Monday, November 23, 2015

23rd November,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magzine

Wholesale Basmati Rice Prices in India Increase sharply on Restricted Supplies

Nov 20, 2015
Wholesale basmati rice prices in India's capital increased by about Rs.500 per quintal (around $76 per ton) today due to increased demand from stockists against restricted supplies, according to the Press Trust of India (PTI).
Prices of common basmati rice increased to around Rs.5,400 - Rs.5,900 per quintal (around $819 - $894 per ton) from around Rs.5,000 - 5,400 per quintal (around $758 - $819 per ton) yesterday.
Prices of Pusa 1121 increased to around Rs.4,500 - 5,500 per quintal (around $682 - $834 per ton) from around Rs.4,200 - 5,000 per quintal (around $637 - $758 per ton) yesterday.
"Frantic buying by stockists against restricted supplies from producing regions and reports of a likely fall in kharif output mainly kept rice basmati prices higher," traders were quoted as saying.

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Asia Rice Quotes Remain Unchanged Today

Nov 20, 2015

Asia rice sellers kept their quotes unchanged from yesterday.
5% Broken Rice
Thailand 5% rice is indicated at around $350 - $360 per ton about $20 per ton discount on Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $345 - $355 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $315 - $325 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $335 - $345 per ton, about $20 per ton discount on Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $35 per ton premium on Pakistan 25% rice shown at around $290 - $300 per ton.
Parboiled Rice            
Thailand parboiled rice is indicated at around $350 - $360 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 $325 - $335 per ton, about $5 per ton discount to Vietnam 100% broken rice shown at around $330 - $340 per ton. India's 100% broken rice is shown at around $285 - $295 per ton, about $5 per ton premium on Pakistan broken sortexed rice shown at around $280 - $290 per ton.
Global Rice Quotes
November 20th, 2015
Long grain white rice - high quality
Thailand 100% B grade          360-370           ↔
Vietnam 5% broken    370-380           ↔
India 5% broken         345-355           ↔
Pakistan 5% broken    315-325           ↔
Myanmar 5% broken   405-415           ↔
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 335-345           ↔
Vietnam 25% broken 355-365           ↔
Pakistan 25% broken 290-300           ↔
Cambodia 25% broken           400-410           ↔
India 25% broken       325-335           ↔
U.S. 15% broken         500-510           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            350-360           ↔
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%          705-715           ↔
Vietnam Jasmine         450-460           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             830-840           ↔
Brokens
Thailand A1 Super      325-335           ↔
Vietnam 100% broken            330-340           ↔
Pakistan 100% broken stxd    280-290           ↔
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

Pakistan May Soon Finalize Rice Exports to Indonesia, Philippines and Sri Lanka, Says Commerce Minister

Nov 20, 2015

Pakistan will shortly start exporting rice to Indonesia, Sri Lanka and the Philippines, local sources quoted the Federal Minister for Commerce.
The Minister informed the National Assembly that a rice export agreement has been finalized with Indonesia and an agreement with the Philippines is in final stage. He also noted that quality concerns with Sri Lanka have been sorted out and exports to the South Asian country will begin soon.
He assured the rice exporters that the Trade Development Authority of Pakistan (TDAP) is actively working to find new markets for Pakistani rice, especially basmati rice. He informed that negotiations are going on with South Africa, Russia, France, Angola and Germany. He also noted that efforts are being put to enhance exports to the existing markets.
The Minister noted that Pakistan exporters are holding surplus stocks of basmati rice due to a bumper crop and less exports. He noted that falling global rice prices and introduction of new low cost high yielding varieties by the international competitors also contributed to a fall in Pakistan's rice exports.
He also assured that the government would support the private rice exporters to solve the issue of rising stocks and falling exports. He noted that the Prime Minister announced a package of around Rs.350 billion (around $3.4 billion) to support farmers, especially rice growers.
Meanwhile, exporters are urging the government to quickly implement the new trade policy, which aims at increasing product sophistication and diversification, market access, institutional development and strengthening trade facilitation. It also aims to increase investment in research and development. It particularly aims at increasing basmati rice exports to Iran and Saudi Arabia. The agreement was approved by the Prime Minister in August this year but its implementation is being delayed, according to local sources.

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Oryza Weekly: Global Rice Quotes Decline Slightly on Stable Demand, Supplies

