Thursday, July 30, 2015

30th July (Thursday), 2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Japan May Propose to Set Tariff-Free Import Quota for U.S. Rice at 70,000 Tons Under TPP

Jul 29, 2015
Japan is planning to propose a 70,000 ton tariff-free rice import quota for the U.S. as part of efforts to push forward the Trans-Pacific Partnership (TPP) negotiations that have been stalled due to a impasse between the U.S. and Japan over access to Japan's rice market and U.S. tariffs on automotive parts, according to local sources.Japan is likely to put forth its plans in a four-day ministerial meeting of the 12 countries, also including Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, that began on July 28, 2015 in Hawaii.
The U.S. has been demanding that Japan increase the U.S. quota to 175,000 tons. However, Japan may not honor the U.S. request in order to protect its rice sector from foreign competition. It is planning to initially set the quota at 50,000 tons and gradually increase it to 70,000 tons over the next decade. Local sources noted that Japan may not necessarily adhere to the import quota every year, but its imports may depend on the domestic demand.
Meanwhile, Australia is also reportedly seeking an increase in its import quota. Japan may propose to set the Australian target at 12% of the U.S. quota. Both U.S. and Australia quotas may be together set at 80,000 tons, according to local sources.
Currently, Japan imports about 770,000 tons of rice under the annual minimum market access (MMA) quota as per the World Trade Organization (WTO) obligations. The rice imports above the MMA quota carry a prohibitive import tariff of around 778%.
USDA estimates Japan to produce around 7.7 million tons of rice and import around 700,000 tons of rice in MY 2014-15 (November - October) to meet annual consumption needs of around 8.2 million tons.

Thailand to Export 76,000 Tons of Stockpiled Rice to Africa at $430 per Ton, Says TREA Official

Jul 29, 2015
The government of Thailand has struck preliminary deals to export about 760,000 tons of stockpiled rice to African nations, including Mozambique, Nigeria and South Africa, Reuters quoted the Honorary President of the Thailand Rice Exporters Association (TREA).He noted that African nations mostly buy parboiled rice and the Thai government is likely to begin shipments from September this year.
The TREA official also noted that rice would be sold at around $430 per ton raising a total of around $325 million.The Thai military government still has around 14.5 million tons of rice in its stockpiles and it is planning to sell about 10 million tons this year. The government had over 17 million tons of rice when it took over in May 2014. It sold a total of 3.88 million tons of rice in eight auction for around 40.90 billion baht ($1.2 billion) since it took over in May 2014.The government is planning to hold another auction this month. It is also considering to auction about 1.29 million tons of sub-standard rice in August.

Cambodian Commerce Ministry to Invest $450,000 in Rice Sector to Boost Exports

Jul 29, 2015
Cambodia's Commerce Ministry has agreed to invest about $450,000 as a one time seed capital in the country's rice sector to help boost exports, local sources quoted an official from the Cambodian Rice Federation (CRF).The CRF official told reporters that the Ministry has signed a memorandum of understanding (MoU) with the CRF, which comprises of farmers, millers and exporters, as part of efforts to increase rice exports of the country. He added that the funds will be used for promoting exports through overseas exhibitions, government-to-government (G2G) discussions as well as local infrastructure
development.
The official also noted that the federation would receive the funds after sending a detailed plan of their proposed use.Cambodian exports are said to be severely impacted to lack of adequate milling, storing and transportation facilities. The government aimed to export about one million tons of rice this year, but has specified that it may not be able to meet the target to the above reasons. It is reportedly planning to export around 60,000 tons this year.Cambodia has exported around 283,825 tons of milled rice in the first six months of 2015, up about 60% from around 177,928 tons exported during the same period last year. Cambodia exported about 387,100 tons of rice in 2014.
USDA estimates Cambodia to export 1.1 million tons of rice (including official and unofficial exports to Vietnam and Thailand through borders) in 2015, up about 10% from an estimated 1 million tons in 2014.
Global Rice Quotes
July 29th, 2015
Long grain white rice - high quality
Thailand 100% B grade          380-390           ↔
Vietnam 5% broken    345-355           ↔
India 5% broken         385-395           ↔
Pakistan 5% broken    360-370           ↓
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 350-360           ↔
Vietnam 25% broken 325-335           ↔
Pakistan 25% broken 320-330           ↓
Cambodia 25% broken           410-420           ↔
India 25% broken       350-360           ↔
U.S. 15% broken         445-455           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            380-390           ↔
Pakistan parboiled 5% broken stxd    415-425           ↔
India parboiled 5% broken stxd         375-385           ↔
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%          865-875           ↔
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




