Brunei Developing High-Yielding Varieties to Achieve Rice Self-Sufficiency
Mar 16, 2016
The government of
Brunei is working on the development of high-yielding rice varieties that can
produce about 12 tons per hectare to achieve self-sufficiency in rice
production, according to Brunei Times.
The Minister of
Primary Resources and Tourism reportedly told in the 12th Legislative Council
(LegCo) meeting that research will be conducted to identify and develop such
varieties. The government is planning to introduce them to farmers by 2019.
Responding to a
member's question on the government’s assistance to farmers in the
country's main rice growing areas, the Minister noted that the Department of
Agriculture and Agrifood (DAA) has helped farmers get fertilisers, pesticides
and machinery to plant Pusu, Bario, Adan and Laila rice varieties. He noted
that DAA also conducted research on the viability of planting a hybrid rice
variety BDR5 (Brunei Darussalam Rice 5), which is a high-yielding, low maturity
variety.
The Minister noted
that the government has been encouraging farmers to use modern machinery but
soil in many rice growing areas is not suitable to use such machinery.
The government has
been aiming for 60% self-sufficiency in rice production by 2015. Last year, the
Deputy Permanent Secretary at the Ministry of Industry and Primary Resources
(MIPR) apprised the Parliament that the government is far from achieving the
target due to poor irrigation infrastructure. However, the government has
intensified efforts to increase rice production, including incentive schemes
such as the buy-back programme, infrastructure development and the adoption of
advanced production technologies to boost yields and overall productivity,
according to the official.
Brunei produces only
2% of the nation’s domestic annual rice consumption of around 40,000 tons.
Brunei’s rice production has remained at around 1,000 tons since 2002,
according to the USDA. The U.S. agency estimates Brunei to produce 1,000 tons
of milled rice and import around 40,000 tons in 2016, to meet a consumption
demand of around 41,000 tons.
Global Rice Quotes
March 17th, 2016
Long grain white rice - high quality
Thailand 100% B grade 380-390
↑
Vietnam 5% broken 375-385
↔
India 5% broken 365-375
↔
Pakistan 5% broken 335-345
↔
Myanmar 5% broken 420-430
↔
Cambodia 5% broken 410-420
↔
U.S. 4% broken 440-450
↔
Uruguay 5% broken 445-455
↔
Argentina 5% broken 435-445
↔
Long grain white rice - low quality
Thailand 25% broken 355-365
↔
Vietnam 25% broken 355-365
↔
Pakistan 25% broken 305-315
↔
Cambodia 25% broken 395-405
↔
India 25% broken 335-345
↑
U.S. 15% broken (sacked) 460-470
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 375-385 ↑
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 460-470
↔
India basmati 2% broken NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Mails 755-765
↔
Brokens
Thailand A1 Super 335-345
↑
Vietnam 100% broken 345-355
↔
Pakistan 100% broken stxd 285-295
↔
Cambodia A1 Super 335-345
↔
India 100% broken stxd 265-275
↔
Egypt medium grain brokens NQ
↔
U.S. pet food 280-290
↔
Brazil half grain NQ
↔
All prices USD per ton, FOB vessel, oryza.com
Bangladesh Misses 2015-16 Aman Rice
Procurement Target by 6,000 Tons
Mar 16, 2016
The government of
Bangladesh procured only 194,000 tons of 2015-16 Aman (July - December) rice
against the targeted 200,000 tons, reports the Financial Express citing the
Bangladesh Sangbad Sangstha (BSS).
The Bangladesh
government targeted to procure 200,000 tons of 2015-16 Aman rice from millers between
December 15, 2015 and March 15, 2016 at Tk 31 per kilogram (around $388.5 per
ton). The decline in procurement can be attributed to a temporary increase in
milled rice in most of the country's markets in early March following a hike in
prices at the mill-gates. Coarse rice prices were in the range of Tk 30 - 33
per kilogram (around $392 - $430 per ton). Therefore, traders noted that
millers found it more profitable to sell in markets rather than to the
government.
