27th january,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Japan Plans to Integrate Agriculture and Industry to Protect Farmers, Businesses under TPP

Jan 26, 2016

The government of Japan is planning to integrate agriculture and industry as part of its efforts to protect farmers and businesses following the Trans-Pacific Partnership deal, according to local sources.

Under the proposed plan, the government will encourage farmers to industrialize their farming activities and turn their farms into businesses, according to the Economy Minister. “They will need to introduce marketing, branding and IT, and operate their farming activities as businesses,” he said.

The Minister also noted that the businesses need to put more emphasis on data and information technology. He also noted that the government would support the farmers in implementing the new measures. “We will be targeting the autumn of next year for finalizing the concrete substance of our policy,” he added.

Under the TCPP deal, the government is reportedly planning to shift its agricultural policy from defensively setting tariffs and introducing construction projects into rural areas to aggressively promoting exports.  It is also considering other measures such as buying the same amount of domestic rice as foreign rice imported under new quotas to be set up under the free trade agreement, to protect the rice farmers from the likely impact of the TPP.

Proper Method of Cooking Reduces Health Risks Associated with Rice Consumption, Say Experts

Jan 26, 2016

Several studies found that rice contains residues of arsenic and when consumed, these arsenic residues could cause gastrointestinal problems, muscle cramping and lesions on the hands and feet.

Andy Meharg, a professor of plant and soil sciences at Britain's Queen's University in Belfast found that cooking rice in a coffee percolator could reduce the effects of arsenic on human health. He noted that cooking rice in a percolator with 12:1 ratio of water and rice could reduce the effects of arsenic by about 57%. Sometimes, the arsenic effects could be reduced by up to 85%, he said.

"Cooking rice, essentially boiling it in a pan until it soaks up all the liquid, binds into place any arsenic contained in the rice and the cooking water," he said.

He also suggested some methods of cooking, which can remove the toxins present in rice, especially white rice. “Firstly when you cook rice, rinse properly when it is warm before full boiling, and drain out the fluid. This will get rid of some of the toxins,” he says.

The Telegraph earlier reported that increased consumption of organic rice, reducing rice intake and eating a balanced diet, however, can minimize health issues associated with long-term arsenic consumption.

Government of Cameroon Reinstates Customs Duty on Rice Imports

Jan 26, 2016

The government of Cameroon has reinstated the 5% customs duty on rice imports under the 2016 Finance Act, according to local sources.

Amid concerns of increasing rice prices following the reinstating of the customs tax, the Trade Minister reportedly urged traders and distributors of production chains to maintain prices.

The move is designed to increase local rice production in the country. The government is also keen on increasing local rice production to avoid unnecessary price hikes and re-export of imported rice.

The Cameroonian Parliament removed the tax in March 2008 after prices increased considerably following a hunger strike in February 2008. However, the move is said to have resulted in rice smuggling between Cameroon and Nigeria.

Cameroon produces less than half of the rice needed for annual consumption of around 450,000 tons, according to the local sources.

However, the USDA estimates Cameroon to produce about 128,000 tons of rice and import about 530,000 tons to meet an annual demand of around 658,000 tons.

Global Rice Quotes

January 26th, 2016

Long grain white rice - high quality

Thailand 100% B grade          370-380           ↔

Vietnam 5% broken    345-355           ↔

India 5% broken         355-365           ↔

Pakistan 5% broken    340-350           ↔

Myanmar 5% broken   415-425           ↔

Cambodia 5% broken             425-435           ↔

U.S. 4% broken           465-475           ↔

Uruguay 5% broken    475-485           ↔

Argentina 5% broken 470-480           ↔

Long grain white rice - low quality

Thailand 25% broken 350-360           ↔

Vietnam 25% broken 340-350           ↔

Pakistan 25% broken 305-315           ↔

Cambodia 25% broken           405-415           ↔

India 25% broken       325-335           ↔

U.S. 15% broken         445-455           ↔

Long grain parboiled rice

Thailand parboiled 100% stxd            370-380           ↔

Pakistan parboiled 5% broken stxd    405-415           ↔

India parboiled 5% broken stxd         345-355           ↔

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%          680-690           ↔

