About 30% of North Korean Paddy
Rice Acreage Dried Up Due to Drought, Says KCNA
Jun
17, 2015
North Korea is experiencing worst
drought conditions in a century and about 30% of the country's rice land has
dried up, the official Korean Central News Agency (KCNA) reported on June 16."Water
level of reservoirs stands at the lowest, while rivers and streams (are)
getting dry," said the report. Official sources are predicting the
production of rice to decline by about 20% of the average production if the
shortage of water continues till July.USDA estimates North Korea's 2015 milled
rice production at around 1.7 million tons, down about 10% from around 1.88
million tons in 2014.
Asia Rice Quotes Unchanged Today
Jun
17, 2015
Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, about a $10
per ton premium on Vietnam 5% rice shown at around $345 - $355 per ton.
India 5% rice is indicated at around $365 - $375 per ton, about $15 per
ton discount to Pakistan 5% rice shown at around $380 - $390 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $340 - $350 per ton, about a $10 per
ton premium on Vietnam 25% rice shown at around $330- $340 per ton. India
25% rice is indicated at around $350 - $360, about $15 per ton premium on
Pakistan 25% rice shown at around $335 - $345per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $360 - $370 per ton. India
parboiled rice is indicated at around $355 - $365 per ton, about a $45 per ton
discount to Pakistan parboiled rice shown at around $400 - $410 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton,
about $5 per ton premium on Vietnam 100% broken rice shown at around $310 -
$320 per ton. India's 100% broken rice is shown at around $280 - $290 per ton,
about a $15 per ton discount to Pakistan broken sortexed rice shown at
around $295 - $305 per ton.
About Half of Rice Land in
Central Region Will Not Be Affected by Reduced Water Supplies, Says Thai
Agriculture Ministry
Jun
17, 2015
Thailand's Agriculture and Cooperatives
Ministry has announced that about 3.4 million rai (around 544,000 hectares) of
rice land, or 46% of the total rice land in the Central region will not be
affected by the government's decision to cut water supplies from the Chao Praya
River basin to irrigated lands, according to local sources.The Agriculture
Minister noted that the drought was most severe in 22 provinces of the Central
region, where about 7.4 million rai (around 1.184 million hectares) of rice
land receive an irrigated water supply from the Chao Praya River. It advised
the rice farmers in about 4 million rai (around 640,000 hectares) land to
wait until there is sufficient rain at the end of next month. He urged the
farmers to understand the situation and follow the government advice to delay
planting until the water levels in the reservoirs improve.
Separately, the Prime Minister told
local sources that the government has instructed the Department of Royal
Artificial Rain-making and Agricultural Aviation to monitor the weather
conditions and accordingly create artificial rain in areas with reservoirs in
order to increase the supply.Meanwhile the Thai Rice Mill Association (TRMA)
President expressed concern that the prolonged low rice price in Thailand may
force many rice millers to shut their operations. He told local sources that
more than 100 mill operators are affected by the falling rice prices.
Currently, the price of 15% moisture content rice is ruling at about 7,500
– 7,700 baht per ton (around $222 - $228) down from the previous 8,000 – 8,500
baht per ton (around $237 - $252). Average farm price of paddy is at around
6,700 – 7,000 baht per ton (around $199 - $208), he said.
Bangladesh's Boro Rice
Procurement Drive Fails to Provide Respite to Farmers
Jun
18, 2015
The boro paddy and rice (January –
May) procurement drive has not provided the expected respite to farmers in
terms of prices, according to local sources.Despite the ongoing procurement
drive, farmers are forced to sell their paddy at almost half of their
production costs. They are currently selling freshly harvested boro rice
between Tk 480 - 500 per 40 kilograms (around $146-$162 per ton) against the
government's estimated production cost of around Tk 800 per 40 kilograms
(around $260 per ton).
The government began the procurement
of one million tons of 2015 boro paddy and 100,000 tons of boro rice from May
1, 2015. The procurement drive will continue till August 31, 2015. It has fixed
the procurement price for paddy at Tk 22 per kilogram (around $283 per ton) and
that for rice at Tk 32 per kilogram (around $412 per ton).
However, local sources say the
government is currently procuring milled rice from millers rather than paddy
from farmers. It has already procured around 313,000 tons of milled rice from the
millers. Due to this stance by the government, farmers are at a loss as they
are not receiving the government set price of $283 per ton, and are forced to
sell to millers and traders at much lower prices. Traders and miller s on the
other hand are not offering decent prices to farmers as the market is flooded
with low quality rice imports from India.Farmers are worried as they are unable
to recover their production costs and also they are not in a position to hold
their output until the government starts procuring paddy from them.
