Monday, December 21, 2015

21st December,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

EU Rice Imports Increase Sharply in September 1 - December 15, 2015

Dec 21, 2015
According to the latest data issued by the European Union (EU), rice imports, basis milled, by the EU increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31, 2016).
The EU imported about 332,850 tons, basis milled, of rice during the period September 1 - December 15, 2015, up about 27% from around 262,487 tons imported during the same period last year.
Japonica rice imports increased about 14% to around 23,846 tons in September 1 - December 15, 2015 period from around 20,872 tons during the same period last year. Indica rice imports increased about 18% to around 309,004 tons during the said period from around 262,487 tons last year.
The UK remained the largest importer in September 1 - December 15, 2015 period with around 86,080 tons followed by France (58,855 tons), Netherlands (37,417 tons), Germany (23,256 tons), Italy (23,201 tons), Poland (21,985 tons),  and Portugal (16827 tons). Other EU countries imported 65,228 tons.
During the week ended December 15, 2015, the EU imported around 29,140 tons of rice, up about 37% from around 21,275 tons imported during the week ended December 8, 2015.
The EU imported around 1.143 million tons of rice in the crop year 2014-15, up about 12.7% from around 1.013 million tons imported in the crop year 2013-14.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Close Slightly Lower as Market Unable to Capture Support from Gains in Other Grains

Dec 19, 2015
Chicago rough rice futures for Jan delivery settled 3 cents per cwt (about $1 per ton) lower at $11.080 per cwt (about $244 per ton). The other grains finished the day higher; Soybeans closed about 1.7% higher at $8.8975 per bushel; wheat finished about 0.6% higher at $4.8675 per bushel, and corn finished the day about 0.1% higher at $3.7450 per bushel.
U.S. stocks traded lower Friday, amid options expiration, as investors eyed oil and economic data in the aftermath of the Federal Reserve's rate hike Wednesday. Richmond Fed President Jeffrey Lacker said in an early afternoon Reuters report that the Fed rate hike shows how much the U.S. economy has improved. He added the divergence of central bank policies is not necessarily a matter of concern. With Friday afternoon's decline in stocks, the major U.S. averages are on track to end the week flat to slightly higher. In early afternoon trade, the Dow Jones industrial average traded down 291 points, or 1.67%, to 17,203. The S&P 500 traded down 27 points, or 1.34%, at 2.014, with financials leading all 10 sectors lower. The Nasdaq composite traded down 60 points, or 1.2%, to 4,942. Gold is seen trading about 1.4% higher, crude oil is seen trading about 1% lower, and the U.S. dollar is seen trading about 0.4% lower at about  1:00pm Chicago time.
Thursday, there were 1,681 contracts traded, down from 2,088 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday increased by 31 contracts to 15,666.

Lifting of Currency Controls by Argentina May Exert Downward Pressure on Rice Export Prices

Dec 18, 2015
The Argentina government's lifting of currency controls has led to a sharp depreciation of the country’s currency, according to local sources.
The decision has ended a four-year policy of strict limits on the sale of U.S. dollars, which restricted imports, hurt economic growth and created a thriving black market.
Following the announcement, the value of Argentine peso fell to 13.9 per dollar from 9.8 per dollar before the announcement. The Central Bank has already raised the benchmark rate to 38% to attract investment and control inflation. Experts have expressed anxiety over the upcoming move by the Central Bank in preventing the currency from sliding further.
The move is expected to lower the value of Argentine rice exports in terms of dollars. Argentine 5% rice is currently quoted at around $505 per ton, down about 3% from around $520 per ton last week and about 26% from its year-ago level of around $600 per ton.

