Tuesday, October 20, 2015

20th October,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

EC to Implement New Regulation for Limiting Inorganic Arsenic in Rice from January 1, 2016

Oct 19, 2015
The European Commission (EC) will implement the new regulation for limiting inorganic arsenic in rice and other food stuffs according to local sources.The EC reportedly made a new recommendation to modify the laws of a regulation issued by the Official Journal of European Union (EU) on June 26, 2015. According to the regulation (2015/1006), the EU set new permissible limits for inorganic arsenic in rice. It allowed up to 0.20 micrograms per kilogram of non-parboiled rice (polished or white rice), up to 0.25 micrograms per kilogram of parboiled and husked rice, up to 0.30 micrograms per kilogram of rice waffles, wafers, crackers and cakes, and 0.1 micrograms per kilogram of rice for baby food.
However, in a new regulation (2015/1381) issued on August 10, 2015, the EC extended the previous regulation to other food items as well. Since arsenic occurs naturally in the environment and is present in soil and ground water, it is absorbed by all plants and animals, says the EC. The long-term association with the element are likely to cause skin lesions, cancer, developmental toxicity, neurotoxicity, cardiovascular diseases, abnormal glucose metabolism, and diabetes, it says.Therefore, the EC sought a scientific opinion on the risks to human health related to the presence of arsenic in foodstuffs (incl. drinking water) from the European Food Safety Authority (EFSA). Since the Authority requested for a more detailed specification of data about arsenic in the EU states, the EC instructed all the states to monitor the presence of arsenic in food in the years 2016, 2017 and 2018.
Food stuffs including cereal grains, cereal based products (including bran and germ), fruit and vegetable juices, drinking water (including bottled water), coffee, dry tea leaves, beer, fish and sea food, vegetables, algae products (including hijiki), milk, dairy products, food intended for infants and young children, food for special medical purposes and food supplements will be monitored for the presence of arsenic.

Venezuela May Import Rice from Suriname at Relatively Low Prices

Oct 19, 2015

Venezuela is reportedly planning to import rice from Suriname, a move that is likely to completely end the oil-for-rice deal with Guyana according to local sources.
The Suriname President is understood to have requested the Venezuelan leader, who visited Suriname last week, to buy their surplus rice. The Venezuelan leader also reportedly agreed to the proposal. “We have decided to deepen trade relations and will intensify the implementation of the rice agreement,” told the Venezuelan leader to reporters.The foreign ministers have an explicit mandate to deepen trade relations and to ensure the import of rice from Suriname,” added the Suriname President.Suriname reportedly wants Venezuela to import rice under a rice for oil deal like the one it struck with Guyana, which is likely to expire this November. Moreover, it is also understood that Venezuela will be getting rice at a relatively cheaper price that it used to get from Guyana. Local sources report that Suriname is agreeing to supplying rice at nearly half the price of Guyana's.
Meanwhile Guyana is also exploring new markets for its rice as the PetroCaribe deal with Venezuela is on the verge of closure and Venezuela has not shown any interest so far in renewing the deal. It is also reportedly struck new contracts with Trinidad and Tobago for importing oil.On the other hand, Venezuela's food shortages have intensified as the government is not ready to renew the PetroCaribe deal with Guyana. Venezuelans are reportedly buying most of their food stuffs in the black market.
Both Venezuela and Guyana have been facing border issues, which have reportedly affected the rice-for-oil deal as well. They are understood have approached the UN to resolve the border issues.

Thailand, India, Vietnam Rice Sellers Alter Some of Their Quotes Today; Other Asian Quotes Remain Unchanged

Oct 19, 2015
Thailand rice sellers lowered their quotes for 100% B, 5% broken rice varieties by about $5 per ton each to around $365 - $375 per ton and $355 - $365 per ton respectively. They also lowered their quotes for and glutinous rice variety by about $15 per ton to around $660 - $670 per ton. Vietnam rice sellers increased their quotes for 5%, 15%, 25% and jasmine rice varieties by about $10 per ton each to around $365 - $375 per ton, $355 - $365 per ton and $475 - $485 per ton respectively. They increased their quotes for glutinous rice variety by about $5 per ton to around $470 - $480 per ton. India rice sellers increased their quotes for 25% broken rice and parboiled rice varieties by about $5 per ton each to around $330 - $340 per ton and $340 - $350 per ton respectively.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton about $10 per ton discount on Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $350 - $360 per ton, about $45 per ton premium on Pakistan 5% rice shown at around $305 - $315 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $330 - $340 per ton, about 15% discount on Vietnam 25% rice shown at around $345- $355 per ton. India 25% rice is indicated at around $330 - $340 per ton, about $50 per ton premium on Pakistan 25% rice shown at around $280 - $290 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is indicated at around $340 - $350 per ton, about $65 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.                            
100% Broken Rice
Thailand broken rice, A1 Super is indicated at around $305 - $315 per ton, at par with Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice is shown at around $290 - $300 per ton, about $15 per ton premium on Pakistan broken sortexed rice shown at around $275 - $285 per ton.

