Tuesday, February 23, 2016

23rd February,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

China Rice Imports Increase Sharply y/y in January 2016

Feb 22, 2016
China imported around 287,200 tons of rice in January 2016, about 2.3 times from around 122,400 tons imported during the same period last year, according to data from China Customs General Administration.
Month-on-month, China's rice imports in January 2016 declined about 27% m/m from around 395,500 tons in December 2015.
In January 2016, China exported around 22,200 tons of rice, down about 20% from around 27,900 tons exported in December 2015 and up about 15% from around 19,300 tons exported in January 2015.
China imported about 3.35 million tons of rice in 2015, up about 31% from around 2.56 million tons imported in 2014. China exported about 285,800 tons of rice in 2015, down about 32% from around 419,069 tons in 2014.
USDA estimates China to produce around 145.77 million tons of milled rice in MY 2015-16 (July - June). It estimates China to import around 4.7 million tons and export around 450,000 tons of rice in 2016.

El Niño Damages $24 Million Worth Rice Crops So Far in Philippines, Says Agriculture Department

Feb 22, 2016

Extending dry conditions due to the El Niño phenomenon have damaged about 94,934 tons of rice worth P1.62 billion (around $24 million) as of February 18, 2016 in the Philippines, Business Mirror quoted a report by the Department of Agriculture (DA).
The report showed that about 59,463 hectares of paddy are affected, but about 40,221 hectares have a chance of recovery. Based on the latest projections by the Philippine Statistics Authority (PSA),the DA Field Operation Service Officer in Charge told reporters that the effects of El Niño to rice production in the first half of 2016 would be “minimal.”
The PSA estimates the Philippines 2016 first half paddy rice production at around 8.2 million tons, down about 1.5% from around 8.32 million tons in 2015. The Philippines paddy production in 2015 declined about 4.31% to around 18.15 million tons, down from around 18.97 million tons in 2014 due to the El Niño phenomenon.
Around 304,104 tons of total crops worth P4.002 billion (around $84 million) from around 194,056 hectares are affected by the El Nino, according to the report.
Meanwhile, the Philippine Atmospheric, Geophysical and Astronomical Services Administration is expecting the El Niño to gradually weaken from March to May this year, while El Niño-Southern Oscillation (Enso)-neutral is likely between May to July 2016. Enso-neutral refers to a period when neither El Niño nor La Niña is present

FAO Forecasts Japan MY 2015-16 Rice Imports at 700,000 Tons

Feb 22, 2016

The UN's Food and Agricultural Organization (FAO) forecasts Japan's MY 2015-16 (April - March) rice imports at around 700,000 tons. It estimates the country's total cereal imports at around 24 million tons. Cereal imports cover nearly 60% of the total domestic cereal utilization.
The FAO forecasts Japan's 2015 paddy rice production at around 10.2 million tons, down about 5% from 10.77 million tons in 2014 due to a reduction in the paddy area reflecting a decline in prices.



European Commission Reduces Maximum Residue Level of Pirimiphos-Methyl Insecticide in Rice Cultivation Feb 22, 2016

The European Commission (EC) has reduced the maximum residue level (MRL) for the pirimiphos-methyl insecticide to 0.5 parts per million (ppm/milligrams per kilogram) for rice cultivation under the regulation Reg.53/2016 from the earlier 5 ppm under the previous regulation Reg.396/2005 in accordance with the guidance provided by the European Food Safety Authority (EFSA), according to local sources.
The pirimiphos-methyl insecticide used to prevent and combat infestations by storerooms and stored products, contained in various commercial products authorized for the treatment of foodstuffs or for storage rooms.
The EC has also allowed for similar reduction of MRL for the insectide in corn, rye and buckwheat cultivation, while it as retained at the earlier level for other cereals.
The Reg. 53/2016 EU came into force on February 9, 2016, but under the article 2, it apples to agricutlural products marketed after August 9, 2016. Until then the  MRLs will be applicable under the Reg. 396/2005.
The development may demand more attention in the management of warehouses and stored paddy. 

Government of South Korea Plans to Use Black Rice in Medicines, Health Products

Feb 22, 2016

South Korea's Rural Development Administration is planning to encourage local companies to produce medicines and other health products using black rice as it contains one of the highest levels of anthocyanin antioxidants, which act as anti-cancer agents, according to Arirang News. Black rice is also known to act as an anti-ageing agent and prevent various diseases.
A recent research report also proved that black rice also fights against obesity. Researchers noted that substances found in the outermost layer of black rice are found to inhibit lipogenesis and fat absorption. They conducted a study in which they fed ten out of 20 mice with black rice extract for three months, and found that the mice that were fed with the extract saw a nearly 26% reduction in obesity index and 27% reduction in abdominal fat. They also found that the blood cholesterol in the experimental group of mice was reduced by about 10%.
Recently, another study also showed that post-menopausal women who took black rice extract capsules for 12 weeks could see more than 5% reduction in abdominal fat.
Considering the various health benefits associated with black rice, Korea’s rural department has decided to transfer its extraction technology to companies to help then produce and promote medicines and other health products.

