4th February 2016 daily global rice enewsletter by riceplus magazine

USA Rice on the Road in Louisiana  By Randy Jemison JENNINGS and ALEXANDRIA, LA -- As growers hustle to complete their off-season meetings this month before the start of the 2016 planting season, USA Rice staff participated in meetings here of the Louisiana Rice Council, the Louisiana Rice Growers Association, and the Central Louisiana Rice Growers Association. More than 200 growers attended the events, conducted organization business, heard from LSU's Dr. Rogers Leonard about the strong connection between the AgCenter and the rice industry, and listened to reports from USA Rice. In Jennings, rice farmer and rancher Wayne Zaunbrecher was also honored posthumously for his legacy of contributions to the rice industry.  His wife of 54 years, Linda, and his daughters accepted the award on his behalf. Mrs. Linda Zaunbrecher accepting award on behalf of her husband, Wayne (photo by Bruce Schultz) USA Rice President & CEO Betsy Ward opened her remarks by commenting on the state of the rice economy in Louisiana.  "We know it's tough out there and we understand the urgency to develop new markets and expand and protect existing markets for your crop.  It's what we are all working on every day," she said. Ward went on to share insight and analysis of some key U.S. export markets - China, Colombia, Iraq, and Mexico - where the situation ranges from good to uncertain. USA Rice Vice President of Government Affairs Ben Mosely shared his thoughts on the important Trans Pacific Partnership agreement remarking, "We are not impressed with what we see and are exploring our options to improve the situation for U.S. rice." He also talked about opportunities for rice in Cuba, illegal subsidies for rice producers in other countries that further exacerbate U.S. grower difficulties, and the fact that between the presidential election season, the closing months of the Obama Administration, and a relatively light legislative calendar for Congress there is little chance of major policy initiatives moving forward in Washington. Central LA Rice Growers President Phillip Lamartiniere Michael Klein, USA Rice vice president for marketing, communications, and domestic promotion, closed out the program with the how's, why's, and what's of the domestic promotion programs. He shared strategies in place to raise awareness and encourage the use of U.S.-grown rice, including leveraging U.S. government food policy, engaging with key market influencers, and reaching out to consumers and the foodservice industry.  He showed several videos, including one that showcased street interviews with random tourists in Washington, DC, for a humorous look at what they do and do not know about rice.  You can watch the four minute video here. "The interviews were unscientific, but the video does demonstrate that for the most part Americans like and eat rice but they just don't think about where it comes from. Once we told them rice is actually grown here, most of them expressed a preference for U.S. origin rice over rice from other origins," he explained. Click on photo to watch the video

Ambassador Froman TPP Agreement Signed, Rice Concerns Remain  By Kristen Dayton AUCKLAND, NEW ZEALAND -- Trade Ministers from 12 nations signed the Trans Pacific Partnership Agreement (TPP) yesterday (Feb. 4 local time).  U.S. Trade Representative Michael Froman joined officials from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam at the signing, which launches the formal start of the ratification process in many of the TPP countries. "Signature is only one step in what looks to be a lengthy process for review of the deal here at home," said USA Rice COO Bob Cummings.  "U.S. law provides a detailed timeline for Congress to consider and approve TPP , and key congressional leaders have said that a vote on the agreement will not occur until after the November 2016 presidential election." The goal of the TPP is to dramatically reduce or eliminate tariffs and non-tariff barriers on trade between the 12 members.  Because the United States already has free trade agreements with Canada, Mexico and Peru, U.S. rice's focus was expanding access in Japan and maintaining our competitiveness in Mexico.  Both countries rank among the top U.S. export markets for rice. "The gains achieved in Japan were, unfortunately, less than our modest objectives," according to Michael Rue, a California rice farmer and vice chairman of the USA Rice International Trade Policy Committee.  "We intend to use the time before Congress considers TPP to understand fully the details of our new access and to seek assurances from the administration that we will get what we have been promised." Mexico agreed to eliminate all duties on rice imported from Vietnam within ten years after the agreement goes into effect.  "This is of great concern because Mexico is our number one export market," said Dow Brantley, an Arkansas producer and chairman of USA Rice.  "As Mexico increases imports of milled rice, Vietnam is our number one competitive threat.  We believe that Vietnam is providing subsidies to its producers in excess of levels allowed by the World Trade Organization, so we face the prospect of unfair competition in a key market.  The subsidy problem isn't confined to Vietnam, and it's time for the U.S. government to challenge unfair subsidies in many key agricultural exporters."  Under the North America Free Trade Agreement, all U.S. rice enters Mexico duty free while rice from Vietnam currently faces a 20 percent duty. Cummings concluded, "As Congress moves to consider TPP, USA Rice will continue to engage with the administration and Congress to educate, seek assurances, and press for relief from foreign subsidies."   The path forward