Nov 21, 2015
The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $393 per ton, down about $1 per ton from a week ago and a month ago and down about $54 per ton from a year ago. Global rice supplies are expected to contract in the coming year but there are no signs yet of aggressive buying.
The USDA forecasts 2015-16 global rice production to be around 473.5 million tons, a decrease of about 1% from last year, due to an anticipated decline in acreage as well as a decline in average yields, which are likely to be affected by adverse weather conditions.  The USDA forecasts global rice acreage in 2015-16 at 159.2 million hectares, down slightly from 2014-15’s estimated 160 million hectares.  The USDA estimates 2015-16 global rice consumption and residual use at around 486.2 million tons, up about 1% from last year, and it estimates 2015-16 global rice ending stocks to decline by about 12% y/y to around 91 million tons. The USDA forecasts 2015 global rice trade at around 42.5 million tons, down about 800,000 tons from an estimated 43.4 million tons in 2014.
Thailand
Thailand 5% broken rice is today shown at about $355 per ton, down about $5 per ton each from a week and month ago, and down about $55 per ton from a year ago.
Beginning at the end of November, the government of Thailand plans to begin the sale of about 2 million tons of rotten rice from stockpiles.  It plans to sell around 37,413 tons of this rotten rice to industrial users on December 1.
The Commerce Ministry Permanent Secretary claims that Thailand will be able to export at least 9 million tons of rice in 2016 due to lower global rice supplies.
The Deputy Prime Minister of Thailand has defended the government’s stance to employ the liability law/administrative order to seek financial compensation from the accused in the rice pledging case, including the former Prime Minister, as “fair” and straightforward.
The Thai police have detained a convicted rice trader, Wittayakorn Thongsean, at the airport after getting information that he was fleeing to Laos.
Vietnam
Vietnam 5% broken rice is today shown at about $375 per ton, unchanged from a week and a month ago, and down about $105 per ton from a year ago.
Cambodia
Cambodia 5% broken rice is today shown at about $420 per ton, unchanged from a week and a month ago, and down about $40 per ton from a year ago.
Myanmar 5% rice is today shown at around $410 per ton, unchanged from a week and a month ago.
India
India 5% broken rice is today shown at about $350 per ton, unchanged from a week and a month ago, and down about $65 per ton from a year ago.
Wholesale basmati rice prices in India's capital firmed up this week due to increased demand from stockists against restricted supplies.
India’s rice export earnings declined sharply in the first six months of FY 2015-16 (April-September), a decrease of about 17% from the same period in FY 2014-15.  This decline is despite an increase in export tonnage by about 5%, and is due to a sharp decline in average export prices.
Wholesale basmati rice prices in India increased by about Rs.300 per quintal (around $45 per ton) Thursday due to increased demand and lower supplies.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has warned that domestic prices of rice may increase sharply in the coming months due to a likely lower output from the 2015 kharif rice crop as well as declining stocks in the central pool.
Food Ministry officials say that rice procurement by the Food Corporation of India and state government agencies for the kharif marketing season 2015-16 (October-September), which began on October 1, has received a good response from Indian farmers.
Pakistan
Pakistan 5% broken rice is today shown at about $320 per ton, unchanged from a week ago, up about $10 per from a month ago, and down about $75 per ton from a year ago.
Pakistan will shortly start exporting rice to Indonesia, Sri Lanka and the Philippines. The Commerce Minister informed the National Assembly that a rice export agreement has been finalized with Indonesia and an agreement with the Philippines is in final stage. He also noted that quality concerns with Sri Lanka have been sorted out and exports to the South Asian country will begin soon.
Central & South America
Five per cent broken rice from Uruguay and Argentina is today shown at about $535 per ton, unchanged from a week and a month ago, and down about $65 per ton from a year ago.
Brazil 5% broken rice is today shown at about $500 per ton, unchanged from a week and a month ago and down about $50 per ton from a year ago.
The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 40.22 real per 50 kilograms as of November 17, 2015, down about 2% from around 40.98 real per 50 kilograms recorded on November 10, 2015.  In terms of USD per ton, the index reached around $218.98 per ton on November 17, 2015, slightly up from around $218.05 per ton recorded on November 10, 2015.  Month-on-month, the index has increased about 1.5% from about 40.58 real per 50 kilograms. In terms of USD, the index increased about 4% during the month.
U.S.
U.S. 4% broken rice is today shown at about $500 per ton, unchanged from a week and a month ago and down about $45 per ton from a year ago.
Chicago rough rice futures for January delivery reached both their weekly high ($12.200 per cwt or about $269 per ton) and their weekly low ($11.745 per cwt or about $259 per ton) on Tuesday.  Futures were mostly sideways this week and closed at $12.115 per cwt (about $267 per ton).
The U.S. cash market for rice was mostly unchanged this week as traders awaited news regarding the Iraqi Grain Board’s tender award.
Other Markets
Paddy rice output in 2015 in the Philippines is likely to reach about 18.3 million tons, down about 3.54% from in 2014, due to extending dry weather conditions brought about by the El Nino phenomenon and a series of typhoons.
The average prices of medium quality rice in Indonesia have reached a record Rp 10.414 million (around $750) per ton on concerns of lower paddy output and consequent lower stocks, according to the UN’s FAO. The Indonesian government plans to import around 500,000 tons of rice from Pakistan in order to increase the buffer stocks and protect prices from increasing. Indonesia's paddy rice output in 2106 is expected to be lower than that in 2015 as planting operations for 2015-16 main season rice crop (September - March) are being delayed due to El Nino-induced drought conditions this year
The USDA Post estimates Jordan’s 2015 rice imports to increase 30% y/y to around 196,000 tons, due to increasing demand.
The UN’s FAO forecasts Madagascar’s paddy production in 2015 to decline about 6% y/y to around 3.7 million tons.
The Gambia government has deferred its plans to ban rice imports until September 2016.
Nigeria is seeking the support of the Chinese government to strengthen its rice milling sector, which is requisite to boost the country's rice production and avoid imports. The Nigerian government is planning shortly strike a deal with China to set up 40 rice mills, with a milling capacity of about 100 tons per day, in the country.
Italian paddy rice prices, which were quite low in the last week of September last week and first week of October, have started increasing from the second week of October and are continuing the pace. While prices of Japonica increased to a relatively higher extent in the earlier weeks of this crop year (September 2015 – August 2016), prices of Indica have mostly increased during the week November 10 - November 17, 2015.

