Monday, December 07, 2015

4th December,2015 Daily Exclusive ORYZA Rice News eNewsletter by Riceplus Magazine

FAO Global Rice Price Index Declines for Fifteenth Consecutive Month

Dec 03, 2015
The FAO All Rice Price Index declined to around 196 points in November 2015, down about 1.5% from around 199 points in October 2015 significant falls in the Japonica and Aromatic rice quotations during the month. The FAO index has been declining continuously since September 2014, and has reached the lowest level this month since January 2008. It declined about 15.8% during the last one year.
According to the FAO, the Higher quality and Lower Quality Indica sub-indices increased by about 0.5% and 1.7% respectively to around 180 points and 179 points. However, the Japonica and Aromatic sub-indices declined about 2.5% and 5.1% to around 146 points and 245 points respectively.
In January - November 2015, the FAO All Rice Price Index averaged 212 points, down about 10.3% from around 236 points during the same period last year. Sub-index for higher quality Indica rice prices declined about 11.3% y/y and sub-index for lower quality Indica rice prices declined about 9% y/y. Aromatic rice price sub-index declined about 31.9% y/y. However, sub-index for Japonica rice prices increased about 0.5% y/y.
According to the FAO, rice quotations in Thailand were stable to slightly higher except for the Thai Hom Mali rice quotations, which dipped about 10% due to the arrival of new crop supplies. Prices in India were stable and the Basmati rice quotations improved on expectation of new sales to Iran. Quotations in Vietnam increased during the month due to increased demand from Indonesia and the Philippines. Quotations in Pakistan also increased due to fresh demand from Africa.  Prices in the Americas declined while those in Brazil increased due to the real appreciation against the USD, according to the FAO.
During November 2015, average rice export quotations (on fob basis) of Thai 100% broken rice, Thai 5% rice, Thai 25% rice, and Thai A1 Super rice increased to around $380 per ton, $368 per ton, $359 per ton and $329 per ton respectively. Average export prices of Thai parboiled rice and Thai Fragrant rice declined to around $371 per ton and $886 per ton respectively.
Export prices of Vietnam 25% broken rice increased to around $345 per ton. Quotations of India 25% broken rice declined to around $310 per ton and those of and Pakistan 25% broken rice increased to around $287 per ton. While U.S. 4% broken rice variety increased to around $500 per ton, U.S. California 4% rice declined to around $815 per ton. Uruguay 5% rice remained unchanged at around $510 per ton.

Japan Buys and Sells 2,578 tons of Whole Grain Rice and 1,258 Tons of Broken Rice in 3rd SBS Tender of FY 2015 Dec 03, 2015

Japan has bought and sold a total of around 2,578 tons of whole grain/brown rice of the U.S., Australia, Pakistan, Thailand and China origins; and around 1,258 tons of broken rice of the U.S., Thailand, China and Myanmar origins, in the third SBS (Simultaneous Buy-Sell) tender of FY 2015-16 (April - March), according to official sources. The tender was conducted on November 18, 2015.
The tonnage and price details of different types of rice imported are as follows:
Whole grain rice:
Broken rice:
A tax equivalent to about 8% is applicable on all purchases and sales.
Under the SBS tender, Japan government buys rice of various origins from Japanese traders at one price and then simultaneously sells the rice back to those same companies, at a higher price, for sale in the domestic market. Usually the difference between the buying price and selling price is set by the government.
Japan Buys 39,839 Tons of Non-glutinous Long-Grain Rice in Tender
Dec 03, 2015
Japan has purchased about 39,839 tons of non-glutinous rice from Thailand and the U.S. in tender, according to official sources.Japan bought 24,000 tons of non-glutinous long-grain rice from the U.S.; and about 15,839 tons of non- glutinous long-grain rice from Thailand. A total of 33 bidders (17 for long-grain U.S. rice and 16 for long-grain Thai rice) participated in bidding that took place on November 27, 2015. Average price of the imported rice is around JPY 83,804 per ton (around $681 per ton) excluding tax and around JPY 90,508 per ton (around $735 per ton) including tax.The results pertain to the seventh ordinary import tender issued by Japan in FY 2015-16 (April- March).

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Continue to Crater on Technical Weakness and Lack of Demand while Other Grains Rally on Euro Strength Following ECB Announcement

Dec 04, 2015
Chicago rough rice futures for Jan delivery settled 16 cents per cwt (about $4 per ton) lower at $11.235 per cwt (about $248 per ton). The other grains finished the day sharply higher on euro strength; Soybeans closed about 0.6% higher at $8.9750 per bushel; wheat finished about 2.5% higher at $4.7875 per bushel, and corn finished the day about 1.8% higher at $3.7700 per bushel.
U.S. stocks traded lower Thursday as traders were worried the Fed would hike rates while the economy is too weak.
Investors also weighed disappointment over the level of stimulus in the euro zone after the European Central Bank's decision. The S&P 500 fell more than 1% afternoon trade, falling back into negative territory for the year in intraday trade. Health care fell 2% to lead all 10 sectors lower. Traders also said markets were still on edge over the latest news surrounding Wednesday's shooting in San Bernardino, California. The motive in the killings was unclear. Futures dipped in pre-market trade after ECB President Mario Draghi said the central bank would extended its asset purchase program to at least March 2017 but did not increase the amount, falling short of expectations.
 In economic news, ISM nonmanufacturing for November came in at 55.9, down from 59.1 in October. U.S. factory orders rose 1.5% in October, beating expectations of 1.3%. Initial jobless claims rose to 269,000. In midday trade, the Dow Jones industrial average declined 142 points, or 0.81%, to 17,586. The S&P 500 traded down 18 points, or 0.88%, to 2,060, with energy leading all 10 sectors lower. The Nasdaq composite traded down 53 points, or 1%, to 5,069. Gold is seen trading about 0.8% higher, crude oil is seen trading about 3.4% higher, and the U.S. dollar is seen trading about 2.1% lower at about  1:00pm Chicago time.Wednesday, there were 1,763 contracts traded, up from 1,591 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 447 contracts to 13,427.