Philippines to Decide on Additional One Million Tons of Rice Imports by End of October, Says NFA Administrator

Oct 19, 2015
The government of Philippines will decide on importing additional one million tons of rice in the first quarter of 2016 by the end of October 2015, Bloomberg quoted the National Food Authority (NFA) Administrator as saying.The NFA official told reporters that the NFA Council will meet end-October to discuss rice import plan. He noted that the NFA may purchase rice through government-to-government (G2G) transaction or through private sector.The Philippines has already secured 500,000 tons of rice imports for delivery in the first quarter of 2016.The government is expecting this year's paddy output to decline by about 25% due to the El Nino induced drought conditions. The effects of the El Nino are expected to last till the middle of 2016. Government officials are considering the phenomenon to be as intense as that in 1997-98, when the farm output fell by 23% and prices increased significantly.
It has  approved for importing about 1.8 million tons rice for delivery this year. As on October 13, about 937,000 tons of rice have been received and about 600,000 tons were purchased by the private traders under the WTO rules.
Global Rice Quotes
October 19th, 2015
Long grain white rice - high quality
Thailand 100% B grade   365-375                ↓
Vietnam 5% broken        365-375                ↑
India 5% broken               350-360                ↔
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      345-355                ↑
Pakistan 25% broken      280-290                ↔
Cambodia 25% broken   400-410                ↔
India 25% broken             330-340                ↑
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                 340-350                ↑
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%   820-830                ↔
Vietnam Jasmine             475-485                ↑
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                 290-300                ↔
Egypt medium grain brokens      NQ         ↔
U.S. pet food     330-340                ↔
Brazil half grain NQ         ↔
All prices USD per ton, FOB vessel, oryza.com

Indian Researchers to Support Government to Promote Use of Black Rice

Oct 19, 2015
Researchers from the Indian Agricultural Research Institute (IARI) will help the government in promoting the use of black rice, which is considered to be highly nutritious, according to local sources.Black rice is mostly grown in India's North-Eastern states and is famous for its pleasant nutty flavour. Black rice has a good demand in the U.S., Australia and European nations. Already one of the black rice varieties called 'chakhao', grown in Manipur has good reputation in China.The IARI scientists will reportedly suggest an action plan to the government on how to promote black rice and other rice varieties. They noted that the plan would earn foreign exchange as well as improve the condition of farmers in the north-east states.
The Head of the IARI's genetics division noted that that it is important to promote the unique variety like black rice in the larger interest of farmers in different regions. "Black rice has medicinal value. Being rich in disease-fighting antioxidants, it is anti-cancerous as well,: he said.

Indonesian Trade Minister Reiterates About Possible Rice Imports

Oct 19, 2015
The Indonesian government is carrying on discussions with the governments of Thailand and Vietnam over possible rice imports amid concerns of lower production due to extending drought conditions, according to Reuters.The Trade Minister today told the House of Representatives today the government has decided to import rice this year to ensure adequate stocks and curb any price hikes. He assured that the government's rice import plan would not affect farmers' incomes as the stocks won't be released into the market.The government is keen on achieving self-sufficiency in rice production this year and avoiding imports. Even last month, the Agriculture Minister noted that the drought conditions are unlikely to impact rice production. However, the decision to import rice has been taken after the Bulog stocks fell to around 1.7 million tons.
Last week, the Coordinating Minister for Economic Affairs told reporters that the decision would be taken after looking at the harvests, which will continue till the end of October 2015. He also noted that the decision would be taken after looking at the harvests, which will continue till the end of October 2015.
Indonesian rice production is likely to be impacted by a drought-inducing El Nino phenomenon, which is expected to be stronger than that than that experienced in the 1997-1998 period.