Oryza U.S. Rough Rice Recap - Prices Fall after Iraqi Tender Offers Revealed

Feb 23, 2016

The U.S. cash market was seen softer today after offers on the latest Iraqi tender were revealed, leading some market participants to believe Iraq will scrap the tender for U.S. origin only.
It was reported that 30,000 tons of U.S. origin was offered at $597 PMT CIF free out while another 90,000 tons were offered at $597.86 PMT CIF free out.
Although the tender only called for U.S. origin, one company offered 60,000 tons from Uruguay at $511 PMT CIF free out and 60,000 tons from Argentina at $501.50 PMT CIF free out.
Analysts note that no purchase decision has been made as of yet and that the offers remain valid until February 25th, however the Iraqi Grain Board regularly extends tender deadlines.

FAO Forecasts Malaysia 2015-16 Rice Imports to Increase on Strong Domestic Demand

Feb 22, 2016

The UN's Food and Agriculture Organization (FAO) forecasts Malaysia's MY 2015-16 (July-June) rice imports to increase despite an estimated record rice production in 2015 due to a strong Domestic Demand. The FAO estimates Malaysia's 2015-16 total cereal imports, including rice, to increase about 2% y/y to around 6.5 million tons.
The FAO forecasts Malaysia's 2015 paddy rice production at a record 2.7 million tons, up about 2% from around 2.645 million tons in 2014 despite a slight contraction in paddy area due to favourable weather conditions, increased yields and continued government support to the rice sector.
Planting of the 2016 paddy crop is nearing completion. However, concerns of El Nino induced dry conditions during the  northeast monsoon period (December-March) are likely to impact the potential of the 2016 paddy crop.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Tumble as Offers on Iraqi Tender Revealed

Feb 23, 2016

Chicago rough rice futures for Mar delivery settled 31.5 cents per cwt (about $7 per ton) lower at $10.705 per cwt (about $236 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.4% higher at $8.8425 per bushel; wheat finished about 0.6% lower at $4.6400 per bushel, and corn finished the day about 0.8% higher at $3.7225 per bushel.
U.S. stocks traded more than 1% higher Monday, trying to build on their best weekly gain of 2016, as oil prices climbed. WTI futures for March delivery, which expire after the settle Monday, traded about 7% higher near $31.70 a barrel after the International Energy Agency said in its medium-term outlook Monday that U.S. shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017. U.S. crude briefly climbed above $32 a barrel at session highs. The forecast added to last week's drop in U.S. oil rig count to their lowest level since December 2009, according to Reuters. OPEC General Secretary Abdalla Salem El-Badri is scheduled to speak at the CERAWeek energy conference in Houston later on Monday. Globally stocks gained, with European stocks more than 1.5% higher and the Shanghai composite jumping more than 2% to lead gains in Asian equities. The Chinese yuan held steady overnight. In U.S. economic news, the flash read on Markit Manufacturing PMI for February was 51.0, down from the final January print of 52.4 and hitting its lowest since October 2012. In afternoon trade, the Dow Jones industrial average rose 263 points, or 1.61%, to 16,655. The S&P 500 gained 28 points, or 1.5%, to 1,946, with energy leading all 10 sectors higher. The Nasdaq composite rose 71 points, or 1.6%, to 4,575. Gold is seen trading about 1.8% lower, crude oil is seen trading about 5.8% higher, and the U.S. dollar is seen trading about 0.9% higher at about  1:00pm Chicago time.
Friday, there were 1,699 contracts traded, up from 1,018 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday decreased by 360 contracts to 12,773. 

Iraq Passes On Tenders to Purchase 90,000 Tons of U.S. Rice

Feb 22, 2016

Iraq has passed on tenders to purchase around 90,000 tons of U.S. non-glutinous rice in tenders, which closed on February 21, 2016 with the offers having to remain valid till February 25,2016, Reuters quoted the European traders.
The Iraqi Grain Board (IGB) reportedly received the lowest offer to supply 30,000 tons of U.S. rice at $597 per ton (c&f). Though, the tender had sought only the U.S. rice, the same company that offered lowest bid for 30,000 tons of U.S. rice also offered to supply 60,000 tons of Uruguay rice at $511 per ton (c&f) and 60,000 tons of Argentina rice at $501.50 per ton (c&f).
Other offers for the U.S. rice were reportedly made at $597.86 per ton, $612 per ton and $635 per ton (all c&f).

