Nigeria to
Collaborate with Brazil to Develop Rice Sector, Boost Production
Oct 14, 2015
The
governments of Nigeria and Brazil have decided to work together to enhance
agricultural research in Nigeria as well as boost food production and security
in the country, according to local sources.
The
Permanent Secretary of Nigeria's Agriculture Ministry told local sources that
the collaboration would enhance investment in agricultural research in the
country. He noted that they are keen on transforming the working structure of
Agricultural Research Council of Nigeria (ARCN) on the lines of its Brazilian
counterpart.
The
work plan especially involves the development of the rice sector, which seeks
to achieve self-sufficiency in production. The Ministry is keen on borrowing
ideas from Brazil to achieve the task. The collaboration would particularly
seek to improve rice cooperatives, rice value chain, rice milling equipment and
agribusiness activities.
"The
partnership would see Nigeria attains self-sufficiency in agricultural
production with the application of technology, to improve its economy, said
the Vice President of Nigerian-Brazilian Chamber of Commerce & Industry.
Brazil
has also reportedly offered to export rice to Nigeria and has sought the
government to relax the barriers on rice importation. However, the Nigerian
Investment Promotion Commission (NIPC) Executive Secretary noted that Nigeria
is seeking Brazil's support in improving the quality and quantity of rice
production in the country as Nigeria itself is a major market.
“We
want to borrow a leaf from Brazil to be a major producer, consumer and be the
net exporter in the areas where we have the comparative advantage," she
said.
A trade delegation
from Brazil that visited Nigeria early this week noted that Brazil's
investments in Nigeria would focus on rice production, housing, and waste
recycling.
California Rice
Growers Estimate 2015 Output to Fall 8% y/y to 1.55 Million Tons
Oct 14, 2015
Californian
rice growers, who are midway through this year's harvest are expecting the
state's rice output to decline to around 1.55 million tons, down about 8% from
around 1.68 million tons in 2014, according to Capital Press.
The
decline in output may be attributed to a decline on acreage as well as yields.
Californian farmers planted rice in about 148,000 hectares of land compared to
about 172,400 hectares last year due to water shortages. The state is enduring
the fourth year of drought, which has led to a significant decline in water
levels in most of the reservoirs.The yields are also expected to decline to
about 7 tons per hectare, down from about 7.22 tons per hectare last year.
Meanwhile,
water shortages are likely to impact migratory bird habitat this winter,
according to the state's Farm Bureau. Californian farmers normally create about
120,000 hectares of managed wetlands during the rice-growing season. But last
year they could create only 40,000 hectares of wetlands. This year, the Bureau
expects them to create about 20,000 hectares.Most of the rice growers are
expecting prices to increase. If prices don't increase they are concerned that
their margins would suffer severely.
California
is the second largest rice producing state in the U.S. after Arkansas and
typically contributes to about 25% of the total rice grown in the U.S.
annually. The state's rice sector employs about 25,000 people grows
medium-grain rice and most of the rice grown here is exported.Currently, export
prices of the U.S. medium grain rice stand at around $835 per ton, down about
9% from around $915 per ton at the beginning of this year.
Brazil Paddy Rice
Index Increases Slightly from Previous Week
Oct 14, 2015
The Brazilian paddy
rice index maintained by CEPEA reached around 40.32 real per 50 kilograms as of
October 12, 2015, slightly up from around 39.94 real per 50 kilograms recorded
on October 5, 2015.In terms of USD per ton, the index reached around $207.33
per ton on October 12, 2015, slightly down from around $207.45 per ton recorded
on October 5, 2015.Month-on-month, the index has increased about 9% from about
37 real per 50 kilograms on September 13, 2015. In terms of USD, the index
increased about 7% during the month.
Global Rice Quotes
October
13th, 2015
Long
grain white rice - high quality
Thailand
100% B grade 370-380 ↔
Vietnam
5% broken 350-360 ↔
India
5% broken 355-365 ↔
Pakistan
5% broken 305-315 ↔
Myanmar
5% broken 415-425 ↔
Cambodia
5% broken 415-425 ↔
U.S.