Vietnam Jasmine         425-435           ↔

India basmati 2% broken        NQ      ↔

Pakistan basmati 2% broken   NQ      ↔

Cambodia Phka Mails             750-760           ↔

Brokens

Thailand A1 Super      320-330           ↔

Vietnam 100% broken            320-330           ↔

Pakistan 100% broken stxd    290-300           ↔

Cambodia A1 Super   345-355           ↔

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

Brazil Paddy Rice Index Increases About 1% From Previous Week

Jan 26, 2016

The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 41.94 real per 50 kilograms as of January 25, 2016, up about 1.11% from around 41.48 real per 50 kilograms recorded on January 18, 2016.

In terms of USD per ton, the index reached around $205.03 per ton on January 25, 2016, up about 0.24% from around $204.53 per ton recorded a week ago.

Month-on-month, the index has increased about 2.39% from around 40.96 real per 50 kilograms recorded month ago. In terms of USD, the index declined about 3.34% during the month.

Asia Rice Quotes Unchanged Today

Jan 26, 2016

Asia rice sellers kept their quotes mostly unchanged today.                                

5% Broken Rice

Thailand 5% rice is indicated at around $360 - $370 per ton, about $15 per ton premium on Vietnam 5% rice shown at around $345 - $355 per ton. India 5% rice is indicated at around $355 - $365 per ton, about $15 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $350 - $360 per ton, about $10 per ton premium o Vietnam 25% rice shown at around $340- $350 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 $370 - $380 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 $320 - $330 per ton, on par with Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $30 per ton discount to Pakistan broken sortexed rice shown at around $290 - $300 per ton

Oryza U.S. Rough Rice Recap - Prices Firm Slightly as Farmers Continue to Hold Out

Jan 27, 2016

The U.S. cash market was slightly firmer today with offers from resellers increasing with the board while most farmers remain on the sidelines hoping for prices to rally.

Analysts note there was some rice trading domestically today around $11.67 per cwt fob farm (about $258 per ton) however exporters were attempting to pay around that number CIF NOLA with zero luck today.

Thailand Exports 9.8 Million Tons of Rice in 2015, Down 10.7% from Previous Year

Jan 26, 2016

Thailand has exported around 9.8 million tons of rice in 2015, down about 10.7% from around 10.97 million tons exported in 2014, Bloomberg quoted a statement from the Thai Commerce Ministry.

In terms of value, Thai rice exports declined about 15.2% y/y to around $4.61 billion.

In December 2015, Thailand exported around 1.22 million tons of rice. In terms of value, Thai rice exports during the month declined about 22.5% y/y to around $536 million.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Remain above $11.000/cwt and Add to Yesterday's Gains

Jan 27, 2016

Chicago rough rice futures for Mar delivery settled 6.5 cents per cwt (about $1 per ton) higher at $11.075 per cwt (about $244 per ton). The other grains finished the day mostly lower; Soybeans closed about 0.5% lower at $8.7650 per bushel; wheat finished about 0.7% higher at $4.8475 per bushel, and corn finished the day about 0.1% lower at $3.6925 per bushel.

