Vietnam Approves
Rice Stockpiling Plan to Stabilize Prices
Feb 13, 2015
The government of
Vietnam has decided to stockpile winter-spring rice to control price falls
during the harvest time, according to a Reuters.
Harvesting of the
winter-spring crop, which began this month, will continue till April. Usually
paddy prices dip during the harvest time due to increasing supplies and the
government approves stockpiling plan to stabilize prices.
The government
statement noted that the Agriculture Ministry will oversee the implementation
of the plan. However, it did not mention the amount of rice planned to be
stockpiled.
Export prices of
Vietnam 25% rice currently stand at around $330 per ton, down about 7% from
around $355 per ton in the beginning of this year. Export prices have been
declining due to increasing supplies from the ongoing harvests in exporting
countries and declining export demand.
Vietnam exported
about 6.316 million tons of rice in 2014, down about 6% from about 6.71 million
tons of rice exported in 2013, according to data from the Vietnam Food
Association (VFA).
Vietnam, Pakistan
Rice Quotes Up Today; Other Asia Rice Quotes Unchanged
Feb 13, 2015
Vietnam rice sellers
increased their quotes for 25% broken rice and 100% broken rice by about
$5 per ton each to around $325 - $335 per ton and $305 -$315 per ton
respectively and increased their quotes for Jasmine rice by about $15 ton to
around $460 - $470 per ton today. Pakistan rice sellers increased their quotes
for parboiled rice by about $5 per ton to around $390 - $400 per ton. Other
Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is
quoted at around $405 - $415 per ton, about $50 per ton premium on Vietnam 5%
rice shown at around $355 - $365 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, up about $5 per ton from yesterday.
India 25% rice is quoted at around $360 - $370, about $55 per ton premium on
Pakistan 25% rice quoted at around $305 - $315 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, on par with Pakistan parboiled rice quoted at
around $390 - $400 per ton, up about $5 per ton from yesterday.
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, up about $5 per ton from
yesterday. India's 100% broken rice is shown at around $295 - $305 per
ton, about $20 per ton premium on Pakistan broken sortexed rice quoted at
around $275 - $285 per ton
Weekly Recap:
Global Rice Prices Steady
Feb 13, 2015
The Oryza White Rice
Index (WRI), a weighted average of global white rice export quotes, ended the
week at about $421 per ton, up about $1 per ton from a week ago, down about $8
per ton from a month ago and down about $41 per ton from a year ago.
Thailand
Thailand 5% broken
rice is today shown at about $405 per ton, unchanged from a week ago, down
about $5 per ton from a month ago, and down about $35 per ton from a year ago.
Thailand may sell
about 500,000 tons of rice to winning bidders from the one million tons auctioned
on January 29.
The National
Anti-Corruption Commission will likely recommend that the Commerce and Finance
Ministries file a civil suit against the 21 state officials and employees of
private firms for alleged corruption in rice exports deals with two Chinese
firms.
The Thai Rice
Exporters Association is concerned that rice exports this year may be
negatively impacted by the ongoing drought, especially if it intensifies in
April and reduces the off-season paddy output by 1-2 million tons.
India
India 5% broken rice
is today shown at about $400 per ton, unchanged from a week ago, up about $5 a
month ago and down about $20 per ton from a year ago.
According to the
government rice exports for 2014-15 (April-March) were around 10.1 million
tons, down about 7% from 2013-14, with the decline attributed to lower basmati
rice exports.
Rice stocks in the
central pool were about 24.88 million tons as of February 1, down about 20%
from the same period last year.
The government has
decided to sell about 2-3 million tons of excess rice stocks under the Open
Market Scale Scheme (OMSS) to bulk buyers and traders through e-auctions.
The government
announced plans to restore the duty drawback facility on rice exports after
seven years.
The Indian Commerce
Ministry reports that in March Iran may lift the ban on rice imports it imposed in November
2014.
Vietnam
Vietnam 5% broken
rice is today shown at about $360 per ton, up about $5 per ton from a week ago,
down about $20 per ton from a month ago and down about $35 per ton from a year
ago.
