Wednesday, October 28, 2015

28th October,2015 Daily Exclusive ORYZ Rice E-Newsletter by Riceplus Magazine

Oryza U.S. Rough Rice Recap - Prices Dip Slightly With Futures; Farmers Still Not Selling

Oct 28, 2015

The U.S. cash market was slightly weaker again today with offers from resellers falling with a futures market while most farmers remain on the sidelines, unimpressed with the bids they are seeing this early in the marketing year.
Analysts note that if farmers were seeing bids at these levels in late spring/early summer of 2016 they would be eager sellers, however selling at these levels today doesn’t make sense for most farmers without a guaranteed PLC payment.

Results of EU-Funded ERMES Project to be Presented in Spain Conference

Oct 27, 2015

The results of the EU-funded ERMES project based on Geospatial Information Infrastructures (GII) will be presented during ESRI Spain conference, which will take place in Madrid, on November 4-5 2015.
The forum brings professionals, developers, SMEs and public administration together to share and discuss latest developments and projects that use or rely on ESRI technology. ESRI (Environmental Systems Research Institute) is an international supplier of Geographic Information System (GIS) software, web GIS and geo-database management applications. ESRI's ArcGIS desktop connects maps, apps and data users in order to make decisions quickly and intelligently, allowing everyone to manage maps.
The ERMES project is coordinated by the Italian Institute for Electromagnetic Sensing of Environment (CNR-IREA), developed by a consortium composed of partners of four European countries. It is aimed at developing hi-tech methods for monitoring rice crops in order to increase yields and encourage sustainable farming. ERMES activities provide information for both Regional (RRS) and Local (LRS) rice services. RRS  focuses on rice detection, crop monitoring, risk alerting, yield forecast. On the other hand, LRS involves the production of high-resolution information on crop condition at farm scale, through analysis of high resolution EO data and parcel-level crop modelling, the development of tools for field inspection and recording of farming activities (ERMES Smart-App), delivering information to the end users, through the ERMES local geo-portal.


Global Standard for Sustainable Rice Cultivation Launched in Philippines

Oct 27, 2015

The Sustainable Rice Platform (SRP), convened jointly by the International Rice Research Institute (IRRI) and the United Nations Environmental Program (UNEP) in 2011, has launched the world's first global standard for sustainable rice cultivation in Manila today, according to a news release on the IRRI website.
The Standard is a document consisting of the list of requirements to ensure that rice is produced in ways that are environment-friendly, profitable to farmers and healthy for consumers. “The establishment of the standard addresses a long-neglected need for a globally critical crop and the standard represents a fundamental building block for developing the application of sustainability and informing policy formulation,” the Regional Director of the UNEP Asia-Pacific was quoted.
According to the Standard, rice-producing companies or countries need to fulfil 46 requirements in farm management, pre-planting, water use, nutrient management, pest management, harvest and post-harvest, health and safety and labor rights. The Standard also aims at cutting down the methane emissions by 30%-70% by using sustainable rice production methods.
The Standard uses a scoring system, which assigns scores to various aspects of rice cultivation. If the score is between 10-90, the farmer or food company is "working towards sustainable rice cultivation", and if the score is between 90-100, they can be said to be "sustainably cultivating rice" based on the SRP Standard.
The Standard is adapted to the needs of the farmers and other agricultural workers, noted the SRP Chair. “It’s handy, it can be taken to the field and it goes straight to the detail,” he said.
Since 2011, the SRP has partnered with several food companies and governments to come up with the world's best Standard for rice cultivation. The SRP is still in discussion with governments to scale up the Standard and roll it out by 2017. The initial launch would help them test the Standard in various countries and several private companies have committed to test the Standard. 

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Remain Under Pressure from Technical Selling and Lack of Physical Demand

