TMO has already imported around 8,000 tons of milled rice and 40,000 tons of paddy in 2015. Prices of imported rice, especially Calrose rice, have increased to around $1,300 per ton  due to high prices in California. 

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

Feb 10, 2015

Vietnam rice sellers lowered their quotes for Jasmine rice by about $5 per ton to around $445 - $455 per ton today. Other  Asia rice sellers kept their quotes mostly unchanged.

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.

Vietnam Rice Exports to Africa Decline Sharply in 2014

Feb 10, 2015

Vietnam has exported around 6.32 million tons of rice in 2014, down about 5% from around 6.63 million tons exported in 2013, according to USDA. While Vietnam's share of rice exports to Asian and Australian destinations increased, its share to African, European and American destinations declined.

Asia accounted for around 4.92 million tons (about 78% of Vietnam's total 2014 rice exports), down about 20% from around 4.09 million tons exported in 2013. Vietnam exported around 772,537 tons of rice to Africa (about 12% of Vietnam's total 2014 rice exports), down about 57% from around 1.8 million tons exported in 2013. The decline is mainly due to the outbreak of Ebola Virus Disease (EVD) in West African nations such as Guinea, Sierra Leone and Liberia; and the decline in oil prices, which has led to decline in export revenues of major rice importing countries such as Nigeria.

Vietnam exported around 438,197 tons of rice to American destinations (about 7% of Vietnam's total 2014 rice exports), down about 9% from around 480,033 tons exported in 2013. Vietnam's rice exports to Australia increased about 2.5 times to around 52,960 tons (about 1% of Vietnam's total 2014 rice exports) from around 20,776 tons exported in 2013. Vietnam's exports to Europe and CIS countries  accounted for around 26,158 tons (about 2% of Vietnam's total 2014 rice exports), down about 33% from around 206,568 tons exported in 2013.

In December 2014, Vietnam has exported around 366,130 tons of rice, down about 26% from around 495,457 tons exported in November 2014, and down about 31% from around 526,995 tons exported in December 2013, according to USDA. Month-on-month, Vietnam's rice exports to Asia declined about 36% to around 247,999 tons; exports to Africa increased about 6% to around 76,888 tons; exports to Europe and CIS countries declined about 88% to around 3,164 tons; exports to Americas increased about 6.6 times to around 31,684 tons; and exports to Australia increased about 3 times to around 6,395 tons. 

West African Rice Farmers and Millers to Receive Support Under CARI Initiative

Feb 10, 2015

About 120,000 small scale rice farmers, millers and rural service providers from Nigeria, Burkina Faso, Ghana and Tanzania will receive support under the Competitive African Rice Initiative (CARI) initiative, according to local sources.Bill and Melinda Gates (BMGF) and the German Development Cooperation (BMZ) have provided a $3.3 million grant under their CARI initiative to help rice farmers, millers and other stakeholders increase the quality rice production in the region.According to the CARI coordinator, they aim to encourage effective coordination and linkages between the rice value chain actors to ensure quality rice supply as well as better returns to all the stakeholders. The initiative also aims to provide employment to rural farmers and youth as well as provide food security. Eventually, the initiative aims to reduce imports in these countries.

She noted that the CARI would seek support of local private sector to implement the projects. While the CARI would provide 40% of the funds from the current grant, remaining 60% would be provided by the local private sectors in the respective countries.The Economic Community of West African States (ECOWAS) Commissioner for Agriculture also emphasized the need for building sustainable rice value chains with access to requisite finance, modern technology and knowledge to help these countries achieve self-sufficiency in rice production

South Korea Buys 35,000 Tons of Rice in International Tender; Passes On Tender for 5,000 Tons

Feb 10, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased 35,000 tons of non-glutinous rice for delivery between April and June, according to a statement on its website.KAFTC purchased 15,000 tons of brown long non-glutinous rice of Vietnamese origin at about $442 per ton (CIP) and for delivery by April 30, 2015; 15,000 tons of brown long non-glutinous rice of Vietnamese origin at about $449.60 per ton (CIP) and for delivery by June 30, 2015; and 5,000 tons of brown medium non-glutinous rice of the U.S. origin at about $786 per ton (CIP) and for delivery by May 31, 2015.

The agency originally sought  to buy 40,000 ton of non-glutinous rice in four tenders, that closed on January 27, 2015. But it passed on the tender for 5,000 tons of brown short non-glutinous rice for delivery by April 30, 2015 as the offers failed to meet specifications and price standards. It is not clear if the KAFTC would reissue the tender.

USDA Post Estimates Bangladesh to Import 700,000 Tons of Rice in 2014-15; Down 7% from Last Year

Feb 10, 2015

USDA Post has estimated Bangladesh to import around 700,000 tons of rice in MY 2014-15 (May - April), down about 7% from an estimated 751,000 tons imported in MY 2013-14, and up about 40% from USDA's official estimates of around 500,000 tons based on the current import pace. Imports in 2013-14 (mostly by private sector) are said to have increased due to competitive Indian as well as global rice prices.

According to official media sources, the government of Bangladesh agreed to export 50,000 tons of coarse tons to Sri Lanka. But the Post reports that it is not clear if an agreement has been finalized and according to Sri Lankan customs data, no imports are known to have arrived at any of the ports.

The Post has estimated Bangladesh's 2014-15 milled rice production at around 34.5 million tons, slightly up from an estimated 34.39, and slightly down from USDA's official estimates of around 34.6 million tons. The Post reports that the ongoing blockades have led to an increase in the prices fertilizer, fuel and other input costs and have disrupted the rice supply chain in many cities. 

The government has planned to procure around 1.4 million tons of paddy and 200,000 tons of milled rice in 2014-15. According to official media sources, the government's procurement of Aman rice from began on November 15, 2014 and will continue till February 28, 2015. The government is expected to procure about 300,000 tons from the Aman crop at around Tk 32 per kilogram (around $386 per ton) for husked rice and around Tk 20 (around $257 per ton) for unhusked rice.

Last month Post reported that prices of coarse rice have been falling since October 2014 due to excess supplies from Aman harvest. It says it is unclear if the blockades would further push down prices in the near future.