Exports in 2014 were
down about 5% from 2013, reaching about 6.32 million tons of rice, according to
USDA. Most notably, exports to Africa are down about 57% y/y.
The Dong Thap
province in the Mekong Delta region has proposed a plan to adopt a policy for
paddy stockpiling to curb price falls during the harvest of the winter-spring
crop.
Pakistan
Pakistan 5% broken
rice is today shown at about $350 per ton, unchanged from a week ago, down
about $25 per ton from a month ago and down about $50 per ton from a year ago.
Central & South America
Brazil
5% broken rice is today shown at about $540 per ton, unchanged from a week and
a month ago and down about $125 per ton from a year ago.
In January, Brazil
exported about 69,913 tons of rice, according to the Rice Institute of Rio
Grande do Sul. Cuba remained the largest importer of its rice with
about 53% of total exports going there.
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.
In the first eleven
months of 2014, Argentina
exported about 499,007 tons of rice, down about 1.25% from the same period in
2013.
Guyana
government is aiming to export about 521,000 tons of rice in 2015, up about 4%
from exports in 2014.
U.S.
U.S. 4% broken rice
is today shown at about $500 per ton, unchanged from a week ago, down about $15
per ton from a month ago and down about $80 per ton from a year ago.
The USDA in its
WASDE report forecasts U.S. MY 2014-15 all rice imports will reach 1.04 million
tons, unchanged from last year.
The U.S. cash market
was soft this weak and didn’t gain much traction as market participants wait to
determine whether prices rally or drop.
Chicago rough rice
futures dropped throughout the week, reaching a low of $10.150 per cwt (about
$224 per ton) on Tuesday before rebounding slightly later in the week to close
at $10.550 per cwt (about $233 per ton). The USDA S&D update didn’t
provide support as it was mostly neutral.
Other Markets
Cambodia 5% broken rice is today shown at about $435 per ton,
unchanged from a week ago, down about $20 per ton from a month ago and a year
ago. Separately, Cambodia exported about 35,921 tons of rice in January 2015,
up about 66.8% from the same period last year, but down about 30% from last
month, according to the Cambodia Rice Federation. Meanwhile, the European
Union’s rice imports from Least Developed Countries (LDCs), such as Cambodia
and Myanmar, under the Everything But Arms (EBA) Agreement have increased
slightly from last year to about 106,649 tons in the first five months of the
crop year 2014-15 (September-August), according to the European Commission.
The state grains
purchasing agency in Mauritius
has invited tenders to buy up to 6,000 tons of long-grain white rice from
optional origins, with tenders due February 18 and delivery between March 31
and July 31.
Rice exporters in Egypt are complaining that they are not able to export high
amounts of rice this year due to high export tariffs imposed by the government,
and they are concerned about increasing contraband trade.
Paddy rice
production in Australia in
MY 2014-15 (April-May) is estimated to decline to around 684,000 tons, down
about 18% from MY 2013-14, according to the Australian Bureau of Agricultural
and Resource Economics and Sciences.
The government of Sri
Lanka may not increase the paddy purchase
price from the current Rs.50 per kilogram (around $377 per ton).
South Korea is seeking to buy about 44,000 tons of non-glutinous
rice in tender for delivery by May 31. They recently purchased 35,000
tons of non-glutinous rice for delivery between April and June in a tender.
The UN’s FAO reports
that 2015 rice production prospects in Madagascar are mixed due to heavy rains in most of the country and
dry conditions in the south.
The UN’s FAO
estimates Cuba’s 2014 paddy
rice production to be about 700,000 tons, up about 4% from 2013.
The USDA Post
estimates Bangladesh will
import about 700,000 tons of rice in MY 2014-15 (May-April), down about 7% from
MY 2013-14.
The National Food
Authority of the Philippines
is expected to decide on this year’s rice importation volume today (Feb 13).
Italy Considers
Modifying Rice Bill
Feb 13, 2015
The Italian
government is considering to modify the existing bill on the domestic rice
market to include new rice varieties, rules on paddy and rice pricing, and
percentage of brokens that can be allowed, according to local sources.
