Thursday, February 26, 2015

26th February (Thursday),Daily Exclusive ORYZA Rice Newsletter by Riceplus Magazine

EU Imports 442,433 Tons of Milled Rice from Non-EU Nations in September 1, 2014 - February 17, 2015; Up 2% from Last Year

Feb 25, 2015
Union (EU) has imported around 442,433 tons of milled rice from non-EU nations in September 1, 2014 - February 17, 2015, up about 2% from around 433,770 tons imported during the same period last year, according to the EU data.The U.K remained the biggest buyer of non-EU rice with 88,918 tons (accounting for about 20% of EU's total imports from the non-EU nations during the September 1, 2014 - February 17, 2015 period). France imported 84,358 tons (19%), Netherlands imported 63,138 tons (14%), Germany imported 36,188 tons (8%), Poland imported 28,496 tons (6%), Belgium imported 23,876 tons (5%) and Italy imported 21,022 tons (5%)  during the said period.
The EU milled Indica rice imports from non-EU nations increased slightly to around 238,155 tons during September 1, 2014 - February 17, 2015 from around 236,695 tons imported during the same period in 2013-14 crop year. Most of the milled Indica rice was imported from the Asian Least Developed Countries (LDCs) such as Cambodia and Myanmar under the Everything But Arms (EBA) agreement. The EU imports of Japonica variety also increased slightly to around 41,741 tons during the said period from around 41,104 tons imported last year.However, the EU broken rice imports increased about 24% to around 187,250 tons in September 1, 2014 - February 17, 2015 from around 150,613 tons imported during the same period in 2013-14. 
Global Rice Quotes

February 26th, 2015

Long grain white rice - high quality
Thailand 100% B grade          415-425           ↔
Vietnam 5% broken    360-370           ↔
India 5% broken         390-400           ↔
Pakistan 5% broken    335-345           ↔
Myanmar 5% broken   410-420           ↔
Cambodia 5% broken             425-435           ↔
U.S. 4% broken           475-485           ↓
Uruguay 5% broken    NQ      ↔
Argentina 5% broken NQ      ↔

Long grain white rice - low quality
Thailand 25% broken 365-375           ↔
Vietnam 25% broken 335-345           ↔
Pakistan 25% broken 305-315           ↔
Cambodia 25% broken           410-420           ↔
India 25% broken       355-365           ↔
U.S. 15% broken         465-475           ↓

Long grain parboiled rice
Thailand parboiled 100% stxd            405-415           ↔
Pakistan parboiled 5% broken stxd    385-395           ↔
India parboiled 5% broken stxd         385-395           ↔
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         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   345-355           ↔
India 100% broken stxd         280-290           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 380-390           ↔
Brazil half grain          NQ      ↔


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

 

Indonesia President Begins Rice Distribution Operations

Feb 25, 2015
Description: Description: http://oryza.com/sites/default/files/field/image/150225indonesiatumpeng.jpgThe Indonesian President Joko Widodo has formally begun the operations for distributing Bulog rice in the market in line with the government's decision to control price hikes, according to local sources. The distribution operations were formally launched at Bulog's Warehouse in North Jakarta.The government has planned to distribute over 300,000 tons of rice across the country at about 7,400 per kilogram (around $576 per ton).
The Trade Minister was quoted as saying that the government would initially distribute 1,600 tons of Bulog rice in Jakarta and its satellite towns of Bogor, Depok, Tangerang and Bekasi (Jabodetabek).The President also simultaneously launched the rice distribution operations under this year's Rice for the Poor (Raskin) program at around 1,600 Rupiah per kilogram (around $125 per ton). The government will reportedly distribute 19,000 tons of rice through the Raskin program by March this year. He noted that Bulog currently has 1.4 million tons of rice stocks and they would be sufficient until the arrival of rice from the ongoing harvest in March and April. He added that stocks would be sufficient despite a rise in demand.
Domestic rice prices have been surging since September 2014. According to data from the UN's Food and Agricultural Organization (FAO), local rice prices currently stand at around 9.78 million Rupiah (around $761) per ton, up about 10% from around 8.93 million Rupiah (around $750) per ton in September 2014, and up about 9% from their year ago levels.The government has ruled out any immediate imports of rice ahead of the harvest season in March.

