Cuba Signs New Credit Agreements with China to Develop Rice Sector
Feb 24, 2016
The government of Cuba
has signed new credit agreements with the Export-Import Bank of China
(Eximbank) to receive support from the East Asian nation for the development of
agriculture and railroad programs, according to local sources.
The amounts would be
used to purchase medium and high power tractors to boost rice production and
railroad passenger cars.
This is the fourth
line of credit that Cuba obtains from China, and is mainly aimed at increasing
local rice production, according to the Cuban Deputy Minister of Finance and Prices.
He also noted that the credit would be used for other joint projects linked to
the country's strategic programs.
Cuba currently
produces only half of its annual rice consumption needs and imports the rest.
USDA estimates Cuba to produce around 395,000 tons of milled rice and import
around 500,000 tons of rice in MY 2015-16 (July - June) to meet a consumption
demand of around 895,000 tons. Cuba currently imports rice from Brazil, India
and Thailand.
FAO Forecasts Iran to Import 1.2 Million Tons of Rice in 2015-16 Despite
17% y/y Increase in Production
Feb 24, 2016
The UN's Food and
Agriculture Organization (FAO) forecasts Iran to import about 1.2 million tons
of rice in 2015-16 (April-March) despite an increase in 2015 paddy rice
production. It forecasts the country's total cereal imports to decline about
35% y/y to around 10 million tons.
The FAO estimates
Iran's 2015 paddy rice production to increase by about 17% to around 2.7
million tons from around 2.3 million tons during the previous year.
Planting for 2016
paddy rice crop will begin in May.
EU Imports 572,619 Tons of Rice in September 1, 2015 - February 16, 2016;
Up 23% from Previous Year
Feb 24, 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
572,619 tons of rice during the period September 1, 2015 - February 16, 2016,
up about 22.5% from around 467,256 tons imported during the same period last
year.
Japonica rice imports
increased about 43% to around 59,570 tons in September 1, 2015 - February 16,
2016 period from around 41,741 tons during the same period last year. Indica
rice imports increased about 20.6% to around 513,049 tons during the said
period from around 425,515 tons last year.
The UK remained the
largest importer in September 1, 2015 - February 16, 2016 period with around
127,867 tons followed by France (95,218 tons), The Netherlands (64,495 tons),
Germany (60,871 tons), Poland (41,907 tons), , and Italy (40,210 tons).
Other EU countries imported 142,051 tons.
During the week ended
February 16, 2016, the EU imported around 42,196 tons of rice, up about 43%
from around 29,564 tons imported during the week ended February 9, 2016.
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.
Global Rice Quotes
February 24th, 2016
Long grain white rice - high quality
Thailand 100% B grade 365-375
↔
Vietnam 5% broken 350-360
↔
India 5% broken 360-370
↔
Pakistan 5% broken 335-345
↓
Myanmar 5% broken 420-430
↔
Cambodia 5% broken 410-420
↔
U.S. 4% broken 455-465
↓
Uruguay 5% broken 445-455
↑
Argentina 5% broken 435-445
↑
Long grain white rice - low quality
Thailand 25% broken 345-355
↔
Vietnam 25% broken 340-350
↔
Pakistan 25% broken 305-315
↔
Cambodia 25% broken 395-405
↔
India 25% broken 325-335
↔
U.S. 15% broken (sacked) 440-450
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 365-375 ↔
Pakistan parboiled 5% broken stxd NQ ↔
India parboiled 5% broken stxd 350-360 ↔
U.S. parboiled 4% broken 480-490
↔
Brazil parboiled 5% broken 520-530
↔
Uruguay parboiled 5% broken NQ
↔
Long grain fragrant rice
Thailand Hommali 92% 670-680
↓
Vietnam Jasmine 415-425
↔
India basmati 2% broken NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Mails 760-770
↔
Brokens
Thailand A1 Super 325-335
↔
Vietnam 100% broken 325-335
↔
Pakistan 100% broken stxd 285-295
↔
Cambodia A1 Super 335-345
↔
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 CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Rebound
Slightly as Mixed U.S. Grains Provide Little in the Way of Price Guidance
Feb 25, 2016
Chicago rough rice futures
for Mar delivery settled 6.5 cents per cwt (about $1 per ton) higher at $10.660
per cwt (about $235 per ton). The other grains finished the day with mixed
results; Soybeans closed about 0.1% lower at $8.7250 per bushel; wheat finished
about 1% lower at $4.5125 per bushel, and corn finished the day about 0.6%
lower at $3.6450 per bushel.