eb 04, 2016, 09.45 AM | Source: PTI KRBL Q3 net profit down 20% at Rs 65.78 crore The company had clocked a net profit of Rs 82.52 crore in the year-ago period. Net sales of the company declined to Rs 703.84 crore in the October-December quarter of the current fiscal from Rs 764.51 crore in the year-ago period, the company said in a regulatory filing. Basmati rice exporter KRBL   posted a 20 percent fall in its net profit at Rs 65.78 crore for the quarter ended December 2015 due to fall in sales. The company had clocked a net profit of Rs 82.52 crore in the year-ago period. Net sales of the company declined to Rs 703.84 crore in the October-December quarter of the current fiscal from Rs 764.51 crore in the year-ago period, the company said in a regulatory filing. The company sells basmati rice under the brand name 'India Gate' and has a strong presence both in India and the markets abroad. The company has the capacity to process 1.4 million tonnes of paddy per annum. In the last financial year, KRBL's turnover stood at Rs 3,203 crore.

Read more at: http://www.moneycontrol.com/news/results/krbl-q3-net-profit-down-20-at-rs-6578-crore_5292121.html?utm_source=ref_article

Rice Prices

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Arrivals in tonnes;prices in Rs/quintal in domestic market.

	Arrivals			Price
	Current	% change	Season  cumulative	Modal	Prev. Modal	Prev.Yr %change
Rice
Gondal(UP)	1200.00	1042.86	8947.60	2015	2025	-0.74
Gadarpur(Utr)	790.00	25.6	53018.00	1989	2096	4.41
Mathura(UP)	650.00	103.12	6305.00	2020	2000	-
Etawah(UP)	480.00	6.67	12800.00	2250	2255	2.74
Shahjahanpur(UP)	401.00	7.33	37473.50	2180	2160	8.46
Kanpur(Grain)(UP)	300.00	-6.25	4725.00	2180	2125	3.81
Gorakhpur(UP)	300.00	15.38	2662.00	2125	2120	10.10
Manjeri(Ker)	290.00	NC	4930.00	3000	3000	-9.09
Pilibhit(UP)	280.00	7.69	15038.00	2190	2195	-6.41
Allahabad(UP)	220.00	-8.33	3750.00	2090	2085	2.96
Ballia(UP)	220.00	4.76	4620.00	1955	1950	-1.01
Samsi(WB)	200.00	300	14410.00	2800	2800	-
Sitapur(UP)	161.00	0.62	3558.00	2220	2220	5.26
Bahraich(UP)	160.00	-3.61	1927.50	2075	2080	-0.24
Basti(UP)	142.50	2.52	2656.00	2070	2070	2.73
Asansol(WB)	132.00	1.54	658.00	2450	2450	-
Mathabhanga(WB)	130.00	8.33	2000.00	1950	1950	-
Agra(UP)	108.00	-10	2829.00	2150	2130	4.88
Rampurhat(WB)	100.00	NC	394.00	1760	1750	-
Bareilly(UP)	98.50	-1.5	5399.00	2125	2100	1.19
