Tuesday, August 25, 2015

24th August(Monday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes
August 24th, 2015
Long grain white rice - high quality
Thailand 100% B grade           370-380           ↔
Vietnam 5% broken     325-335           ↓
India 5% broken          360-370           ↔
Pakistan 5% broken     325-335           ↓
Myanmar 5% broken   405-415           ↔
Cambodia 5% broken 425-435           ↔
U.S. 4% broken           485-495           ↔
Uruguay 5% broken    535-545           ↔
Argentina 5% broken   530-540           ↔
Long grain white rice - low quality
Thailand 25% broken 340-350           ↔
Vietnam 25% broken   315-325           ↔
Pakistan 25% broken   295-305           ↓
Cambodia 25% broken            410-420           ↔
India 25% broken        335-345           ↓
U.S. 15% broken         460-470           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd             365-375           ↔
Pakistan parboiled 5% broken stxd      415-425           ↔
India parboiled 5% broken stxd           355-365           ↔
U.S. parboiled 4% broken       570-580           ↔
Brazil parboiled 5% broken     545-555           ↔
Uruguay parboiled 5% broken             NQ       ↔
Long grain fragrant rice
Thailand Hommali 92%           835-845           ↔
Vietnam Jasmine         455-465           ↓
India basmati 2% broken         NQ       ↔
Pakistan basmati 2% broken    NQ       ↔
Cambodia Phka Mails 835-845           ↔
Brokens
Thailand A1 Super       315-325           ↔
Vietnam 100% broken             305-315           ↔
Pakistan 100% broken stxd     280-290           ↔
Cambodia A1 Super    350-360           ↔
India 100% broken stxd          295-305           ↔
Egypt medium grain brokens   NQ       ↔
U.S. pet food   335-345           ↔
Brazil half grain           NQ       ↔
All prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon Recap - Chicago Rough Rice Futures Finish the Day Little Changed despite Sharp Decline in US Grain Prices and Bearish Macroeconomic Condition
Aug 21, 2015
 Chicago rough rice futures for Sep delivery settled 1.5 cent per cwt (about $0.33 per ton) higher at $11.650 per cwt (about $257 per ton). The other grains finished the day sharply lower; Soybeans closed about 2% lower at $8.8950 per bushel; wheat finished about 1.4% lower at $5.0400 per bushel, and corn finished the day about 1.4% lower at $3.7750 per bushel.U.S. stocks traded more than 2% lower on Friday, extending a recent rout, as concerns about slowing global growth continued to pressure investor sentiment. The Dow Jones industrial average trimmed losses after briefly falling into correction territory for the first time since 2011, losing more than 470 points as all blue chips declined. In the last five years, the index has only had four instances with closing losses of more than 400 points.
The Nasdaq Composite lost more than 3%, joining the other major averages in negative territory for the year. The S&P 500 fell through support levels to fall below 2,000 and 1,980, off more than 6% from its 52-week high. The index is off more than 2.5% for the year so far. All 10 sectors of the index declined. In addition to concerns over slowing global growth, analysts also noted some uncertainty over the timing of a rate hike. Gold is trading about 0.5% higher, crude oil is seen trading about 2.5% lower, and the U.S. dollar is seen trading about 1% lower about  2:45pm Chicago time.Thursday, there were 1,579 contracts traded, up from 972 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday increased by 148 contracts to 10,469.
 2015-16 Main Paddy Rice Sowing 4% Ahead of Last Year Despite Below-Average Rains
Aug 21, 2015
Total area planting to India's 2015-16 Kharif (main) rice crop (June - December) is continuing amid concerns of weaker rains in the second half of the monsoon season (August-September). Total rice planted area stood at around 33.36 million hectares as of August 21, 2015, up about 4% from around 33.21 million hectares planted during the same time last year, according to a press release by the Agriculture Ministry. According to the Indian Meteorological Department (IMD), India received 9% below-average rains as on August 21, 2015. The IMD has forecast a 16% deficit in the rainfall during the second half (August-September) of the monsoon season (June-September). The weather bureau forecasts August to receive 10% deficit rainfall and a higher deficit in September. The Head of the long-range forecasting at IMD noted that India's north-west region may witness highest deficit of around 15% in rainfall in the remaining season while central, and eastern India are expected to receive heavy rains.
A likely drought-inducing El Nino this year is expected to lower production prospects in India this year. The IMD has forecasted the El Nino pattern to reach to moderate to a strong one during the monsoon season (June – September).
The government of India estimates 2014-15 rice production to decline about 2% y/y to around 104.8 million tons due to below average rains during the kharif main rice crop planting process (June - September 2014) in many key rice growing areas and unseasonal rains and hailstorms during February and March 2015. If monsoons play a havoc this year also, production would decline for second consecutive year leading to price hikes.
Global rice prices are expected to increase by 10-20% as El Nino is likely to dampen production prospects in Asian countries, including India, Thailand, Indonesia and the Philippines.
The total Kharif crop sown area stands at 93.84 million hectares as on August 21, 2015, up about 1% from around 92.95 million hectares during the same period last year, according to the Agriculture Ministry.