U.S. stocks traded
mostly lower Wednesday, with financials leading declines, as investors watched
for stabilization in oil prices. The major U.S. averages came well off session
lows in midday trade as oil recovered from a sharp overnight decline to trade
near $32 a barrel. Financials traded about 1% lower to lead S&P 500
decliners, while energy and materials reversed losses to trade higher. The
S&P briefly fell below the psychologically key 1,900 level, although the
index traded more than 10% below its 52-week intraday high, in correction
territory along with the Dow and Nasdaq composite.
Traders said there was
not a fundamental reason for the decline in stocks following the services PMI
given the light trade volume and the relative newness of the indicator.
European stocks closed about 2% lower or more. The STOXX Europe 600 fell nearly
3%, ending almost 40% below its 52-week intraday high. Overnight, the Chinese
yuan midpoint fix was also set slightly weaker against the dollar. However, the
Shanghai composite closed about 0.9% higher while most Asian equities declined.
In midday trade, the Dow Jones industrial average fell 120 points, or 0.73%, to
16,311. The S&P 500 declined 11 points, or 0.58%, to 1,910, with financials
leading nine sectors lower and telecommunications the only decliner. The Nasdaq
composite fell 11 points, or 0.27%, to 4,491. Gold is seen trading about 1.3%
higher, crude oil is seen trading about 0.1% higher, and the U.S. dollar is
seen trading about 0.1% lower at about 1:30pm Chicago time.
Tuesday, there were
3,959 contracts traded, up from 3,243 contracts traded on Monday. Open interest
– the number of contracts outstanding – on Tuesday increased by 189 contracts
to 12,773.
Higher Domestic Prices May Increase Japanese Rice Imports, Say Traders
Feb 24, 2016
Japanese rice traders
are expecting the country to import more rice this year due to an increase in
domestic prices, according to Asian Nikkei.
Domestic prices are
said to have increased about 10% y/y to around 227 yen per kilogram (around
$2,021 per ton) excluding taxes in January this year due to higher demand from
the animal feed industry. The government is keen on increasing the use of rice for
animal feed and reduce the use of corn and wheat.
They told reporters
that meanwhile export prices of medium-grain polished Californian rice, which
many Japanese restaurants use together with domestic rice, has declined about
17% y/y to around $775 per ton (around 87 yen per kilogram) in January this
year. Californian rice prices increased over the last few years due to four
consecutive years of drought. Traders attributed the fall in prices to a likely
increase in California rice supply this year due to resumption of rains
allowing farmers to plant more rice. They also noted that Californian rice
prices have declined due to a fall in demand from the Middle East countries due
to drought-related high prices.
The domestic prices
are nearly two-and-half times the Californian rice, up from less than twice the
price in 2014. A trader noted that due to a short supply of low-priced rice for
commercial use, most of the restaurants are considering imported rice.
Therefore, traders are
opining that the widening gap between the domestic and imported prices could
prompt more rice imports this year.
Japan's
imports under the "simultaneous buy-sell" system have doubled so far
in FY 2015-16 (April-March) to 22,000 tons. But they are below the maximum
annual import threshold of 100,000 tons
Thailand Sets 2016 Rice Export Target at 9.5 Million Tons, Down 5% from
Last Year
Feb 24, 2016
The government of
Thailand has set its 2016 rice export target at around 9.5 million tons, down
about 5% from around 10 million tons exported in 2015, due to a likely impact
of extending drought conditions on this year's production, Reuters quoted a
senior official from the Thai Commerce Ministry.
The Director-General
of the Ministry's Foreign Trade Department noted that lower supplies from this
year's crop may lead to an increase in Thai rice prices.
She also noted that
the Commerce and Agriculture Ministries have prepared 10 billion baht (around
$278 million) worth of measures to stabilize prices. Some of the measures
include buying rice from farmers and storing it temporarily, she said.
Separately, the Thai
Prime Minister reportedly urged farmers to cultivate less rice to cope with the
intensifying water crisis. "We have to find measures to motivate rice
farmers to change to other crops (than rice)," he was quoted.
The military
government currently holds about 12 million tons of rice in its stockpiles and
is keen on clearing the stocks by the end of next year.
In a recent report,
the USDA Post forecast Thailand's MY 2015-16 (January - December 2016) paddy
rice production at around 24 million tons, down from last year's 29.4 million
tons. It forecast Thai off-season paddy production to decline about 57% y/y to
around 3.1 million tons.