Oryza Weekly: Global Rice Prices Soften, Despite Tightening Supplies

Dec 19, 2015
The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $389 per ton, down about $2 per ton from a week ago, down about $4 per ton from  a month ago and down about $42 per ton from a year ago.
In its December 2015 Rice Outlook report, the USDA forecasts 2015-16 global rice production at around 469.3 million tons, down about 2% from last year due to an anticipated decline in acreages and average yields, which are likely to be affected by adverse weather conditions.  In the same report, the USDA estimates 2015 global rice trade at around 42.4 million tons, about 100,000 tons less than the earlier forecast.
In its December 2015 Rice Market Monitor (RMM) report, the UN's Food and Agricultural Organization forecasts 2015-16 global rice production at around 491.5 million tons, slightly down from an estimated 494.2 million tons in 2014-15. The FAO estimates 2016 global rice trade at around 45.3 million tons, up about 1.4% from an estimated 44.7 million tons last year.
The U.S. Federal Reserve has raised the short-term target interest rate to the range of 0.25-0.50%, up from the near-zero target rate prevailing since December 2008. The move is expected to strengthen the US dollar against global currencies, which could put downward pressure on rice prices outside the U.S.
Thailand
Thailand 5% broken rice is today shown at about $355 per ton, down about $5 per ton from a week ago, down about $10 per ton from a month ago and down about $55 per ton from a year ago.
The Thai Commerce Ministry expects the country to export about 9 million tons of rice in 2016, down from an estimated 10 million tons in 2015.  The decrease is attributed to drought conditions, which impacted several rice-growing regions this year.
The National Rice Policy Committee has approved the sale of around 37,000 tons of rotten rice from the stockpiles to fertilizer and power producers.
Thailand’s Commerce Minister expects earnings from 2015 rice exports to decline to about $4.85 billion, compared to the targeted $5.1 billion.
Vietnam
Vietnam 5% broken rice is today shown at about $370 per ton, down about $5 per ton from a week  and a month ago and down about $20 per ton from a year ago.
The Vietnam Food Association (VFA) is estimating Vietnam's 2015 rice exports to reach around 6.55 million tons, based on the contracts secured in the last quarter of this year
Cambodia & Myanmar
Cambodia 5% broken rice is today shown at about $430 per ton, up about $10 per ton from a week and a month ago, and down about $35 per ton from a year ago.
Myanmar 5% rice is quoted today at around $415 per ton, unchanged from a week ago and up about $5 per ton from a month ago.   Myanmar rice prices are firm amid low domestic yields, and high Chinese demand.
India
India 5% broken rice is today shown at about $360 per ton, up about $10 per ton from a week ago and a month ago, and down about $30 per ton from a year ago.
India’s total rice export earnings have declined to around $3.57 billion in the first seven months of FY 2015-16, a decrease of about 20% from the same period in FY 2014-15.
India 2015-16 winter/rabi rice (November - May) planting area has reached around 0.1179 million tons as of December 18, 2015, down about 12.5% from around 0.1347 million tons planted during the same period in 2014-15
Pakistan
Pakistan 5% broken rice is today shown at about $335 per ton, unchanged from a week ago, up about $15 per ton from a month ago and down about $40 per ton from a year ago.
Central & South America
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. In the first eleven months of 2015, Brazil exported about 1.16 tons of rice.  In November, Brazil exported about 184,882 tons of rice, an increase of about 46% from September’s export tonnage. Meanwhile, the Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 40.85 real per 50 kilograms as of December 13, 2015, slightly down from around 41.11 real per 50 kilograms recorded on December 2, 2015.  In terms of USD per ton, the index reached around $210.93 per ton on December 13, 2015, down about 3% from around $217.93 per ton recorded on December 2, 2015.  Month-on-month, the index has increased about 0.8% from around 41.18 real per 50 kilograms. In terms of USD, the index increased about 1.4% during the month.  In its December forecasts for rice production, Conab estimates the country’s 2015-16 paddy rice production at around 11.921 million tons, down about 4% from in 2014-15, due to an anticipated reduction in acreage.
Five percent broken rice from Uruguay and Argentina is today shown at about $505 per ton, down about $15 per ton from a week ago, down about $30 per ton from a month ago, and down about $95 per ton from a year ago. During the first nine months of 2015, Argentina has exported about 931,535 tons of rice, about twice as much as during the same period in 2014.This week, Argentina’s president removed export taxes on some agricultural products, including the 5% export tax on rice. Meanwhile, the Argentina government's lifting of currency controls has led to a sharp depreciation of the country’s currency. The move is expected to lower the value of Argentine rice exports in terms of dollars.
U.S.
U.S. 4% broken rice is today shown at about $480 per ton, down about $5 per ton from a week ago, down about $20 per ton from a month ago and down about $35 per ton from a year ago.
Chicago rough rice futures for January delivery dipped midweek, reaching a low of $10.860 per cwt (about $239 per ton) on Tuesday and Wednesday both, before regaining some ground to close at $11.080 per cwt (about $244 per ton) on Friday afternoon.
The U.S. cash market was weaker midweek and then firmed up in conjunction with the futures market, but most farmers stayed on the sidelines, waiting for prices to further improve.
Other Markets
Rice imports, basis milled, by the European Union have increased sharply since the beginning of crop year 2015-16.  The EU imported about 302,125 tons of rice during the period September 1 – December 8, up about 21% from the same period last year.
The Italian Parliament is planning to introduce an "identity card" or a "unique code" to rice grown and marketed in Italy in order to help consumers recognize the origin of the product.
The Philippines National Food Authority plans to finalize the volume and timing of the additional rice imports before the end of the year. Rice stocks in the Philippines continued to increase in November for the second consecutive month after declining for four months.  The increase is attributed to increasing imports. The typhoon “Melor” (Nona) damaged about 29,481 tons of paddy worth P255.87 million (around $5.42 million), according to local sources.
Laos, which officially exported its first batch of rice exports to China last week, is planning to increase its rice exports to China to over 10,000 tons a year.
The government of Turkey has announced the paddy purchasing price for 2015-16 at around TL 1,580 (around $534) per ton.
Paddy rice production in 2015-16 in Mali reached about 2.45 million tons, up about 13% from last year’s tonnage, but short of an earlier forecast.