Oryza Overnight Recap – Chicago Rough Rice Futures Slightly Higher Overnight Following Yesterday’s Selloff

Aug 21, 2015
Chicago rough rice futures for Sep delivery are currently paused 2 cents per cwt (about $0.44 per ton) higher at $11.655 per cwt (about $257 per ton) ahead of floor trading in Chicago. The other grains are seen trading mostly lower ahead of early morning action; soybeans are currently seen trading about 0.6% lower, wheat is listed about 0.9% lower and corn is currently noted about 0.2% higher.
After a torrid day on Wall Street Thursday, the worst to hit the markets in 18 months, U.S. stock index futures were pointing to another lower open on Friday. The Dow futures were off 80 points, indicating a milder extension of Thursday's plunge. Stocks sold off Thursdaywith the Dow down 358 points to 16,990 and the S&P 500 off 43, or 2.1% to 2,035. The selling was fueled by global growth concerns and uncertainty about when the Fed will move to raise interest rates.
In Asia, Friday morning saw the Shanghai Composite slide 4.3% after disappointing data from China. European markets also plunged, with the pan-European Stoxx 600 as much as 1.2% lower after the open amid worries over China and also Greece, where Prime Minister Alexis Tsipras resigned and called snap elections, expected to take place in September. The only U.S. data out Friday is the manufacturing PMI report at 9:45 a.m. ET. Gold is currently trading about 0.4% higher, crude oil is seen trading about 0.7% lower,  and the U.S. dollar is currently trading about 0.7% lower at 8:30am Chicago time.

FAO Estimates Indonesia 2015-16 Rice Imports to Decline on Higher Production

Aug 21, 2015
The UN's Food and Agricultural Organization (FAO) estimates Indonesia 2015-16 (April - March) rice imports to decline about 10% y/y to around 900,000 tons due to a favorable production outlook for the 2015 rice production as well as self-sufficiency policies advocated by the government.The FAO estimates Indonesia's 2015 aggregate paddy rice production at around 75.6 million tons, up about 7% from last year. The 2015 main season paddy crop  was complete in April. Harvesting of the 2015 secondary season paddy crop is underway and will continue till September. Planting for the minor third season crop has just started. The country's annual paddy rice acreage is around 14 million hectares.
Below-average rains between May and early August in main rice producing regions, including West Java, East Java, Central Java, South Sulawesi and North Sumatra hindered planting operations and yields are likely to be affected. The government is concerned about the impact of the on-going drought conditions on the paddy rice output. According to data from the National Disaster Management Agency, 102 districts in 16 provinces were affected by drought. Around 111,000 hectares of paddy plantings have been reportedly damaged.
The main season crop was well supported by good rains and diverse initiatives launched by the government. However, output from the secondary and minor third seasons is likely to be affected by drought conditions. Therefore, the  government is reportedly planning to allocate 880 billion Rupiah (around $65 million) to ensure water supplies through the rehabilitation of irrigation channels and distribution of water pumps to affected farmers.
Average rice prices have been increasing since May this year due to harvest delays coupled with higher fuel and transport costs. However, they were supported by concerns over the possible impact of the El Nino on te secondary season crop as well as the on-going government procurement program.