FAO Forecasts Vietnam's 2015 Rice Exports to Fall Below 2014 Level

Jul 29, 2015

The UN's Food and Agriculture Organization (FAO) forecasts Vietnam's 2015 rice exports at around 6.3 million tons, slightly down from last year's below-average level of 6.5 million tons. Vietnam exported about 2.926 million tons of rice in January 1 - July 23, 2015, down about 19% from about 3.63 million tons of rice exported in first seven months of 2014, according to data from the Vietnam Food Association (VFA).The FAO forecasts Vietnam's 2015 total paddy production at around 44.68 million tons (around 28.8 million tons, basis milled), down about 1% from last year's 44.98 million tons (around 29 million tons, basis milled).  The decline can be attributed to the drought-inducing El Nino phenomenon. World's meteorological and oceanic institutions are predicting the El NiƱo conditions to strengthen in the coming months and persist through 2015-16 winter.
Planting of the 2015 summer-autumn season paddy crop is almost complete. Below-average rainfall and high temperatures between April and July have reportedly delayed planting operations. As of mid-June around 1.9 million hectares have been planted, down about 6% from last year. Around 2.7 million hectares was sown to summer-autumn crop in 2014. Planting for the 2015 10th Month (winter) season rice crop has just started and will continue till October.   The FAO estimates the output from the 2015 main winter-spring crop, whose harvesting completed in June, at around 20.7 million tons (around 13.35 million tons, basis milled), almost similar to 2014. It accounts for about 46% of the country's total paddy production. Summer-autumn crop and 10th Month (winter) seasons account for 32% and 22% respectively.
Wholesale rice prices of rice in Vietnam declined slightly in the first two weeks of July due to increased supplies from the recently-harvested 2015 winter-spring crop as well as weak export demand. Overall the prices were below their year-ago levels. USDA estimates Vietnam to produce around 28 million tons of rice, basis milled (around 45 million tons, basis paddy) and export around 6.7 million tons in 2014-15 (January 2015 - December 2015).

Italy's Noted Literature Writer Sebastiano Vassalli Passes Away at 74

Jul 29, 2015
Sebastiano Vassalli, one of Italy's most representative writers, who linked Italy's rice fields and litertature, has passed away on Jyly 27, 2015.  His links with the Italian rice world have been very deep and his passion towards the Italian rice fields made him spent most of his time in rice fields.  He was born in Genoa and moved to Novara, when he was a child. Later, he lived in the rice fields in the former rectory of Marangana, not very far from Novara and Vercelli.  He has been one of the most translated Italian writers abroad. He had graduated in Italian Literature with a thesis on contemporary art and psychoanalysis discussed with famous psychologist and psychoanalyst Cesare Musatti; after that he became an high school teacher.
He reached fame in 1990 with his book "La chimera", an historical novel set in the Novara countryside of the seventeenth century. "The world of agriculture in Novara certainly loses its most high-profile author: he was able to tell what was rice growing sector and this land was in the sixteenth and seventeenth centuries," said local sources. The University of Gothenburg had proposed his name as a candidate for the Nobel Prize for Literature in 2015, but unfortunately he died after a short incurable disease. 

