Friday, March 20, 2015

20th March (Friday) ,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine


EU Imports 130,102 Tons of Rice from Asian LDCs in First Six Months of 2014-15, Up 3% from Last Year

Description: http://oryza.com/sites/default/files/field/image/150319euimportsfromldcs.jpgMar 19, 2015
The European Union's (EU) rice imports, including milled and semi-milled, from the Least Developed Countries (LDCs) of Asia such as Cambodia and Myanmar under the Everything But Arms (EBA) Agreement have reached around 130,102 tons in the first six months of the crop year 2014-15 (September 2014 - August 2015), up about 3% from around 126,502 tons imported during the same period last year, according to data from the European Commission (EC).
The EC data shows that imports from Cambodia (which account for about 78% of total imports from Asian LDCs in September 2014 – February 2015) declined about 11% to around 102,084 tons from around 115,219 tons during the same period last year. On the other hand, rice imports from Myanmar (which account for about 19% of total imports from Asian LDCs in September 2014 – January 2015) increased over three times to around 25,350 tons from around 8,804 tons during the same period last year.
Under the EBA Agreement, the EU imports rice from the LDCs at zero-percent duty. It was basically aimed to raise incomes and living standards of farmers in the LDCs. Rice imports (milled equivalent) from the Asian LDCs mostly Cambodia and Myanmar) increased about forty times to around 402,000 tons in MY 2013-14 from just 10,000 tons in MY 2008-09, according to the new Chairman of Copa-Cogeca (The united voice of farmers and their co-operatives in the European Union) Rice Working Party.
Italy, the EU’s main rice producer, has been expressing concern that the competitiveness of Italian rice has been declining significantly due to an increase in imports from EBA countries. The Italian government and the Ente Nazionale Risi (National Agency for Rice) have been urging the EU to adopt a safeguard clause to curtail imports from EBA countries.
  Global Rice Quotes
March 19th, 2015
Long grain white rice - high quality
Thailand 100% B grade           400-410           ↔
Vietnam 5% broken     355-365           ↓
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    580-590           ↔
Argentina 5% broken   570-580           ↔
Long grain white rice - low quality
Thailand 25% broken 370-380           ↔
Vietnam 25% broken   340-350           ↔
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             385-395           ↔
Pakistan parboiled 5% broken stxd      380-390           ↔
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%           890-900           ↔
Vietnam Jasmine         455-465           ↔
India basmati 2% broken         NQ       ↔
Pakistan basmati 2% broken    NQ       ↔
Cambodia Phka Mails 790-800           ↔
Brokens
Thailand A1 Super       320-330           ↔
Vietnam 100% broken             305-315           ↓
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

Italian Paddy Rice Quotes Mixed

Mar 19, 2015
A general rebalance of paddy quotations is taking place on Italian market, according to local sources.. Prices are still elevated compared to the same period last year.
Below are farm gate paddy quotations supplied by Milan Grain Exchange, as of March 17:
Arborio-Volano rice was shown at 705-735 euros (about $743-774) per ton, down from 715-745 euros (about $ 753-785) per ton one week prior..
Balilla paddy prices are firm at 370-385 euros (about $390-405) per ton, unchanged from the prior week.
Lido and similar paddy varieties are again unchanged at 360-375 euros (about $379-395) per ton.
Padano-Argo is shown at 565-665 euros (about $595-701) per ton, unchanged from the prior week.Vialone Nano quotes seem to be recovering from a recent downtrend.. On March 17 it was shown at 785-835 euros (about $ 827-880), up from 770-820 euros (about $ 811-864) per ton of March 10..
Thaibonnet and similar Indica varieties are firm at 328-338 euros (about $345-356) per ton on both weeks; Sant'Andrea is quoted 570-620 euros (about $ 601-653) per ton, unchanged from the prior week; Ariete and similar varieties received no quotations in the last two weeks.
Carnaroli advanced to 715-745 euros (about $753-785) per ton, up from 705-735 euros (about $743-774) per ton shown a week prior.
Baldo paddy prices were firm at 575-625 euros (about $606-659) per ton, unchanged from the prior week. 
Roma is firm at 590-620 euros (about $622-653) per ton, unchanged from the prior month.  
Selenio declined to 380-405 euros (about $400-427) per ton on March 17 from 395-420 euros (about $416-442) per ton a week prior.

