Friday, January 08, 2016

8th january,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Pakistan Finalizes One Million Ton Rice Export Agreement Worth $400 Million with Indonesia
Jan 07, 2016

Pakistan and Indonesia have finalized a one-million ton rice agreement under which Pakistan will export one million tons of rice worth $400 million over the next four years, Bloomberg quoted a Pakistan Commerce Ministry Statement.
The agreement will be implemented by the Pakistan Trading Corporation and the  Indonesian state logistics agency Bulog.
The first tender to export 15,000 tons of rice, including 5,000 tons of basmati rice, has been reportedly finalized. The tender is expected to push up rice prices in Pakistan.
Pakistan-Indonesia bilateral trade increased over four times to around $2.2 billion in 2014 from around $700 million in 2010 after conclusion of the Preferential Trade     Agreement, according to the statement.

COL-RICE Announces 2016 Auction Schedule TRQ for U.S. Rice to Colombia; Announces Tenders for 94,209 Tons of Rice

Jan 07, 2016

Colombia Rice Export Quota, Inc (COL-RICE) has announced a tender schedule for the shipping of 94,209 tons of U.S. rice (milled equivalent) to Colombia under the U.S.-Colombia Trade Promotion Agreement (TPA) as per the 2016 tariff rate quota (TRQ) for U.S.
The details of the auctions are as follows:

COL-RICE administers the Tariff Rate Quota for rice established by the U.S. – Colombia TPA, which came into force on May 15, 2012. 

 Government of Thailand Plans to Cut Rice Output to Match Demand

Jan 07, 2016

The government of Thailand is planning to reduce the rice production to exactly match the local consumption and exports, Bloomberg quoted the Permanent Secretary for Commerce.
The official noted that the annual local and export demand is currently at around 25 million tons (basis paddy), while the average annual production stands at around 31-32 million tons.
She noted that the government is planning to reduce production and implement new measures to improve farmers' incomes beginning from the 2016-17 main rice crop season, for which planting will start in May 2016. She added that the Ministries of Commerce, Agriculture and Interior are working with the farmers, exporters and millers groups on the implementation of the plan.
The official noted that the government is targeting to export 9 million tons of rice in 2016. She also state that the government will sell rice to the industrial sector at the end of January or early February.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Tumble as Export Sales Soften and Oil Slides to New Low

Jan 08, 2016

Chicago rough rice futures for Mar delivery settled 21 cents per cwt (about $5 per ton) lower at $11.620 per cwt (about $256 per ton). The other grains finished the day mostly lower; Soybeans closed a tick lower at $8.6450 per bushel; wheat finished about 1.2% higher at $4.6850 per bushel, and corn finished the day about 0.1% lower at $3.5300 per bushel.
U.S. stocks traded lower Thursday as China news overnight and low oil prices renewed concerns about global economic growth. The Dow Jones industrial average briefly traded more than 10% from its 52-week intraday high, in correction territory. The Nasdaq composite was down more than 2.5%, also trading in correction territory. Traders also noted failure to hold technical levels and concerns ahead of potential Thursday night news. In mid-morning trade, the Dow regained more than half of an opening decline of 317.90 points after the China Securities Regulatory Commission suspended its recently implemented circuit breaker system Thursday morning ET. Overnight, a 7% drop in mainland Chinese indexes triggered a circuit breaker, with Chinese markets open for less than half an hour in total.
 The halt was the second in a week. As of afternoon trade, the major U.S. averages were down more than 3.5% each for the week so far, their first trading week of 2016. In a light day of U.S. economic news, weekly jobless claims came in at 277,000. The highly anticipated December employment report is due Friday morning. In midday trade, the Dow Jones industrial average declined 201 points, or 1.19%, to 16,705. The S&P 500 fell 25 points, or 1.23%, to 1,965, with financials and materials leading all 10 sectors lower. The Nasdaq composite traded down 76 points, or 1.59%, to 4,759. Gold is seen trading about 1.6% higher, crude oil is seen trading about 2.1% lower, and the U.S. dollar is seen trading about 0.7% lower at about  1:45pm Chicago time.
Wednesday, there were 481 contracts traded, down from 627 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 46 contracts to 13,458.