Italy's Novara Province to Organize "Rice Day" on September 3, 2015

Aug 21, 2015
Italy will organize "Rice Day", a whole day dedicated to rice in Novara on September 3, 2015, according to local sources.The day will highlight the importance of rice in the province. Rice acreage in the province has increased consistently for since 1930 and has reached about 32,368 hectares in 2014, accounting for about 14% of Italy's total rice acreage of around 214,000 hectares. Currently about 100 varieties of rice are grown in the area.Visitors will be shown how the new varieties can adapt to the different climatic conditions of various provinces. They will be taken to several farms in the province from 3 p.m. onwards.
The final meeting will take place in Cascina Motta di San Pietro Mosezzo, where rice growers, farmers unions and local authorities will discuss the current situation of rice harvesting and the perspective of rice growing sector. 

Pakistan Rice Exports Decline Both in Tonnage and Value in First Month of FY 2015-16

Aug 21, 2015
Pakistan exported around 155,570 tons of rice (including basmati and non-basmati) in the first month of FY 2015-16 (July - June), down about 14% from around 181,398 tons exported during the same period in FY 2014-15, according to provisional data from the Pakistan Bureau of Statistics (PBS). In terms of value, Pakistan's earned around $91 million in July 2015, down about 27% from around $125 million last year.
Month-on-month, Pakistan’s exports declined about 27% from around 214,434 tons exported in June 2015. In terms of value, they declined about 32% from around $133 million in June 2015.
Pakistan exported around 27,015 tons of basmati rice in July 2015, down about 27% from around 36,654 tons exported in June 2015, and down about 26% from around 36,723 tons exported in July 2014. In terms of value, Pakistan's basmati rice exports earned $34 million in July 2015, down about 27% from around $46 million earned in June 2015, and down about 31% from around $49 million earned in July 2014.
Pakistan exported around 128,555 tons of non-basmati rice in June 2015, down about 28% from around 177,780 tons exported in June 2015 and down about 11% from around 144,675 tons in July 2014. In terms of value, Pakistan's non-basmati rice exports earned $57 million in July 2015, down about 34% from around $87 million earned in June 2015, and down about 26% from around $77 million earned in July 2014.

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

Aug 21, 2015
Thailand rice sellers lowered their quotes for 25% broken rice, A1 super rice and Hommali rice by about $5 per ton each to around $340-$350, $315-$325 and $835-$845 per ton respectively today. Pakistan rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $305-$315 per ton. Other Asia rice sellers kept their quotes unchanged.                      
5% Broken Rice
Thailand 5% rice is indicated at around $360 - $370 per ton, about $30 per ton premium on Vietnam 5% rice shown at around $330 - $340 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $330 - $340 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $340 - $350 per ton, down about $5 per ton from yesterday and about $25 per ton premium on Vietnam 25% rice shown at around $315- $325 per ton. India 25% rice is indicated at around $340 - $350 per ton, about $35 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton, down about $5 per ton from yesterday.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is indicated at around $355- $365 per ton, about $60 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 $315 - $325 per ton, down about $5 per ton from yesterday and about $10 per ton premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice is shown at around $295 - $305 per ton, about $15 per ton premium on Pakistan broken sortexed rice shown at around $280 - $290 per ton.