Lucknow(UP)	98.00	-2	2102.00	2125	2110	-2.07
Achalda(UP)	90.00	28.57	1955.00	2240	2245	-
Kalipur(WB)	90.00	-5.26	2254.00	2150	2150	-
Chandabali(Ori)	85.00	NC	765.00	1800	1800	NC
Kalna(WB)	80.00	-13.98	685.00	1770	1770	-6.84
Sealdah Koley Market(WB)	80.00	1.01	478.40	2400	2400	-4.00
P.O. Uparhali Guwahati(ASM)	79.00	16.18	1700.00	2100	2100	-19.23
Saharanpur(UP)	79.00	-1.25	2862.00	2045	2040	-3.54
Gajol(WB)	75.00	15.38	874.00	2800	2800	-8.20
Mainpuri(UP)	72.50	-2.03	397.00	2000	2000	6.38
Kalahandi(Dharamagarh)(Ori)	71.48	70.92	403.54	2100	2100	-4.55
Lanka(ASM)	70.00	7.69	1380.00	1725	1725	-
Thodupuzha(Ker)	70.00	NC	1050.00	2600	2600	6.12
Gauripur(ASM)	64.00	28	1592.50	4500	4500	-
Beldanga(WB)	64.00	-1.54	719.50	2275	2275	-12.50
Tilhar(UP)	62.50	1983.33	809.00	2160	2165	5.62
Coochbehar(WB)	62.50	4.17	336.50	2050	2050	-5.75
Ghaziabad(UP)	60.00	-25	1240.00	2065	2070	-2.59
Gazipur(UP)	60.00	3.45	805.50	1900	1900	3.26
Siliguri(WB)	55.00	10	342.00	2600	2600	-
Dadri(UP)	50.00	25	1031.00	2060	2080	-2.83
Barasat(WB)	50.00	-28.57	1140.00	2200	2200	-
Nadia(WB)	50.00	NC	850.00	3200	3200	3.23
Muzzafarnagar(UP)	47.00	9.3	550.00	2050	2050	-
Kasimbazar(WB)	45.00	NC	744.00	2290	2300	-11.92
Karimganj(ASM)	40.00	100	960.00	2200	2200	4.76
Partaval(UP)	40.00	100	759.50	2025	2025	3.85
Junagarh(Ori)	38.15	37.48	539.58	2100	2100	-4.55
Purulia(WB)	36.00	20	1086.00	2200	2200	-8.33
North Lakhimpur(ASM)	35.50	303.41	722.80	1900	1900	-
Bindki(UP)	35.00	-27.08	1335.00	2250	2220	8.17
Jorhat(ASM)	30.00	-25	530.00	2700	2800	-
Dhekiajuli(ASM)	30.00	NC	472.50	1900	2100	1.60
Balurghat(WB)	28.00	-3.45	87.00	2820	2825	-
Garbeta(Medinipur)(WB)	28.00	27.27	293.00	2400	2450	0.84
Sambhal(UP)	27.00	42.11	86.00	2200	2200	11.39
Lohardaga(Jha)	26.00	15.56	344.00	1950	1900	12.07
Udala(Ori)	26.00	-3.7	569.00	2700	2700	-
Mirzapur(UP)	25.00	-3.85	702.50	1925	1920	2.94
Rampur(UP)	25.00	56.25	273.50	2190	2195	6.31
Yusufpur(UP)	25.00	25	347.00	1875	1870	0.81
Ghatal(WB)	25.00	-13.79	246.00	1900	1820	-
Haldibari(WB)	25.00	25	411.50	2350	2350	-11.32
Ramkrishanpur(Howrah)(WB)	24.30	-2.41	550.20	2300	2300	-11.54
Palghar(Mah)	24.00	-33.33	402.00	3980	3061	-
Jhargram(WB)	24.00	-	183.00	2700	-	-3.57
Jalpaiguri Sadar(WB)	24.00	-4	484.00	2700	2700	-4.26
Cachar(ASM)	20.00	-33.33	1020.00	2700	2700	NC
Kolhapur(Laxmipuri)(Mah)	20.00	-20	571.00	3000	3000	-
