China Signs Contract to Import One Million Tons of Rice from Thailand
Dec 04, 2015
China's state-owned
grains trader COFCO has signed a contract to import one million tons of Thai
rice on December 3, 2015, according to Reuters.
COFCO will reportedly
begin negotiations on batch contracts as early as possible. The company told in
a statement on its website that the deal would help strengthen the sine-Thai
friendship the economic cooperation.
China also signed deal
to buy 200,000 tons of rubber from Thailand.
Both China and
Thailand signed a Memorandum of Understanding (MoU) to build a 900-kilometre
railway line from the Thai-Lao border to Bangkok. The two countries have
reportedly not agreed on a price for the rail project but China is understood
to have agreed to finance the project with a 2.5% loan. Thailand is reportedly
negotiating for a 2% loan.
The agreements signed
with China are expected to help boost the sluggish growth rate of Thailand.
First Batch of Thai Rotten Rice Auctions Fetches $5.5 Million
Dec 04, 2015
The first batch of
Thai rotten rice auctions for about 37,412 tons has fetched about 198 million
baht (around $5.5 million), according to Reuters.
The low-quality rice
intended for industrial use was reportedly sold at an average price of 5,020 to
5,420 (around $140 - $150) baht per ton.
The Director-General
of the Foreign Trade Department told reporters that "the department would
propose the outcome of the auction to the committee handling the rice sales
today and later to the National Rice Policy Committee for final approval."
The Permanent
Secretary of the Commerce Ministry added that the rotten rice is no longer fit
for human consumption and it is essential to dispose off the rotten rice stocks
in order to cut down the storage costs. The government reportedly spends about
30 million baht ($837,614) per ton for storing and maintaining the rice stocks.
The government is
planning to sell about 2 million tons of rotten rice from stockpiles, for
industrial use, in quantities between 1,000 and 6,000 tons.
The military
government sold around 4.6 million tons of stockpiled rice raising around 49
billion baht (around $1.4 billion) in the ten auctions conducted since it took
over in May 2014. It still holds about 13 million tons of rice stocks
accumulated from the previous government's rice pledging scheme, of which about
6 million tons are "below-standard or rotten" and are judged unfit
for human consumption, according to a Commerce Ministry statement.
Guinea-Bissau Paddy Rice Production to Increase Sharply in 2015, Says
Government Report
Dec 04, 2015
Guinea-Bissau paddy
rice production is likely to reach around 170,000 tons in 2015, up about 28.1%
from around 132,700 tons, produced in 2014, CPAFRICA quoted a joint report by
the government of Guinea-Bissau, the World Food Program (WFP) and the Permanent
Inter-State Commission for the Fight Against Drought in the Sahel (CILSS).
However, the
production is about 8.9% below the last five-year average, according to the
report, which is based on surveys of 74 farms across the country and field
visits between September 28 and October 2, 2015.
The report also states
that the official sale price of rice in the country increased to 350-600 CFA
francs per kilogram (around $564 - $968 per ton) compared to 250-350 CFA francs
(around $403 - $600 per ton) in 2014.
USDA estimates
Guinea-Bissau to produce 167,000 tons of paddy rice (around 100,000 tons, basis
milled) and import around 160,000 tons in in 2015-16 (October - September) to
meet a consumption demand of around 260,000 tons.
Italian Researchers Develop Thermal Insulating Material from Rice Husk
Dec 04, 2015
Researchers from the
University of Pavia in Italy have developed an insulating material called
ecoAerogel, which is similar to airgel that is used to by NASA for space
exploration and missions, according to local sources.
The material is still
in the testing phase and its production has been too expensive and is
associated with high pollution. However, since it is produced in accordance to
the principles of environmental sustainability, it seems to be the best thermal
insulator in the market.
Stefania Grande, the
team leader of the research team involved in the project, is keen on patenting
the product. He told local sources that the rice ash contains very high rates
of silicon but contains no traces of toxic substances. It looks like a soft
white spray and can be used in the building and clothing industries as well in
civil applications.
The research team is
planning to use the laboratories of the University of Pavia to test the
ecoAerogel. They are keen on building the first plant within a few months.