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

Aug 21, 2015
Thailand rice sellers lowered their quotes for 25% broken rice, A1 super rice and Hommali rice by about $5 per ton each to around $340-$350, $315-$325 and $835-$845 per ton respectively today. Pakistan rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $305-$315 per ton. Other Asia rice sellers kept their quotes unchanged.                      
5% Broken Rice
Thailand 5% rice is indicated at around $360 - $370 per ton, about $30 per ton premium on Vietnam 5% rice shown at around $330 - $340 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $330 - $340 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $340 - $350 per ton, down about $5 per ton from yesterday and about $25 per ton premium on Vietnam 25% rice shown at around $315- $325 per ton. India 25% rice is indicated at around $340 - $350 per ton, about $35 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton, down about $5 per ton from yesterday.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is indicated at around $355- $365 per ton, about $60 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 $315 - $325 per ton, down about $5 per ton from yesterday and about $10 per ton premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice is shown at around $295 - $305 per ton, about $15 per ton premium on Pakistan broken sortexed rice shown at around $280 - $290 per ton.

Oryza Weekly: El Nino Concerns Continue to Threaten Global Rice Production and Trade

Aug 21, 2015
The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $389 per ton, down about $9 per ton from a week ago, down about $17 per ton from a month ago and down about $90 per ton from a year ago.
The USDA forecasts 2015-16 global rice production to be around 478.6 million tons, up slightly from 2014-15 due to an expected increase in rice acreage. However extending drought conditions in Asian rice producing countries such as India, Thailand, Indonesia and the Philippines are continuing to threaten global rice production and trade.
Thailand
Thailand 5% broken rice is today shown at about $360 per ton, down about $10 per ton from a week ago, down about $30 per ton from a month ago and down about $85 per ton from a year ago.
The USDA lowered its projections for Thailand’s rice exports based on shipment pace through June and stiff competition from India and other markets.  The USDA report suggests that the decline may impact global rice trade in 2015.
Thailand’s Office of the Auditor-General has found several irregularities in the implementation of the low-cost rice sales scheme by the Public Warehouse Organization.
India
India 5% broken rice is today shown at about $365 per ton, down about $15 from a week ago, down about $25 per ton from a month ago, and down about $80 per ton from a year ago.
Total area planting to India's 2015-16 Kharif (main) rice crop (June - December) is continuing amid concerns of weaker rains in the second half of the monsoon season (August-September). Total rice planted area stood at around 33.36 million hectares as of August 21, 2015, up about 4% from around 33.21 million hectares planted during the same time last year, according to a press release by the Agriculture Ministry.
The government has estimated India’s rice production, milled basis, for 2014-15 crop year (July-June) to be around 104,8 million tons, up about 2.2% from earlier estimates.  However, the production is down about 2% from 2013-14, due to bad monsoons.
Analysts expect basmati rice prices to decline in the coming months as supplies from the ongoing kharif crop reach the market and there is still no confirmation on the resumption of rice imports from Iran.
Vietnam
Vietnam 5% broken rice is today shown at about $335 per ton, down about $10 per ton from a week ago,  down about $15 per ton from month ago and down about $120 per ton from a year ago.
Vietnam exported around 3.343 million tons of rice during the period January 1-August 13, down about 22% from 4.26 million tons exported in the first eight months of 2014.
Rice exporters have signed contracts to export around 4.45 million tons of rice as of July 31, down about 9% from the same time last year.
Pakistan
Pakistan 5% broken rice is today shown at about $335 per ton, down about $10 per ton from a week ago, down about $40 per ton from a month ago and down about $110 per ton from a year ago.
Pakistan exported around 155,570 tons of rice (including basmati and non-basmati) in the first month of FY 2015-16 (July - June), down about 14% from around 181,398 tons exported during the same period in FY 2014-15, according to provisional data from the Pakistan Bureau of Statistics (PBS). In terms of value, Pakistan's earned around $91 million in July 2015, down about 27% from around $125 million last year.
The Agriculture Policy Institute is urging the government to announce paddy support prices for the 2015-16 crop year (July-June) in order to assist farmers.
Central & South America
Brazil 5% broken rice is today shown at about $500 per ton, unchanged from a week and a month ago and down about $110 per ton from a year ago.
The Brazilian paddy rice index maintained by CEPEA reached around 34.36 real per 50 kilograms as of August 17, 2015, up about 0.85% from around 34.07 real per 50 kilograms recorded on August 10, 2015.
In terms of USD per ton, the index reached around $198 per ton on August 17, 2015, up about 1.33% from around $195 per ton recorded on August 10, 2015.
Five percent broken rice from Uruguay and Argentina is today shown at about $540 per ton, unchanged from a week and a month ago, and down about $75 per ton from a year ago.
U.S.
U.S. 4% broken rice is today shown at about $490 per ton, unchanged from a week ago, down about $15 per ton from a  month ago and down about $50 per ton from a year ago.
Rice output in the U.S. state of Louisiana is expected to be below the last two years’ output due to low yields.
Other Markets
Output from China's first harvest period (early rice) has declined about 1% to around 33.69 million tons from around 34.01 million tons produced in 2014, local sources quoted the National Bureau of Statistics (NBS).
Rice production in Iran is expected to reach 2 million tons in 2015-16 (April-March).
Rice farmers in Myanmar are facing challenges replanting rice seeds after recent floods damaged about 560,000 hectares of rice fields.
The Mauritius state purchasing agency has issued an international tender to purchase up to 6,000 tons of long-grain white rice from optional origins with a deadline of August 24.
According to the Ente Nazionale Risi, almost all (about 99.9%) of Italy’s 2014-15 paddy crop (September-August) has been sold, and harvesting of the 2015-16 crop will begin soon.
Rice farmers, traders, and experts in Bangladesh are urging the government to raise the import duty on rice to curb price falls, as they are concerned that rice imports from India are continuing to increase despite the current 10% duty.
The government of Mozambique is considering introducing surcharge on imports of rice and other products in order to encourage domestic production.The government of the Philippines will maintain the 20 million tons paddy output target this year despite concerns of an El Nino weather pattern.The UN's Food and Agricultural Organization (FAO) estimates Indonesia 2015-16 (April - March) rice imports to decline about 10% y/y to around 900,000 tons due to a favorable production outlook for the 2015 rice production as well as self-sufficiency policies advocated by the government.
The EU’s rice imports from Least Developed Countries of Asia (such as Cambodia and Myanmar) under the Everything But Arms Agreement have reached about 314,265 tons in the first eleven months of the crop year 2014-15 (September-August), an increase of about 12% from the same period last year.
Italy will organize "Rice Day", a whole day dedicated to rice in Novara on September 3, 2015 to highlight the importance of rice in the province. The event will consist of farm trips as well as discussions between farmers unions and local authorities about the current situation of rice harvesting and the perspective of rice growing sector. 