Low Domestic Prices Have Led to a decline in SBS Rice Imports in JFY2014, Says USDA Post

Description: Description: http://oryza.com/sites/default/files/field/image/150319japanpsd.jpgMar 19, 2015
USDA Post reports that due to low domestic prices in 2014, Japan's food service industry, which normally uses imported rice, has shifted to domestic rice and consecutively only 11,506 tons of rice was contracted in the eight Simultaneous Buy and Sell (SBS) tenders JF2014 (April 2014 - March 2105). As of March 3, 2015, eight Simultaneous Buy and Sell (SBS) tenders and thirteen Ordinary Minimum Access (OMA) tenders had been held in JFY2014. Last month, the Post reported that Japan may not import the targeted 100,000 tons under the SBS tenders due to declining local prices. The SBS rice goes to retailers and foodservice users and is consumed as table rice.
A bumper harvest in 2014 and high level of stocks from previous years have led to a 16% y/y decline in prices. In order to avert further price falls, the Rice Stable Supply Support Organization, a private group consisting of producers and wholesalers, has decided to hold 200,000 tons of table rice without entering the market until the price recovers by bearing their storage costs.
The USDA Post has estimated Japan to import around 700,000 tons of rice in 2015, up about 7% from an estimated 650,000 tons in 2014 due to an expected decline in production.
Based on production data from the Ministry of Agriculture, Forestry and Fisheries (MAFF), the Post reports that the 2014 rice production declined about 1.2% to around 7.583 million tons from around 7.676 million tons in 2013. The decline is attributed to a decline in the planting area by about 1.5% y/y to around 1.575 million hectares. Declining prices in 2014 are said to have discouraged plantings. The Post reports that weak prices are expected to continue in 2015 as well discouraging 2015 planting.
The Post reports that per capita consumption of table rice in Japan has been declining but that for feed has been increasing. Per capita consumption of table rice is expected to decline to about 56.1 kilograms in 2015, which is less than half of about 11.3 kilograms in 1962. The government has been incentivizing the conversion from production of rice for food to production for feed. Feed production increased about 55% to around 178,000 tons in 2014 from around 115,000 tons in 2013. Most of the OMA rice is used for production of feed.

Oryza Global Weather Outlook

Mar 19, 2015
Rain is expected across the Yangtze valley and western south China this week, which will favour early rice crop growth there.
A few isolated showers are expected across north-western Pakistan this week.
Weather is expected to remain dry in India and Bangladesh this week.
In Indonesia, rain is expected across western Malay Peninsula, Sumatra, Kalimantan, East Malaysia, Sulawesi, and Java this week.
Rain is expected across central Thailand this week, which will maintain moisture for second season rice growth.
Light rain is expected across northern Vietnam this week.
In the Philippines, rain showers are expected across north-eastern Luzon this week.
Rain is expected across northern and eastern portions of the centre-south Brazil and across northeast Brazil this week, which could slow harvesting there.
A few light showers are expected in north-western  Argentina this week.
In the U.S., rain is expected across the Coastal Bend and southern Delta this week. Rice planting will begin in April.

Oryza Afternoon Recap - Chicago Rough Rice Futures Give Back a Portion of Yesterday's Gains but Close Far from Session Low

