Wednesday, July 22, 2015

22nd July (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes
July 22nd, 2015
Long grain white rice - high quality
Thailand 100% B grade   390-400                ↓
Vietnam 5% broken        345-355                ↔
India 5% broken               385-395                ↔
Pakistan 5% broken        370-380                ↔
Myanmar 5% broken      400-410                ↔
Cambodia 5% broken     425-435                ↔
U.S. 4% broken                 470-480                ↔
Uruguay 5% broken        535-545                ↔
Argentina 5% broken     530-540                ↔
Long grain white rice - low quality
Thailand 25% broken      360-370                ↔
Vietnam 25% broken      325-335                ↔
Pakistan 25% broken      330-340                ↔
Cambodia 25% broken   410-420                ↔
India 25% broken             350-360                ↔
U.S. 15% broken               445-455                ↔
Long grain parboiled rice
Thailand parboiled 100% stxd     390-400                ↓
Pakistan parboiled 5% broken stxd          415-425                ↔
India parboiled 5% broken stxd                 380-390                ↔
U.S. parboiled 4% broken             555-565                ↔
Brazil parboiled 5% broken          545-555                ↔
Uruguay parboiled 5% broken    NQ         ↔
Long grain fragrant rice
Thailand Hommali 92%   855-865                ↔
Vietnam Jasmine             485-495                ↔
India basmati 2% broken              NQ         ↔
Pakistan basmati 2% broken       NQ         ↔
Cambodia Phka Mails     835-845                ↔
Brokens
Thailand A1 Super            320-320                ↔
Vietnam 100% broken   315-325                ↔
Pakistan 100% broken stxd          285-295                ↔
Cambodia A1 Super        350-360                ↔
India 100% broken stxd                 305-315                ↔
Egypt medium grain brokens      NQ         ↔
U.S. pet food     325-335                ↔
Brazil half grain NQ         ↔
All prices USD per ton, FOB vessel, oryza.com

Drought, Sluggish World Economy Threatening Thai Rice Exports, Say Exporters

Jul 21, 2015
The Thai Rice Exporters Association (TREA) is expecting this year's rice exports to be lower than their target of 10 million tons due to extending drought conditions and sluggish world economy, according to local sources.
The President of the TREA told local sources that they are expecting Thailand to export around 9.5 million tons of rice this year, including 4.8 million tons of white rice, 2.2 million tons of Hom Mali fragrant rice, 200,000 tons of glutinous rice and 100,000 tons of Pathum Thani fragrant rice.
The 5% cut in expected export is due to a prolonged drought that curtailed 2015 second crop production and delayed main crop planting, he said. Lack of demand from most of the importing nations is also understood to be impacting Thai rice exports.
The TREA President also noted that drought conditions may continue for next one year and a decline in global economy would further impact Thai rice exports. He suggested that the government should focus more on quickly releasing the government rice stocks to meet the market demand.
The TREA President also noted that the paddy output from the 2015 main crop would decline by about 10% or by about 3 million tons to around 24 million tons due to drought. However, he expressed optimism that a decline in supplies would push up Thai rice prices, which have reached their lowest levels since seven years due to excess stocks, lack of demand and stiff competition from India and Vietnam. Currently, Thai 5% broken rice is quoting at around $390 per ton.
Earlier this month, the Agriculture Ministry has estimated that about 1.4 million rai (around 560,000 hectares) of rice fields are affected by drought. The Office of Agricultural Economics (OAE) has estimated that the output from 2015 main rice crop, which contributes to around 70% of the country's total rice output, to decline about 14% to around 23.3 million tons from around 27.1 million tons last year.  
Meanwhile, the National Disaster Warning Center noted that drought conditions in most parts of the country are over and the wet season in underway, but the country still faces water shirt-supplies. "The drought situation is over as we saw rainfall consecutively over the past week. However, there are seven provinces, mostly in the north, that are experiencing no rainfall still," Reuters quoted the Deputy Director-General of Thailand's Department of Disaster Prevention and Mitigation. He noted that an emergency fund in these provinces would help address the water shortages as well as support for the implementation of short-term relief measures.
Seperately, the Agriculture Minister also announced that the government would release some water from dams to help farmers who have already planted their crops

High Input Costs, Low Crop Prices Reducing Export Competitiveness of Pakistan Rice, Say Experts

Jul 21, 2015
Pakistan rice sector is currently facing excess stocks problem as its exports have been impacted by a stiff competition from other rice exporting nations such as Thailand, India and Vietnam; falling global rice prices and low demand from rice importing countries.
Experts say Pakistan's rice stocks have been increasing for the last couple of years as the country has not been able to increase exports significantly. Meanwhile, increased production is adding to the surplus rice stocks. Currently, Pakistan is said to have around 600,000 tons of basmati stocks and traders are expecting to add another 400,000 tons this year taking the stock level to about one million tons by the end of this year. The situation is leading to unnecessary increase in stock maintenance costs as well.
The inherent reason for Pakistan's failure in increasing exports is that input costs borne by rice farmers is much high compared to the prices they get. For instance, farmers spend about Rs.67,200 per acre (around $1,650 per hectare) but get only Rs.36,000 per acre (around $880 per hectare), according to local sources. Farmers' incomes are severely impacted due to this huge gap, according to an article in Dawn.com.
According to the article, experts are urging the government to urgently address the issue as it has also been making Pakistani rice uncompetitive in the international market. Falling global rice prices are adding to the troubles of Pakistan rice sector, they say. They also stressed that if the situation continues for long, farmers may lose interest in cultivating the crop leading to food security in the country.
They noted that the government could help farmers reduce their production input costs by cutting down billions of subsidies, which have not been benefiting small farmers. It should help them to increase competitiveness of Pakistani rice in the global market by modifying its monetary and fiscal policies accordingly.