Oryza Overnight Recap – Chicago Rough Rice Futures Begin Week with Slight Gain as Market Attempts to Hold Ground Following Last Weeks Decline

Oct 19, 2015
Chicago rough rice futures for Nov delivery are currently noted 4 cents per cwt (about $1 per ton) higher at $12.150 per cwt (about $268 per ton) during early floor trading in Chicago. The other grains are seen trading mixed in early action; soybeans are currently seen trading about 0.1% higher, wheat is listed about 0.1% lower and corn is currently noted 0.3% lower.U.S. stocks traded mostly lower Monday, as investors prepare for a deluge of earnings while digesting Chinese economic data. U.S. equities opened lower, with all major indexes falling about 0.3%.Over a fifth of S&P 500 companies are scheduled release quarterly results this week. Overnight, China reported a third-quarter gross domestic growth figure of 6.9%, slightly above the expected 6.8%, but also its lowest in six years.
 China also reported industrial production rose 5%, below the expected 6% increase. China's growth data took its toll on the commodities space, which saw U.S. crude futures fall more than 2% in morning trading, while Brent futures dropped about 2.5%. The energy sector in the S&P fell more than 1%.In Europe, the pan-European Stoxx index traded about 0.1% higher, while the German DAX rose more than 0.5%.The Dow Jones industrial average traded down 56 points, or 0.33% at 17,159. The S&P 500 traded down 6 points, or 0.31% at 2,026, with energy leading all sectors lower. The Nasdaq fell 10 points lower, or 0.22%, at 4,875. Gold is currently trading about 0.7% lower, crude oil is seen trading about 2% lower, and the U.S. dollar is currently trading about 0.4% higher at 9:30am Chicago time.

Oryza Afternoon Recap - Chicago Rough Rice Futures Go Nowhere as Falling Grain Prices Keep a Lid on Buying Interest

Oct 19, 2015

Chicago rough rice futures for Nov delivery settled 0.5 cents per cwt (about $0.11 per ton) lower at $12.105 per cwt (about $267 per ton). The other grains finished lower today; Soybeans closed about 0.8% lower at $8.9100 per bushel; wheat finished about 1.3% lower at $4.8575 per bushel, and corn finished the day about 1% lower at $3.7300 per bushel.U.S. stocks traded in a narrow range Monday, as investors prepare for a deluge of earnings while digesting Chinese economic data. Over a fifth of S&P 500 companies are scheduled release quarterly results this week. Overnight, China reported a third-quarter gross domestic growth figure of 6.9%, slightly above the expected 6.8%, but also its lowest in six years. China also reported industrial production rose 5%, below the expected 6% increase. China's growth data took its toll on the commodities space, which saw U.S. crude futures fall about 2.5%, while Brent futures dropped about 3%. The energy sector in the S&P fell more than 1.5%.Investors also looked at housing data for more clues about the strength of the U.S. economy, with the latest NAHB/Wells Fargo Housing Market index reading coming in at its highest in a decade.
European stocks closed mixed as the pan-European STOXX 600 rose 0.3%, while London's FTSE 100 fell 0.4%. The German DAX closed over 0.6% higher. Asian equities ended mixed overnight, with the Shanghai Composite falling 0.11%, while the Hang Seng closed narrowly higher. The Dow Jones industrial average traded down 32 points, or 0.19% at 17,184. The S&P 500 traded down 5 points, or 0.29%, at 2,027, with energy leading eight sectors lower and consumer discretionary leading advancers. The Nasdaq dipped 1 point, or 0.03% at 4,885. Gold is trading about 0.9% lower, crude oil is seen trading about 2.3% lower, and the U.S. dollar is seen trading about 0.4% higher about  1:00pm Chicago time.Friday, there were 1,113 contracts traded, down from 2,122 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 183 contracts to 12,987.

Cambodia Secures 100,000 Ton Rice Export Deal with China

Oct 19, 2015
Cambodia has reportedly signed a contract with China to export about 100,000 tons of rice from early 2016, according to Khmer Times.The Vice-President of the Cambodia Rice Federation (CRF) told local sources that they will export high quality white rice to China under the agreement. He noted that the government is keen on doubling rice exports to China next year. He noted that Cambodian rice is priced higher than other Asian rice due to which it is losing competitiveness in the global market. “The federation is creating a working team to pinpoint problems and find solutions to make our rice more competitive,” he was quoted.The Deputy General of the General Department of Agriculture hailed the deal. Exporters have also expressed satisfaction over the deal saying it would increase competitiveness of the Cambodian rice. They told local sources that.

"The scale of the deal will have a positive impact throughout the entire value chain and occurs at a time when competition is rising in the EU’s market," said one of the leading exporters. He added that "the deal demonstrates a long-term commitment from China to support Cambodia." However, he cautioned that the deal may lead to a shortage of high-quality white rice in the country. He therefore advised customs officials to monitor the flow of white rice across the borders.Cambodia reportedly exported nearly 100,000 tons of rice to China in the first nine months of this year. The South-East Asian nation has exported around 369,105 tons of milled rice in the first nine months of 2015, up about 37% from around 269,370 tons exported during the same period last year, according to the Secretariat of One Window Service for Rice Export Formality.

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