Thailand Plans to Sell 780,000 Tons of
Rice in March 6 Tender
Mar 11, 2015
Thailand received
bids for around 780,000 tons of rice of the one million tons auctioned in its
second auction on March 6, 2015, and the government may approve sale to all
bidders who tendered in the auction, according to Bloomberg.The National Rice
Policy Committee chaired by the Prime Minister is to approve the sales.The
military government sold about 1.18 million tons of rice from five auctions
raising around 17.21 billion baht (around $528 million) since it seized power
in May 2014.The government currently holds 17.8 million tons and is planning to
sell around 10 million tons this year and around 7 million tons next
year.Meanwhile, the government is planning to sell the degenerated rice after
August 2015 when the investigation against those involved in the sales of
low-grade rice is expected to be over. Local and foreign companies are
reportedly interested in buying the low grade rice for use in non-food
industries.
Perennial Rice: Revolution in Rice
Cultivation Mar 11, 2015
Rice is a labor and
water intensive crop, and of late the global warming and climate changes have
been posing severe challenges for rice production thereby threatening the world
food security. Rice cultivation is also said to harm the environment by eroding
soil fertility as well as releasing harmful greenhouse gases into the
atmosphere.
Researchers are
working towards developing a perennial rice variety, which need not be planted
every year, and will yield good amount of rice for many years. Such a variety
can be developed by crossing domesticated rice varieties with its wild
predecessors, say researchers. Such a variety are deep-rooted and so they can
hold soils in place for a long time , survive extremes of weather conditions
and water supply.
Chinese scientists
at the China-based Yunnan Academy of Agricultural Sciences are on the verge of
completing a decade long trials on a perennial rice variety PR23, which can
provide yields similar to conventional rice varieties for over four years.
China's National Science Foundation and Land Institute have started a series of
field trials on PR23 and once the Yunnan government approves the variety, it
may be grown commercially.
However, critics say
perennial varieties are low yielding and would not be able to feed the world's
growing population. They also noted that one potential difference between the
traditional varieties and perennial rice varieties is that while traditional
varieties divert 30-60% of their energy to producing seeds, perennial varieties
divert the same energy to growing roots to help plants sustain for years.
Rising Imports and Continuing Political Unrest Impact Bangladesh Rice
Sector
Mar
11, 2015
Bangladesh
rice sector is facing severe trouble due to increasing imports and continuing
political blockades, according to local sources.Bangladesh's rice imports
reached four year high as the private sector has imported over 875,350 tons of
rice from India so far in this fiscal year (July 2014 - June 2015) due to low
prices in India. According to local sources, prices of medium quality rice in
India currently stand at about Tk 24.5-25.2 per kilogram (around $314-$323 per
ton) compared to Tk 27 per kilogram (around $346 per ton) of the same quality
rice in Dhaka. The increased imports have reduced demand for local coarse rice
and millers are left with huge stocks.
On
the other hand, due to the continuing political blockades that started on
January 5 this year, prices of paddy and rice in the wholesale markets have
declined drastically as traders are not interested to buy paddy due to
shutdowns and slow demand for local rice. According to local traders, prices of
paddy fell to around Tk 630 per 40 kilograms (around $202 per ton) from around
Tk 700 per 40 kilogram (around $224 per ton) during the same time last year.
Farmers are also concerned that they are unable to breakeven this year due to
high production costs and low returns.
Traders
also expressed concern that prices may still plummet once the Boro (January -
May) harvesting begins next month.Bangladesh produced around 34.449 million
tons of rice, basis milled, in FY 2013-14 (July - June), up about 2.7% from
around 33.833 million tons produced in FY 2012-13, according to the Agriculture
Ministry.Bangladesh's 2015 rice imports are likely to surpass both FAO and USDA
estimations. The FAO estimates Bangladesh to import 400,000 Tons, down about
33% from an estimated 600,000 tons in 2014 due to an expected increase in
production in 2014. USDA estimates Bangladesh to import around 600,000 tons of
rice in 2015, down about 20% from an estimated 751,000 tons imported in 2014.