Government of India Procures 18.966 Million Tons of Rice as of January 1, 2016 in KMS 2015-16

Jan 07, 2016

The Food Corporation of India (FCI), the nodal agency for food grain procurement and distribution has procured around 18.966 million tons of rice as of January 1, 2016 in KMS 2015-16 (October 2015 - September 2016),  according to data by the Ministry of Consumer Affairs, Food & Public Distribution.
Punjab (9.349 million tons), Haryana (2.854 million tons) and Chhattisgarh (2.311 million tons) are the top contributors to the central pool so far in KMS 2015-16.
Last week, Food Ministry officials told reporters that the pace of procurement was higher than expected due to a decline in prices of common variety of rice in various markets across the country.
The government of India is planning to procure around 30 million tons of rice in the KMS 2015-16.

FAO Global Rice Price Index Increases Slightly in December 2015 After Declining Continuously for Fifteen Months

Jan 07, 2016
The FAO All Rice Price Index increased by one point to around 197 points in December 2015 after declining continuously for fifteen months.
According to the FAO, prices of the Higher quality sub-index India remained stable at 180 points, while those of the Lower Quality Indica sub-index increased by about 2% to 181 points. While the Japonica sub-index declined by 1% to 242 points, the Aromatic sub-index increased by 4% 152 points due to a recovery of basmati prices.
In January - December 2015, the FAO All Rice Price Index averaged 211 points, down about 10.5% from around 235 points during the same period last year. Sub-index for higher quality Indica rice prices declined about 11% y/y and sub-index for lower quality Indica rice prices declined about 8.7% y/y. Aromatic rice price sub-index declined about 31.1% y/y, and the sub-index for Japonica rice prices declined by about 0.9% y/y.
According to the FAO, rice quotations in Thailand declined due to the arrival of new crop supplies. Prices in India firmed up due to government procurement and quotations in Vietnam remained stable. Quotations in Pakistan also increased due to strengthening of its currency. Prices in the Americas declined while those in Brazil increased due to tightening of supplies, according to the FAO.
During December 2015, average rice export quotations (on fob basis) of Thai 100% broken rice, Thai 5% rice, Thai 25% rice and Thai parboiled rice declined to around $373 per ton, $362 per ton, $356 per ton and $364 per ton respectively. Average export prices of Thai A1 Super rice and Thai Fragrant rice increased to around $332 per ton and $782 per ton respectively.
Export prices of Vietnam 25% broken rice increased to around $345 per ton. Quotations of India 25% broken rice declined to around $310 per ton and those of and Pakistan 25% broken rice increased to around $287 per ton. While U.S. 4% broken rice variety increased to around $500 per ton, U.S. California 4% rice declined to around $815 per ton. Uruguay 5% rice remained unchanged at around $510 per ton.

Oryza U.S. Rough Rice Recap - Prices Dip as Export Sales Disappoint; Second Vessel Booked Out of Lake Charles

Jan 08, 2016

The U.S. cash market was weaker today as long grain exports for the last week of 2015 disappointed market participants.
Analysts also note that there was a second vessel of long grain paddy sold out of the Port of Lake Charles, Louisiana, reportedly at cheaper levels than what it would cost exporters to ship the paddy by barges from Arkansas to New Orleans, Louisiana.
In the meantime, the USDA reported that cumulative net export sales for the week that ended on December 31 totaled 51,300 tons, a decrease of 30% from the previous week and 11% lower than the prior 4-week average.
Increases were reported for the following destinations: 24,700 tons to South Korea, 10,000 tons to Haiti, 5,000 tons to unknown destinations, 4,300 tons to Panama, and 3,200 tons to Saudi Arabia, while a reduction of 100 tons was reported for Mexico.
U.S. rice exporters shipped 33,700 tons, a decrease of 9% from than last week and 41% lower than the prior 4-week average.
Increases were reported for the following destinations: 12,900 tons to South Korea, 9,000 tons to the United Kingdom, 5,700 tons to Mexico, 2,700 tons to Canada, and 900 tons to Yemen.



Laos Aims to Produce 4.2 Million Tons of Paddy Rice in 2016

Jan 07, 2016

The government of Laos is aiming to produce 4.2 million tons of paddy rice in 2016 to ensure adequate supply for domestic consumption and exports, local sources quoted the Ministry of Agriculture and Forestry.
The Ministry noted that it plans to allocate 2.1 million tons for domestic consumption, one million tons for exports, 640,000 tons for processing, 400,000 tons for reserves, and 60,000 tons for seeding purposes.
“To achieve the set targets, we have to determine the production areas for rainy and dry seasons across the country,” said the Director General of the Planning and Cooperation Department of the Ministry of Agriculture and Forestry.
He also noted that the government needs to monitor the rice production process and water supply closely in order to ensure effective rice production. "We must also repair existing irrigation systems that are damaged in order to ensure sufficient water for the rice," he said.
The USDA estimates Laos to produce around 2.778 million tons of paddy rice (around 1.75 million tons, basis milled) from around 925,000 hectares in 2016.