Mar 19, 2015
Chicago rough rice futures for May delivery settled 12 cents per cwt (about $3 per ton) lower at $10.925 per cwt (about $241 per ton). Rough rice futures failed to find follow-through buying interest following yesterday’s nearly 50 cent per cwt (about $11 per ton) rally. Prices pulled back overnight and fell further upon the opening of floor trading this morning. However, the market did manage to close well off of session lows and has maintained a good portion of gains earned yesterday. Despite the day’s losses, traders see a positive tilt to the market and expectations are for higher prices.
 The other grains finished mostly lower, with only wheat managing to close higher on support from weather concerns; Soybeans closed about 1.1% higher at $9.6500 per bushel; wheat finished about 1.4% higher at $5.1075 per bushel, and corn finished the day about 1% higher at $3.7475 per bushel.U.S. stocks traded mostly lower on Thursday as investors weighed the Federal Reserve statement that indicated a rate hike would come gradually. Only the Nasdaq traded higher. The Dow Jones industrial average fell by as much as 128 points before paring losses and the S&P edged lower, giving back some of their major gains from Wednesday following dovish Fed news.
 The U.S. Federal Reserve removed "patient" from its statement on Wednesday, as most analysts expected, but lowered its December rate outlook and cut economic forecasts. The U.S. 10-year note yield held below 2%. The U.S. dollar recovered some of its recent losses. Crude oil fell more than 3% after the Kuwaiti finance minister said OPEC had no choice but to keep production steady. Weekly jobless claims rose slightly to 291,000 for the week ended March 14. The national current account deficit sharply widened in the fourth quarter to the largest level since 2012. The Philly Fed index showed a modest increase in manufacturing in March. Leading indicators rose 0.2%, in-line with estimates. The Dow Jones Industrial Average traded down 117 points, or 0.66%, at 17,958. The S&P 500 fell 12 points, or 0.58%, to 2,087, with energy leading nine sectors lower and health care the only advancer. The Nasdaq traded up 5 points, or 0.10%, to 4,987. Gold is trading about 1.5% higher, crude oil is seen trading about 2.9% lower, and the U.S. dollar is seen trading about 0.8%  higher at about  1:00pm Chicago time.
Wednesday, there were 700 contracts traded, up from 227 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday decreased by 149 contracts to 8,702.

Oryza U.S. Rough Rice Recap - Prices Slip as Exports Disappoint; Dollar Regains Most of Its Losses

Mar 19, 2015
The U.S. cash market was slightly weaker after long grain export sales and shipment figures disappointed traders coupled with fact that the dollar regained most of its loses from yesterday.Analysts note that export sales figures will have to increase significantly if this rally is to be sustainable and that will be unlikely unless Venezuela and/or Iraq show interest in U.S. origin.
In the meantime, the USDA reported that cumulative net export sales for the week ending on March 12, totaled 76,500 tons, which was 7% lower than last week but 11% lower than the prior 4-week average.
Increases were reported for the following destinations including 36,200 tons to Japan, 22,000 tons to South Korea, 9,000 tons to Saudi Arabia, 2,100 tons to unknown destinations, and 2,000 tons to Colombia.
U.S. rice exporters shipped 41,800 tons, which was 21% lower than last week and 15% lower than the prior 4-week average. The primary destinations included 17,000 tons to Mexico, 13,100 tons to Japan, 3,600 tons to Saudi Arabia, 2,400 tons to Canada, and 2,300 tons to Jordan.

Oryza Overnight Recap – Chicago Rough Rice Futures Sharply Lower Overnight as Market Reevaluates Yesterday’s Move

Mar 19, 2015
Chicago rough rice futures for May delivery are currently listed 28.5 cents per cwt (about $6 per ton) lower at $10.760 per cwt (about $237 per ton) ahead of floor trading in Chicago. The other grains are seen trading higher this morning: soybeans are currently seen about 0.2% higher, wheat is listed about 0.4% higher and corn is currently noted unchanged.U.S. stock index futures indicated a flat to lower open on Thursday, after closing sharply higher Wednesday following a dovish statement from the U.S. Federal Reserve, which indicated that rate hike may come later rather than sooner. The Fed dropped the word "patient" from its March meeting statement, a subtle indication that the era of zero interest rates could end in the coming months.
However, the U.S. central bank was seen as broadly dovish, with the Federal Open Market Committee lowering its December rate outlook by about 50 basis points. Weekly jobless claims rose slightly to 291,000 for the week ended March 14. The national current account deficit sharply widened in the fourth quarter to the largest level since 2012. Data expected on Thursday include the Philly Fed's business outlook index at 10.00 a.m. ET, along with the Conference Board's Leading Indicator for February. Across the Atlantic, European equities traded higher after the Fed's dovish comments, with all European indices and sectors except the German DAX trading in positive territory. Gold is currently trading about 1.2% higher, crude oil is seen trading about 3.8% lower,  and the U.S. dollar is currently trading about 0.4% higher at 8:00am Chicago time.