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

Dec 03, 2015
India rice sellers lowered their quotes for 5% broken rice variety by about $5 per ton to around $345 - $355 per ton today. Other Asian rice sellers have 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 $25 per ton premium on Pakistan 5% rice shown at around $320 - $330 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 $320 - $330 per ton, about $25 per ton premium on Pakistan 25% rice shown at around $295 - $305 per ton.
Parboiled Rice            
Thailand parboiled rice is indicated at around $345 - $355 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 $280 - $290 per ton, on par with Pakistan broken sortexed rice shown at around $280 - $290 per ton.
Global Rice Quotes

December 4th, 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    320-330           ↔
Myanmar 5% broken   405-415           ↔
Cambodia 5% broken             415-425           ↔
U.S. 4% broken           485-495           ↔
Uruguay 5% broken    515-525           ↔
Argentina 5% broken 530-540           ↔

Long grain white rice - low quality
Thailand 25% broken 335-345           ↔
Vietnam 25% broken 355-365           ↔
Pakistan 25% broken 295-305           ↔
Cambodia 25% broken           400-410           ↔
India 25% broken       320-330           ↔
U.S. 15% broken         515-525           ↔

Long grain parboiled rice
Thailand parboiled 100% stxd            345-355           ↔
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%          700-710           ↔
Vietnam Jasmine         435-445           ↔
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         280-290           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 330-340           ↔
Brazil half grain          NQ      ↔

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

U.S. Long Grain Rice Finds Place in U.K. Retail Outlets After a Decade

Dec 03, 2015
The U.S. parboiled long-grain rice brand Aunt Caroline is now available in the U.K. retail outlets after a gap of nearly ten years, according to Stuttrart Daily Leader.U.K.'s leading rice importer S&B Herba Foods has reportedly worked with the Walmart-owned ASDA supermarket chain in the U.K. for placing the U.S. brand on its shelves. A specific size pack of 5 kilogram packs have been developed to appeal to the consumers who prefer to eat rice as part of their daily diet. The product is currently placed in about 60 ASDA outlets across the U.K., and plans are underway to place it in all the 525 outlets in 2016.
"We are delighted to be selling U.S. parboiled long grain rice after such a long absence," said an official from S&B Herba Foods. "It has taken a lot of time and effort to persuade retailers to see the opportunities that high quality, consistent U.S. long grain rice offers," he added.He also noted that the retail sales of the U.S. rice brand began this October and the response so far has been good. He expressed hope that they can convince other retailers as well.The export price of the U.S. parboiled long-grain rice is currently quoted at around $600 per ton.

Oryza U.S. Rough Rice Recap – Prices Continue to Plummet, Despite Uptick in Export Sales

Dec 04, 2015
The U.S. cash market continued its plummet lower today despite exports sales recovering a bit from last week and a weaker U.S. dollar.
The USDA reported that cumulative net export sales for the week that ended on November 26th, totaled 53,700 tons, an increase of 59% from the previous week and 11% higher than the prior 4-week average.
Increases were reported for the following destinations including: 24,000 ton to Japan, 19,000 tons to Haiti, 5,000 tons to Guatemala, 2,000 tons to New Guinea, and 1,800 tons to Taiwan while a reductions of 2,200 tons was reported for Colombia.
U.S. rice exporters shipped 54,300 tons, an increase of 95% from than last week but unchanged from the prior 4-week average.
Increases were reported for the following destinations including: 13,200 tons to Mexico, 12,100 tons to Japan, 12,000 tons to Haiti, 9,300 tons to Colombia, and 2,100 tons to Canada.

Guyana Rice Exports Increase About 10% y/y in First Eleven Months of 2015, Says GRDB Official

Dec 03, 2015
Guyana has exported around 497,176 tons of rice in the first eleven months (January - November) of 2015, up about 10% from around 451,422 tons exported during the same period last year, local sources quoted the General Manager of the Guyana Rice Development Board (GRDB).The GRDB official noted that the industry is optimistic that this year's rice exports will cross last year's record export figure. Guyana exported about 501,208 tons of rice in 2014, up about 27% from around 394,988 tons exported in 2013, according to the GRDB.
Meanwhile the country's 2015 rice production up to the end of November reached 681,517 tons, up about 7% from around 635,235 tons produced in the whole year of 2014. The GRDB told local sources that the government is under pressure to find new markets for rice given the increase in production and the loss of the Venezuelan market. "The government is committed to assisting the farmers to find markets, and is currently working to tie up the Mexico market," he said.

Wholesale Basmati Rice Prices in India Fall on High Supplies, Sluggish Demand

Dec 03, 2015
Wholesale basmati rice prices in India's capital, which have been increasing since the beginning of November, have declined this week on adequate stocks from higher supplies and sluggish demand, according to the Press Trust of India (PTI).Prices of common basmati rice declined to around Rs.6,200 - Rs.6,300 per quintal (around $933 - $948 per ton) today from around Rs.6,300 - 6,400 per quintal (around $948 - $963 per ton) yesterday.Prices of Pusa 1121 declined to around Rs.4,700 - 5,500 per quintal (around $707 - $828 per ton) from around Rs.5,000 - 6,000 per quintal (around $753 - $903 per ton) yesterday.
"Sufficient stocks on the back of higher supplies from producing regions against slackened demand from retailers mainly kept pressure on rice basmati prices," traders were quoted as saying.

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

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