Indonesia Hopes to
Control Price Hikes with Sufficient Supplies
Jan 28, 2016
The government of
Indonesia is planning to prioritize achieving a supply-demand balance to
control rice and food price hikes, Tempo.Co quoted the Trade Minister as
saying.
"The ups and
downs in prices are market signals. We do not wish to be inflexible as we try
to control prices but would rather decide on the best course of action to
restrain prices from rising," he said. "If the prices were too high,
some sort of incentive or market operation could be carried out, and if prices
are too low, more stocks would be bought," he added.
He noted that in order
to exercise this activity, the government needs to check and enhance the
capacity of warehouses. He assured that the government was already in the
process of building more warehouses.
The Minister stated
that a mechanism to set the floor and ceiling prices for various commodities,
including rice, would be proposed at a coordination meeting involving all the
concerned officers and Ministers.
According to the
Staples Market Monitoring System of the Trade Ministry, the average retail price
of the medium-quality rice increased to Rp 10,904.55 per kilogram (around $787
per ton) this week from around 10,748.14 per kilogram (around $776 per ton) in
December last week. The Ministry stated that prices increased despite an
increase of supply.
Based on the data of
staples price development of the Ministry, rice supply at the Cipinang Rice
Market increased about 17.61% y/y as of January 18, 2016.
The President
reportedly held a meeting with the Chief Economic Minister, Agriculture
Minister, Trade Minister and other concerned Ministers, to discuss the issue of
increase in food prices over the past few weeks.
Bangladesh Plans to Build Five Steel Silos to
Store 345,000 Tons of Rice; May Invite Bids in August 2015
Jan 28, 2016
The government of
Bangladesh is planning to build five steel silos with total capacity to store
about 345,000 tons of rice, Bloomberg quoted a news release by the Directorate
General of Food.
It is proposing to
build rice silos of 48,000 tons capacity each in Dhaka,
Narayangani, Barisal, Madhupur, Mymensingh and a silo
of 105,000 tons capacity in Ashuganj.
The government is also
proposing to build two wheat silos of 190,500 tons capacity in Chittagong
(114,300 tons) and Maheshwaspasha (76,200 tons).
The Bangladesh
government is planning to invite bids from interested companies in August.
Meanwhile, it has asked interested companies to submit application by March 14,
2016 for pre-qualification purposes. Companies can apply for pre-qualification
of one or more contracts.
India 2015-16
Winter Crop Rice Planting So Far Lags Behind Last Year
Jan 28, 2016
India 2015-16
winter/rabi rice (November - May) planting area has reached around 2.241
million hectares as of January 28, 2016, down about 7% from around 2.408
million hectares planted during the same period in 2014-15, according to a
press release by the Ministry of Agriculture.
The decline is
reportedly due to scanty rains and low moisture in some of the rice growing
regions. However, this year's planting is ahead of the previous 4-year average
of about 2.0195 million hectares.
The total rabi
planting of all crops stood at around 59.15 million hectares as on January 28,
2015, down about 3% from last year's 60.93 million hectares.
In 2014-15, the rabi
rice acreage reached around 4 million hectares, down about 9% from around 4.488
million hectares in 2013-14.
Malaysia to
Distribute 20 Kilograms of Rice per Month to Families in Need Under New Aid
Program
The Malaysian Prime
Minister has announced that the government has decided to distribute 20
kilograms of rice per month to families registered with the government’s
welfare database under the new aid scheme, according to local sources.
The government
reported introduced MyBeras program as one of the recalibration measures in the
2016 Budget. The program will being from March 1, 2016, and will last until
December 31, 2016. Around 200,000 people are expected to benefit from the
program.
The Prime Minister
noted that the program was aimed to reduce the burden of financially weaker
families amid the increasing living costs. The Agriculture and Agro-based
Industry Minister added the Ministry would work with the relevant agencies,
including Village Development and Security Committees (JKKKs), to identify
individuals who deserved the aid. "The government would strive to provide
the best quality rice to the recipients through the programme," he said.
MyBeras program will
reportedly be implements besides the 1Malaysia People's Aid (BR1M) program.
EU Rice Imports
Increase Sharply in September 1, 2015 - January 19, 2016
Jan 28, 2016
According to the
latest data issued by the European Union (EU), rice imports by the EU increased
sharply since the beginning of the crop year 2015-16 (September 1, 2015 -
August 31, 2016).
The EU imported about
441,465 tons of rice during the period September 1, 2015 - January 19, 2016, up
about 28% from around 345,163 tons imported during the same period last year.
Japonica rice imports
increased about 8% to around 32,114 tons in September 1, 2015 - January 19,
2015 period from around 29,619 tons during the same period last year. Indica
rice imports increased about 30% to around 409,351 tons during the said period
from around 315,544 tons last year.
The UK remained the
largest importer in September 1, 2015 - January 19, 2016 period with around
105,407 tons followed by France (78,689 tons), The Netherlands (49,535 tons),
Germany (33,480 tons), Poland (31,047 tons) and Italy (30,404 tons). Other EU
countries imported 112,903 tons.
During the week ended
January 19, 2015, the EU imported around 21,941 tons of rice, down about 17%
from around 26,514 tons imported during the week ended January 12, 2015.
The EU imported around
1.143 million tons of rice in the crop year 2014-15, up about 12.7% from around
1.013 million tons imported in the crop year 2013-14.