New Port Contract Brings Relief to California Rice Sector

Feb 25, 2015
Problems between dock workers and terminal operators in the U.S. West Coast ports seems to be over with the signing of a new contract signed by the dockworkers' union and the terminal operators at 29 West Coast ports, including the Port of Oakland, in the beginning of this week, according to local sources.It is certainly a good news to the California rice exporters who have been bearing huge losses due to delay in shipments as well as cargos piled up on docks during the month-long slowdown. California's rice sector lost about half the regular volume of exports in December and January, according to the President and CEO of the California Rice Commission. "The haemorrhaging has stopped and now we can start to get healthy again," he was quoted as saying. He added that actual losses cannot be calculated until the existing backlog of shipments are settled.
Description: Description: http://oryza.com/sites/default/files/field/image/150225oaklandport.jpgNearly 80% of the rice grown in California is medium-grain rice and is exported through the port of West Sacramento and Oakland port to the countries in the south Pacific.California is the second largest rice producing state in the U.S. after Arkansas, and contributes to around 2 million tons of paddy rice annually or about 25% of the total rice grown in the U.S. The state's rice sector employs about 25,000 people and most of rice grown here is exported.California rice sector had been impacted by drought last year. The state's paddy rice acreage in 2014 had declined to around 420,000 hectares, down about 25% from around 525,000 hectares planted in 2013 due to prolonged dry conditions and water shortages.

Lao PDR Plans to Strengthen Sanitary Measures to Boost Rice Exports

Feb 25, 2015
The government of Lao Peoples Democratic Republic (PDR) is planning to strengthen sanitary and phyto-sanitary measures as part of efforts to boost rice exports, according to a notice on the government web portal.Laos is almost self-sufficient in rice production and consumes almost all of the output domestically. The South East Asian nation exports about 300,000 tons of rice annually to Vietnam, Thailand and China.
But the government is keen on boosting rice exports by increasing production. It  is planning to increase the paddy rice production by about 70% y/y to around 4.2 million tons (around 2.65 million tons, basis milled) in 2015.In line with its targets, the government is stepping up efforts to increase awareness about sanitary and phyto-sanitary issues among the rice producers and millers. The Ministry of Agriculture hosted a knowledge dissemination meeting last week to apprise the exporters and producers the demands of various trade partners over the sanitary and phyto-sanitary measures.The Vice Minister of Agricultural and Forestry told rice stakeholders that the government has signed agricultural and crop production agreements with Thailand, Vietnam and China, and according to the agreements, Laos needs to follow the conditions of food safety and plant sanitary measures.
Description: http://oryza.com/sites/default/files/field/image/150225laosstickyrice.jpgHe also noted that the government has signed a rice export contract with China, which includes an agreement on phyto-sanitary measures. He said China wants the government to follow the standards of the WTO with regard to protocols of bio-safety and Sanitary and Phyto-Sanitary measures (SPS Protocol). He added that the agreement specifically focuses on the phytosanitary and pest management measures required, the methods of processing, packaging, transport and other important measures. Earlier, the Vice-Minister noted that there is huge demand for Laos’ sticky rice among the Chinese. USDA estimates Laos to produce around 1.55 million tons of milled rice (around 2.46 million tons, basis paddy) in MY 2014-15 (January 2015 - December 2015) and import around 10,000 tons of rice to meet consumption needs of around 1.58 million tons.

Oryza Afternoon Recap – Chicago Rough Rice Futures Recover from Early Losses but off of Session Highs as Rallying Crude Weighs on Grain Prices

Feb 25, 2015
Chicago rough rice futures for May delivery settled 6 cents per cwt (about $1 per ton) higher at $10.770 per cwt (about $237 per ton). After falling overnight and into the morning session rough rice futures made a big rally during mid-day trading. However, the buying interest quickly subsided and prices drifted much closer to the unchanged line during afternoon trading. Despite prices closing off of the highs the fact that they did manage to hold out for a gain despite bearishness in the other grains is seen as a positive sign for the market. Traders will now focus on yesterday’s settlement price of $10.710 per cwt (about $236 per ton) as a key signal of future trade direction.
 A higher close tomorrow will complete an outside up pattern and signal that the recent bearishness is indeed over and that a recover is underway, likely triggering additional buying. On a move higher traders will keep an eye on the recent high of $11.160 per cwt (about $246 per ton) as a key point of resistance. The other grains finished lower but off of session lows; soybeans closed about 0.8% lower at $10.1075 per bushel; wheat finished about 1.3% lower at $4.9725 per bushel, and corn finished the day about 0.5% lower at $3.8375 per bushel.U.S. stocks traded mostly higher on Wednesday after closing at records on Tuesday, amid firming oil prices, moderate housing data and no news out of Fed Chair Janet Yellen's second congressional testimony.
Yellen's remarks to the Senate on Tuesday were mostly dovish but added little weight on either side to analyst expectations on the timing of an interest rate hike. The Fed chair repeated the remarks on Wednesday in front of the House Financial Services Committee. Stocks were little changed after morning housing data and earnings. New U.S. single-family home sales in January fell a less-than-expected 0.2% to 481,000 and supply rose to its highest level since 2010, hopeful signs for the sluggish housing market.
The U.S. Energy Information Administration reported that weekly crude inventories rose 8.4 million barrels, more than expected. The figures were in-line with Tuesday's American Petroleum Institute report of 8.9 million barrels. The Dow Jones Industrial Average traded up 14 points, or 0.08%, to 18,224. The S&P 500 traded up 0.56 points, or 0.03%, to 2,116, with consumer discretionary leading four sectors higher and utilities the greatest laggard. The Nasdaq gained 8 points, or 0.16%, to 4,976. Gold is trading about 0.4% higher, crude oil is seen trading about 2% higher, and the U.S. dollar is seen trading about 0.2% lower at about  1:00pm Chicago time.Tuesday, there were 1,505 contracts traded, down from 1,053 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday increased by 132 contracts to 9,180.