The Director
(procurement division) of the Department of Food noted that the government
hoped to achieve the target within the slated timeframe given the higher
procurement price. He also noted that they also hoped the higher procurement
price would encourage farmers plant more rice in the next season.
Earlier, the Food
Minister noted that the production cost of 2015 Aman paddy is estimated at
around Tk 18.5 per kilogram (around $232 per ton) and that of milled rice is
estimated at around Tk 28.5 per kilogram (around $357 per ton).
The government
procured 320,000 tons of 2014-15 Aman rice from millers at around Tk 32 per
kilogram (around $401), according to data from the Food Ministry. Aman rice
crop accounts for about 38% of the total rice production in Bangladesh.
The Food and
Agriculture Organization (FAO) estimates paddy rice output from the 2015 Aman
rice crop at about 19.6 million tons, down about 1% from last year due to a
decline of about 2% in acreage reflecting low domestic prices at sowing time.
USDA forecasts Bangladesh’s MY 2015-16 (July 2015 – June 2016) milled rice
production at around 34.6 million tons, slightly up from an estimated 34.5
million tons in MY 2014-15. It forecasts Bangladesh to import around 600,000
tons of rice in MY 2015-16 from an estimated 1.2 million tons in MY 2014-15.
Vietnam Rice Quotes Mixed Today; Other Asia Rice Quotes Unchanged
Mar 16, 2016
Vietnam rice sellers
lowered their quotes for 25% broken rice by about $5 per ton to around
$355-$365 per ton and increased their quotes for Jasmine rice by about $15 per
ton to around $460-$470 per ton today . Other Asia rice sellers kept their
quotes unchanged today.
5% Broken Rice
Thailand 5% rice is
indicated at around $365 - $375 per ton, about $10 per ton discount to Vietnam
5% rice shown at around $375 - $385 per ton. India 5% rice is indicated at
around $365 - $375 per ton, about $30 per ton premium on Pakistan 5% rice shown
at around $335 - $345 per ton.
25% Broken
Rice
Thailand 25% rice is
indicated at around $355 - $365 per ton, on par with Vietnam 25% rice shown at
around $355- $365 per ton. India 25% rice is indicated at around $330- $340 per
ton, about $25 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 $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 $330 - $340 per ton, about $15 per ton discount
to Vietnam 100% broken rice shown at around $345 - $355 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.
USDA Post Forecasts Egypt MY 2015-16 Rice Exports at 250,000 Tons,
Unchanged from Previous Year
The USDA Post
forecasts Egypt's MY 2015-16 (October - September) rice exports at around
250,000 tons, unchanged from the previous year, but down from the USDA's
official estimates of around 400,000 tons. Egypt’s rice is not internationally
competitive under the current government policy, which requires rice exporters
to pay export tax of about LE 2,000 (around $256) per ton of rice.
The Post reports that
shortages in foreign currency and a parallel market charging an exchange rate
of 20% above the official rate, has proved too onerous for the rice millers and
exporters. The Post also reports that the government may extend the export
window to August 2016 and may ease its requirements due to increasing stocks.
However, this may happen only after the government ensures that it has
sufficient supply for its smart card subsidy program.
The USDA Post
forecasts Egypt's MY 2015-16 milled rice production at 4 million tons, down
from last year's 4.53 million tons, but unchanged from USDA's official
estimates. However, the Post has lowered its forecasts for Egypt's MY 2015-16
rice area below the USDA's official estimates.
The Post forecasts
Egypt's MY 2015-16 rice consumption at around 3.5 million tons, down from
around 4 million tons last year and down from USDA's official estimates of
around 4 million tons due to shortages of rice supplies in the government’s
subsidy program.
The USDA Post forecasts
rice stocks to increase about 31% y/y to around 1.2 million tons during the
year as many traders are hoarding stocks in expectation of high prices.
Indonesian Rice Farmers Hope to Benefit from Crop Insurance Scheme Amid
Drought
Mar 16, 2016
Rice farmers in
Indonesia's main rice growing area Bali are hoping to benefit from the
province's crop insurance program, which was launched in October 2015, to
protect farmers from crop failures caused by disasters such as drought,
flooding or pest attacks, according to Reuters.
