Brazil
Paddy Rice Index Declines Slightly from Last Week
Feb 04, 2015
The Brazilian paddy rice index
maintained by the CEPEA reached around 38.24 real per 50 kilograms as of
February 03, 2015, down about 0.34% from around 38.37 real per 50 kilograms
recorded on January 27, 2015.In terms of USD per ton, the index reached around
$282.7 per ton on February 03, 2015, down about 5% from around $297.4 per ton
recorded on January 27, 2015.
FAO
Global Rice Price Index Declines 1% m/m to 222 Points in January 2015
Feb 04, 2015
The FAO All Rice Price Index
declined to around 222 points in January 2015, down about 1% from around 224
points in December 2014 due to decline in the Higher and Lower Quality Indica
as well as Japonica sub-indices.The Japonica sub-index registered the highest
decline of about 1.4% or 4 points to around 279 points this month from around
283 points last month. Higher Quality Indica sub-index declined by about 1
point, or about 0.5% to around 194 points in January 2015, from around 195
points last month. Lower Quality Indica sub-index declined by about 2 points,
or about 1% to around 189 points this month from around 191 points last
month.However, the Aromatic sub-index increased about 1% to around 189 points
in January 2015 from around 187 points last month.
In January 2014 - January 2015,
the FAO All Rice Price Index averaged 222 points, down about 2% from around 227
points during the same period last year. Sub-index for higher quality Indica
rice prices declined about 8.6% y/y and sub-index for lower quality Indica rice
prices declined about 4.5% y/y. Aromatic rice price sub-index declined about
28% y/y. However, sub-index for Japonica rice prices increased about 18.4%
y/y.
According to the FAO, rice export
prices in the Asian origins such as Vietnam, India and Pakistan declined
significantly in January 2015 due to increased supplies from new harvest and
subdued export demand. However, Thai rice export prices remained relatively
stable or increased during the month, says the FAO. Export prices of U.S. origin
as well as other American origns also declined due to increasing supplies from
new harvests.
During January 2015, average rice
export prices of Thai 100% broken rice increased to around $429 per ton;
Prices of Thai 5% broken rice, Thai parboiled rice, Thai 25% broken rice and
Thai fragrant rice also increased to around $420 per ton, $424 per ton, $400
per ton and $1,078 per ton respectively. However, prices of Thai A1 Super
declined slightly to around $330 per ton.
Export prices of Vietnam and
India 25% broken rice declined about 1.6% m/m and 0.2% m/m to around $349 per
ton each respectively. Rice export prices in of Pakistan 25% broken rice
declined by about 1.5 m/m to around $326 per ton; and export prices of the U.S.
and Uruguay rice declined about 2% and 0.8% to around $508 per ton and around
$595 per ton respectively.
Oryza
Overnight Recap - Chicago Rough Rice Futures Slip Lower as Market Unable to
Find Follow-through Buying as Grains and Crude Turn Negative
Feb 04, 2015
Chicago rough rice futures for
Mar delivery are currently listed 8.5 cents per cwt (about $2 per ton) lower at
$10.300 per cwt (about $227 per ton) during early floor trading in Chicago. The
other grains are all seen lower as well: soybeans are currently seen about 1.2%
lower, wheat is listed about 0.8% lower and corn is currently noted about 1.2%
lower.U.S. stocks opened lower on Wednesday as oil reversed its recent rally
and markets digested mixed overseas news from China and Greece.
China's central bank increased
its economic stimulus measures even further Wednesday by cutting the reserve
requirement ratio (RRR) amid growing concerns about the rate of expansion in
the world's second-largest economy. The 50 basis points reduction to 19.5
percent, effective Thursday, is the first such cut since May 2012. This will
lower the amount of deposits that each lender is required to hold as reserves.
The Greek debt situation remained unclear as finance minister Yanis Varoufakis
met with European Central Bank President Mario Draghi. The ADP Employment
report, which is seen as a precursor to Friday's important jobs report, showed
January payrolls increased by 213,000, below estimates of 225,000.
Total mortgage application volume
increased 1.3% on a seasonally adjusted basis last week from one week earlier,
according to the Mortgage Bankers Association. Data out later in the morning
include the PMI Services Index at 9:45 a.m. and the ISM Non-manufacturing Index
at 10:00 a.m., which will also give indications on the state of health of the
U.S. economy. Oil inventories data is published at 10:30 a.m. and the Cleveland
Federal Reserve's President Loretta Mester speaks at 12:45p.m. The Dow Jones
Industrial Average opened down 63 points, or 0.34%, at 17,603.21. The S&P
500 opened down 7.43 points, or 0.36%, at 2,042.76, with health care the
greatest laggard and consumer staples leading gains across three sectors. The
Nasdaq opened down 23.2 points, or 0.48%, at 4,704.31. Gold is currently
trading about 0.5% higher, crude oil is seen trading about 4.8% lower,
and the U.S. dollar is currently trading about 0.4% lower at 8:30am Chicago
time.