Pakistan FY 2014-15 Paddy Rice Production Estimated to Decline 19% y/y to 8.437 Million Tons

Mar 19, 2015
Description: http://oryza.com/sites/default/files/field/image/150319pakpaddyprod.jpg
In the February Crop Monitoring System Bulletin, the National Space Agency of Pakistan (SUPARCO) and UN’s Food and Agriculture Organization (FAO have estimated Pakistan FY 2014-15 (July - June) paddy rice production to decline about 19% to around 8.437 million tons (around 5.65 million tons, basis milled) from around 10.04 million tons (around 6.72 million tons, basis milled) produced last year.
The decline is attributed to floods that hit the Punjab state in the month of August  2014 having damaged around 116,700 hectares of paddy fields. Over 217,000 tons of paddy is said to be lost in the Punjab state. The government of Punjab has announced a compensation of Rs.16 billion (around $159 million) to the flood-affected communities.SUPARCO is estimating FY 2014-15 paddy rice acreage at around 3.285 million hectares and yield at around 2.568 tons per hectare.
According to SUPARCO, January received slight rain after dry periods in November and December, and received heavy rains in February, The weather was cool in February and is expected to be favorable (due to expected heavy rains) for the cultivation of ongoing rabi crops such as wheat.
Paddy prices of both non-basmati and basmati, which began to decline since November 2014  continued to decline in January due to increased supplies from the just completed harvests. Prices of basmati dropped to around Rs.1,500 - 1,600 per 40 kilograms (around $368 - $392 per ton) in February from around Rs.4,500 - 4,800 per 40 kilograms (around $1,121 - $1,196 per ton) in the beginning of November. Prices of non-basmati prices declined to around Rs.700 - 800 per 40 kilograms (around $172 - $196 per ton) in February from Rs.900 - Rs.1,000 per 40 kilograms (around $224 - $249 per ton) in November 2014.
Meanwhile, experts have been urging the government to take appropriate measures to increase fertilizer production to around 5 million tons from the existing 3.1 million tons. Pakistan needs about 4 million tons of fertilizer yearly for paddy cultivation. production reaches 5 million tons.
USDA estimates Pakistan's MY 2014-15 (November - October) milled rice production to decline about 3% to around 6.5 million tons (around 9.75 million tons, basis paddy) from around 6.7 million tons (around 10.05 million tons, basis paddy) in MY 2013-14.

Description: Description: http://oryza.com/sites/default/files/field/image/150319vietnamriceexports.jpgVietnam Exports About 443,639 Tons Rice During January 1 – March 10, 2015

Mar 19, 2015

Vietnam exported about 443,639 tons of rice in January 1 - March 10, 2014, down about 64% from about 1.22 million tons of rice exported in in first three months of 2014, according to data from the Vietnam Food Association (VFA). Average rice export price so far in this year stands at about $452 per ton (FOB), up about 4% per ton from same time last year.During March 1-10, 2015, Vietnam exported about 22,437 tons of rice, down about 96% from about 583,294 tons rice exported in full month of March 2014, and down about 89% from about 200,814 tons rice exported in full month of February 2015. Average export prices in so far in March stands at about $427 per ton, down about 2.7% from a year ago, and down about 6% per ton from a month ago.