The government imposed a duty of 10%
on rice imports in May this year to curb increasing imports from India. Though
this action by the government increased boro paddy price by about 20%, farmers
had not benefitted out of it. Most of the farmers reportedly sold their output
from the boro harvest season even before the duty imposition and were not left
with any stocks to take advantage of the increased prices. According to local
sources, this decision was also meant to benefit millers who stocked enough
paddy from the ongoing harvest.Either way, farmers stand at a loss, according
to local sources.The government is estimating the output from the 2014-15
ongoing boro crop at around 19 million tons.
USDA estimates Bangladesh’s MY 2014-15
(July 2014 – June 2015) milled rice production to slightly increase to about
34.5 million tons from an estimated 34.39 million tons in MY 2013-14. It
estimates Bangladesh to import 1.1 million tons of rice in 2015.
EU Seeks Aromatic Rice Import
Deal from Myanmar
Jun
18, 2015
The European Union (EU) is
considering to import aromatic rice from Myanmar as the demand for aromatic
rice in the region is increasing, according to local sources.A delegation from
the European Commission (EC) had met with the representatives of the Myanmar
Rice Federation (MRF) on June 17 to discuss the country's ability to export
fragrant rice to the EU in the mid- to long-term. The General Secretary of the
MRF reportedly told the delegation that Myanmar can produce both short and long
grain aromatic rice and can meet the EU demand through the contract farming
system. Myanmar produces two types of fragrant rice - Lone Thwal Hmwe and Paw
San.
The MRF Vice-Chairman told local
sources that exporting fragrant rice to the EU will help Myanmar rice farmers
to diversify their market but they need to increase the aromatic rice
production if they have to export it to the EU as the current production is
sufficient only to meet the local demand. He also noted that since the local
price of Paw San is quite high, most of the farmers do not want to export. He
added that the export price of Paw San would be in the range of $900 per ton.According
to the MRF data, Myanmar exported around 100,000 tons of rice to the EU in 2014
and the government is targeting to export 200,000 tons this year.The EU
statistics show that Myanmar's rice exports (both milled and semi-milled) to
the EU increased about 120% to around 45,240 tons during September 2014 - April
2015 from around 20,848 tons during the same period last year. The EU imports
rice from Myanmar under the Everything But Arms (EBA) agreement at zero percent
import duty."An export deal with Myanmar on aromatic rice strains would
“create a win-win situation, as we don’t produce them and we want and eat
them,” a member of the EU delegation was quoted as saying.Separately, Myanmar
rice exporters are planning to attend an exhibition in Milan next month as part
of efforts to promote Myanmar rice in Italy and other EU markets. So far,
China is the largest export market for Myanmar rice, but the government is keen
on diversifying its export market and reduce too much dependence on China.
Government of Guyana Seeks to
Extend PetroCaribe Deal with Venezuela
Jun
18, 2015
The government of Guyana is
preparing for bilateral talks with the government of Venezuela to extend the
oil-for-rice PetroCaribe deal, which is to expire this year, according to local
sources. Under the deal Venezuela buys rice from Guyana and sells oil to
Guyana.Under the existing agreement, Guyana is expected to sell about 210,000
tons of paddy and polished rice annually to Venezuela. The value of this supply
is reportedly $130 million.According to the Minister of State, the government
is seeking to extend the PetroCaribe deal with Venezuela at a time when other
South American countries are eyeing a major share in the Venezuelan rice
market. However, he expressed confidence that the deal could be extended given
the long-standing relationship of Guyana with Venezuela. "We believe that
because of the length of time that we have been shipping rice to Venezuela
market they might have become accustomed to Guyana's rice and we stand a better
chance of being able to negotiate a longer term arrangement," he was quoted
as saying.
He also noted that the Foreign
Affairs Minister will deal this matter with the support of other Ministers.At
home, stakeholders of the rice market have been complaining of the government's
lethargy in making payments to the farmers. They blame the government for
mostly focusing on finding markets for private rice exporters and negotiating
prices overlooking internal problems.Recently, there was an uproar about
mismanagement of the PetroCaribe fund. The Minister of State noted that the fund
was empty and the government needs to arrange about $15 million to pay farmers.The
deal is very important for Guyana as it had helped Guyana's rice industry
develop significantly with increasing production and exports. It has been
providing higher prices compared to other countries' offers. The deal also
helped to achieve food security in the Caribbean region.