4% broken 490-510 ↔
Uruguay
5% broken 535-545 ↔
Argentina
5% broken 530-540 ↔
Long
grain white rice - low quality
Thailand
25% broken 330-340 ↔
Vietnam
25% broken 335-345 ↔
Pakistan
25% broken 280-290 ↔
Cambodia
25% broken 400-410 ↔
India
25% broken 315-325 ↔
U.S.
15% broken 500-510 ↔
Long
grain parboiled rice
Thailand
parboiled 100% stxd 365-375 ↔
Pakistan
parboiled 5% broken stxd 405-415
↔
India
parboiled 5% broken stxd 335-345 ↔
U.S.
parboiled 4% broken 590-610 ↔
Brazil
parboiled 5% broken 545-555 ↔
Uruguay
parboiled 5% broken NQ ↔
Long
grain fragrant rice
Thailand
Hommali 92% 810-820 ↔
Vietnam
Jasmine 465-475 ↑
India
basmati 2% broken NQ ↔
Pakistan
basmati 2% broken NQ ↔
Cambodia
Phka Mails 830-840 ↔
Brokens
Thailand
A1 Super 305-315 ↔
Vietnam
100% broken 305-315 ↔
Pakistan
100% broken stxd 275-285 ↔
Cambodia
A1 Super 355-365 ↔
India
100% broken stxd 300-310 ↔
Egypt
medium grain brokens NQ ↔
U.S.
pet food 330-340 ↔
Brazil
half grain NQ ↔
All
prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon
Recap - Chicago Rough Rice Futures Tank despite Huge Gains in Other Grains;
Strong Export Numbers Lift Soy
Oct 14, 2015
Chicago rough rice
futures for Nov delivery settled 29 cents per cwt (about $6 per ton) lower at
$12.595 per cwt (about $278 per ton). The other grains traded sharply higher
today, led by steep gains for soy products; Soybeans closed about 3% higher at
$9.1400 per bushel; wheat finished about 2.4% higher at $5.1900 per bushel, and
corn finished the day about 1% higher at $3.8450 per bushel.
U.S.
stocks traded in a range Tuesday, as some gains in oil prices offset fresh
indications of slowdown in China's economy, amid key third-quarter earnings
reports. The major averages held mildly lower in early afternoon trade, giving
up an attempt to recover from an initial sell-off on weaker-than-expected China
trade data. Brent and WTI crude prices tried to reverse earlier losses to trade
mostly higher midday Tuesday. Earlier, the International Energy Agency reported
that global oil demand growth would slow in 2016, to 1.2 million barrels per
day from 1.8 million in 2015. China's dollar-denominated imports plunged by a
worse-than-expected 20.4% in September from a year earlier, while exports
slipped 3.7%, producing a trade surplus of $60.34 billion, official data showed
on Tuesday.
On
Tuesday, James Bullard, the president of the Federal Reserve Bank of St. Louis,
said in a Dow Jones report that the Fed has effectively met its goals on the
labor market and inflation, signaling it's time to start raising rates. Bullard
will become a voting member of the Federal Open Market Committee in January. In
other economic news, U.S. small business confidence rose 0.2 in September to
96.1 as stock market volatility raised concerns about sales growth, the
National Federation of Independent Business said Tuesday. The organization said
the level was consistent with a 2.5% annualized growth rate.
In
afternoon trade, the Dow Jones Industrial Average fell 14 points, or 0.09%, at
17,116. The S&P 500 traded down 6 points, or 0.28%, at 2,011, with
industrials leading seven sectors lower and materials the greatest advancer. The
Nasdaq traded down 13 points, or 0.27%, at 4,825. Gold is trading about 0.1%
higher, crude oil is seen trading about 0.1% higher, and the U.S. dollar is
seen trading about 0.1% lower about 1:15pm Chicago time.Monday, there
were 765 contracts traded, down from 1,504 contracts traded on Friday. Open
interest – the number of contracts outstanding – on Monday decreased by 765
contracts to 12,692.