Government Measures Protect 102,000 Hectares of Rice Fields from Drought in Indonesia, Says Minister

Jul 29, 2015
The government of Indonesia has been successful in protecting around 102,000 hectares of rice from drought conditions during the period October 2014 - July 2015, local sources quoted the Agriculture Minister as saying. The Minister noted that only 57,000 hectares of rice lands have been impacted by drought conditions in the ten-month period, compared to around 159,000 hectares impacted last year. He added that the government saved around 500,000 tons of paddy worth 2 trillion Rupiah (around $149 million) from being lost due to drought. 
Yearly, around 198,000 hectares of rice lands in the country are impacted by dry weather conditions and less water facilities. However, this year, concerns of an El Nino weather pattern that is associated with dry weather conditions has prompted the government to take precautionary measures in areas that are prone to drought conditions. It reportedly distributed some 82,000 pump sets across the country and ensured adequate irrigation facilities in these areas.
The Director General of Water Resources of the Public Works and Public Housing Ministry told reporters that the government will continue to monitor the irrigation systems and impose water rationalization if necessary. Water from the dams will be prioritized for drinking, irrigation, and
industries, he added. Water levels in five dams in the Java region are at low levels due to the dry spell.
USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled (around 57.17 million tons, basis paddy), and import around 1.25 million tons of rice in MY 2014-15 (October - September).

High Night Time Temperatures, Bacterial Panicle Blast Threaten Arkansas Rice Production

Jul 29, 2015
High temperatures, especially in the nights, are likely to significantly impact rice grain quality in the U.S. state of Arkansas, Deltafarmpress quoted the Extension rice specialist at the University of Arkansas.The scientist noted that the night temperatures have remained at or above 75 degrees Fahrenheit at nights and this is causing a concern on the quality of the Arkansas rice crop this year. "The past research suggests that high night temperatures can have a significant impact on grain quality, primarily related to chalkiness," he said. 
He noted that similar weather conditions in July and August months of 2010 and 2011 had severely impacted the grain quality. Incidence of bacterial blight in those years also affected yields in the state, he added.This year also, rice crop is likely to be infested with bacterial blight conditions affecting yields. He noted that they are expecting a yield of around 150 bushels per acre (around 10.125 tons per hectare), down from last three years' average of around 168 bushels per acre (around 11.34 tons per hectare).
However, he said some newer varieties that are used this season appear to be less susceptible to bacterial panicle blight. Precisely, varieties sown in about 60% of rice area are said to be relatively resistant to the diseases, he said.
He also noted that high temperatures are protecting rice crops from other diseases like sheath blight and leaf blast. 
USDA estimates Arkansas total planted rice area in 2015 at around 556,000 hectares down about 3% from around 576,000 hectares from 2014. While acreage for long-grain rice is expected to decline to around 460,000 hectares from last year's 488,000 hectares, acreage for medium-grain rice is expected to increase to around 96,000 hectares from around 88,000 hectares last year. Acreage for short-grain rice is expected to remain stable at around 400 hectares. Arkansas 2015 production is estimated at to increase to around 5 million tons from last year's 4.26 million tons, while yield is estimated to remain almost stable at around 8.5 tons per hectare.

Oryza Afternoon Recap - Chicago Rough Rice Futures Rally while Grains Fall on Optimal Weather

Jul 29, 2015
Chicago rough rice futures for Sep delivery settled 22 cents per cwt (about $5 per ton) higher at $11.200 per cwt (about $247 per ton). The other grains finished the day lower; Soybeans closed about 0.2% lower at $9.4325 per bushel; wheat finished about 2.8% lower at $4.9625 per bushel, and corn finished the day about 1.9% lower at $3.7825 per bushel.
U.S. stocks traded higher Wednesday as investors digested the Federal Reserve statement that kept rates unchanged. The Federal Reserve kept rates unchanged and gave no hint of liftoff coming in the next meeting. The decision on the rates was unanimous. Policymakers said the economy is expanding moderately. The Dow Jones industrial average traded about 100 points higher. The index initially extended gains to trade about 130 points higher after trading about 90 points lower before the statement. The Nasdaq Composite briefly dipped into negative territory. The Federal Open Market Committee concluded its two-day meeting in the afternoon and was scheduled to release its statement at 2:00 p.m.
No press conference is planned. In economic news, pending home sales came in down 1.8 percent in June from May. Housing data so far has been mixed. Last week's new home sales report disappointed analysts while existing home sales jumped to an 8-1/2-year high. Ahead of the statement release, the Dow Jones Industrial Average traded up 99 points, or 0.56%, at 17,729. The S&P 500 traded up 10 points, or 0.48%, at 2,103, with telecommunications leading nine sectors higher and utilities the only laggard. The Nasdaq traded up 6 points, or 0.13%, at 5,095. Gold is trading about 0.1% lower, crude oil is seen trading about 1.5% higher, and the U.S. dollar is seen trading at about 0.2% higher at about  2:00pm Chicago time.
Tuesday, there were 437 contracts traded, down from 647 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday increased by 149 contracts to 8,697.