The current bill
regulating the paddy/rice trade is quite old and dates back to 1958 and does
not include many newer rice varieties. Therefore the bill will be modified to
include new rice varieties while retaining the traditional ones such as
Carnaroli, Arborio, Ribe and others to safeguard the interests of the rice
producers as well as consumers. The idea behind this is to help both rice
growers and consumers relate and compare the characteristics of new rice
varieties with the traditional ones as well as preserve the traditional
varieties.
Under the old bill,
the government was not permitting to sell any type of rice unless its name is
registered with it. However, now the rule would be modified allowing traders to
sell mixes of Indica rice even without any name indications.
There are also plans
to include about the inclusion of permitted percentage of brokens in the new
bill. However, there are differentiated opinions regarding the inclusion of
this rule among millers and farmers.
Cambodian Exporters
Target to Double Fragrant Organic Rice Exports in 2015
Feb 13, 2015
Cambodia's
state-owned Center for Study and Development in Agriculture (CEDAC) is
targeting to nearly double its fragrant organic rice exports to around 1,000
tons in 2015 from around 540 tons exported in 2014 expecting an increasing
demand, according to local sources.
Currently, CEDAC
exports fragrant organic rice to the U.S. and Hong Kong. But is exploring
export opportunities to Arab countries as well. According to the CEDAC's
organic rice Export Officer, though the price of organic rice is higher, prices
are much stable in the international markets unlike non-organic milled rice
prices, which fluctuate frequently, the margins are also much better. He
therefore urged the government to encourage organic rice cultivation in the
country.
CEDAC collects organic
rice from farmers at around 1,650 riel per kilogram (around $407 per ton)
compared to around $1,150 per kilogram (around $271 per ton) of non-organic
rice.
Another private rice
exporter is also understood to be targeting to export 1,500 tons of fragrant
organic rice this year, 2,500 tons in 2016 and 4,000 tons in 2017. The CEO of
the company told local sources that they have already entered into agreements
with farmers' cooperatives to supply organic rice to them for exports. He added
that the agreements would benefit farmers to earn better incomes.
Though, currently,
organic rice exports account for very small percentage of the country's total
rice exports of around 380,000 tons, the exporters are confident of increasing
this percentage substantially with the government support.
However, the Senior
Advisor to the Cambodia Rice Federation (CRF) noted that since the process
involved in the organic rice production is lengthy and tough, many farmers may
not be interested in it. He suggested the government could rather focus on high
end rice varieties and differentiate their product from their competitors.
Details of India's
Duty Drawback Facility on Rice Exports not Clear
Feb 13, 2015
The government of
India has yesterday notified that it would allow duty drawback (DBB) facility
on rice exports on brand basis but there are few issues that are not clear in
the government's directive.
The facility allows
the exporters to claim back the amount of sales and customs taxes paid by them
at a flat drawback rate. But the government removed the duty drawback facility
in 2008 and since then has been maintaining a "0%" drawback rate for
rice. The rate is "0%" even for the 2014-15 financial year (April -
March). So, at what rate the facility will be provided to exporters is not
specified precisely. According to government regulations, duty drawback
facility should not exceed 1% of fob value. In that case, basmati rice
exporters would get a maximum benefit of around $10-$12 per ton and non-basmati
rice exporters will get a benefit of around $3 - $4 per ton.
The government's
idea behind providing the duty drawback facility on only certain brands is to
subsidize the exporters' expenses for branding a "made in India"
product, says an India-based Grain Analyst. A number of brands exist for
basmati rice, most of which are exported. However, it is not clear if the
facility is applicable to brands created and registered in overseas markets or
brands registered in India only, he says.
On the other hand
exporters would want the government to extend the facility to all exports
(including basmati and non-basmati) rather than limiting it for certain brands
of basmati rice as local taxes are equally applicable to both types.
The government is
yet to clearly specify its stance on the above issues related to duty drawback
facility on rice exports.
Study Identifies
Ecologically Safe and Sustainable Weed Management Strategy Under Aerobic Rice
Cultivation System
Feb 13, 2015
A report published
in the International Journal of Agriculture shows the results of a study on
"competitive ability of rice varieties against weeds under aerobic rice
production in Malaysia". The study has identified the most competitive
rice variety against weeds under aerobic cultivation in Malaysia as means to
provide ecologically friendly and environmentally safe weed management system.