Myanmar Signs 100,000 Ton Rice Export Contract with China

Feb 26, 2015

Description: Description: http://www.oryza.com/sites/default/files/field/image/150226myanmarricefarmer.jpgThe Myanmar Rice Federation (MRF) has signed a contract with the China's state run China National Cereals, Oils and Foodstuffs Corporation (COFCO) to export 100,000 tons of rice to China is separate monthly shipments in accordance with market prices at the time of shipment, local sources quoted an official from the  (MRF) was quoted as saying. According to the Joint Secretary of the MRF, It has been agreed to export rice in separate monthly shipments at the prevailing prices at the time of shipment to ensure a fair trade for both parties. He also noted that the Myanmar rice exporters do not have enough capacity to export all 100,000 tons of rice at one go. Officials from the MRF have been working to sign this contract for last few months in order to legalize rice exports to China.
Initially nine companies were shortlisted to export rice to China but the number is likely to go up as China sought increase in the number of exporters.According to the agreement, rice exporters should get their rice inspected and accredited with the China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and then seek approval from the China Certification and Inspection Group before exporting rice to China.The MRF Joint Secretary noted that they would begin exporting rice to China from April. He noted that the MRF is taking all measures to meet the quality and variety standards in accordance with China's specifications.
Currently export prices of Myanmar 5% broken rice is quoted at around $415 per ton and 25% broken rice is quoted at around $325 per ton.Around 1.1 million tons of rice have been exported in the first nine months of 2014-15, of which 800,000 tons comprise of exports to China through the borders. The Myanmar government is targeting to export around 2.5 million tons of rice in FY 2015-16 (April - March), up about 67% from an estimated 1.5 million tons in FY 2014-15.USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million tons, milled basis) and export around 1.4 million tons of rice in MY 2014-15 (January - December 2015).

Oryza U.S. Rough Rice Recap – Unchanged Market as Snowy Weather Hampers Movement of Rice

Feb 25, 2015
The U.S. cash market was unchanged today with little trading to report as most buyer and seller price ideas are roughly $0.50-$1.00 per cwt (about $11-$22 per ton).Icy and snowy weather continues to hamper movement of rice in the U.S. mid-South causing a headache for some farmers, mills, and exporters however forecasts are expected to improve by the weekend.Analysts note that farmers are beginning to make preparations for next year’s crop however some believe that rice is losing favor with farmers as the softer prices currently seen are at or below their cost of production

Oryza Overnight Recap – Chicago Rough Rice Futures Sharply Lower Overnight as Other Grains Turn Bearish

Feb 25, 2015
Chicago rough rice futures for May delivery are currently listed 14 cents per cwt (about $3 per ton) lower at $10.570 per cwt (about $233 per ton) ahead of floor trading in Chicago. The other grains are seen trading lower this morning: soybeans are currently seen about 0.4% lower, wheat is listed about 0.5% lower and corn is currently noted about 0.3% lower.U.S. stock index futures signaled a flat open on Wednesday as investors digested comments from Federal Reserve Chair Janet Yellen's speech to Congress which hinted that the central bank was not in a rush to hike interest rates.
Yellen is set to continue her testimony on Wednesday in front of the House Financial Services Committee, as new home sales figures for January are due, both at 10.00 a.m. ET. Mortgage applications to purchase a home rose 5% on a seasonally adjusted basis for the week ending Feb. 20 from the previous week, according to the Mortgage Bankers Association (MBA). Existing home sales for January reported on Monday slumped to the lowest level in nine months amid a shortage of properties in the market. Investors will also watch oil inventories at 10:30 a.m. ET from the U.S. Energy Information Administration for signals on supply build-up. Gold is currently trading about 0.7% higher, crude oil is seen trading about 0.3% higher,  and the U.S. dollar is currently trading about 0.2% lower at 8:00am Chicago time.

Asia Rice Quotes Unchanged Today

Feb 25, 2015
Asia rice sellers kept their quotes 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 $390 - $400 per ton, about $55 per ton premium on Pakistan 5% rice quoted at around $335 - $345 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 $355 - $365, about $50 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 $385 - $395 per ton, on par with Pakistan parboiled rice quoted at around $385 - $395 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 $280 - $290 per ton,  about $5 per ton premium on Pakistan broken sortexed rice quoted at around $275 - $285 per ton.


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