Thailand, Pakistan Rice Sellers Lower Some of Their Quotes Today; Other
Asia Rice Quotes Unchanged
Feb 24, 2016
Thailand rice sellers
lowered their quotes for Hommali rice by about $10 per ton to around
$670-$680 per ton today. Pakistan rice sellers lowered their quotes for
5%broken rice by about $5 per ton to around $335-$345 per ton. Other Asia rice
sellers kept their quotes unchanged today.
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 $25 per ton premium on Pakistan 5% rice shown at
around $335 - $345 per ton.
25% Broken
Rice
Thailand 25% rice is
indicated at around $345 - $355per 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 - $375 per 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.
World Bank Economist Advises Philippines to Open Rice Import Market
Feb 24, 2016
The World Bank Lead
Economist advised the government of the Philippines to remove quantitative
restrictions on rice imports and open the rice import market to avoid
unnecessary price increases and enhance the efficiency of the rice sector,
according to the Manila Times.
Speaking at the Manila
Times’ 3rd Business Forum, he noted that the government's current policy of
monopolizing the rice imports is not in the interest of the farmers and the
country. He also noted that the policy will not work to increase the net income
of the farmers or check the retail rice prices.
He stated that the
government is failing to achieve the rice self-sufficiency due to a significant
gap between production and consumption. He said the government's policy of
“buying high” from farmers and “selling low to the poor” suggests increasing
inefficiency". He stressed that opening the rice import market would
correct these inefficiencies as traders have sufficient time to import and thus
domestic rice price increases can be avoided.
He suggested that the
government should remove the QRs and tariff quotas in the medium term, and
should "progressively reduce" tariffs in the long term to achieve
desired results.
He also noted that
investments in agricultural productivity, specifically on research and
development, agricultural extension, rural infrastructure such as roads
irrigation and electrification; secure property rights; and farmers’ health and
education are important to increase the efficiency of the rice sector.
Myanmar Commerce Ministry Estimates 2015-16 Rice Exports to Decline Sharply
Feb 24, 2016
Myanmar's Ministry of
Commerce is estimating the country's rice exports to fall sharply in FY 2015-16
(April - March) based on the current pace of exports, according to Irrawaddy
News.
The Ministry data
shows that Myanmar has so far in this fiscal year exported about 1.037 million
tons, down about 17% from around 1.255 million tons exported during the same
period last year. Myanmar exported 1.84 million tons of rice in FY 2014-15,
with China accounting for about 70% of the country's exports.
“We won’t match last
year’s record, with the major reasons being the floods last year [in July and
August] and the fact that some rice exporters and traders are concerned about
not having rice for the summer [because of El Niño], so they’re storing rice,”
the Director of the Ministry of Commerce was quoted. He also noted that traders
are prepared for higher rice prices due to likely low production.
Last week, the Myanmar
Rice Federation (MRF) has urged the government to prepare rice reserves due to
likely lower output from extending dry conditions.
According to official
figures, Myanmar produced about 13 million tons of milled rice in FY 2014-15
from around 57.5 million hectares of land. USDA estimates Myanmar to produce
about 12.2 million tons of rice in MY 2015-16 (January – December 2016). It estimates
Myanmar to export about 1.8 million tons in 2016.
Uganda Needs Improved Farming Tools to Boost Rice Production, Say Experts
Feb 24, 2016
Experts emphasized the
need for improved and modernized farming tools to boost Uganda's rice
production, according to All Africa.
The Director of the
National Crops Resources Research Institute (NaCRRI) noted that Uganda's rice
production is currently characterized by traditional, rudimentary and obsolete
technologies. The official who attended the demonstration of agricultural machinery
for small-scale farmers noted that an increasing demand for rice calls for
intensive production of high-yield rice.
"We have achieved
rice production self-sufficiency. National rice production is 306,000 tonnes
today. But the increase in population and increasing demand, especially in
urban areas, means new farmers need to be engaged in rice production and those
farmers who are already producing rice should adopt better farming methods to
increase their rice yields," he said.
The country's national
rice development strategy aims to increase rice production to 443,800 tons in
2018. The Promotion of Rice Development (PRiDe) project, which is being
implemented by Japan International Cooperation Agency (JICA), ministry of
Agriculture, Animal Industry and Fisheries, and National Agricultural Research
Organization, and National Agricultural Advisory Services (Naads) is reportedly
supporting Uganda to achieve its national rice production targets.
The Chief Advisor of
PRiDe project noted that broken grains and stones in rice are major drawbacks
of Uganda rice. He stressed for the need of affordable threshing machines to
increase the quality of rice.
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