Aerobic rice
production is said to reduce water use by nearly half compared to the lowland
rice production while maintaining adequate moisture in the soil. But rice
plants under this system are more susceptible to severe weed infestations
compared to those under the transplanted lowland rice system as weeds germinate
simultaneously with rice due to absence of water layer to suppress weed growth.
Weeds compete with the rice plants for all nutrients and moisture leading to
lower rice yield. The study found that weeds may lead to nearly 35% of rice
losses under aerobic rice production system than in the transplanted rice
system.
Though herbicides
are known to control the growth of weeds, their impact on environment is very
severe. The authors of the study say reduced use of herbicides is suggestible
as they would reduce input costs as well as ensure that weeds do not develop
resistance to herbicides. Therefore the a study has been conducted to develop
competitive rice cultivars which can provide safe and environmentally means for
integrated weed management
The authors of study
planned to find most competitive rice cultivars that can potentially suppress
weed growth without sacrificing on yield. They conducted glass house and field
experiments to evaluate competitive ability of five rice varieties - AERON 1,
AERON 4, M9, MR211 and MR220-MCL2 - against weeds under aerobic rice
cultivation system in Malaysia. They found that AERON 1, which had taller plant
structure and short growth duration, proved to have lowest weed dry
weight and weed density in both glass and field trials and it competed better
with weed compared to other varieties with shorter plant and longer growth
duration. Authors also found lesser yield loss in this variety.
Oryza Overnight
Recap - Chicago Rough Rice Futures Begin the Day Higher as Traders Prepare for
Three-Day Weekend
Feb 13, 2015
Chicago rough rice
futures for Mar delivery are currently listed 5 cents per cwt (about $1 per
ton) higher at $10.380 per cwt (about $229 per ton) during early floor trading
in Chicago. The other grains are seen trading higher this morning: soybeans are
currently seen about 0.8% higher, wheat is listed about 1.5% higher and corn is
currently noted about 0.6% higher.
U.S. stock opened up, following
European markets higher on Friday as recent concerns about Ukraine, Greece and
energy prices abated. On Sunday, Russia is expected to enter a cease-fire with
Ukraine as announced early on Thursday, a move that sent European and U.S.
stocks higher. In another mark of stabilization, brent oil gained to trade
above $60 a barrel on Friday, while crude oil held close to $53 a barrel. Greek
Prime Minister Alexis Tsipras has also agreed to meet with representatives from
the European Union (EU), European Central Bank and International Monetary Fund,
ahead of Monday's key Eurogroup meeting on debt talks, according to Reuters.
The Dow Jones Industrial Average opened up 13.71 points, or 0.08%, to
17,982.43. The S&P 500 opened up 0.85 points, or 0.05%, to 2,089.62, with
energy leading gains across half of the 10 sectors as utilities lagged. The
Nasdaq opened up 13.83 points, or 0.28%, to 4,870. Gold is currently trading
about 0.7% higher, crude oil is seen trading about 3.1% higher, and the
U.S. dollar is currently trading about 0.1% higher at 8:30am Chicago time
Global
Rice Quotes
February 13th, 2015
Long grain white rice - high quality
Thailand 100% B grade 415-425
↔
Vietnam 5% broken 355-365
↔
India 5% broken 395-405
↔
Pakistan 5% broken 345-355
↔
Myanmar 5% broken 415-425
↔
Cambodia 5% broken 430-440
↔
U.S. 4% broken 480-490
↔
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 470-480
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 405-415 ↔
Pakistan parboiled 5% broken stxd 390-400 ↑
India parboiled 5% broken stxd 390-400 ↔
U.S. parboiled 4% broken 555-565
↔
Brazil parboiled 5% broken 570-580
↔
Uruguay parboiled 5% broken NQ
↔
Long grain fragrant rice
Thailand Hommali 92% 920-930
↔
Vietnam Jasmine 460-470
↑
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 365-375
↔
India 100% broken stxd 295-305
↔
Egypt medium grain brokens NQ
↔
U.S. pet food 380-390
↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com
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