U.S. stocks traded higher Tuesday, helped by a bounce in oil and some earnings beats, ahead of the release of the Fed meeting statement Wednesday. U.S. crude rose about 6 percent to above $32 a barrel in afternoon trade after plunging 5.75% Monday. Brent briefly climbed 7% to top $32.50 a barrel. The gains came amid news OPEC is making renewed calls for rival producers to cut supply alongside its members. The Federal Open Market Committee kicks off its two-day meeting Tuesday and releases its statement Wednesday afternoon. No change in rates is expected but investors will be scrutinizing the statement for insight into policymakers' views on the economic environment and the future path of tightening. In economic news, the flash Markit Services PMI for January came in at 53.7, versus the final 54.3 December print. Consumer confidence was 98.1, up from a slightly downwardly revised December read of 96.3. In Europe, stocks closed higher as oil bounced. Asian stocks closed sharply lower, with the Shanghai Composite plunging 6.4% to its lowest since late 2014. The Nikkei 225 lost 2.35%. The Shanghai index had its worst day since the suspension of the circuit breaker rule in early January. Traders noted a variety of factors behind the sharp decline in Chinese equities, including renewed concerns about capital outflows and disappointment with central bank action thus far. In afternoon trade, the Dow Jones industrial average gained 275 points, or 1.73%, to 16,160. The S&P 500 added 27 points, or 1.43%, to 1,903, with energy leading all 10 sectors higher. The Nasdaq composite added 59 points, or 1.32%, to 4,578. Gold is seen trading about 1.4% higher, crude oil is seen trading about 5.4% higher, and the U.S. dollar is seen trading about 0.2% lower at about  1:00pm Chicago time.

Monday, there were 423 contracts traded, the same number of contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 3 contracts to 13,300. 

Italy to Conduct Meeting on Competitive and Sustainable Rice Cultivation

Italy's Ente Nazionale Risi (ENR), the National Agency for Rice, will organize a technical meeting on February 4, 2016, with an aim to help rice farmers and breeders with latest developments in the rice value chain.  

The meeting will be conducted together with the University of Milan, University of Turin, CRA-SCS (Council for Agricultural Research and Analysis of the Agrarian Economy), Assosementi (National Association of Seed Breeders) and Asseme (Association of Mediterranean Seed Breeders).

It will begin at 9.30 A.M. at ENR's Research Center in Castello d'Agogna, in Pavia province and is open to all rice growers.

The morning session will consist of the presentation of the latest results of experimental tests to improve the efficiency of nitrogen fertilization. The researchers of the Research Center and the University of Milan and Turin will show the opportunity for a more competitive and sustainable cultivation in the Italian rice growing area. They will also show the farmers the data of the official seed certification by the CREA-SCS (former ENSE, National Chosen Seed Agency). The session will close with the awarding ceremony of the National Competition for rice seed growers.

The afternoon session will focus on studying issues related to the capital formation and the variety of seed production. The participants will also be presented reports relating to the "sensitive" ones by the presence of the plant pathogenic nematode 'Aphelenchoides besseyi,' the results of the seed dressing process, as well as the spread of illegal practices of using non-certified seed.

Cambodia Hopes to Supply Rice to Philippines in 2016, Says Prime Minister

Jan 26, 2016

The Prime Minister of Cambodia has expressed optimism that the country will succeed in supplying rice to the Philippines this year by competing with Thailand and Vietnam, according to Khmer Times.

The Philippines has import agreements with Thailand, Vietnam, and Cambodia. Last year, Cambodia failed in the bid as its prices were high compared to Thailand and Vietnam. Exporters have been expressing concern that they cannot lower prices significantly as their production costs are high.

Speaking at the annual rice forum, the Prime Minister noted that the government missed the one million ton export target last year due to the lack of warehouses and drying facilities. He assured the stakeholders that the government is in talks with the Chinese government to support the development of milling and storage infrastructure.

He also urged rice producers and exporters to produce rice in accordance with the tastes of the different markets. Currently, Thailand, Vietnam, Laos and Myanmar also produce rice similar to the Cambodian rice. He insisted on the differentiating Cambodian rice with others to boost exports.

The President of the Cambodia Rice Federation (CRF) also agreed with the Prime Minister that price was the barrier to supplying milled rice to the Philippines. He told reporters that the country's rice sector should focus on prices as well as quality. He noted that currently, traders and exporters are unable to buy all the paddy from farmers due to lack of storage and milling facilities. Consequently, several tons of paddy are being sold unofficially to Thailand and Vietnam. Once the infrastructure is ready, traders can collect all the paddy farmers, and thus ensure more stocks for exports.

Cambodia's rice exports increased significantly in 2015 though the government could not reach the one million ton target. Cambodia exported around 538,396 tons of milled rice in 2015 up about 39% from around 387,061 tons exported during the same period last year.