Oryza Afternoon Recap - Chicago Rough Rice Futures Bounce Back Above $11.000 per cwt on Outside Support

Jul 21, 2015
Chicago rough rice futures for Sep delivery settled 11.5 cents per cwt (about $3 per ton) higher at $11.005 per cwt (about $243 per ton). The other grains finished the day mostly higher; Soybeans closed about 0.5% higher at $10.0475 per bushel; wheat finished about 1.5% lower at $5.2475 per bushel, and corn finished the day about 0.4% higher at $4.1725 per bushel.
U.S. stocks traded mostly lower on Tuesday as investors reacted to lackluster earnings reports in some Dow components. Earnings so far have mostly beat expectations. Google surged more than 16% on Friday to push the Nasdaq to a record high. The tech and biotech-heavy index ended at another record on Monday. No economic data is due Tuesday. The only reports expected for the week are in the housing market, with the FHFA home prices and existing home sales scheduled for Wednesday. Commodities remained in focus, with gold struggling to hold above $1,100 an ounce after falling below that psychologically key level to a five-year low on Monday. European stocks closed lower, with the DAX off more than 1 percent, as investors focused on earnings. Greece's stock exchange remained closed, while the local banks reopened on Monday for the first time in three weeks. The Dow Jones Industrial Average traded down 196 points, or 1.09%, at 17,903. The S&P 500 traded down 8 points, or 0.39%, at 2,120, with telecommunications leading nine sectors lower and energy the only advancer. The Nasdaq traded down 9 points, or 0.19%, at 5,209. Gold is trading about 0.4% lower, crude oil is seen trading about 0.4% higher, and the U.S. dollar is seen trading at about 0.8% lower at about  1:00pm Chicago time.
Monday, there were 474 contracts traded, down from 701 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 69 contracts to 8,690.

Oryza Overnight Recap – Chicago Rough Rice Futures Silent Overnight as Traders Look for Change in Fundamental Demand

Jul 21, 2015
Chicago rough rice futures for Sep delivery are currently seen paused 2 cents per cwt (about $0.44 per ton) higher at $10.910 per cwt (about $241 per ton) ahead of floor trading in Chicago. The other grains are seen trading mixed this morning; soybeans are currently seen trading about 0.2% higher, wheat is listed about 0.8% lower and corn is currently noted about 0.5% lower.
U.S. stock index futures indicated a flat to lower open on Tuesday, as the second-quarter earnings season gets into full swing with the likes of Apple, Microsoft and Yahoo reporting this session. Volatility in commodity markets is also likely to get some attention, with U.S. oil prices slipping back below the $50-a-barrel mark on the back of a stronger dollar and worries about a supply glut. U.S. stocks closed mildly higher on Monday, with the tech-heavy Nasdaq hitting another record high. In Europe, regional stock markets gave up early gains and moved into negative territory and Asian shares ended the day higher. Gold is currently trading about 0.4% lower, crude oil is seen trading about 0.6% higher,  and the U.S. dollar is currently trading about 0.2% lower at 8:15am Chicago time.

Ecuador Winter Rice Output Expected to Increase on Higher Acreage, Says BCE

Jul 21, 2015
Ecuador's winter rice crop (December - June) output is expected to increase about 3% y/y due to an increase in the acreage by about 3% y/y, local sources quoted a report by the Central Bank of Ecuador (BCE).
The Bank based its analysis on a survey of rice farmers in the provinces of Manabi, Guayas, Los Ríos, Loja, El Oro and Cañar. While 15% of surveyed farmers said the rice acreage was higher from last year, 76% said it was same as last year and 9% of said it was lower from last year's.
When asked about investment in this year's winter crop, about 54% of surveyed farmers said they invested more compared to last year, 19% said they maintained last year's level of investment and 27% said they made no investment this year.
The Bank expects an increase in the winter rice crop harvest, which declined for three consecutive years. The South American nation's 2014 winter rice output declined by about 8% y/y while the area sown to the crop declined about 2% y/y.
Ecuador has been self-sufficient in rice production for the last two years, according to USDA. 
The UN's Food and Agriculture Organization (FAO) estimates 2015 paddy rice production at around 1.23 million tons (around 774,900 tons, basis milled), up about 5% from 1.17 million tons (around 737,100 tons, basis milled) last year due to an expected increase in plantings.
USDA estimates Ecuador's MY 2015-16 (April - March) paddy production at around 1.26 million tons (around 794,000 tons, basis milled), up about 3% from an estimated 1.225 million tons (around 772,000 tons, basis milled) in MY 2014-15. 