Oryza U.S. Rough
Rice Recap - Prices Fall After Iraq Cancels Latest Tender Award; USDA Says
Harvest 88% Complete
Oct 14, 2015
The U.S. cash market
was weaker today falling in sympathy with a futures market however most sellers
insist they will continue to wait for higher prices even as exporter struggle
to make new sales.
Analysts note that
news that the Iraqi Grain Board canceled their latest tender to buy 30,000 MT
from the U.S. and 50,000 MT from India citing quality concerned has likely
weighed on prices although the IGB is expected to retender shortly.
In the meantime, the
USDA estimates that as of October 11, 88% of the crop had been harvested
which was 8% ahead of this time last year and 8% ahead of the previous 5-year
average.
As of now, the USDA
estimates that 93% of the rice crop in Arkansas had been harvested compared to 65%
in California, 100% in Louisiana, 91% in Mississippi, 85% in Missouri, and 100%
in Texas.
South Korea's 2015
Rice Output May Increase Slightly on Better Yields, Says Ministry
Oct 14, 2015
South Korea's rice
production (milled basis) is estimated to increase about 0.4% to around 4.258
million tons in 2015 from around 4.241 million tons in 2014 due to higher
yields, local sources quoted the Ministry if Agriculture, Food and Rural
Affairs."Overall output is expected to increase marginally as the average
yield from each unit area of 10 hectares is predicted to rise," the
Ministry was quoted. "Favorable weather conditions from June onward and
almost no crop damage caused by parasites and typhoons are raising expectations
of better yields this year," it added.
Based on data from the
Statistics Korea, the Ministry noted that the country's average yield is
estimated to increase to around 5.33 tons per hectare this year, up about 2.5%
from around 5.2 tons per hectare last year. The paddy rice acreage in the country
has declined to around 799,344 hectares, down about 2% from around 815,506
hectares, according to the Ministry.
The Ministry noted
that it is planning to introduce measures for stabilizing market prices of
rice. Some of these measures include encouraging private processing units to
buy more rice, strengthening monitoring of imported rice and regulating the
country's stockpile.
The country's current
rice reserves stand at around 1.32 million tons. The Ministry is expecting the
demand for rice at around 3.97 million tons in 2016. The government is
currently facing the challenge of falling consumption and increasing stocks.
The government opened
its rice import market starting January 1, 2015 and decided to impose tariffs
of 513% on rice imports over and above its mandatory rice imports of 408,700
tons under the World Trade Organization (WTO) minimum market access (MMA)
quota.
Vietnam Plans to
Develop National Rice Brand Based on Jasmine Rice Type
Oct 14, 2015
The Vietnam Food
Association (VFA) is planning to develop a national brand for Vietnam's rice
based on the jasmine type, local sources quoted the Chairman of the VFA.He told
local sources that they selected the jasmine rice type because the fragrant
rice exports of the country have increased significantly in recent years. The
proportion of fragrant rice exports in the country's total rice exports has
reportedly increased to 26% in the first nine months of 2015 from a meagre 3%
in 2007. Price of fragrant rice also has consistently increased to current $600
per ton from about $460 per ton in the past.
The VFA Chairman noted
that building a national brand would take time. They need to invest in
large-scale fields for fragrant rice production to secure stable supply, he
said. The VFA is planning to collaborate with a number of corporate partners to
develp such fields.
Vietnam exported about
4.35 million tons of rice in January 1 - September 30, 2015, down about 9% from
about 4.8 million tons of rice exported in first nine months of 2014, according
to data from the VFA. The average rice export price so far in this year stands
at about $420.77 per ton (FOB), down about 2.6% per ton from about $432 per ton
recorded during same last year.Export quotes for Vietnam 5% rice have increased
during the past month due to new demand from the Philippines. They currently
stand at around $355 per ton, up about 9% from around $325 per ton last month.
However, they are still 19% lower from their year-ago level of around $440 per
ton.
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