Output from China's 2015 First Harvest Declines on Lower Acreage

Aug 21, 2015
Output from China's first harvest period (early rice) has declined about 1% to around 33.69 million tons from around 34.01 million tons produced in 2014, local sources quoted the National Bureau of Statistics (NBS). Early rice is usually planted in spring and harvested in early summer.     The decline is attributed to a decline in this year's early rice acreage by about 1.4% y/y to around 5.72 million hectares. However, the NBS statistics showed that the yield  increased slightly to around 5.89 tons per hectare due to favorable weather and local authorities' support to farmers in providing seeds and fertilizers. 
Early rice is mainly planted in eight central and southern provincial regions: Zhejiang, Anhui, Fujian, Jiangxi, Hubei, Hunan, Guangdong and Guangxi.USDA estimates China to produce around 146 million tons of milled rice in MY 2015-16 (July - June). It estimates China to import around 4.7 million tons and export around 400,000 tons of rice in 2015.

Oryza U.S. Rough Rice Recap - Prices Hold Steady as Harvest Picks up in Arkansas

Aug 21, 2015

The U.S. cash market was unchanged today with bids and offers holding steady as buyers and sellers continue to stand off on price.As the harvest picks up in Arkansas, analysts note that field yields in South Louisiana could be off as much as 10% from last year however it is too soon to say if yields in Arkansas will follow suit.Reports of milling yields out of South Louisiana are a mixed bag although most analysts agree that this year’s yields will not be as good as last years.
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