Guyana Plans to Secure Additional 10,000 Rice Export Contract with
Venezuela
Mar 11, 2015
Guyana,
which has recently secured the deal to export around 250,000 tons of paddy and
rice to Venezuela, is planning to secure export contract for another 10,000
tons as well due to lack of lucrative export markets for its rice, according to
local sources.The Guyana Rice Development Board (GRDB) who left for Venezuela
to sign the export deal yesterday told local sources that Venezuela purchased
around 250,000 tons of paddy and rice from Guyana under the Petro Caribe deal
in 2014. The government has decided to convince Venezuela to buy another 10,000
tons taking the total export figure to around 260,000 tons.
He
noted that farmers are not convinced with the prices offered by new markets in
the Central America, North America and Europe. The Rice Producers
Association (RPA) President added that there are markets for Guyana rice but
Venezuela's prices for Guyana's high quality rice and paddy are high compared
to other countries' offers.The government also signed a contract with Panama in
August 2014 to export 50,000 to 60,000 tons annually. Though the contract has
still not been renewed for 2015, local sources say the government is optimistic
about the continuation of the contract.
With
an expected increase in production, the government has been exploring new
markets for its rice. The Agriculture Minister noted that the government has
struck deals with new markets in Central America and Africa apart from the
existing markets.Guyana produced around 633,000 tons of rice in 2014, up about
18% from around 535,212 tons from 2013; and exported around 501,208 tons of
rice in 2014, up about 27% from around 394,000 tons exported in 2013, according
to the Agriculture Minister.
The
Caribbean nation aims to produce about 618,000 tons of milled rice and export
around 521,000 tons in 2015.USDA estimates Guyana to produce 633,000 tons of
milled rice in the MY 2014-15 (January 2014 - December 2014) and export about
500,000 tons. The FAO estimates Guyana to produce 570,000 tons of milled rice
and export around 460,000 tons in 2014.
Thailand Rice Sellers Lower Some of Their Quotes; India Rice Quotes Mixed
Today
Mar 11, 2015
Thailand rice
sellers lowered their quotes for Hommali rice by about $10 per ton to around
$910 - $920 per ton. India rice sellers increased their quotes for 25% broken
rice by about $5 per ton to around $360 - $370 per ton and lowered their quotes
for Parboiled rice and 100% broken rice by about $5 per ton each to around $380
- $390 and $275 - $285 per ton respectively. Other Asia rice sellers kept their
quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is
quoted at around $395 - $405 per ton, about $30 per ton premium on Vietnam 5%
rice shown at around $365 - $75 per ton. India 5% rice is quoted at around $390
- $400 per ton, about $45 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 $20 per ton premium on Vietnam 25%
rice shown at around $345- $355 per ton. India 25% rice is quoted at around
$360 - $370, up about $5 per ton from yesterday and 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 $400 - $410 per ton. India parboiled rice is quoted at
around $380 - $390 per ton, down about $5 per ton from yesterday and about $15
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 $325 - $335 per ton, about $15 per ton
premium on Vietnam 100% broken rice shown at around $310 - $320 per ton.
India's 100% broken
rice is shown at around $275 - $285 per ton, down about $5 per ton from
yesterday and about $5 per ton discount to Pakistan broken sortexed rice
quoted at around $280 - $290 per ton.
China, Thailand Sort Out Details of Rice and Rubber Deals Mar 11,
2015
Thailand
and China have come to a clarity over details of a deal signed between the two
countries in December 2014 when the Chinese Premier Visited Thailand, according
to Reuters.According to the deal, China agreed to buy around 2 million tons of
rice and around 200,000 tons of rubber from Thailand. Today, representatives of
both the countries sorted out details of the deal. China has reportedly sought
to buy 1 million tons of 5% broken rice from the new crop and 1 million tons
from the stockpiles in 2015-16.