Thai Court to Prosecute Former Prime Minister in Rice Pledging Case

Mar 19, 2015
Thailand's Supreme Court has decided to prosecute the former Prime Minister Yingluck Shinawatra for her alleged role in encouraging corruption in the rice pledging scheme introduced by her government in October 2011, according to Bloomberg.The Supreme Court's Criminal Division for Holders of Political Positions will hear the case against the former PM. According to local sources, a panel of nine judges have decided to accept the case against the former PM and has scheduled the first hearing on May 19, 2015.Ms.Yingluck has been charged with dereliction of duty and with abuse of authority under Section 157 of the Criminal Code and Section 123/1 of the 1999 Counter Corruption Act, according to local sources. She reiterated her innocence in the case after the decision was announced.The former PM was impeached by the Thai National Legislative Assembly on January 23, 2015 banning her from active politics for five years. If found guilty in the present case, she may have to face a ten-year jail term, according to local sources.
The National Anti-Corruption Commission (NACC) has also advised the government to file a civil suit against the former PM to recover the money lost in the rice program, which the Finance Ministry claims to be about 600 billion baht (around $18 billion).The Yingluck-led government promised to buy paddy from farmers at nearly 50% above market prices under the controversial rice pledging scheme. While Yingluck claims the scheme was aimed at reducing inequality among farmers by boosting rural incomes, many opined that it was ill-conceived, encouraged corruption and was a form of vote-buying. The scheme is being blamed to have pushed up market prices and impacted Thai rice exports severely.

Water Rationing Measures in Taiwan May Reduce 2015 Rice Production by 10% y/y but No Increase in Imports Seen, Says USDA Post

Mar 19, 2015
USDA Post reports that water rationing measures in Taiwan due to extended drought conditions are likely to reduce 2015 rice production by about 10% or about 110,000 tons over last year. USDA forecasts Taiwan's 2015 milled rice production at around 1.1 million tons, down about 9.6% from an estimated 1.22 million tons in 2014.
However, the Post says rice imports are unlikely to increase due to sufficient stocks from increased harvests in recent years. It expects no changes in 2015 country specific quota (CSQ) allotments and tender schedules. According to Taiwan’s WTO accession agreement, Taiwan's rice TRQ (tariff rate quota) is 126,000 tons (milled basis). Of this the U.S. country specific quota (CSQ) allocation is 56,000 tons. The Post estimates Taiwan's 2015 rice imports at around 134,000 tons.

Description: Description: http://oryza.com/sites/default/files/field/image/150319taiwanpsd.jpg
Taiwan's Ministry of Economic Affairs (MOEA) has decided to implement water rationing measures in response to drought conditions in three stages. First stage began on December 26, 2014 and has reportedly reduced water supply to about 44,000 hectares of annual agricultural area. Of this 23,000 hectares are under rice cultivation. The Post estimates Taiwan 2015 rice acreage at around 248,000 hectares, down about 8.5% from an estimated 271,000 last year.The Post reports that rice farmers would be provided with additional subsidies to the extent of about  NTD $80,000 (around $2,545) per hectare to substitute for losses from decline in production. However, amount of compensation depends on land use, says USDA Post.While agriculture accounts of 70% of total annual water usage in Taiwan, industry and households account for 10% and 20% respectively. 

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

Mar 19, 2015
Vietnam rice sellers lowered their quotes for 5% broken rice and 100% broken rice by about $10 per ton and $5 per ton to around $355-$365 per ton and around $305-$315 per ton, respectively, today. Other Asia  rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $385 - $395 per ton, about a $30 per ton premium on Vietnam 5% rice  shown at around $355 - $365 per ton, down about $10 per ton from yesterday. India 5% rice is indicated at around $390 - $400 per ton, about a $45 per ton premium on Pakistan 5% rice shown at around $345 - $355 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $370 - $380 per ton, about a $30 per ton premium on Vietnam 25% rice shown at around $340- $350 per ton.  India 25% rice is indicated at around $360 - $370, about a $50 per ton premium on Pakistan 25% rice shown at around $310 - $320 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is indicated at around $380 - $390 per ton, on par with Pakistan parboiled rice shown at around $380 - $390 per ton.
100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about a $15 per ton premium on Vietnam 100% broken rice shown at around $305 - $315 per ton, down about $5 per ton from yesterday. India's 100% broken rice is shown at around $275 - $285 per ton,  about a $5 per ton discount to Pakistan broken sortexed rice shown at around $280 - $290 per ton.



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