Philippines Traders May Not Import All 805,200 Tons of Rice Under WTO MAV Quota, Says NFA Official

Jul 21, 2015
Private rice traders in the Philippines are reportedly showing interest to import rice from only Thailand and Vietnam, while they are also permitted to imports from China, Australia, India and Pakistan, according to Reuters.
The Philippines' National Food Authority (NFA) has allowed private traders to import around 805,200 tons of 25% broken rice at 35% tariff under the WTO Minimum Access Volume (MAV) country specific quota (CSQ) before November 30, 2015.
Under the quota, Philippines traders can import up to 293,100 tons each from Thailand and Vietnam; up to 50,000 tons each from China, India and Pakistan; 15,000 tons from El Salvador and the rest from other countries.
However, so far the private traders have applied to import only 300,000 tons of rice from Thailand and Vietnam, Reuters quoted a NFA official. A Manager at NFA's Grains Marketing Operations Department added that considering the pace and trend of import applications so far, it is likely that the entire volume may not be imported. Traders can apply till July 30, 2015.
The NFA has decided to import 750,000 tons of rice (200,000 tons from Thailand and 550,000 tons from Vietnam) under government-to-government deals in 2015 to ensure adequate stocks in the lean season (June – September). It is authorized to import another 250,000 tons if need arises.
But, local sources quoted officials from the Department of Agriculture that the Food Security Committee (FSC) may not approve the additional importation of the 250,000 tons as there is an oversupply of stocks currently in the country. "the market is “flooded” with rice despite the prevailing lean season for paddy production," a DA official told Reuters.
The country's Food Security Chief, however, said a decision on additional imports may be taken after receiving projections on the last quarter harvests. The NFA Administrator said there is no oversupply of rice, but sales of NFA rice slowed down due to a decline in commercial prices. He noted that the present stocks are in accordance with the mandate to maintain 15 days buffer stocks in normal months and 30 days buffer stocks during lean months. 

Thailand, Vietnam, India Rice Sellers Increase Some of Their Quotes Today

Jul 21, 2015
Thailand rice sellers increased their quotes for Hommali rice by about $25 per ton to around $855-$865 per ton today. Vietnam rice sellers increased their quotes for 5% broken rice and $100 broken rice by about $5 per ton each to around $345-$355 and $315-$325 per ton respectively. India rice sellers increased their quotes for 100% broken rice by about $10 per ton to around $305-$315 per ton. Pakistan rice sellers are out today due to a national holiday.                                                                                                                       
5% Broken Rice
Thailand 5% rice is indicated at around $385 - $395 per ton, about $40 per ton premium on Vietnam 5% rice  shown at around $345 - $355 per ton, up about $5 per ton from yesterday. India 5% rice is indicated at around $385 - $395 per ton, about $15 per ton premium on Pakistan 5% rice was last shown at around $370 - $380 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $360 - $370 per ton, about $35 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is indicated at around $350 - $360, about $20 per ton premium on Pakistan 25% rice was last shown at around $330 - $340 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $395 - $405 per ton. India parboiled rice is indicated at around $380- $390 per ton, about $35 per ton discount to Pakistan parboiled rice was last shown at around $415 - $425 per ton.                                                                                                                                                                                                                                   
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about $5 per ton from premium on Vietnam 100% broken rice shown at around $315 - $325 per ton, up about $5 per ton from yesterday. India's 100% broken rice is shown at around $305 - $315 per ton, up about $10 per ton from yesterday and about $20 per ton premium on Pakistan broken sortexed rice last shown at around $285 - $295 per ton

Thailand Prepares to Auction 1.29 Million Tons of Spoilt Rice by End of July

Jul 21, 2015
The Thai Commerce Ministry is planning to auction about 1.29 million tons of spoilt rice for industrial sectors by the end of July, according to Reuters.
The Commerce Minister told reporters that as on June 30, 2015, the government stocks consisted of a total of 15.11 million tons of rice and the rice is divided into three groups.
The first group comprises 9.15 million tons of edible rice, including 1.82 million tons of grade A and B rice, and 7.33 million tons of grade A and B rice mixed with grade C rice. The second group consists of 5.89 million tons of grade C rice, including 4.6 million tons of degradable rice and 1.29 million tons of inedible rice which is now crumbling to powder. The third group consists if about 70,000 tons of rice, which is yet to categorized.
The Minister noted that the 1.29 million tons of powdery rice will be sold in two or three auctions for bio-fuel as well as ethanol producers. The price of the spoilt rice will be reportedly set by a working group later, according to the Commerce Permanent Secretary.
She also noted that 4.6 million tons of C grade rice will be checked whether it is contaminated with fungus or not. The contaminated rice would be sold to ethanol producers or biomass power plants. If there is no contamination, the Ministry would improve the quality and sell it the stock feed industry.
She also added that the Ministry would monitor the delivery of the rice to the designated destinations and ensure that the rice is being used for the said purpose.

The Thai government is estimating losses from selling the stockpiled rice at around 100 billion baht (around $2.93 billion), said the Minster

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