Tuesday, December 08, 2015

8th December 2015 Daily ORYZA Rice News shared by Riceplus Magazine

India and Pakistan Resolve Basmati GI Tag Issue; Indian Basmati Rice May Soon Get Legal Protection

Dec 07, 2015

The Chennai-based Intellectual Property Appellate Board (IPAB), which is dealing with India's basmati Geographical Indications(GI) tag application, is likely to issue a final notification in a week or so, according to Financial Express.
A GI tag distinguishes a product with its geographic origin and, under a multilateral framework, prevents traders from attributing its name and traits for products from other geographies.
India's GI tag application has been facing several legal issues since it was first initiated in 2009 by the Agricultural and Processed Food Products Export Development Authority (APEDA). The APEDA applied with the GI Registry seeking exclusive (commercial) use of the basmati tag for rice grown within the boundaries of Indo-Gangetic plain (including the Punjab, Haryana, (western) Uttar Pradesh, Uttarakhand, Delhi and Jammu and Kashmir).
Pakistan has been opposing India's application for GI tag as a part of Indo-Gangetic plain (Punjab province) falls within its territory. It is understood that the IPAB had recently concluded hearing the pleas of all the stakeholders — farmers, breeders, exporters and representatives - from Pakistan. Both the countries have reportedly agreed to share the commercial benefits of basmati. According to official sources, Pakistan has agreed to accept India's application on the condition that when it applies for a GI tag, it would be able to claim ownership on the rice grown in its Punjab province.
The process of granting a GI tag to basmati had been delayed due to internal issues as well. India's central state Madhya Pradesh sought for its inclusion in the GI tag application. When the Agriculture and Commerce Ministries as well as the APEDA opposed Madhya Pradesh's plea, the state filed an application with the IPAB.

Brazil Rice Stocks Decline About 3% m/m to 118,250 Tons in November 2015

Dec 07, 2015
Brazil rice stocks stood at around 118,250 tons in November 2015, down about 3% from around 121,038 tons in October 2015 and down about 71% from around 411,947 tons in November 2014, according to the country's national grain supplying agency Conab.
According to Conab, rice stocks with the Selling Option Contract of Agricultural Products (OPCAO) stood at around 68,658 tons, down about 1.5% from around 69,683 tons in October 2015 and down about 72% from around 244,253 tons in November 2014.
Rice stocks with the Federal Government Acquisition (AGF) stood at around 49,586 tons, down about 3% from around 51,349 tons in October 2015 and down about 70% from around 166,604 tons in November 2014.
Rice stocks with farmers (Agricultural Familiar) stood at around 6 tons in November 2015, unchanged from October 2015 and down about 99% from around 1,090 tons in November 2014.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Continue to Fall as Lack of Demand Sends Prices into Tailspin

Dec 08, 2015

Chicago rough rice futures for Jan delivery settled 30.5 cents per cwt (about $7 per ton) lower at $10.875 per cwt (about $240 per ton). The other grains finished the day sharply lower; Soybeans closed about 2.6% lower at $8.8225 per bushel; wheat finished about 0.4% lower at $4.8275 per bushel, and corn finished the day about 2.2% lower at $3.7300 per bushel.
U.S. stocks declined Monday as oil fell to trade near lows for the year. U.S. stock index futures turned lower in pre-market trade as the globally traded Brent crude fell more than $1 to below $42 a barrel, a more than six-and-a-half-year low. The decline came after the Organization of the Petroleum Exporting Countries failed on Friday to agree on a production curb to stem sliding prices and a stronger dollar made holding crude positions more expensive. U.S. stocks surged Friday to close slightly higher for the week on increased certainty of divergent monetary policy, with a strong jobs report supporting a Fed hike in December and a continued dovish tone from the European Central Bank.
The ECB's decision on monetary policy Thursday fell short of market expectations for greater stimulus and sent the euro above $1.09 for its biggest one-day gain against the dollar since March 2009. European equities pared gains but closed higher Monday after European Central Bank Mario Draghi's dovish remarks and the solid U.S. jobs report. The French CAC ended up nearly 0.9%, while the German DAX closed about 1.25% higher. In early afternoon trade, the Dow Jones industrial average declined 155 points, or 0.87%, to 17,682. The S&P 500 traded down 20 points, or 0.96%, to 2,071, with energy leading seven sectors lower and telecommunications leading advancers. The Nasdaq composite fell 47 points, or 0.93%, to 5,094. Gold is seen trading about 0.9% lower, crude oil is seen trading about 5.3% lower, and the U.S. dollar is seen trading about 0.3% higher at about  1:00pm Chicago time.
Friday, there were 807 contracts traded, down from 2,129 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 143 contracts to 14,104.