IRRI's
Regional Seed Cooperation Agreement Speeds Up Release of Rice Varieties in
South Asia
Feb 04, 2015
The regional rice seed
cooperation agreement between India, Bangladesh and Nepal, launched by the
Philippines-based International Institute of Rice Research (IRRI) is speeding
up the release of rice varieties in these countries, according to a news
release on its website.The regional rice seed cooperation agreement, promoted
through the Stress-Tolerant Rice for Africa and South Asia (STRASA), began with
an intention to benefit farmers in region by reducing time lags in releasing
newer rice varieties. Since the agro-climatic conditions of the three countries
are similar, rice seeds developed, tested, approved and released in one country
can be released simultaneously in the other countries as well.
This process facilitates quicker
release of rice varieties as rice seed development usually takes longer time,
according to the news release. For instance varieties developed through
market-assisted breeding takes two years while varieties developed through
conventional breeding takes about seven years. The agreement saves a lot of
time and resources in releasing a new variety in a country.As part of this
agreement several varieties such as BR11, BRRI dhan 28, and BRRI dhan 29,
modern high-yielding rice varieties developed and released in Bangladesh are
widely grown in India. Bangladesh's other varieites such as BINA dhan 8, BINA
dhan 10, BINA dhan 11, and BINA dhan 12 are becoming popular in East
Indian states. Similarly, India's rice varieties such as Swarna, Sarju 52, and
Samba Mahsuri are released in Nepal and Bangladesh. Nepal’s Sukha dhan5 and
Sukha dhan6, and drought-tolerant varieties are being considered for release in
the Indian states of Uttar Pradesh and Bihar.The progress of the regional rice
seed cooperation agreement were presented at the IRRI-Global Rice Science
Partnership (GRiSP) Asia Science Week, held from 26 to 30 January in the
Philippines.
Indian
State Maharashtra Approves Field Trials of GM Rice
Feb 04, 2015
India's western state Maharashtra
has approved field trials of five genetically modified (GM) crops, including
rice, maize, chickpea, brinjal and cotton, according to local sources.The state
government has issued "no objection certificate (NOC)" for companies
carrying out field trials of these five GM crops. Along with BT rice, the
government has also approved field trials of two other rice varieties that are
drought tolerant and has nitrogen use efficiency.
Companies carrying out field
trials of GM crops are mandated to get a NOC from respective state governments,
according to a Central Government Directive. Other states such as Punjab,
Haryana, Delhi and Andhra Pradesh have reportedly given NOCs for field trials
of some biotech crops, but states like Madhya Pradesh and Rajasthan are against
the field trials of GM crops.
Oryza Afternoon Recap - Chicago Rough Rice
Futures Close at Fresh Low as Crude Gives back Yesterday's Gains as Inventories
Continue to Rise
Feb 04, 2015
Chicago rough rice futures for
Mar delivery settled 13.5 cents per cwt (about $3 per ton) lower at $10.250 per
cwt (about $226 per ton). Rough rice futures continued on their downward
trajectory, closing at a fresh contract low after failing at an early attempt
to add to gains earned yesterday. The market remains firmly entrenched in a
bearish trend with traders expecting another testing of the psychologically
significant $10.000 per cwt (about $220 per ton) level, again dragging prices
to levels not seen since mid-2010. Today’s action confirms the current bearish
outlook and forecasts lower prices in coming sessions.
A break down and close below the
previously mentioned level of support would likely trigger additional selling
on the part of specs and could initiate another leg to the downside. The
question now becomes at what point the market represents an attractive value to
commercial interests and when do they step in to take on or add to a long
position to fill basic demand. The other grains gave back a portion of
yesterday’s gains today; Soybeans closed about 1.5% lower at $9.7200 per
bushel; wheat finished about 0.5% lower at $5.1100 per bushel, and corn
finished the day about 0.6% lower at $3.8350 per bushel.
U.S. stocks pared gains to trade
narrowly mixed on Wednesday as low oil prices continued to weigh on the energy
sector, putting pressure on the S&P 500. Crude oil futures touched a low
for the day of below $50 a barrel, down more than 6% and near Monday's
settlement level. Oil prices have fallen around 50% from a high of $114 a
barrel last June on the back of an over-supply and lack of demand. This week's
rebound sparked hopes that prices had hit a bottom after a seven-month rout,
but growth concerns in China have prompted renewed concern for global oil
demand. The Greek debt situation remained unclear as finance minister Yanis
Varoufakis met with European Central Bank President Mario Draghi. The Dow Jones
Industrial Average came off highs to trade 37 points higher, or 0.21%, at
17,702.
The S&P 500 traded down 5
points, or 0.24%, at 2,045, with consumer discretionary leading 4 of the 10
sectors, and energy the greatest laggard. The Nasdaq rose 0.44 points, or
0.01%, to 4,728. Gold is trading about 0.3% higher, crude oil is seen trading
about 7.7% lower, and the U.S. dollar is seen trading about 0.5% higher at
about 1:00pm Chicago time.Tuesday, there were 811 contracts traded, down
from 2,282 contracts traded on Monday. Open interest – the number of contracts
outstanding – on Tuesday decreased by 10 contracts to 10,291.