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 650,000 tons of milled rice in
the MY 2015-16(January 2015 - December 2015) and export about 500,000 tons in
2015. The FAO estimates Guyana to produce 570,000 tons of milled rice and
export around 460,000 tons in 2015.
Global
Rice Quotes
June
18th, 2015
Long
grain white rice - high quality
Thailand
100% B grade 365-375 ↔
Vietnam
5% broken 345-355 ↔
India
5% broken 365-375 ↔
Pakistan
5% broken 380-390 ↔
Myanmar
5% broken 415-425 ↔
Cambodia
5% broken 430-440 ↔
U.S.
4% broken 450-460 ↔
Uruguay
5% broken 565-575 ↔
Argentina
5% broken 555-565 ↔
Long
grain white rice - low quality
Thailand
25% broken 340-350 ↔
Vietnam
25% broken 325-335 ↓
Pakistan
25% broken 335-345 ↔
Cambodia
25% broken 410-420 ↔
India
25% broken 350-360 ↔
U.S.
15% broken 440-450 ↔
Long
grain parboiled rice
Thailand
parboiled 100% stxd 360-370 ↔
Pakistan
parboiled 5% broken stxd 400-410 ↔
India
parboiled 5% broken stxd 360-370
↑
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% 840-850 ↔
Vietnam
Jasmine 465-475 ↓
India
basmati 2% broken NQ ↔
Pakistan
basmati 2% broken NQ ↔
Cambodia
Phka Mails 820-830 ↔
Brokens
Thailand
A1 Super 315-325 ↔
Vietnam
100% broken 310-320 ↔
Pakistan
100% broken stxd 295-305 ↔
Cambodia
A1 Super 350-360 ↔
India
100% broken stxd 280-290 ↔
Egypt
medium grain brokens NQ ↔
U.S.
pet food 350-360 ↔
Brazil
half grain NQ ↔
All
prices USD per ton, FOB vessel, oryza.com
Government of India Increases
2015-16 Paddy MSP by About 3.6% to $220 per Ton
Jun
17, 2015
Oryza.com
-
The Cabinet Committee on Economic
Affairs (CCEA) has approved the proposal by the Commission for Agricultural
Costs and Prices (CACP) to increase the minimum support price (MSP) for common
paddy during the 2015-16 kharif marketing season (October - September) by about
Rs.50 per quintal (around $7.8 per ton) or about 3.6% to around Rs.1,410 per
quintal (around $220 per ton), according to local sources.The CCEA has also
increased the MSP for Grade A/superior paddy by about Rs.50 per quintal (around
$7.8 per ton) or about 3.6% to around Rs.1,450 per quintal (around $226 per
ton).
For the 2014-15 kharif marketing
season, the government increased the MSP for common grade paddy by about 3.8%
to around Rs.1,310 per quintal (around $218 per ton) and increased the MSP for
Grade 'A' paddy by about 4% to around Rs.1,345 per quintal (around $223 per
ton).Analysts say percentage wise, there has been a steady decline in the paddy
MSP hike over the last few years, except for the crop year 2011 when there was
no hike. In 2012-13 Kharif marketing season, the government increased the paddy
MSP by 15.74%.Meanwhile, amid fears of lower rainfall due to an El Nino weather
pattern, the government is reportedly preparing to deal with exigencies which
are likely to arise due to a deficient monsoon. The major rice growing states
such as Punjab, Haryana, Andhra Pradesh, Telangana, Chhattisgarh and Odisha
have so far received excess or normal rainfall since the beginning of the
monsoon season on June 1.
USDA estimates India's MY 2015-16 (October - September) milled rice production
at 104 million tons, up about 1.5% from an estimated 102.5 million tons in MY
2014-15. It expects India to export around 10.2 million tons of rice during
2015, slightly up from an estimated 10.15 million tons in 2014.
Oryza Afternoon Recap - Chicago
Rough Rice Futures Fail to Maintain Morning Momentum and Slide into the Close
Jun
17, 2015
Chicago rough rice futures for Jul
delivery settled 7 cents per cwt (about $2 per ton) lower at $9.730 per cwt
(about $215 per ton). After trading higher overnight and for the majority of
the day session rough rice futures reversed direction and closed lower. The
market once again failed at nearby overhead resistance noted around the $9.900
per cwt (about $218 per ton) level and now look poised to trade lower towards
the bottom of the current $9.400-$10.000 per cwt (about $207-$220 per ton)
trading range. The other grains continued higher today, with impressive gains
noted in both the soy and corn pits for the second consecutive day; Soybeans
closed about 1.2% higher at $9.6900 per bushel; wheat finished about 0.5%
higher at $4.9125 per bushel, and corn finished the day about 1.5% higher at
$3.5925 per bushel.