Lakhimpur(UP)	20.00	33.33	300.50	2090	2100	-
Mekhliganj(WB)	18.00	-14.29	242.50	1975	2050	-
Bhawanipatna(Ori)	17.00	-	17.00	2500	-	-
Champadanga(WB)	16.00	77.78	355.00	2400	2400	-
Kolaghat(WB)	16.00	6.67	271.00	2300	2300	-
Atarra(UP)	15.00	25	27.00	2000	2000	-
Falakata(WB)	14.80	0.68	225.30	1950	1950	-
Tamluk (Medinipur E)(WB)	14.00	NC	311.00	2300	2300	-
Bijnaur(UP)	13.00	62.5	263.50	2190	2180	-
Kannauj(UP)	13.00	-3.7	108.60	2185	2180	0.69
Raiganj(WB)	13.00	NC	472.00	2730	2730	-
Dibrugarh(ASM)	12.00	-40	473.80	2400	2400	-
Simdega(Jha)	12.00	50	34.00	2100	2100	NC
Kasganj(UP)	12.00	-50	362.00	1860	1850	-8.15
Muradabad(UP)	12.00	33.33	281.50	2230	2240	12.91
Pukhrayan(UP)	12.00	60	54.50	1980	1980	-0.50
Medinipur(West)(WB)	12.00	-20	302.00	2450	2400	-2.00
Naugarh(UP)	11.50	43.75	307.00	2065	2040	8.68
Firozabad(UP)	11.00	-8.33	264.00	2150	2140	5.91
Pundibari(WB)	10.50	-19.23	57.00	1975	2000	-8.14
Kottayam(Ker)	10.00	NC	60.00	3500	3500	-
Kaliaganj(WB)	10.00	NC	318.00	2650	2650	-
Sheoraphuly(WB)	10.00	-9.09	307.50	2550	2550	-12.82
Hazaribagh(Jha)	9.95	1.53	34.05	3015	2945	-
Deogarh(Ori)	9.00	NC	250.50	2500	2500	NC
Raibareilly(UP)	9.00	-5.26	155.00	2050	2030	1.23
Katwa(WB)	9.00	12.5	43.00	2300	2300	-4.17
Dibiapur(UP)	8.00	NC	16.00	2230	2230	1.83
Chengannur(Ker)	7.00	16.67	302.00	2500	2500	-13.79
Bolangir(Ori)	7.00	7.69	93.00	2200	2200	-8.33
Raath(UP)	6.20	-	6.20	1700	-	17.24
Tusura(Ori)	6.00	9.09	93.50	2200	2200	-15.38
Khairagarh(UP)	6.00	20	196.00	2070	2090	1.97
Silapathar(ASM)	5.90	9.26	436.60	3000	3000	NC
Mohanpur(Tri)	5.00	NC	45.00	2700	2750	-
Rura(UP)	4.50	-19.64	45.10	2190	2190	6.57
Jeypore(Kotpad)(Ori)	4.10	192.86	115.20	4200	3250	29.23
Hailakandi(ASM)	4.00	NC	71.00	2700	2700	NC
Islampur(WB)	4.00	33.33	151.20	2150	2150	-
Kalyani(WB)	3.50	-66.67	60.50	3400	3400	-
Aroor(Ker)	3.00	NC	97.00	7000	6800	-24.73
Alibagh(Mah)	3.00	NC	57.00	3750	3750	134.38
Rahama(Ori)	3.00	25	16.00	2400	2400	-
Perinthalmanna(Ker)	2.90	NC	24.90	2600	2600	-
Farukhabad(UP)	2.50	-28.57	151.00	2200	2200	1.62
Murud(Mah)	2.00	-33.33	42.00	2750	2750	71.88
Siyana(UP)	2.00	-20	43.50	2040	2045	NC
Jeypore(Ori)	1.50	NC	19.90	4100	4100	NC
Bonai(Bonai)(Ori)	1.50	-25	20.10	2000	2000	-16.67
Santir Bazar(Tri)	1.50	-	3.10	2600	-	-1.89
Shillong(Meh)	1.40	16.67	26.70	3500	3500	NC
Punalur(Ker)	1.00	NC	7.00	1600	1600	-
Sardhana(UP)	1.00	-16.67	40.50	2050	2060	NC