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
Oryza Weekly: Rice Prices Flatten on Thin Demand; Forecasters See Lower
Production in 2016
Dec 05, 2015
The Oryza White Rice
Index (WRI), a weighted average of global white rice export quotes, ended the week
at about $391 per ton, down about $2 per ton from a week ago, down about $3 per
ton from a month ago, and down about $47 per ton from a year ago.
In its November 2015
Grain Market Report, the International Grains Council forecasts 2015-16 global
rice production to be around 474 tons, down about 1% from 2014-15 due to
anticipated decline in some of the top-producing countries, such as India and
Thailand, which is only partially offset by the improved harvest in other Asian
countries.
The FAO All Rice Price
Index declined to around 196 points in November 2015, down about 1.5% from
October.
Thailand
Thailand 5% broken
rice is today shown at about $355 per ton, unchanged from a week ago, down
about $5 per ton from a month ago, and down about $55 per ton from a year ago.
In the first ten
months of 2015, Thailand exported around 7.814 million tons of rice, a decrease
of about 11% from the same period last year. In terms of value, exports
earned around $3.643 billion, down about 15% from the same period last year.
The Honorary President
of the Thai Rice Exporters Association expects Thai rice export prices, which
are currently slightly below Vietnam prices, to increase by about 10-15% in the
first quarter of 2016 and another 10-15% in the second quarter if the dry spell
continues. Thai Hom Mali rice prices have reached a low of about $720 - $730
per ton from a previous peak of $1,200 per ton and are lowest in six years,
according to Thai rice exporters.
In the first auction
of stockpiled rotten rice by the government, two private Thai firms won the bid
to buy around 37,413 tons worth 198 million baht (about $5.53 million).
China's state-owned grains trader COFCO has signed a contract to
import one million tons of Thai rice on December 3, 2015.
Vietnam
Vietnam 5% broken rice
is today shown at about $375 per ton, unchanged from a week and month ago, and
down about $15 per ton from a year ago.
Vietnam’s rice exports
may reach about 6.8 million tons in 2015, according to the Centre for
Informatics and Statistics under the Ministry of Agriculture and Rural
Development.
During the period
January 1 – November 23, Vietnam exported about 5.372 million tons of rice,
down about 8% from the first eleven months of 2014. The average rice
export price so far in this year stands at about $409.72 per ton (FOB), about
6.5% less than the same period last year.
Cambodia &
Myanmar
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% broken rice
is today shown at about $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 $50 per ton from a year ago.
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.
India average
wholesale rice prices, which declined in October 2015 with the beginning of the
kharif (June-December) rice harvest, have increased in November on concerns of
lower output due to El Nino-induced below-average monsoon rains in many
rice-growing areas.
Rice procurement by
the Food Corporation of India and state government agencies for the kharif
marketing season 2015-16 (October-September) has increased significantly in the
first two months compared to last year.
Pakistan
Pakistan 5% broken
rice is today shown at about $325 per ton, unchanged from a week ago, up about
$10 per ton from a month ago, and down about $60 per ton from a year ago.
Basmati rice export
prices have declined for the third consecutive month in November after
increasing in August.
Central &
South America
Brazil 5% broken rice is today shown at about $500 per ton,
unchanged from a week ago 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 41.35 real per 50 kilograms
as of December 02, 2015, slightly up from around 41.28 real per 50 kilograms
recorded on November 23, 2015. During the first ten months of 2015,
Brazil has exported around 979,215 tons of rice. In October, Brazil
exported around 126,973 tons of rice, about 5% less than in September.
Five per cent broken
rice from Uruguay and Argentina is today shown at about $520
per ton, down about $15 per ton from a week and a month ago, and down about $80
per ton from a year ago. The newly elected government of Argentina, which will
take office on December 10, is proposing a series of agricultural policy
changes that could have a significant impact on domestic and international
markets. The changes may lead to significant increases in the sales of
Argentine agricultural commodities, including rice. Argentina has exported
around 899,299 tons of rice in the first eight months of 2015, more than double
the amount from the same period in 2014.
In the first eleven
months of 2015, Guyana has exported around 497,176 tons of
rice, up about 10% from the same period last year.
U.S.
U.S. 4% broken rice is
today shown at about $490 per ton, unchanged from a week ago, down about $5 per
ton from a month ago and down about $55 per ton from a year ago.
