Shipping Index Hits a Fresh Low Not Seen Since 1985
Jan 14, 2016
The Baltic Dry Index
(BDI), reflecting the cost to ship dry bulk goods like coal, iron ore, cement, fertilizer
and grain, has hit a fresh low of 400 and global analysts say this is a sign
the real global economy has ground to a halt. The BDI hasn’t hit 400
since January 1985.
The dry bulk shipping
market has seen prices slip lower with operating costs exceeding chartering
rates, making it difficult for operators to pay off debt. This is a far
cry from the screaming rally a few years ago the ended with a 2008 peak and
sharp decline.
The BDI has been hit
by a slowing Chinese economy, reducing the nation’s demand for iron ore and
coal, according to Reuters, and an Indian ban on iron ore exports, according to
the Business Standard.
Reuters quotes a
brokerage and investment bank as saying: "Dry bulk shipping is in the
throws of a generational recession. The recovery in demand no longer appears to
be a 2016 event and even 2017 is in question."
Global Rice Quotes
January 14th, 2016
Long grain white rice - high quality
Thailand 100% B grade 360-370
↔
Vietnam 5% broken 355-365
↑
India 5% broken 355-365
↔
Pakistan 5% broken 330-340
↔
Myanmar 5% broken 415-425
↑
Cambodia 5% broken 425-435
↔
U.S. 4% broken 465-475
↔
Uruguay 5% broken 480-490
↔
Argentina 5% broken 475-485
↔
Long grain white rice - low quality
Thailand 25% broken 340-350
↔
Vietnam 25% broken 335-345
↓
Pakistan 25% broken 305-315
↔
Cambodia 25% broken 410-420
↔
India 25% broken 325-335
↔
U.S. 15% broken 485-495
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 355-365 ↔
Pakistan parboiled 5% broken stxd 405-415 ↔
India parboiled 5% broken stxd 355-365 ↔
U.S. parboiled 4% broken 500-510
↔
Brazil parboiled 5% broken 520-530
↔
Uruguay parboiled 5% broken NQ
↔
Long grain fragrant rice
Thailand Hommali 92% 675-685
↔
Vietnam Jasmine 425-435
↓
India basmati 2% broken NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Mails 745-755
↔
Brokens
Thailand A1 Super 315-325
↔
Vietnam 100% broken 335-345
↔
Pakistan 100% broken stxd 285-295
↔
Cambodia A1 Super 350-360
↔
India 100% broken stxd 260-270
↓
Egypt medium grain brokens NQ
↔
U.S. pet food 280-290 ↔
Brazil half grain NQ
↔
All prices USD per ton, FOB vessel, oryza.com
Oryza U.S. Rough Rice Recap - Prices Drop for Second Day in a Row as
Prospects for New Demand Fade
Jan 15, 2016
The U.S. cash market
was considerably weaker again today as the pace of new exports sales continues
to disappoint and as the prospects for additional demand seems to fade.
The USDA reported
that cumulative net export sales for the week that ended on January 7th,
totaled 43,000 tons, a decrease of 15% from the previous week and the prior
4-week average.
Increases were
reported for the following destinations including: 28,300 tons to Haiti, 2,900
tons to Jordan, 2,800 tons to Mexico, 2,500 tons to Canada, and 2,100 tons to
South Korea.
U.S. rice exporters
shipped 42,300 tons, an increase of 29% from than last week but 3% lower than
the prior 4-week average.
Increases were reported
for the following destinations including: 28,400 tons to Mexico, 3,800 tons to
Jordan, 2,200 tons to Taiwan, 2,000 tons to New Guinea, and 1,700 tons to
Canada.
Thailand Millers Face Charges for “Circulating” Rice under the Mortgage
Scheme in Fake G2G Deals with China
Jan 14, 2016
Thailand’s
Attorney-General plans to sue seve rice millers in Thailand for their
collaboration with former commerce minister Boosong Teriyapirom to circulate
rice back to Thailand that was reportedly sold to China in government-to-government
(G2G) deals,according to Thailand's The Nation.
Thai officials have
yet to sue the Chinese entities involved in the deal, adding that the case has
a statute of limitation of 20 years.
Meanwhile, tomorrow the
former Prime Minister Yingluck Shinawatra is required to show up at her first
hearing of a witness in a separate case for her responsibility for the now
defunct rice mortgage scheme.
Vietnam Rice Quotes Mixed; India Rice Sellers Lower Some of Their Quotes
Today
Jan 14, 2016
Vietnam rice sellers
increased their quotes for 5% broken rice by about $5 per ton to about
$355-$365 per ton and lowered their quotes for 25% broken rice and
Jasmine rice by about $5 per ton and $15 per ton to about $335-$345 per ton and
$425-$435 per ton, respectively, today. India rice sellers lowered their quotes
for 100% broken rice by about $5 per ton to about $260-$270 per ton. Other Asia
rice sellers kept their quotes unchanged
today.
5% Broken Rice
Thailand 5% rice is
indicated at around $350 - $360 per ton, about $5 per ton discount to Vietnam
5% rice shown at around $355 - $365 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 $340 - $350 per ton, about $5 per ton premium on Vietnam
25% rice shown at around $335- $345 per ton. India 25% rice is indicated at
around $325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice
shown at around $305 - $315 per ton.
Parboiled
Rice
Thailand parboiled
rice is indicated at around $355 - $365 per ton. India parboiled rice is
indicated at around $345 - $355 per ton, about $60 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 $315 - $325 per ton, about $20 per ton discount
to Vietnam 100% broken rice shown at around $335 - $345 per ton. India's 100%
broken rice is shown at around $260 - $270 per ton, about $25 per ton discount
to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Crater as
Market Adds to Losses Sustained Yesterday and as Export Sales Continue to
Disappoint
Jan 15, 2016
Chicago rough rice
futures for Mar delivery settled 42 cents per cwt (about $9 per ton) lower at
$10.880 per cwt (about $240 per ton). The other grains finished the day with
mixed results; Soybeans closed about 0.3% higher at $8.8225 per bushel; wheat
finished about 1.9% lower at $4.6875 per bushel, and corn finished the day
unchanged at $3.5800 per bushel.
U.S. stocks traded
higher Thursday, attempting to stabilize after a steep sell-off, helped by some
recovery in oil prices and comments from Federal Reserve policymakers. The
S&P 500 held more than 1.5% higher in afternoon trade, topping the
psychologically key level of 1,900 in intraday trade as the energy sector
traded more than 4% higher. In economic news, weekly jobless claims rose to
284,000. December import prices fell 1.2%, for a sixth-straight month of
declines as the cost of petroleum and a range of other goods fell further,
suggesting a tame inflation environment could persist in the near term, Reuters
said. Overnight, the People's Bank of China set Thursday's yuan mid-point rate
at 6.5616, compared with Wednesday's fix of 6.5630. European stocks closed more
than 1.5% lower Thursday. Asian stocks ended mostly lower, with only the
Shanghai composite closing higher, up nearly 2%.In afternoon trade, the Dow
Jones industrial average traded 251 points higher, or 1.57%, at 16,402. The
S&P 500 added 31 points, or 1.66%, to 1,921, with energy leading all sectors
higher. The Nasdaq composite rose 85 points, or 1.89%, to 4,611. Gold is seen
trading about 1.3% lower, crude oil is seen trading about 3.3% higher, and the
U.S. dollar is seen trading about 0.1% higher at about 1:15pm Chicago
time.
Wednesday, there were
1,108 contracts traded, up from 471 contracts traded on Tuesday. Open interest
– the number of contracts outstanding – on Wednesday decreased by 159 contracts
to 13,310.
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