U.S. stocks traded mostly lower on
Wednesday as investors digested the Federal Reserve statement. The Federal Open
Market Committee concluded its two-day meeting in the afternoon. The statement
was due at 2:00 p.m. ET and Fed Chair Janet Yellen is scheduled to hold a press
conference at 2:30 p.m. Stocks reversed opening gains to trade lower ahead of
the statement release. With consensus for a September rate hike, most investors
do not expect major policy changes from the central bank's announcement. U.S.
stocks closed higher on Tuesday as the Fed began its two-day meeting and
investors attempted to shake off worries about Greece debt talks, which reached
an impasse over the weekend. The Dow Jones Industrial Average traded down 48
points, or 0.27%, at 17,854. The S&P 500 traded down 6 points, or 0.28%, at
2,090, with telecommunications leading all 10 sectors lower. The Nasdaq traded
down 8 points, or 0.15%, at 5,047. Gold is trading about 0.2% lower, crude oil
is seen trading about 1.5% lower, and the U.S. dollar is seen trading about
0.1% lower at about 1:00pm Chicago time.Tuesday, there were 2,162 contracts
traded, up from 1,825 contracts traded on Monday. Open interest – the number of
contracts outstanding – on Tuesday decreased by 31 contracts to 11,101.
Oryza Overnight Recap – Chicago
Rough Rice Futures Capture Overnight Support from Firmer Grain Complex and
Weaker Dollar
Jun
17, 2015
Chicago rough rice futures for Jul
delivery are currently seen trading 3 cent per cwt (about $1 per ton) higher at
$9.830 per cwt (about $217 per ton) ahead of floor trading in Chicago. The
other grains are seen trading higher; soybeans are currently seen trading about
0.6% higher, wheat is listed about 1.5% higher and corn is currently noted
about 0.6% higher.U.S. stock futures pointed to a flat to slightly higher open on Wednesday, with the spotlight
shifting from the crisis in Greece to the Federal Reserve. The U.S. central
bank concludes a two-meeting with a statement and new economic and interest
rate forecasts at 2 p.m. ET.
Fed chief Janet Yellen holds a 2:30 p.m. press briefing amid
talk that the Fed is gearing up for a September interest rate rise as the
economy recovers. U.S. stock futures pared early gains, with Dow Jones
industrial average futures trading more than 15 points higher during the
European morning session. Wall Street shares closed higher on Tuesday as the Fed began its two-day meeting and
investors attempted to shake off worries about the Greece debt talks. Later on Wednesday, the European Central
Bank is expected to hold a meeting to review emergency funds, known as the
Emergency Liquidity Assistance (ELA). Greek banks are reliant on this funding
and analysts warn that if the central bank curbs this liquidity, Greece may
have no option but to impose capital controls. Gold is currently trading about
0.3% lower, crude oil is seen trading about 1.9% higher, and the U.S.
dollar is currently trading about 0.2% lower at 8:30am Chicago time.
Oryza U.S. Rough Rice Recap -
Prices Slip as Window to Market Old Crop Narrows
Jun
17, 2015
The U.S. cash market was slightly
weaker today as buyer interest remains limited while those with rice left to
sell see their window to market their crop narrow as new crop in South
Louisiana approaches harvest late next month.Analysts contend that export
demand will have to increase substantially to help make room for new crop and
stabilize prices; however, most doubt that tomorrow’s USDA exports sales report
will show a significant increase from the last two weeks' sales figures which
were tepid, at best.
Thailand, Vietnam Rice Sellers
Lower Some of Their Quotes; India Rice Sellers Increase Some of Their Quotes
Today
Jun
18, 2015
Thailand rice sellers lowered their quotes for 5% broken rice by about $5
per ton to around $350-$360 per ton today. Vietnam rice sellers lowered their
quotes for 25% broken rice and Jasmine rice by about $5 per ton and about $10
per ton to around $325-$335 and $465-$475 per ton, respectively. India rice
sellers increased their quotes for parboiled rice by about $5 per ton to around
$360-$370 per ton. Pakistan rice sellers kept their quotes mostly unchanged
today.