Rice breeders rally after weather, market shifts to design better varieties

February 3, 2016

·         Writer: Kathleen Phillips, 979-845-2872, ka-phillips@tamu.edu

·         Contact: Dr. Ted Wilson, 409-752-2741, lt-wilson@aesrg.tamu.edu

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BEAUMONT — When the weather or the market shifts in a year, farmers feel the impact immediately – be it good or bad.

But for the scientists who spend a lifetime figuring out ways to create new varieties to feed more people, weird weather and market movements are welcomed for the lessons they teach.  

That was the message recently when about 40 rice breeders from four states converged at the Texas A&M AgriLife Research and Extension Center in Beaumont to compare notes about the most recent growing season and what promising varieties might be emerging from their programs.

“Every time a new variety of rice gets released by a breeder, it has gone through a gauntlet basically of having been grown multiple years in multiple locations to see how well it  performs,” said Dr. Ted Wilson, center director at Beaumont.  “It’s a process of weeding out those varieties that are likely going to have problems somewhere down the road because of grain quality, because the yield is just not quite there, or because disease resistance is not high enough.”

Dr. Ted Wilson, center director, Texas A&M AgriLife Research and Extension Center- Beaumont. (Texas A&M AgriLife Research photo by Kathleen Phillips)

Testing in field conditions for a number of years is important, he said, because weather variations can throw a curve in an otherwise strong contender.

“In 2015 in Texas and Louisiana, for example, it was extremely wet early on, so planting was later,” Wilson noted. “And, since farmers in those two states produce two crops a year —  the main crop and the ratoon crop — the later you plant, the more likely the crop will be flowering in higher heat in late-June, July, August, which can take a toll on yield.”

The wetter than normal 2015 season also led to disease pressures, he said, and yet while the main crop had lower yield, the ratoon crop produced record yields.

“Think of the rice plant having pockets,” Wilson explained. “These pockets are where sugar is stuffed. The sugars turn into starches and make the grain.  If you have fewer grains because the heat hurt the plant, the plant has left over energy in the form of starches and sugars, and it stuffs them into the stems. That high level of what we call nonstructural carbohydrates comes in handy for the second crop, because when the straw — the lower 8 inches of the plant — has high levels of starches, it can just go like gangbusters and make a second crop that is higher yielding than normal.

“We don’t want to see a bad first crop like this year, but when we get a high yielding ratoon crop, it’s a savior,” he said.

It’s that sort of unusual situation breeders consider when they gather each year to report on how well test varieties performed.

“By exchanging information, rice breeders learn similarities and dissimilarities and that  helps explain what and why things went wrong or what and why things went quite well.” Wilson said.

Wilson told the rice scientists at the meeting that the trend among Texas growers is moving more toward planting hybrid varieties, which have only been available for little more than 10 years. Previously, the only type of rice seed was what is called “inbred.”

But Wilson said in 2012, hybrid varieties for the first time accounted for more than 50 percent of the acreage. But the hybrid plantings dropped back in 2015, most likely due to rice market prices being suppressed and the higher cost for hybrid seed.

Hybrids typically yield as much as 18 percent more than inbreds, but there are pluses and minuses for both types, he said.

Rice at Texas A&M AgriLife Research Center near Beaumont in July. (Texas A&M AgriLife Research photo by Kathleen Phillips).

“Inbred seed is cheaper and the grain quality historically is much higher than hybrids,” Wilson noted. “But the use of nitrogen is slightly more for inbreds, so that’s bad, because it is a cost. Disease resistance tends to be slightly higher for hybrids, which is a plus.”

Wilson also told the breeders that a recent study at the Beaumont center showed that for several historic rice varieties when examined under different fertilizer and management regimes, genetics explained 45 percent of the increase in yield over time and management explained 55 percent of the increase.

