Wednesday, August 05, 2015

5th August (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

American Journal Challenges Validity of a Golden Rice Study

Aug 04, 2015
The American Journal of Clinical Nutrition (AJCN) has challenged the validity of a 2012 study on Golden Rice, because of not receiving sufficient evidence on the results of the study, according to the Ecologist.The AJCN noted that since it did not receive sufficient evidence of consent from parents of the children who were involved in the children, it has issued a retraction to the paper.
 Experts say the study may also be questioned as the children in the trial were fed with diets that were unrealistically high in fat because the effectiveness of Vitamin A could be noticed only with high amount of fat. However, the AJCN has not considered this argument for retracting the study.
 Genetically modified golden rice is considered to be rich in beta carotene, which is useful in treating Vitamin A Deficiency in children. Environmentalists across the world have been opposing the cultivation and commercialization of golden rice due to its negative impact on environment. Currently the Indian Rice Research Institute (IRRI) is working to commercialize golden rice as soon as possible.

Drought Damages 19% of Rice Crop in 22 Central Thai Provinces, Says Deputy Prime Minister

Aug 04, 2015
Drought and water shortages have damaged around 1.5 million rai (around 240,000 hectares) of main rice crop, or around 19% of 8 million rai planted (around 1.28 million hectares) in nearly 22 provinces of Central Thailand, Bloomberg quoted the Deputy Prime Minister as saying. The main rice crop contributes to around 70% of the country's total rice outputThe Minister told reporters that farmers usually plant rice in around 57 million rai (around 9.12 million hectares) across Thailand between May and October citing data from the Office of Agricultural Economics (OAE). 
He noted that the government would assist farmers after assessing the intensity of damage. Last month, the Office of Agricultural Economics (OAE) has estimated that the output from 2015 main rice crop to decline about 14% to around 23.3 million tons from around 27.1 million tons last year.  

Oryza Afternoon Recap - Chicago Rough Rice Futures Continue Back-and-Forth Trading Pattern as Market Searches for Direction

Aug 04, 2015
Chicago rough rice futures for Sep delivery settled 6 cents per cwt (about $1 per ton) higher at $11.455 per cwt (about $253 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.7% higher at $9.4225 per bushel; wheat finished about 1.1% lower at $4.9325 per bushel, and corn finished the day about 0.6% higher at $3.7875 per bushel.
U.S. stocks traded mostly lower on Tuesday as investors eyed a continued sharp decline in Apple and a slight recovery in oil prices after the prior day's plunge. The major averages traded in a range, holding mildly lower after fluctuating around the flatline throughout the morning. The energy sector gave up early gains despite recovery in oil. Energy stocks fell 2% Monday, following a more than 3.5% drop in West Texas Intermediate crude futures and 4.5% decline in Brent futures, which fell below $50 per barrel for the first time since the end of January. On the data front, June factory orders figures showed an increase of 1.8%.
 On Wednesday, markets will be watching for the ADP employment report, which comes ahead of the labor report on Friday. In Europe, equities closed slightly lower as low commodity prices and energy stocks dented sentiment. In its second day of trading after reopening, the Greek stock market opened down over 4%, but pared losses to end roughly 1.2% lower. The Dow Jones Industrial Average traded down 13 points, or 0.07%, at 17,583. The S&P 500 traded up 0.50 points, or 0.02%, at 2,098, with utilities leading four sectors lower and materials the greatest advancer. The Nasdaq traded up 2 points, or 0.04%, at 5,117. Gold is trading about 0.2% lower, crude oil is seen trading about 1.2% higher, and the U.S. dollar is seen trading at about 0.2% higher at about  1:00pm Chicago time.
Monday, there were 1,100 contracts traded, down from 1,553 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 132 contracts to 8,947.

Oryza Overnight Recap – Chicago Rough Rice Futures Continue to Show Strength as Cash Market Appears to be Tightening

Aug 04, 2015
Chicago rough rice futures for Sep delivery are currently seen trading 3 cents per cwt (about $1 per ton) lower at $11.365 per cwt (about $251 per ton) during early floor trading in Chicago. The other grains are seen trading higher this morning; soybeans are currently seen trading about 0.8% higher, wheat is listed about 0.6% higher and corn is currently noted about 0.2% higher.
U.S. stocks traded in a range on Tuesday as investors watched Apple and eyed a slight recovery in oil prices after the prior day's sharp decline. The major averages briefly attempted mild gains soon after opening in the red. The energy sector gained half a percent to lead S&P 500 gains. Energy stocks fell 2 percent Monday, following a more than 3.5% drop in West Texas Intermediate crude futures and 4.5% decline in Brent futures, which fell below $50 per barrel for the first time since the end of January. Oil output by the Organization of the Petroleum Exporting Countries (OPEC) reached the highest monthly level in recent history in July, and production could rise further if Iran achieves a plan to raise output by 500,000 barrels per day (bpd) as soon as sanctions are lifted. On the data front, June factory orders figures are due at 10 a.m. ET. 