Conab Estimates Brazil 2015-16 Paddy Rice Production to Decline About 6% y/y on Low Acreage, Yields

Dec 07, 2015

Brazil’s National Grains Supply Company (Conab) has forecasted the country's 2015-16 paddy rice production at around 11.733 million tons (around 8.1 million tons, basis milled), down about 6% from an estimated 12.449 million tons (around 8.6 million tons, basis milled) in 2014-15 due to a likely reduction in acreage and yields.
Conab has estimated Brazil's 2015-16 paddy rice acreage at around 2.289 million hectares, slightly down from around 2.295 million hectares in 2013-14.
Most of the decline in 2015-16 acreage is expected in the key rice growing Centro-Sul region. Rice acreage in the Centro-Sul region is estimated at around 1.55 million hectares, down from around 1.557 million hectares in 2014-15. On the other hand, paddy rice acreage in the North/North east regions is projected at around 738,700 hectares, slightly up from around 738,200 hectares in 2014-15.
Average rice yield in Brazil in 2015-16 is projected at around 5.35 tons per hectare, down from around 5.42 tons per hectare recorded in the previous year.
USDA estimates Brazil MY 2015-16 (April – March) paddy rice production at around 11.765 million tons (around 8 million tons, basis milled), down about 6% from an estimated 12.5 million tons (around 8.5 million tons, basis milled) in MY 2014-15. It estimates Brazil’s 2015-16 paddy rice acreage to increase slightly to around 2.3 million hectares from last year's 2.295 million hectares. USDA estimates Brazil to export around one million tons of rice and import around 450,000 tons of rice in 2015.

Vietnam, Pakistan Rice Sellers Alter Some of Their Quotes Today; Other Asian Rice Quotes Remain Unchanged

Dec 07, 2015

Vietnam rice sellers lowered their quotes for 15% broken rice and increased their quotes for jasmine rice varieties each by about $5 per ton to around $360 - $370 and $440 - $450 per ton respectively today. Pakistan rice sellers increased their quotes for 5% broken and 100% broken rice varieties each by about $5 per ton to around $325 - $335 per ton and $285 - $295 per ton respectively. Thailand rice sellers are out today on account of public holiday. 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 $20 per ton premium on Pakistan 5% rice shown at around $325 - $335 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, about 5% discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Oryza U.S. Rough Rice Recap - Cash Prices Continue to Fall ahead of USA Rice Outlook Conference

Dec 08, 2015

The U.S. cash market saw bids and offers from resellers dip lower today even as farmers with unsold paddy remain on the continuing to wait on the sidelines for prices to improve.
Analysts note that as next year’s planting season approaches many farmers may be forced to sell their crop below their cost of production unless prices recover.
As market participants gather this week in New Orleans for the annual U.S.A. Rice Outlook Conference analysts expect that many attendees will be disillusioned with the direction prices are heading.
Global Rice Quotes
December 8th, 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%          695-705           ↓
Vietnam Jasmine         440-450           ↔
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    285-295           ↔
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

Indonesia Rice Stocks Stand at 1.5 Million Tons, Says Bulog Official

Dec 07, 2015
Indonesia’s rice stocks currently stand at around 1.5 million tons , including supplies from imports, Bloomberg quoted the Bulog’s Procurement Director.
The official also noted that Indonesia received around 330,000 tons of rice from Vietnam.
The country needs to maintain about 2 million tons of rice at the end of the year.
Indonesia aims to import around 1.5 million tons of rice this year to deal with falling production due to El Nino-induced dry weather conditions.

USDA Post Forecasts Sluggish Thai Rice Exports Until First Quarter of 2016

Dec 07, 2015
USDA Post forecasts lesser Thai rice exports until the first quarter of 2015 despite an improvement in exports in October 2015. Thailand exported around 1.2 million tons of rice in October (compared to an average of 730,000 tons in January-September period). The Post expects Thai rice exports to fall to an average of 600,000 - 700,000 tons in November and December.
The increase in October exports is attributed to lower export prices compared to Vietnam. Strong demand from Indonesia and the Philippines drove the Vietnam rice prices high. Vietnam prices are expected to increase further due to tight supplies. However, Post says this won't help Thai rice exports due to the government's suspension of sales of food-grade stocks during the harvest season. The Thai government announced that the new tenders for food-grade rice stocks will resume after the first quarter of 2016.
The Post reports that rotten rice sales would increase in 2016 if the first rotten rice auction on December 1, 2015 proves to be a success. The government will monitor whether the buyers would sell it as food or feed. The government has a total of 2 million tons of rotten rice and about 4 million tons of non-food grade rice.USDA Post expects MY 2015-16 paddy production at around 24.85 million tons, down about 15% from an estimated 29.4 million tons in MY 2014-15. Output from off-season crop is expected to fall by 48% due to heavy water shortages.

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