“If all our rice growers were to get 80 percent of the maximum yield for the main crop and if they planted on time and were able to get a ratoon crop to get 80 percent of the maximum ratoon crop yield, the overall yield in Texas alone with no further improvements in varieties would increase by 63 percent to 13,000 pounds per acre,” Wilson said. “The point is that genetics is important but management is a big part of the ballgame, too.  

“The fact of the matter is that maybe in some situations the genetics is more important and in some situations management is more important,” he added. “What is really important is that both of them are needed to make rice production profitable anywhere in the world.”

-30-

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Article by Kathleen Phillips

(979) 845-2872

ka-phillips@tamu.edu

View all articles by Kathleen Phillips →

http://today.agrilife.org/2016/02/03/rice-breeders-rally-after-weather-market-shifts-to-design-better-varieties/

Opportunities opening up for rice industry

Last Modified: Thursday, February 04, 2016 9:51 AM

Doris Maricle / American Press

JENNINGS — Global markets are brimming with opportunities for international trade of U.S. rice, an industry official told Southwest Louisiana rice farmers this week.

“We understand the urgency of getting some new markets open and moving some rice for the industry,” USA Rice Federation President Betsy Ward told members of the Louisiana Rice Council and Louisiana Rice Growers Association during a joint meeting Tuesday.

Things continue to look optimistic for the rice industry as officials work to promote U.S. rice in foreign countries and further open international trade, Ward said. More than $5 million is spent annually on rice export promotions and trade policy work for global markets, she said.

Mexico is the largest market for U.S. rice, including paddy rice and long-grain mills, but those exports are facing competition from outside rice markets, Ward said.

“We have seen some penetration from Uruguay and some of the other Asian markets, so we really have to work hard to identify U.S. rice in the marketplace,” Ward said.

The U.S. is investing significant time and resources in Mexico because of the potential growth, she said. Over 300 marketing activities a year are conducted there to promote U.S. rice.

“Most people think Mexicans eat rice all the time,” Ward said. “But they don’t, so there is potential for upside growth because they have a young and growing population who are interested in new cuisines and they can’t possibly produce rice due to water issues and low production in Mexico.”

Exporting rice to Mexico is also easy for the U.S. because there are no tariffs on rice, she said. U.S. rice officials are equally excited about further opening up the rice market in Colombia, which is the third-largest importer of American rice.

Colombia has an emergency need for about 200,000 metric tons of rice due to El Nino effects on their domestic rice production, she said.

“And we want them to buy U.S. rice,” Ward said. “They’re looking at buying some Asian rice and bringing it in. We want to prevent that from happening because that is a good market for us, and if they bring in cheaper rice it could undermine our markets.”

Officials have been working since December to establish a better market in Colombia, she said.

U.S. rice officials are also stepping up efforts to sell more rice to Iraq, which imports about 1.5 million metric tons per year, including some U.S. rice. But problems with inconsistencies in government control and frequent changes in personnel have hindered efforts to open the market to the U.S.

U.S. rice producers could also soon gain access to China, the world’s largest rice market. The market has been tough for U.S. rice, but recent negotiations are expected to soon open the market, Ward said. “We have been working to open up that market for nearly a decade,” she said.

Officials hope to begin exporting U.S. rice to China this year.

“Our mills and exporters are prepared and ready to comply with a very complicated sanitary agreement,” Ward said. “We are going to supply a list of interested exporters to the Chinese government to tell us what ports we can export to.”

U.S. rice officials also want to do more business with Cuba and are waiting for embargoes to be lifted. Many of the officials are scheduled to meet next week in Washington, D.C., to focus on the importance of the Cuban market to U.S. rice, she said

Ben Mosely, USA Rice Federation vice president of government affairs, said officials are working on a lot of issues with Congress and the Obama administration that focus on international trade.

Several bills in Congress seek to remove sanctions and lift embargoes, but politics is slowing the process, Mosely said.

http://www.americanpress.com/20160204-rice-outlook

Commentary: Rough rice exports key to future for U.S. rice farmers?

Feb 3, 2016Dwight Roberts, President and CEO, US Rice Producers Association | Delta Farm Press

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·         What does the future hold for U.S. rice exports?