5% Broken Rice
Thailand 5% rice is indicated at around $350 - $360 per ton, down about a
$5 per ton from yesterday and about a $5 per ton premium on Vietnam 5%
rice shown at around $345 - $355 per ton. India 5% rice is indicated at
around $365 - $375 per ton, about $15 per ton discount to Pakistan 5% rice
shown at around $380 - $390 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $340 - $350 per ton, about a $15 per
ton premium on Vietnam 25% rice shown at around $325- $335 per ton, down about
a $5 per ton from yesterday. India 25% rice is indicated at around $350 - $360,
about $15 per ton premium on Pakistan 25% rice shown at around $335 - $345 per
ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $360 - $370 per ton. India
parboiled rice is indicated at around $360 - $370 per ton, up about a $5 per
ton from yesterday and about a $40 per ton discount to Pakistan parboiled rice
shown at around $400 - $410 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton,
about $5 per ton premium on Vietnam 100% broken rice shown at around $310 -
$320 per ton. India's 100% broken rice is shown at around $280 - $290 per ton,
about a $15 per ton discount to Pakistan broken sortexed rice shown at
around $295 - $305 per ton.
What Are India's Options for
Rice Straw Disposal?
Jun
17, 2015
India, the second largest rice producer
in the world, produces nearly 130 million tons of rice straw annually. While
half of it is used as cattle feed, farmers want economically viable means of
disposing the other half, according to an article published in a UK magazine.Unable
to find economically lucrative methods, most farmers burn the straw in their
fields to quickly get rid of it before the new season begins. However, burning
of rice straw is not environmentally safe process as it releases gases such as
gases like carbon dioxide, methane, carbon monoxide, nitrogen oxide, sulphur
oxide and large amount of particulate matters, which adversely affect human
health as well as the environment.
Farmers are yet to realize the
importance of rice straw as a form of manure and as a profitable raw material
for various industries. In the major rice growing states of Punjab and Haryana,
farmers have tried various means of disposing the rice straw while earning them
some income.Brick manufacturing companies, power companies, and paper and
packaging industries use rice straw as a raw material. But farmers say those
industries don't offer decent prices, and considering all rice production
costs, they are not sure of assured returns.
Some agricultural specialists have
devised a composting technique, which can convert huge piles of rice straw into
organically rice soil. However, since the whole process takes about 45 days,
farmers have found it very labor-intensive. Similarly, another method called
"mulching" was also suggested. In this process, straw is spread
across the soil surface and allowed to decompose naturally into the soil by the
activity of worms and other organisms. Though some farmers have adopted this
process, it has not become very popular.In this backdrop, the author says
farmers want quick and easy solutions and they are very much aware of the
multiple options available for managing agro-waste. But they will give up
burning rice straw only if they receive lucrative returns. The author suggests
that the governments could convince farmers to stop burning rice straw and help
them earn lucrative returns through international carbon trading.
Philippines May Import 100,000
Tons of Rice at Higher Price from Vietnam
Jun
17, 2015
The National Food Authority (NFA) of
the Philippines may consider to import 100,000 tons of 25% broken well-milled
long grain white rice from Vietnam at a higher price than its reference price
of $408.14 after receiving higher bids twice in the June 16
government-to-government (G2G) tender, according to local sources.On June 16,
when the NFA invited bids for the remaining 100,000 tons of the June 5 tender,
Thailand offered to sell 100,000 tons at $418 per ton, Vietnam and Cambodia
offered at $417 per ton and $464 per ton respectively. The NFA rejected all the
bids and asked the bidders to submit revised bids by 07.00 GMT.
However, Thailand backed out of the
bidding as the reference price set by the NFA was too low compared to the
global prices. On the other hand Vietnam revised its bid to supply 100,000 tons
of rice at $416 per ton and Cambodia revised its bid to supply 50,000 tons of
rice at $455.5 per ton. Both the bids were still higher than the reference
price set by the NFA. However, the NFA is reportedly considering to import rice
at the lowest bid rate, which is from Vietnam.Since the NFA has no authority to
accept bids that are higher than the reference price, the matter has been
referred to the NFA Council, which has set the terms of reference for G2G
contracts, according to the Presidential Adviser on Food Security and
Modernization (PAFSAM), noted that the decision on imports is pending. He noted
that the NFA Council will meet on Wednesday to decide on the matter.
The imports are meant to maintain buffer stocks during the lean season (July
- December). The NFA currently holds a buffer stock of 750,000 tons of rice,
which is expected to last for 24 days. Since the NFA has to maintain a 30-day
buffer stock during lean months, it is dependent on the 100,000 tons imports.
“It’s just that we need to beef up and increase our buffer stock for the
lean months in line with our commitment to the government policy that every
July 1 we should have at least 30 days. We need to be compliant with our
commitment to good governance,” the NFA Deputy Administrator was quoted as
saying.
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