Chicago rough rice
futures for January delivery fell steadily this week, hitting the weekly high
Monday at $12.060 per cwt (about $266 per ton) and then dropping throughout the
week before closing at the weekly low of $11.090 per cwt (about $244 per ton)
on Friday afternoon.
The U.S. cash market
fell in sympathy with the futures market this week with decreased export demand
further contributing to the decline.
After being gone for
nearly a decade, U.S. parboiled long-grain rice is again available in U.K.
retail outlets.
Other Markets
The USDA Post
forecasts South Korea’s 2015 rice production to reach about
4.33 million tons, up about 2% from 2014 despite a decline in acreage due to
favorable weather conditions and an expected increase in yields. South Korea’s
state-run Agro Fisheries & Food Trade Corporation seeks to buy about 55,555
tons of U.S. brown rice in tenders for delivery between March 31 and April 30.
Taiwan has completed tenders for the 2015 U.S. rice country
specific quota of 64,634 tons on November 17, according to the USDA Post.
The Deputy Agriculture
Minister of Iran says the country needs to import around
600,000 tons of rice before the end of the financial year 2015-16 (April-March)
to meet the domestic demand.
The Philippines,
which was planning to import an additional 1.3 million tons of rice before the
first half of 2016, may not need to import as much due to better-than-expected
domestic rice output next year, according to the Economic Planning Chief.
Japan’s Agriculture Ministry has lowered the country’s rice
production target in 2016 to around 7.43 million tons from last year’s 7.51
million tons, in line with the falling consumption demand. 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 1,258 tons of broken
rice of U.S., Thailand, China, and Myanmar origins in the third SBS tender of FY
2015-16 (April-March), conducted on November 18. Japan purchased about
39,839 tons of non-glutinous rice from Thailand and the U.S. in a tender.
According to the
latest data issued by the European Union, rice imports, milled
equivalent, by the EU increased sharply since the beginning of the crop year
2015-16 (September-August). The EU imported about 260,547 tons of rice
during the period September 1- November 24, an increase of about 19% from the
same period last year.
Italian paddy rice prices remained unchanged w/w as of November
24. Separately, researchers from the University of Pavia in Italy have
developed an insulating material called ecoAerogel, which is similar to airgel
that is used to by NASA for space exploration and missions.
Guinea-Bissau paddy rice production is likely to reach around 170,000
tons in 2015, up about 28.1% from around 132,700 tons, produced in 2014
Vietnam Rice Exports Increase Sharply in October 2015, Reports USDA Post
Dec 04, 2015
Vietnam has exported
around 849,383 tons of rice in October 2015, up about 68% from around 505,917 tons
exported in September 2015, and up about 41.5% from around 599,948 tons
exported in October 2014, reports USDA Post based on data from the General
Customs Office and the Vietnam Food Association (VFA) .
The increase in
exports can be attributed to an increase in demand from Indonesia and the
Philippines, which are keen on maintaining adequate stocks amid concerns of
lower production due to extending El Nino-induced dry weather conditions.
Asia accounted for around 768,403 tons (about 90% of total rice exports
by Vietnam in October 2015) during the month. Month-on-month, Vietnam's rice
exports to Asian destinations increased about 70% from around 452,183 tons
exported in September 2015. Year-on-year, they increased about 54% from around
497,721 tons exported in October 2014.
Vietnam exported
around 50,935 tons of rice to Africa (about 6% of total
October 2015 exports) in October 2015, up about 43% from around 35,664 tons
exported in September 2015, and down about 7% from around 54,985 tons exported
in October 2014.
Vietnam exported
around 22,337 tons of rice to American destinations (about 3%
of October 2015 exports), about four times more from around 5,800 tons exported
in September 2015, and down about 29% from around 31,669 tons exported in
October 2014.
Vietnam's exports to Australia
(about 0.3% of October 2015 exports) declined about 48% to around
2,417 tons in October 2015 from around 4,630 tons exported in September 2015
and declined about 72% from around 8,688 tons exported in October 2014.
Vietnam's exports to Europe
and CIS countries (about 0.6% of total October 2015 exports) accounted
for around 5,291 tons in October 2015, down about 31% from around 7,640 tons
exported in September 2015 and down about 23% from around 6,885 tons exported
in October 2014.