·         Rough rice exports key for producers?

The longtime debate on exporting milled versus rough rice continues and appears to be entering a new chapter. Going back to the North American Free Trade Agreement (NAFTA) with Mexico, then the Central America Free Trade Agreement (CAFTA) and more recent agreements like the treaty with Colombia, all tell a story.

As we enter what appears to be a new era in international trade, the U.S. rice farmer must ask himself, “Would I still be in business if there were no rough rice exports?” 

Farmers were told that rough rice exports would cripple our domestic market and erode our infrastructure. Ask anyone in the wheat industry what happened to all those flour mills that used to export bagged flour. They closed and the U.S. became the largest exporter of wheat in the world.

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In today’s market the only real advantage we have is to export our rough rice to foreign mills who beg for a raw material to process. CAFTA negotiations 15 years ago should still be fresh on the minds of farmers as we heard our loyal customers in the market say “we prefer to buy rough rice from the United States but if not then we cannot promise we can import U.S. milled rice while cheaper Asian rice is offered to us every week.” The issue was one of the defining moments in the history of the US Rice Producers Association, which protected the market while being told that rough rice exports would cripple the U.S. rice industry.

Today we are faced with new and renewed pressing issues. We are seeing an increase in the threat of Asian rice being shipped into the two most important markets in the Western Hemisphere: Mexico and Colombia. The United States has free trade agreements with both countries. In Mexico, the recently negotiated Trans Pacific Partnership (TPP) is a disaster for U.S. rice exports. The 20,000 ton addition to the quota for Japan is about as exciting as the 2015 Dallas Cowboys.

But what must get the attention of the long grain farmer is the detrimental effect the TPP will have on our lucrative market in Mexico once Vietnam obtains duty free status, assuming the agreement gets passage in the U.S. Congress. Have you seen Asian prices lately for milled rice, characterized by government intervention policies that distort the marketplace? Excuse me, but this is not a level playing field.

The current conditions in Colombia should be of serious concern to American rice farmers. Prior to the completion of the current U.S.-Colombia Free Trade Agreement, Colombia allowed the importation of U.S. rough rice by their mills in the years when local production was insufficient to meet local demand. In fact, during an El Nino event some 15 years ago, Colombia imported around 200,000 tons of U.S. rough rice with no complications.

Fast forward to the new FTA negotiations and all of the sudden rice smut was considered to be a danger to Colombia and rough rice exports came to a halt. In the meantime, the same disease has been found in Colombia.

This reminds me of what a rice researcher told me a few years ago, “the worst pests for rice are political pests.” The bottom line is that Colombia is very short on domestic production and therefore have been importing above their FTA quota and paying the steep taxes. Without the ability to import U.S. rough rice they are turning their attention, as this article goes to print, towards cheaper Thailand rice.

The US Rice Producers Association has been vocal about these issues and will again address their concerns with the USDA, USTR, APHIS and members of Congress while in Washington, D.C., the week of February 8.

http://deltafarmpress.com/rice/commentary-rough-rice-exports-key-future-us-rice-farmers

http://www.mb.com.ph/asian-rice-prices-soften-on-low-buying-demand/

TCP scraps rice tender

20160202T000000Z 
Business Recorder

Following the directives of the federal government, the Trading Corporation of Pakistan (TCP) Monday announced that it has cancelled the rice procurement tender. Last week, the state-run graintrader invited fresh sealed bids (under Public Procurement Rules, 2004) from companies/partnership/sole proprietors dealing in exportof rice for purchase of 15,000 tons long grain white rice (IRRI-6) on Cost and Free on Board (C and FoB) basis up to the port of Cotonou, Benin, packed in polypropylene (PP) woven bags as per provided specification.

As per the TCP announcement, the tender was to open on February 3, 2016, however, the state-run graintraderMonday cancelled the tender without quoting any reason. Sources said the tender has been cancelled on the directives of the ministry of commerce.