Oct 28, 2015

Chicago rough rice futures for Jan delivery settled 6 cents per cwt (about $1 per ton) lower at $11.885 per cwt (about $262 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.7% higher at $8.9100 per bushel; wheat finished about 0.1% higher at $5.0925 per bushel, and corn finished the day about 1.2% lower at $3.8000 per bushel.
U.S. stocks traded mostly lower Tuesday, under some pressure from economic reports and ahead of major quarterly earnings. On Tuesday, stocks opened lower, following extended losses in U.S. stock index futures on a negative read on durable goods orders. Durable goods orders showed a decline of 1.2% in September, following a negative read in August. The S&P/Case-Shiller 20-City Composite showed U.S. home prices rose 5.1% from the year-ago period in August, matching analyst expectations. The Federal Reserve also begins its two-day meeting Tuesday at which it is expected to hold off on an interest rate rise. The central bank releases its post-meeting statement at 2 p.m. ET Wednesday, and it is expected to leave the door open for the chance of a December rate hike.
Yellen will appear before a congressional committee on Nov. 4 to take questions on bank regulation, Reuters reported, citing a Tuesday statement from the head of the House Financial Services Committee. European stocks traded lower, with the STOXX Europe 600 off more than half a percent. Asian stocks were mostly lower, with the Nikkei down nearly 1% and mainland Chinese stocks reversed sharp intraday losses to close mildly higher. In afternoon trade, the Dow Jones Industrial Average declined 52 points, or 0.29%, at 17,571. The S&P 500 traded down 11 points, or 0.54%, at 2,060, with energy leading nine sectors lower and health care the only advancer. The Nasdaq traded down 23 points, or 0.46%, at 5,011. Gold is trading marginally lower, crude oil is seen trading about 2.4% lower, and the U.S. dollar is seen trading about 0.1% higher about  1:00pm Chicago time.
Monday, there were 2,494 contracts traded, down from 2,940 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 443 contracts to 13,087.
Global Rice Quotes
October 27th, 2015

Long grain white rice - high quality
Thailand 100% B grade          360-370           ↓
Vietnam 5% broken    370-380           ↔
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 355-365           ↔
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            360-370           ↔
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%          815-825           ↔
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         285-295           ↓
Egypt medium grain brokens NQ      ↔
U.S. pet food 330-340           ↔
Brazil half grain          NQ      ↔



All prices USD per ton, FOB vessel, oryza.com


Indonesia May Soon Finalize Rice Imports, Says Bulog Chief

Oct 27, 2015

The Indonesian government may soon give a green signal for rice imports to arrive in the country as stocks are depleting and extending dry conditions are likely to affect local rice output and prices, according to local sources.
The government already signed an agreement with Vietnam to import one million tons. It is also reportedly negotiating with Thailand, Myanmar, Pakistan and Cambodia for importing another 500,000 tons of rice.
The Head of Indonesia's logistics agency Bulog told reporters that the government would decide within two weeks over the imports. "If there is no rain by the end of this week, we will proceed quickly with the import plan. Vietnam has committed to exporting 1-million tons of rice and we'd like to see the rice stream in as soon as early November," he said.
The Bulog Chief noted that the agency is expecting imports to arrive from Vietnam in November.
The President was keen on achieving self-sufficiency in rice production and avoiding imports. However, the continuing drought conditions have forced the government to import rice this year. Analysts have been predicting that Indonesia may need to import about 1.6 million tons of rice in 2015.

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

Oct 27, 2015

Thailand rice sellers have lowered their quotes for 100% B rice and fragrant A1 Super rice varieties by about $5 per ton each to around $360 - $370 per ton and $350 - $360 per ton respectively today. India rice sellers lowered their quotes for 100% broken ric variety by about $5 per ton to around $285 - $295 per ton. Other Asian rice sellers kept their quotes unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton about $15 per ton discount on Vietnam 5% rice shown at around $370 - $380 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 $25 per ton discount on Vietnam 25% rice shown at around $355- $365 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 $360 - $370 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 $285 - $295 per ton, about $10 per ton premium on Pakistan broken sortexed rice shown at around $275 - $285 per ton.

Government of Thailand Allocates $1.13 Billion to Support Rice Farmers Affected by Drought

Oct 27, 2015

The government of Thailand has allocated about 40 billion baht (around $1.13 billion) to provide support measures to rice farmers affected by drought, Reuters quoted a government spokesman.
The spokesman told reporters that the government would help rice farmers to prepare for the next crop by providing credits as well as interest rate reductions. He noted that the Bank of Agriculture and Agricultural Cooperatives (BAAC) would provide an interest rate cut for one million families, the government would help co-operatives and communities collect rice from markets, and the government would also provide grants for farmers in the drought-affected north and north-east provinces.
The measures followed the government's decision to discourage farmers from planting for dry season crop. Most of the farmers have been expressing dissatisfaction over the government's decision.

The extending drought conditions are likely to lower the Thai paddy rice production to around 22.98 million tons in 2015-16, down about 30% from around 32.62 million tons last year

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