Oryza Overnight Recap – Chicago Rough Rice Futures Trade Above $11.000 on Support from Firmer Beans

Jul 29, 2015
rice futures for Sep delivery are currently seen trading 5.5 cents per cwt (about $1 per ton higher) at $11.035 per cwt (about $243 per ton) during early floor trading in Chicago. The other grains are seen trading mixed this morning; soybeans are currently seen trading about 0.6% higher, wheat is listed about 0.9% lower and corn is currently noted about 0.9% lower.U.S. stocks traded in a narrow range Wednesday as investors digested earnings and awaited the release of the Federal Reserve statement that could shed light on the timing of a rate hike.
The Nasdaq Composite struggled to hold higher while the Dow Jones industrial average and S&P 500 clung to mild gains. The Federal Open Market Committee concludes its two-day meeting in the afternoon and is scheduled to release its statement at 2:00 p.m. No press conference is planned. In economic news, pending home sales comes at 10:00 a.m. Housing data so far has been mixed. Last week's new home sales report disappointed analysts while existing home sales jumped to an 8-1/2-year high. Weekly mortgage applications barely moved for the second week in a row, rising just 0.8%, the Mortgage Bankers Association (MBA) said. U.S. stocks closed higher on Tuesday, breaking a 5-day losing streak, as energy stocks surged on a recovery in oil prices.
Overseas, mainland Chinese stocks halted a three-day decline with a 3.47% gain Wednesday. European stocks traded flat to slightly higher. Analysts remain skeptical of full recovery in the mainland Chinese stock market. The Dow Jones Industrial Average traded up 30 points, or 0.16%, at 17,658. The S&P 500 traded up 3 points, or 0.15%, at 2,096, with telecommunications leading seven sectors higher and utilities the greatest laggard. The Nasdaq traded up 3 points, or 0.05%, at 5,091. Gold is currently trading about 0.5% lower, crude oil is seen trading about 0.8% lower,  and the U.S. dollar is currently trading unchanged at 9:00am Chicago time.

Pakistan Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Jul 29, 2015
Pakistan rice sellers lowered their quotes for 5% broken rice and 25% broken rice by about a $10 per ton each to about $360-$370 per ton and $320-$330 per ton respectively today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice
Thailand 5% rice is indicated at around $370 - $380 per ton,  about a $25 per ton premium on Vietnam 5% rice  shown at around $345 - $355 per ton.
India 5% rice is indicated at around $385 - $395 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $360 - $370 per ton, down about a $10 per ton from yesterday.
25% Broken Rice
Thailand 25% rice is shown at around $350 - $360 per ton, about a $25 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton.
India 25% rice is indicated at around $350 - $360, about $30 per ton premium on Pakistan 25% rice shown at around $320 - $330per ton, down about a $10 per ton from yesterday.
Parboiled Rice
Thailand parboiled rice is indicated at around $380 - $390 per ton.
India parboiled rice is indicated at around $375- $385 per ton, about a $40 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.

India's 100% broken rice is shown at around $305 - $315 per ton, about a $20 per ton premium on  Pakistan broken sortexed rice shown at around $285 - $295 per ton.

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