The
Thai Commerce Minister told reporters that both the governments will form a
steering committee to oversee the implementation of the deal. He also noted
that Thailand's Department of Foreign Trade and Rubber Estate Organization will
work closely with China's state-owned COFCO and Sinochem respectively regarding
pricing details.Last year, China also signed another memorandum of
understanding (MOU) with Thailand to import one million tons of rice. So far,
Thailand shipped only 300,000 tons of rice to China. Sources at the Commerce
Ministry told reporters that Thailand is keen on completing the shipment of the
remaining 700,000 tons and has urged Chinese authorities to quickly take
delivery of the same.The Commerce Ministry sources also noted that the present
deal is a positive indication for increase in future Thai agricultural exports
to China.
Oryza Overnight Recap – Chicago Rough Rice Futures Higher Overnight as
Grains React Positively to Yesterday’s USDA S&D Report
Mar 11, 2015
Chicago
rough rice futures for May delivery are currently listed 5 cents per cwt (about
$1 per ton) higher at $10.495 per cwt (about $233 per ton) ahead of early floor
trading in Chicago. The other grains are seen trading higher this morning:
soybeans are currently seen about 0.7% higher, wheat is listed about 1.4%
higher and corn is currently noted about 1% higher.U.S. stock index futures
pointed to a higher start to Wall Street trade on Wednesday, as European shares
rose following a global selloff on Tuesday. Markets remained jittery ahead of
the Federal Reserve meeting next week, at which the U.S. central bank could
signal that it is getting closer to hiking record low interest
rates—potentially as soon as June. Meanwhile, the euro continued to slump
against the U.S. dollar, falling to $1.06 on Wednesday.
Bets
are on as to when the euro could reach parity against the greenback, with the
currency pressured lower as the European Central Bank's quantitative easing
program gets underway. This has helped push the dollar to multi-year highs.
Weekly mortgage applications dropped as rates jumped, with the 1.3% decline
driven mostly by a 3% drop in refinance applications, which makes up 60% of all
applications. That volume was 80% in recent years. There will also be a
Treasury auction of benchmark 10-year notes.
The
yield on Wednesday morning traded slightly higher to near 2.15%, below the key
2.28% level analysts are watching for. The U.S. government's oil inventory data
will be of particular interest, after the American Petroleum Institute reported
the first weekly drop in crude supplies in two months on Tuesday. The Fed will
also publish further stress test results for large U.S. banks, assessing their
capital plans. Traders will also be keeping tabs on the debt negotiations
between Greece's newly installed left-wing government and the
"troika" of international institutions supervising its bailout
program. Gold is currently trading about 0.2% lower, crude oil is seen trading
about 1% higher, and the U.S. dollar is currently trading about 0.7%
higher at 8:00am Chicago time.
Oryza Afternoon Recap - Chicago Rough Rice Futures Rally as Market
Continues to Derive Support from Bullish USDA S&D Update
Mar 11, 2015
Chicago
rough rice futures for May delivery settled 21.5 cents per cwt (about $5 per
ton) higher at $10.735 per cwt (about $237 per ton). Rough rice futures rallied
today, supported by firmer grain prices and an apparent change of sentiment
noted during mid-day trading today. Despite getting off to a sluggish start and
trading mostly sideways for the majority of the morning, buying interest peaked
later in the day and saw prices rally over 20 cents per cwt (about $4 per ton)
by the ringing of the closing bell. Traders will look to tomorrow’s close as an
indication of future trade direction, as a reversal lower could erase the
technical importance of today’s gain. On the other hand a continuation higher
with a breakout above overhead resistance around $10.800 per cwt (about $238
per ton) would likely trigger additional technical buying.