Nigeria Seeks Chinese Support to Strengthen Rice Milling Sector

Nov 20, 2015

Nigeria is seeking the support of the Chinese government to strengthen its rice milling sector, which is requisite to boost the country's rice production and avoid imports. The West African nation is negotiating with the China's state Import and Export Bank in this regard, according to Reuters.
The Nigerian government is planning shortly strike a deal with China to set up 40 rice mills, with a milling capacity of about 100 tons per day, in the country, Reuters quoted the new Agriculture Minister. He noted that the government plans to import required equipment to build rice mills from China under this deal.
The newly elected government is reportedly continuing with the plans of the previous government.
The Minister also told that the government will support the farmers financially by providing central bank loans at half the interest rate charged by the commercial banks.
Nigeria is the world's second largest importer of rice and imports over half of its annual rice consumption demand. Nigeria produced around 2.9 million tons in 2014, about 52% higher than around 1.9 million tons produced in 2013. The government of Nigeria is aiming to attain self-sufficiency in rice production in the next two years and stop imports.
USDA estimates Nigeria to produce around 2.709 million tons of rice and import around 3 million tons of rice in MY 2015-16 (October – September) to meet a consumption demand of around 6 million tons.

Planting Delays May Lower Indonesia's Paddy Rice Output in 2016, Says Farmers Association

Nov 20, 2015

Indonesia's paddy rice output in 2106 is expected to be lower than that in 2015 as planting operations for 2015-16 main season rice crop (September - March) are being delayed due to El Nino-induced drought conditions this year, local sources quoted the Chairman of Indonesian Farmer Seed Bank Association (AB2TI).
The official told local sources that only 15% of the Association's members could plant rice on scheduled time in October, and mostly in irrigated areas. About 23% will begin planting this month and about 62% will begin planting only in December, two months later than the regular schedule. 
The Association assists smallholding farmers by providing seeds and improving agriculture techniques and practices.
The Central Statistics Agency (BPS) was forced to cut its estimates for 2015 paddy rice output by about 560,000 tons to around 74.99 million tons due to the extending dry conditions.
The government reportedly secured about 1.5 million  tons of imports from Thailand and Vietnam to maintain adequate stocks and curb price hikes.
However, the Vice-President this week told the Asia-Pacific Economic Community (APEC) forum that the government may not need to import rice next year if the weather improves.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Rally to Finish Week with Slight Gain after Back-and-Forth Action

Nov 21, 2015

Chicago rough rice futures for Jan delivery settled 28.5 cents per cwt (about $6 per ton) higher at $12.130 per cwt (about $267 per ton). The other grains finished the day lower; Soybeans closed about 0.3% lower at $8.5750 per bushel; wheat finished about 0.5% lower at $4.9000 per bushel, and corn finished the day about 0.1% lower at $3.6975 per bushel.
U.S. stocks traded higher Friday, helped by gains in retail stocks, as investors looked to central banker comments on the trajectory of monetary policy. Ahead of the open, European Central Bank President Mario Draghi said the ECB stands ready to "do what (it) must to raise inflation as quickly as possible" if it decides current policy isn't stimulating the sluggish euro zone economy. Fed Vice Chairman Stanley Fischer said after the close Thursday that "some major central banks" could move away from near-zero interest rate policy "in the relatively near future." The major averages are on track to close the week with gains of about 3.5%. U.S. stocks closed a touch lower Thursday, holding the bulk of Wednesday's post-Fed minutes gains. On the data front, the Kansas City Fed manufacturing index came in at positive 1 for November, up from minus 1 in October and minus 8 in September. In afternoon trade, the Dow Jones industrial average traded up 83 points, or 0.5%, to 17,815. The S&P 500 traded up 8 points, or 0.4%, to 2,089, with consumer discretionary leading six sectors higher and energy the greatest laggard. The Nasdaq composite gained 29 points, or 0.58%, to 5,103. Gold is seen trading about 0.1% lower, crude oil is seen trading about 1.7% higher, and the U.S. dollar is seen trading about 0.6% higher at about  1:00pm Chicago time.

Thursday, there were 2,016 contracts traded, up from 314 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday increased by 277 contracts to 12,696


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