FAO Forecasts South Korea to Import 440,000 Tons of Rice in 2016

Feb 22, 2016

The UN's Food and Agriculture Organization (FAO) forecasts South Korea to import 440,000 tons of rice in 2016. The FAO forecasts South Korea's total cereal imports in MY 2015-16 (October-September) to increase slightly over the previous year due to an increase in wheat imports.
The FAO estimates South Korea's 2015 paddy rice production at around 5.8 million tons, up about 2% from around 5.638 million tons in 2014 due to favourable weather conditions, which boosted yields to an all-time record of 7.2 tons per hectare.
The government is currently facing problem of increasing supplies (from production and imports) and falling consumption. It is planning to strike a balance between rice supply and demand by 2018 through a gradual reduction in paddy production and an increase in consumption.
USDA estimates South Korea to produce around 4.3 million tons of milled rice and import around 470,000 tons in MY 2015-16 (November - October).

Pakistan Rice Export Earnings Decline Sharply in First Seven Months of FY 2015-16 Despite Increase in Tonnage

Feb 22, 2016
Pakistan exported around 2.445 million tons of rice (including 223,634 tons of basmati and 2.22 million tons of non-basmati) in the first seven months of FY 2015-16 (July 2015 - January 2016), up about 11% from around 2.196 million tons (290,013 tons of basmati and 1.91 million tons of non-basmati) exported during the same period in FY 2014-15, according to provisional data from the Pakistan Bureau of Statistics (PBS).
However, Pakistan's rice exports declined in terms of value during the said period. Pakistan earned around $1,026 million during the seven months of FY 2015-16, down about 13% from around $1,181 million earned last year. The decline is attributed to a sharp decline in global rice prices as well as a slow demand.
In January 2016, Pakistan exported around 390,223 tons of rice, down about 18% from around 475,346 tons exported in December 2015 and down about 6% from around 413,660 tons exported in January 2015. In terms of value, Pakistan earned about $158 million in January 2016, down about 13% from around $180.9 million earned in December 2015 and down about 23% from their year-ago levels of around $204.6 million.
Pakistan exported around 34,550 tons of basmati rice in January 2016, down about 13% from around 39,589 tons exported in December 2015, and down about 10% from around 38,517 tons exported in January 2015. In terms of value, Pakistan's basmati rice exports earned $33 million in January 2016, down about 3% from around $34 million earned in December 2015, and down about 23% from around $43 million earned in January 2015.
Pakistan exported around 355,673 tons of non-basmati rice in January 2016, down about 18% from around 435,757 tons exported in December 2015 and down about 5% from around 375,143 tons in January 2015. In terms of value, Pakistan's non-basmati rice exports earned $125 million in January 2016, down about 15% from around $147 million earned in December 2015, and down about 22% from around $161 million earned in January 2015.

Vietnam Rice Sellers Increase Their Quotes Today; Other Asia Rice Quotes Unchanged

Feb 22, 2016

Vietnam rice sellers increased their quotes for 5% broken rice, 25% broken rice and 100% broken rice by about $5 per ton each to around $350-$360 per ton, $340-$350 per ton and $325-$335 per ton respectively today. India and Pakistan rice sellers kept their quotes unchanged today. Thailand rice sellers are out today due to national holiday.       5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, about $5 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $345 - $355 per ton, about $5per ton premium 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 $365 - $375per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 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, on par with Vietnam 100% broken rice shown at around $325 - $335 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.

Thai Commerce Ministry Confirms No Loss of Stocks Under Rice Pledging Scheme

Feb 22, 2016

Thailand's Commerce Ministry has confirmed that there was no loss of rice stocks under the previous government's rice pledging scheme as testified by an auditor to the court, according to Bangkok Post.
The Ministry noted that the difference in figures had occurred due to incorrect bookkeeping method used. The weight of the rice sacks had not been accounted for by the auditor, it said.
Separately, a rice-pledging scheme investigation panel seeking financial compensation from ex-premier Yingluck Shinawatra has submitted its findings to the government. The panel found that the former Premier had committed dereliction of duty in overseeing the implementation of the scheme. But it stated that the scheme itself did not cause any damage to the state.

Vietnam Rice Exports Increase Sharply y/y in January 1 – February 18, 2016

Feb 22, 2016

۔News have been shared with written permission of ORYZA.com with thanks.
Vietnam exported around 589,646 tons of rice in January 1 - February 18, 2016, up about 40% from around 421,202 tons of rice exported in first two months of 2015, according to data from the Vietnam Food Association (VFA). The average rice export price so far in this year stands at around $400 per ton (FOB), down about 11% per ton from around $452 per ton recorded during same last year.
During February 1-18, 2016, Vietnam exported around172,875 tons of rice, down about 14% from around 200,814 tons rice exported in full month of February 2015, and down about 59% from around 416,770 tons rice exported in full month of January 2016. The average export price so far in February stands at  around $382 per ton, down about 16% per ton from a year ago and down about 6% per ton from a month ago.


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