The
other grains also finished higher today, led by an over 1% rally in wheat as
the market continues to react to yesterday’s bullish USDA S&D update;
Soybeans closed about 0.8% higher at $9.9275 per bushel; wheat finished about
1.2% higher at $4.9900 per bushel, and corn finished the day about 0.8% higher
at $3.9100 per bushel.U.S. stocks traded mildly lower on Wednesday as equities
failed to recover from Tuesday's selloff, amid continued concern over dollar
gains and the timing of a Fed interest rate hike. Oil futures extended losses
on Wednesday after government data showed U.S. commercial crude inventories
rose by 4.5 million barrels last week, well above an industry group report
released on Tuesday.
The three major indices initially traded
higher before falling to trade just below Tuesday's close. The euro continued
to slump against the U.S. dollar, dipping below $1.06 on Wednesday to a 12-year
low. Bets are on as to when the euro could reach parity against the greenback,
with the currency under pressure as the European Central Bank's quantitative
easing program kicked off this week. The euro's decline helped push the dollar
to multi-year highs. Weekly mortgage applications dropped as rates jumped, with
the 1.3% decline driven mostly by a 3% drop in refinance applications, which
makes up 60% of all applications.
That
volume was 80% in recent years. The Treasury Department auctioned $21 billion
of 10-year notes at a high yield of 2.13%. The bid-to-cover ratio, an indicator
of demand, was the highest since December at 2.65. The Dow Jones Industrial
Average gained 31 points, or 0.19%, at 17,695. The S&P 500 traded up 1.87
points, or 0.09%, at 2,046, with financials leading six sectors higher and
consumer staples the greatest laggard. The Nasdaq traded up 3 points, or 0.06%,
to 4,862. Gold is trading about 0.8% lower, crude oil is seen trading about
1.5% lower, and the U.S. dollar is seen trading about 1.3% higher at
about 1:00pm Chicago time.Tuesday, there were 245 contracts traded, down
from 370 contracts traded on Monday. Open interest – the number of contracts
outstanding – on Tuesday decreased by 97 contracts to 8,966.
Conab Estimates Brazil 2014-15 Paddy Rice Production at 12.152 Million
Tons, Slightly Up from Last Year
Mar 11, 2015
Brazil’s
National Grains Supply Company (Conab) has forecasted the country's 2014-15
paddy rice production at around 12.152 million tons (around 8.26 million tons,
basis milled), slightly up from around 12.122 million tons (around 8.24 million
tons, basis milled) in 2013-14.Conab has estimated Brazil's 2014-15 paddy rice
acreage at around 2.333 million hectares, down about 2% from around 2.373
million hectares in 2013-14. Paddy rice acreage in the key rice growing
Centro-Sul (Center-South) region is projected at 1.548 million hectares in
2014-15, down about 1% from around 1.565 million hectares in 2013-14.
Rice
acreage in the North/Northeast regions is estimated at around 784,600 hectares,
down 3% from around 808,400 hectares in 2013-14.Average rice yield in Brazil in
2014-15 is projected at around 5.209 tons per hectare, up about 2% from around
5.108 tons per hectare recorded in the previous year.USDA estimates Brazil MY
2014-15 (April – March) paddy rice production at around 12.206 million tons
(around 8.3 million tons, basis milled), unchanged from MY 2013-14. It
estimates Brazil’s 2014-15 paddy rice acreage also to remain at last year's
level of around 2.4 million hectares. USDA estimates Brazil to export
around 900,000 tons of rice and import around 700,000 tons of rice in 2014.