The fresh tender for procurement of 15,000 tons IRRI-6 was issued on January 26, when first rice tender was scrapped as the quoted prices were significantly higher than the prevailing local prices. The procurement was being made for Benin as gift from the people of Pakistan. Presently, several African countries are facing food shortage and two weeks ago Pakistan dispatched a consignment of 15,000 tons rice (10,000 tons IRRI-6 and 5,000 tons Basmati) to Cuba.

http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2527756232 FAO Food Price Index starts 2016 dropping to nearly 7-year low

Feb 04, 2016

ROME, Italy - The FAO Food Price Index fell in January, slipping 1.9 percent below its level in the last month of 2015, as prices of all the commodities it tracks fell, sugar in particular.

The Food Price Index averaged 150.4 points in January, down 16 percent from a year earlier and registering its lowest level since April 2009.

The FAO Food Price Index is a trade-weighted index tracking international market prices for five key commodity groups: major cereals, vegetable oils, dairy, meat and sugar.

The main factors underlying the lingering decline in basic food commodity prices are the generally ample agricultural supply conditions, a slowing global economy, and the strengthening of the US dollar.

This month, FAO also raised its forecast for worldwide cereal stocks in 2016, as a result of lowering its projected consumption and raising 2015 production prospects.

The FAO Sugar Price Index fell 4.1 percent from December, its first drop in four months, as crop conditions improved in Brazil, by far the world's leading sugar producer and exporter.

The Dairy Price Index dropped by 3.0 percent on the back of large supplies, in both the EU and New Zealand, and torpid world import demand.

The FAO Cereal Price Index declined 1.7 percent (to 149.1 points) amid ample global supplies and increased competition for export markets, especially for wheat and maize, as well as a strong US dollar.

The Vegetable Oil Price Index dropped 1.7 percent, mainly because of a decline in soy oil prices reflecting expectations of ample global soybean supplies.

The Meat Price Index moved 1.1 percent lower than its revised December value, with prices of all meat categories falling, except pigmeat, which was sustained by the opening of private storage aid in the EU.

Mixed early prospects for 2016 harvests

Weather patterns associated with El Niño are sending mixed signals about the early prospects for cereal crops in 2016, especially in the Southern Hemisphere, according to FAO's Cereal Supply and Demand Brief, also released today.

2016 crop prospects have been "severely weakened" in Southern Africa, and a 25 percent cut in wheat production in South Africa now appears likely. Conditions for the crop are generally favourable in the Russian Federation and the European Union, but winter plantings declined in the United States and Ukraine. The area under wheat is also expected to be cut in India, following a poor monsoon and below average rains since October.

The 2016 outlook for rice along and south of the Equator is "dim" due, at times, to insufficient water and, at others, to excessive rains.

As for the 2015 season, FAO modestly raised its forecast for world cereal production to 2 531 million tonnes, up slightly from that released in December.

Wheat output in Canada and Russia and maize output in China, Canada and Paraguay drove the upward revision. FAO also slightly raised its expectation regarding 2015 world rice production, mostly on account of higher forecasts for China, Viet Nam and the United States.

At the same time, FAO lowered its forecast for world cereal utilization in the 2015/16 season to 2 527 million tonnes, which remains 0.8 percent above that of the previous year.This reflects a 2.0 percent increase for wheat, largely on account of higher livestock feed use in developed countries and a 0.3 percent increase in maize. World rice utilization is projected to expand by 1.1 percent, keeping world per-capita consumption stable.

As a result of the upgraded production and downgraded consumption forecasts, world cereal stocks are set to end the 2016 seasons at 642 million tonnes, higher than they began. That level implies a steady and comfortable global cereal stock-to-use ratio of around 25 percent.

However, the inventory build-up varies geographically and depending on the crop. Notable increases in wheat inventories are forecast for the United States, European Union and China whereas some reductions are likely in Canada, India and the Islamic Republic of Iran. On the other hand, world rice stocks would need to be drawn down to bridge the expected gap between world production and consumption, with much of the release likely to concern India and Thailand, the two leading rice exporters

http://www.eturbonews.com/68259/fao-food-price-index-starts-2016-dropping-nearly-7-year-low