Philippines Must
Focus on Achieving Rice Self-Sufficiency as El Nino Impact Lesser than
Expected, Says Official
Jan 28, 2016
The government of the
Philippines must focus on achieving rice self-sufficiency as the El Nino impact
on rice production has been lesser than expected, Bloomberg quoted the Economic
Planning Secretary.
Speaking at a media
briefing in Manila following the release of the GDP data, he noted that though
the government estimated that the El Nino would get worse during November and
December 2015, the forecast didn't turn out to be true in many provinces.
He also noted that the
government is still monitoring the impact of El Nino on rice production and
supplies.
Yesterday, the National Food
Authority (NFA) Administrator said that the government has decided to stop rice
imports for the lean season due to adequate stocks. However, there is
reportedly no information on rice imports under the minimum access volume
(MAV).
Oryza U.S. Rough
Rice Recap - Higher Prices Seen as U.S. and China Agree to Phytosanitary
Protocol
Jan 29, 2016
The U.S. cash market
was slightly firmer today although the trade was mostly quiet as buyers
and sellers could not come together on price.
This week’s firming of
prices has been partially fueled by news that the U.S. and China have come to
an agreement regarding a phytosanitary protocol that would allow the U.S to
export rice to China, the world’s largest importer.
Analysts note that
although the agreement has not yet been formally signed, once the first sale to
China is confirmed, it will likely change the sentiment of the market for the
foreseeable future.
Global Rice Quotes
January 28th, 2016
Long grain white rice - high quality
Thailand 100% B grade 375-385
↔
Vietnam 5% broken 350-360
↔
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 465-475
↔
Argentina 5% broken 460-470
↔
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% 685-695
↔
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 325-335
↑
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
Thailand Hopes to
Regain Top Rice Exporter Status from India in 2016
Jan 28, 2016
The President of the
Thai Rice Exporters Association (TREA) expressed optimism that Thai rice
exports will increase this year after passing the lowest point for the last
three years, according to local sources.
Thai 2015 rice exports
declined about 10.7% to around 9.8 million tons from around 10.97 million tons
in 2014. The TREA reported that Thailand lost its top rice exporter status to
India, which exported about 10.23 million tons in 2015.
The TREA President
attributed the fall in exports to a global economic slowdown. He also noted
that falling oil prices and extending drought conditions in many countries are
expected to impact rice trading this year also.
"Thailand's rice
shipment this year will not increase. Although world rice production and
stockpiles will decrease from the drought impact and more trading, the falling
oil price will hit the purchasing power of many rice-importing countries,
mainly in Africa and the Middle East," he said. The official noted that
rice prices are also unpredictable but may gradually increase by 10% on lower
supplies.
He, however, noted
that Thailand could again reclaim its top rice exporter status from India in
2016 as the South Asian nation expects to export only 8.5 million tons during
the year. He also noted that there are several positive signs for Thailand's
rice exports this year, including the depreciation of Thai baht, competitive
Thai rice prices, and support from the government. "The Commerce Ministry
is also striving to expand the market for Thai rice while maintaining the
market share," he added.
Oryza CBOT Rough
Rice Futures Recap - Chicago Rough Rice Futures Add Slightly to Gains but Close
off of Session High as Recent Rally Runs into Resistance
Jan 29, 2016
Chicago rough rice
futures for Mar delivery settled 4.5 cents per cwt (about $1 per ton) higher at
$11.310 per cwt (about $249 per ton). The other grains finished the day lower;
Soybeans closed about 1.7% lower at $8.6775 per bushel; wheat finished about
0.9% lower at $4.7225 per bushel, and corn finished the day about 1% lower at
$3.6550 per bushel.
U.S. stocks tried for
gains Thursday, amid declines in biotech stocks, as oil prices rose and
Facebook soared on a solid quarterly report. U.S. crude oil futures pared gains
but still held about 3.5% higher, near $33.50 a barrel in afternoon trade. WTI
surged above $34.50 to their highest since Jan. 6. Brent traded just above $34
a barrel in afternoon trade after earlier topping $35.50 a barrel on
speculation that major producers may cooperate to cut production.
Russian Energy Minister Alexander Novak said
Thursday that Saudi Arabia had proposed to cut oil production by up to 5% by
each country in order to support weak oil prices, Reuters reported. But Saudi
Arabia has not proposed cutting back production or asked Russia to do the same,
Dow Jones reported, citing a senior Gulf OPEC delegate. In afternoon trade, the
Dow Jones industrial average gained 63 points, or 0.40%, to 16,011. The S&P
500 rose 9 points, or 0.46%, to 1,891, with energy leading nine sectors higher
and health care the only laggard. The Nasdaq composite gained 30 points, or
0.66%, to 4,498. Gold is seen trading about 0.1% lower, crude oil is seen
trading about 2.3% higher, and the U.S. dollar is seen trading about 0.4% lower
at about 1:45pm Chicago time.
Wednesday,
there were 429 contracts traded, down from 467 contracts traded on Tuesday.
Open interest – the number of contracts outstanding – on Wednesday increased by
158 contracts to 13,381.
Vietnam Rice
Sellers Increase Some of Their Quotes Today; Other Asia Rice Quotes Unchanged
Jan 28, 2016
Vietnam rice sellers
increased their quotes for 25% broken rice and 100% broken rice by about $5 per
ton each to around $340-$350 per ton and $325-$335 per ton respectively
today. Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is
indicated at around $365 - $375 per ton, about $15 per ton premium on Vietnam
5% rice shown at around $350 - $360 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.
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