Global Rice Quotes
March 11th, 2015
Long grain white rice - high quality
Thailand 100% B grade 410-420 ↔
Vietnam 5% broken 365-375 ↔
India 5% broken 390-400 ↔
Pakistan 5% broken 345-355 ↔
Myanmar 5% broken 415-425 ↔
Cambodia 5% broken 425-435 ↔
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 345-355 ↔
Pakistan 25% broken 310-320 ↔
Cambodia 25% broken 410-420 ↔
India 25% broken 360-370 ↑
U.S. 15% broken 470-480 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 400-410 ↔
Pakistan parboiled 5% broken stxd 395-405 ↔
India parboiled 5% broken stxd 380-390 ↓
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% 910-920 ↓
Vietnam Jasmine 465-475 ↔
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Mails 790-800 ↔
Brokens
Thailand A1 Super 325-335 ↔
Vietnam 100% broken 310-320 ↔
Pakistan 100% broken stxd 280-290 ↔
Cambodia A1 Super 345-355 ↔
India 100% broken stxd 275-285 ↓
Egypt medium grain brokens NQ ↔
U.S. pet food 380-390
↔
Brazil half grain NQ ↔
All prices USD
per ton, FOB vessel, oryza.com
California Drought May Hold Global Medium-Grain Rice Prices Firm, Says
Australian Rice Expert
Mar
11, 2015
California's
ongoing drought is expected to hold on the medium-grain rice prices firm and
prevent them from falling, according to the CEO of an Australian rice
processing company.The official made these remarks ahead of the rice harvest in
Australia's key rice growing area New South Wales. Australia also produces
medium-grain rice and California is a major competitor to Australia in this
segment.He noted that drought conditions in the U.S. state have led to drying
up of reservoirs and Californians are relying on snowpack, as it melts and
flows into reservoirs.
However,
the flow from snowpack also fell about 24% from last year. In this situation,
Californians are resorting to purchasing water for both domestic and
agricultural purposes.The Australian official expressed optimism that prices
this year would remain firm in the U.S. as rice producers who are likely to
spend heavily on water for irrigation purposes may not allow prices to dip
unusually.California mostly produces medium-grain rice and 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, which employs about 25,000 people
and exports most of the rice grown here, 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.Currently, export prices of the U.S. medium
grain rice stand at around $870 per ton, down about 5% from around $915 per ton
in the beginning of this year.The Australian Bureau of Agricultural and
Resource Economics and Sciences (ABARES) forecasts Australia's paddy rice
production in MY 2014-15 (April 2014 - March 2015) to decline to around 684,000
tons (around 492,000 tons, basis milled), down about 18% from an estimated
833,000 million tons (around 600,000 tons, basis milled) in MY 2013-14 due to
water shortages and corresponding reduction in yields. The situation is likely
to impact local prices in the short run.
USDA Forecasts U.S. MY 2014-15 All Rice Exports at 4.72 Million Tons, Up
11% from Last Year
Mar 11, 2015
In its March
World Agricultural Supply and Demand Estimates (WASDE) report, the USDA has
forecasted U.S. MY 2014-15 all rice exports at around 4.72 million tons, up
about 11% from last year and up about 1% from its February forecasts.USDA
forecasts the U.S. long-grain exports to increase to around 3.27 million tons,
up about 14% from last year's 2.86 million tons and up about 1.5% from last
month's 3.22 million tons based on an expected increase in exports to markets
in the Western Hemisphere.Accordingly, USDA lowered its estimates for U.S. MY
2014-15 all rice ending stocks by about 2% to around 1.86 million tons from its
last month's estimates of around 1.9 million tons. It estimates U.S. all rice
ending stocks to increase about 25% y/y in MY 2014-15. USDA lowered estimates
for U.S. MY 2014-15 long-grain ending stocks by about 3% to around 1.23 million
tons from last month's estimate of around 1.27 million tons. It estimates U.S.
long-grain rice ending stocks to increase about 40% y/y in MY 2014-15.USDA estimates
U.S. all rice farm prices to increase to around $308.64 - $321.82 per ton from
last month's estimates of around $302.03 - $315.26. It increased estimates for
long-grain rice farm prices to around $268.96 - $282.19 per ton and estimates
for combined medium and short-grain farm prices to around $399.03 - $416.67.The
USDA has kept its forecasts for U.S. all rice production and imports unchanged
from last month.
Download/View
On-Line the above News in pdf format,just click the following link
No comments:
Post a Comment