Vietnam Exports About 6 Million Tons of Rice in January 1 - December 17, 2015, Down 5% from Previous Year

Dec 21, 2015
Vietnam exported about 6.007 million tons of rice in January 1 - December 17, 2015, down about 5% from about 6.33 million tons of rice exported in all the twelve months of 2014, according to data from the Vietnam Food Association (VFA). The average rice export price so far in this year stands at about $410.56 per ton (FOB), down about 7% per ton from about $441.38 per ton recorded during same last year.
According to the data from the VFA, Vietnam exported about 200,053 tons of rice from December 1-17, 2015, down about 74% from about 771,312 tons of rice exported in November 2015, and down about 58% from about 472,575 tons of rice exported in December 2014. The average export price so far in October stands at about $370.26 per ton, down about 2% per ton from a month ago and down about 22% from a year ago.
 Global Rice Quotes
December 21st, 2015
Long grain white rice - high quality
Thailand 100% B grade          350-360           ↔
Vietnam 5% broken    365-375           ↔
India 5% broken         355-365           ↔
Pakistan 5% broken    330-340           ↔
Myanmar 5% broken   410-420           ↔
Cambodia 5% broken             425-435           ↔
U.S. 4% broken           475-485           ↔
Uruguay 5% broken    505-515           ↔
Argentina 5% broken 500-510           ↔
Long grain white rice - low quality
Thailand 25% broken 335-345           ↔
Vietnam 25% broken 355-365           ↔
Pakistan 25% broken 300-310           ↔
Cambodia 25% broken           400-410           ↔
India 25% broken       325-335           ↔
U.S. 15% broken         500-510           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            345-355           ↔
Pakistan parboiled 5% broken stxd    405-415           ↔
India parboiled 5% broken stxd         350-360           ↔
U.S. parboiled 4% broken       500-510           ↔
Brazil parboiled 5% broken    545-555           ↔
Uruguay parboiled 5% broken            NQ      ↔
Long grain fragrant rice
Thailand Hommali 92%          685-695           ↔
Vietnam Jasmine         435-445           ↓
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             830-840           ↔
Brokens
Thailand A1 Super      320-330           ↔
Vietnam 100% broken            335-345           ↔
Pakistan 100% broken stxd    285-295           ↔
Cambodia A1 Super   355-365           ↔
India 100% broken stxd         280-290           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 280-290           ↔
Brazil half grain          NQ      ↔
All prices USD per ton, FOB vessel, oryza.com

Vietnam Rice Sellers Lower Some of Their Quotes Today; Other Asian Rice Quotes Remain Unchanged

Dec 21, 2015

Vietnam rice sellers lowered their quotes for jasmine rice variety by about $15 per ton each to around $435 - $445 per ton today. Other Asian rice sellers have kept their quotes unchanged today from yesterday.                                 
5% Broken Rice
Thailand 5% rice is indicated at around $340 - $350 per ton about $25 per ton discount on Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $355 - $365 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $330 - $340 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 $25 per ton premium on Pakistan 25% rice shown at around $300 - $310 per ton.
Parboiled Rice            
Thailand parboiled rice is indicated at around $345 - $355 per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 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 $320 - $330 per ton, about $15 per ton discount to Vietnam 100% broken rice shown at around $335 - $345 per ton. India's 100% broken rice is shown at around $280 - $290 per ton, about $5 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

ABARES Estimates Australia 2015-16 Paddy Rice Production to Decline Sharply on Low Acreage, Yields

Dec 21, 2015
In its December crop report, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasts Australia's paddy rice production in MY 2015-16 (April 2015 - March 2016) to decline to around 305,000 tons (around 240,950 tons, basis milled), down about 58% from an estimated 724,000 tons (around 570,380 tons, basis milled) in MY 2014-15.
The ABARES attributes the decline in paddy rice production to a 56% y/y decline in planting area to around 31,000 hectares as well as a decline in average yield.
Total summer crop production is forecast to decline by 4% y/y in 2015–16 to 3.87 million tons, due to decline in production of all summer crops, including rice. The area planted to summer crops in 2015-16 is expected to decline by 12% y/y to around 1.18 million hectares due to a relatively low irrigation water availability in rice growing regions.
The start to the 2015–16 summer crop season is promising, according to the ABARES. Favourable planting conditions in the major summer cropping regions of Queensland and northern New South Wales were possible due to a widespread rainfall in late October and early November. In its latest three-month rainfall outlook (December 2015 to February 2016), issued on 19 November 2015, the Bureau of Meteorology (BoM) forecasts the major rice-growing regions to receive above-average summer rainfall.
The latest ENSO Wrap-Up, released by the BoM on 10 November 2015, indicates that El Niño sea surface temperatures are likely to peak before the end of the year and then gradually ease in the first quarter of 2016. As a result, the BOM expects an above average rainfall outlook in the short term.

Exclusive News have been shared with written permission of ORYZA.com with thanks

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