Nepal
Imports 97,098 Tons of Rice from India in First Six Months of FY 2014-15; Up
42% from Last Year
Feb 04, 2015
Nepal has imported about 97,098
tons of rice from India through the Belhiya (Bhairahawa) transit point in the
first six months of the current fiscal year 2014-15 (August 2014 - July 2015),
up about 42% from around 68,397 tons imported during the same period in FY
2013-14 according to the Customs officials.Nepal's rice imports from India have
been increasing over the last few years due to Nepalese preference for fine
rice over medium and coarse rice, according to an official from the Ministry of
Agricultural Development.
According to Nepal Rastra Bank's
(NRB) statistics, Nepal imported rice worth Rs.12.37 billion (around $121.45
million) in 2013-14, up about 46% from around Rs.8.47 billion (around $83.16
million) despite surplus rice stocks of around 800,000 tons from the previous
fiscal due to rising disposable incomes and the Nepalese preference for better
quality rice.According to MoAD, rice imports are expected to increase this year
also due to an expected decline in production. Nepal's 2014 paddy rice production
is likely to decline about 5.1% to around 4.78 million tons from around 5
million tons last year due to a late monsoon and untimely rainfall, according
to MoAD sources. The decline is primarily attributed to below average rainfall
during the transplantation time.
USDA estimates Nepal to import
around 350,000 tons of rice in 2015. It estimates Nepal’s MY 2014-15 (October
2014 – September 2015) paddy rice production to decline to about 4.655 million
tons (around 3.1 million tons, basis milled) from an estimated 5 million tons
(around 3.36 million tons, basis milled) in MY 2013-14.
Asia
Rice Quotes Unchanged Today
Feb 04, 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 $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 $40 per ton premium on Pakistan 5% rice quoted at around $355 -
$365 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 $10 per ton discount to Pakistan parboiled rice quoted at
around $400 - $410 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 $15 per ton premium on
Pakistan broken sortexed rice quoted at around $280 - $290 per ton.
China
Decides to Retain 2015 Minimum Rice Purchase Prices at 2014 Level
Feb 04, 2015
The Chinese government has
decided to continue the state stockpiling policy for rice in 2015 as well but
will retain the minimum rice purchase prices (MRPP) at last year's level,
Reuters quoted the National Development and Reform Commission as saying.The
MRPP for early indica rice reserve purchases will continue at 135 yuan per 50
kilograms (around $432 per ton), MRPP for middle and late-season indica rice as
well as for japonica rice will be retained at 138 yuan per 50 kilograms (around
$442 per ton) and 155 yuan per 50 kilograms (around $496 per ton).
respectively.
The Chinese government has been
purchasing rice from farmers under the policy since 2004. The government will
intervene and buys rice from farmers at the state-set MRPP if the market price
falls below MRPP.Experts view that the government has not increased MRPP from
last year's levels despite increase in production costs as it is keen on taking
the MRPP close to market prices. All these years China had been purchasing rice
from farmers at above market prices and thus has accumulated huge stocks. Now,
if the government wants to release those stocks into the market, it may have to
compromise with prices.Since the government has been planning to eventually
scrap the state stockpiling policy, the decision not to increase MRPP this year
seems to indicate a step in that direction, say experts.
Research
Group Urges Government of Ghana to Develop Support Strategy for Small Scale
Rice Farmers
Feb 04, 2015
A report released by the Ghana
Trade and Livelihood Coalition (GTLC), a trade and agriculture advocacy,
research and practice organisation, has found that small scale rice farmers
need government support in land acquisition, training in using latest
agricultural farming equipment as well as financial support from banks. A study
conducted by the GTLC covering about 660 rice farmers in about 10 small-scale
rice areas in nine administrative regions found that farmers are seeking
government support in the above mentioned areas in order to increase yield per
hectare.
A Senior Lecturer from the
Department of Economics of the University of Ghana commented on the results of
the study saying that the government needs to recognize the financial needs of
the small-scale farmers and should consider facilitating financing through
banks. He noted that due to inadequate support from the government, farmers are
forced to take loans from microfinance institutions at high interest rates
consequently impacting their incomes.
The study also found that farmers
are willing to accept new methods of cultivation and it is high time for the
government to react. The government should ensure that policies are properly
implemented to get desired results.GTLC has been collecting data on agriculture
to assess the implementation of the agriculture sector policies and their
impact on small scale farmers in Ghana since 2009 and the report was released
in 2014.
Earlier, the Ghana Rice
Inter-Professional Body (GRIB) also urged the government to adopt new
strategies, including providing access to quality seeds, fertilizers,
irrigation facilities, modern rice farming technologies, milling units as well
as drying and storage units, to boost rice production in the country.Ghana
produces only 30% of its annual consumption needs of around one million tons
and imports the rest. The government is currently planning to increase rice
production by about 20% per annum over the next four years to make the country
self-sufficient in rice and subsequently ban rice imports.According to the
USDA, Ghana’s rice production is estimated at about 330,000 tons (milled basis)
in MY 2014-15 (October - September). The U.S. agency expects Ghana to import
620,000 tons of rice during the year to meet consumption needs of around one
million tons of rice.
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