On Wednesday, markets will be watching for the ADP employment report, which comes ahead of the labor report on Friday. In Europe, equities traded mixed as slipping commodity prices and energy stocks dented sentiment. The Dow Jones Industrial Average traded up 17 points, or 0.10%, at 17,614. The S&P 500 traded up 2 points, or 0.07%, at 2,099, with energy leading six sectors higher and utilities the greatest laggard. The Nasdaq traded down 1 point, or 0.02%, at 5,113. Gold is currently trading about 0.2% higher, crude oil is seen trading about 2.2% higher,  and the U.S. dollar is currently trading about 0.1% lower at 9:00am Chicago time.

Heavy Rains in East India Raise Concerns of Rice Price Hikes

Aug 04, 2015
Heavy rains in India's Eastern states of West Bengal, Odisha and Manipur have damaged several hectares of paddy fields raising concerns of lower production and higher prices, according to local sources.Over 200,000 hectares of paddy and vegetable fields have been damaged in West Bengal, and a flood-like situation in northern Odisha is likely to affect more paddy fields. A similar situation is persisting in Manipur as well.
The Director of the Central Rice Research Institute (CRRI) noted that the crop is not in a very bad position and damage could be reduced if fresh sowing can be undertaken in August using short-duration paddy seeds. However, he said if farmers opt for a next round of sowing after water recedes in the fields, there should be adequate rainfall for effective transplantation of seeds.The CRRI Director noted that price hikes may be ruled out for now since the government procurement is inadequate in some states and due to this, farmers are unable to sell their output.
Meanwhile, the Indian Meteorological Department (IMD) has forecast a 16% deficit in the rainfall during the second half (August-September) of the monsoon season (June-September), according to local sources. It 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. 
The CRRI Director added that it is too early to decide whether the rainfall deficit will impact rice productivity. However, he noted that the government could assist farmers in areas that are more likely to be affected by a dry spell. According to data from the Agriculture Ministry, total area planting to India's 2015-16 Kharif (main) rice crop (June - December) stood at around 22.8 million hectares as of July 31, 2015, up about 6% from around 21.5 million hectares planted during the same time last year.
Global Rice Quotes
August 5th, 2015
Long grain white rice - high quality
Thailand 100% B grade   375-385                ↔
Vietnam 5% broken        335-345                ↔
India 5% broken               385-395                ↔
Pakistan 5% broken        345-355                ↔
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      315-325                ↔
Cambodia 25% broken   410-420                ↔
India 25% broken             350-360                ↔
U.S. 15% broken               445-455                ↔

Long grain parboiled rice
Thailand parboiled 100% stxd     375-385                ↔
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%   860-870                ↔
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   310-320                ↔
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

Thailand Plans to Auction Over 660,000 Tons of Rice on August 11, 2015

Aug 04, 2015
The Thai Commerce Ministry is planning to auction over 660,000 tons of stockpiled rice on August 11, 2015, according to local sources.The Director-General of the Foreign Trade Department told local sources that a total of 668,000 tons comprising 11 types of rice would be auctioned on August 11. She note that the rice is currently stores in warehouses under the Public Warehouse Organization and the Marketing Organization for farmers. Bidders are supposed to submit documents on August 10 and the names of qualified bidders are schedule to be announced on the morning of August 11 before the bidding process begins. Qualified bidders can submit their bids until afternoon and the winners will be announced on the same day, according to Ministry sources. 
This is the fifth auction this year and ninth one after the military government took over in May 2014.The government sold around 3.88 million of rice raising around 40 billion baht (around $1.15 billion) from the first eight auctions. The military government is still holding around 15.11 million tons of rice in its stockpiles. It is planning to auction around 1.29 million tons of spoilt rice for industrial use in this month

Sri Lanka 2015 Yala Rice Crop Planting Reaches Record 497,552 Hectares

Aug 04, 2015
Planting for the ongoing 2015 secondary yala rice crop (March - September) in Sri Lanka has reached record 497,552 hectares as of the June 30, 2015, according to data released by the Socio Economics and Planning Centre of the Peradeniya Agriculture Department.The government website reports that planting for the ongoing yala crop is highest so far and it is up about 59% from last yala season and up about 22% from the five-year average. It also reports that the planting is about 95% of the target.
Planting has reportedly exceeded the targets in Ampara, Anuradhapura, Polonnaruwa, Kilinochchi, Vavunia and Mahaweli H, B,C, L and Udawalawa.
Based on the planting pace, the government forecasts paddy output from the ongoing yala rice crop at around 1.91 million tons, up about 67% from last year and about 28% higher from average of last five yala seasons.Last month, the government of Sri Lanka planned to procure about 120,000 tons of paddy from the ongoing yala rice crop. Harvested paddy is expected to reach markets from early August.

The FAO forecasts Sri Lanka's total 2015 paddy output to increase about 21% to around 4.1 million tons (around 2.7 million tons, basis milled) from an estimated 3.4 million tons (around 2.3 million tons, basis milled) in 2014.USDA estimates Sri Lanka to produce around 2.85 million tons of rice, basis milled (around 4.19 million tons, basis paddy) and import around 550,000 tons in MY 2014-15 (October 2014 - September 2015).

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