Thailand Rice Exports Decline Sharply in First Eleven Months of 2015

Jan 07, 2016
Thailand exported around 8.58 million tons of rice in the first eleven months of 2015, down about 10% from around 9.49 million tons exported during the same period last year, according to data from Thai Rice Exporters Association (TREA). In value terms, Thailand rice exports earned around $3.98 billion in the eleven-month period, down about 15% from around $4.69 billion earned during the same period last year.
In November 2015, Thailand exported around 763,419 tons of rice, down about 37% from around 1.2 million tons exported in October 2015, and up about 6% from around 721,955 tons exported in November 2014.
In value terms, Thailand’s rice exports earned about $332.87 million from total rice exports during the month, down about 32% from around $487.33 million earned in October 2015, and down about 12% from around $379.39 million earned in November 2014.
During the month, white rice exports accounted for around 446,987 tons (about 59% of total November 2015 exports), Hom Mali rice exports accounted for about 138,301 tons (about 18% of total November exports), brokens accounted for 49,195 tons (about 6% of total November 2015 exports), glutinous variety accounted for 7,690 tons (about 1% of total November 2015 exports), parboiled rice accounted for about 116,813 tons (about 15% of total November 2015 exports) and husked/brown rice accounted for about 4,433 tons (about 0.5% of total November 2015 exports).  
Average export prices of all varieties of rice, except the husked (brown) rice, declined during the month.

Thailand, Vietnam Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Jan 07, 2016

Thailand rice sellers lowered their quotes for 25% broken rice by about $5 per ton to about $335-$345 per ton today. Vietnam rice sellers lowered their quotes for 5% broken rice by about $5 per ton to about $350-$360 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, on par with Vietnam 5% rice shown at around $350 - $360 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 $335 - $345 per ton, about $5 per ton  discount on 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 $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 $265 - $275 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Government of Iraq Procures 54,000 Tons of Rice from Farmers During 2015-16 Harvest Season

Jan 07, 2016

The government of Iraq procured 54,000 tons of rice from farmers during on on-going 2015-16 harvest season, which ended today, Bloomberg quoted the Director-General of the Iraq grain board.
In November 2014, the government set prices at 700,000 dinars (around $639) per ton for jasmine quality rice and at around 900,000 dinars (around $822) per ton for anber variety.
The country's annual consumption is estimates at around 1.2 million tons.

Thailand, Vietnam Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Jan 07, 2016

Thailand rice sellers lowered their quotes for 25% broken rice by about $5 per ton to about $335-$345 per ton today. Vietnam rice sellers lowered their quotes for 5% broken rice by about $5 per ton to about $350-$360 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, on par with Vietnam 5% rice shown at around $350 - $360 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 $335 - $345 per ton, about $5 per ton  discount on 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 $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 $265 - $275 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
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Russia Rice Exports Decline Sharply in First Five Months of 2015-16 Despite Increase in Production

Jan 07, 2016

Russia's rice exports declined by about 67% to around 35,400 tons in the first five months of 2015-16 (July - November) from around 102,700 tons despite the country recording a 5.8% y/y increase in production in 2015, according to UkrAgroConsult.
Reduction in purchases from its major importers is understood to be the main reason for a decline in exports this year.
Russia's major importer Turkey reduced its purchases by about 89% y/y to around 7,400 tons during the five-month period from around 66,000 tons last year. Decline in imports by Turkey from Russia is very pronounced despite estimations that the country is will increase its rice imports by about 4% in 2015-16. The share of Turkey in Russia exports is likely to fall significantly this year from about 40% last year.
Russia's other important buyer Turkmenistan reduced its purchases by about 30% in the first five months of 2015-16 compared to the same period in 2014-15.

The USDA estimates Russia to export 190,000 tons of rice in MY 2014-15 (January - December 2015) and about 160,000 tons in MY 2015-16.
News have been shared with written permission of ORYZA.com with thanks.

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