In terms of grade, 5%
broken rice exports accounted for around 251,658 tons (or, about 30%
of total October 2015 exports); Jasmine rice exports accounted
for around 105,284 tons (or, about 12% of total October 2015 exports); 15%
broken rice exports accounted for around 258,224 tons (or, about 30%
of total exports in October 2015); 25% broken rice exports
accounted for around 129,398 tons (or, about 15% of total exports in October
2015); glutinous rice exports accounted for around 45,732 tons
(or, about 5% of total October 2015 exports); and 10%, 100% and other
varieties accounted for around 59,087 tons (or, about 7% of total
exports in October 2015).
Vietnam exported around 5.35
million tons of rice in the first ten months of 2015, down about 2% from around
5.46 million tons exported during the same period last year
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Lost 76.5
Cents per cwt this Week to Touch Levels Not Seen Since Early July
Dec 05, 2015
Chicago rough rice
futures for Jan delivery settled 5.5 cents per cwt (about $1 per ton) lower at
$11.180 per cwt (about $246 per ton). The other grains finished the day higher
on follow-through strength after a steep rally yesterday; Soybeans closed about
1% higher at $9.0600 per bushel; wheat finished about 1.2% higher at $4.8450
per bushel, and corn finished the day about 1.2% higher at $3.8150 per bushel.
U.S. stocks traded
nearly 2% higher Friday, mostly shaking off pressure from low oil prices, as
investors cheered a solid jobs report. Traders also attributed some of Friday's
gains to recovery after Thursday's sharp sell-off. In other economic news, the
U.S. trade deficit widened unexpectedly by 3.4 percent to $43.9 billion in
October as exports fell to a three-year low, suggesting that strong dollar
pressure on trade could again weigh on economic growth in the fourth quarter.
The major U.S. averages are on track for slight weekly losses. In early
afternoon trade, the Dow Jones industrial average rose 347 points, or 1.9
percent, to 17,822. The S&P 500 traded up 37 points, or 1.8%, to 2,087,
with financials leading nine sectors higher and energy the only decliner. The
Nasdaq composite traded up 93 points, or 1.87%, to 5,131. Gold is seen trading
about 2.1% higher, crude oil is seen trading about 2.4% lower, and the U.S.
dollar is seen trading about 0.8% higher at about 1:00pm Chicago time.
Thursday, there were
2,129 contracts traded, up from 1,763 contracts traded on Wednesday. Open
interest – the number of contracts outstanding – on Thursday increased by 534
contracts to 13,961.
Prices of Thai Hom Mali Rice Reach Six-Year Low, Says TREA Official
Dec 04, 2015
The prices of Thai Hom
Mali rice have reached a low of about $720 - $730 per ton from a previous peak
of $1,200 per ton and are lowest in six years, local sources quoted the
Honorary President of the Thai Rice Exporters Association (TREA). The prices
are currently below the Cambodian fragrant rice, which is currently trading at
$810 - $820 per ton, according to him.
The official told
local sources that prices have gone down mainly because farmers are preferring
to sell their output directly to millers/exporters even at low prices instead
of participating in the government's pledging scheme. The government has been
encouraging farmers to pledge their rice from the current harvest with the Bank
for Agriculture and Agricultural Cooperatives (BAAC) to prevent price falls and
ensure better income for farmers. The government has offered 13,500 baht
(around $377) per ton of pledged Hom Mali rice.
However, farmers are
not keen on joining the scheme due to apprehension that the BAAC would deduct
money from their pledged rice as repayment charges for their debts, according
to local sources. So, they are preferring to sell to millers/exporters despite
receiving prices as low as 9,500 baht (around $265) per ton.
The TREA official noted
that higher yield coupled with currently low demand also pushed down the global
prices. He, however, noted that the demand would pick up in mid-December ahead
of Christmas and the Chinese New Year.
According to local
sources, falling Hom Mali rice prices is affecting the purchasing power of
farmers in North and North-east, where most of the Hom Mali rice is grown.
Vietnam Rice Sellers Lower Some of Their Quotes Today; Other Asian Rice
Quotes Remain Unchanged
Dec 04, 2015
Vietnam rice sellers
lowered their quotes for glutinous rice variety by about $15 per ton to around
$480 - $490 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.
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