The program is part of
the larger Indonesian crop insurance scheme launched in 2012-13 with financial
support from the Japan International Cooperation Agency (JICA). It promises to
pay farmers up to six million rupiah (around $480) for a crop failure. Under
the program, the government will pay 80% of the premium of 180,000 rupiah
(around $13) per hectare.
The Indonesian crop
insurance scheme already covers 470 hectares of rice fields in East
Java and Sumatra. This year, it has included Bali and few other provinces. The
Head of the Bali Provincial Agriculture and Foodstuffs Affairs Office noted
that the program aims to cover 4,000 hectares this year.
Though the scheme
currently targets only small-scale farmers, it aims to bring in all 27 million
farmers in Indonesia's 33 provinces by 2019.
Around 1,000 hectares
of farm land in Bali is suffering severe drought conditions induced by the El
Nino weather phenomenon, which threaten the upcoming harvest. However, farmers
are sceptical about the claims settlement under the scheme.
Vietnam Prime Minister Seeks Neighboring Nations' Help to Combat Drought
The Vietnam Prime
Minister is seeking help from the neighboring nations, especially those which
are part of the Mekong River Commission, to help Vietnam in combating water
shortfalls due to the on-going drought conditions, according to Vietnam Net.
He reportedly asked
the Ministry of Natural Resources & the Environment, the Ministry of
Foreign Affairs and Vietnam Mekong River Commission to send diplomatic notes to
the countries in Mekong upriver asking them to share information about water
resources and the operation of their hydropower reservoirs on Mekong River. He
reportedly plans to ask them to provide water to the lower course of Mekong, so
that Vietnam's provinces in the Mekong Delta can benefit.
The Prime Minister’s
instruction shows the state’s strong concern about water resources and the
difficulties Mekong Delta’s people are facing," said the former Deputy
Secretary of the Vietnam Mekong River Commission.
He also noted that
the International Mekong River Commission, which comprises the members
from four countries in Mekong’s lower course, has so fat not taken any action
amid the on-going drought conditions. “In principle, the commission’s member
countries have to have meetings and discuss existing problems to come to
consensus on the solutions to the problems. If so, countries can voice their
protests against the actions which affect the water sources,” he added.
Other leading rice
experts also praised the Prime Minister's action. China has reportedly agreed
to release water from its Jinghong Hydropower Station reservoir into the lower
Mekong River to help Vietnam deal with drought and salinity in a number of
provinces in Mekong Delta.
About Nearly 140,000
hectares of rice area in Mekong Delta has been reportedly damaged by drought
and salt water intrusion as of March 7, 2016.
Oryza U.S. Rough Rice Recap – Prices Firm Amid Limited Trade Activity
Mar 17, 2016
The U.S. cash market
was slightly firmer today although trading was limited as most buyers and
sellers remain at odd on prices.
Some market
participants are hopeful that more demand from Iraq and Colombia will show up
and shore up U.S. prices however the U.S. still remains uncompetitive compared
to some South American countries.
National Agencies Show Interest to Invest in Thai Rice Research
Mar 16, 2016
A number of research institutes
in Thailand are keen on investing the country's rice research activities to
help the government increase the competitiveness of Thai rice and rice products
in the global market, according to ThaiVisa.com.
The Director-General
of the Thai Rice Department, which takes care of rice research in the country,
told reporters that the investments by the agencies will be used to develop
premium rice species, improve nutritional value, and help farmers raise
productivity while lowering costs. He also noted that the Department's current
rice research activities are primarily focussed on the development of a new
strain that thrives in dry weather conditions. He added that the Department is
working on the development of a variety called 'Kor Khor 61.'
"Researchers are
trying to introduce rice as ingredients in dietary supplements and cosmetics.
Fifteen studies have so far yielded promising results. They will soon be
introduced to the rice industry," he said.
In a latest
development, the Agricultural Research Development Agency (ARDA) has shown
interest to invest in the country's rice research. "ARDA would recommend
technologies to the farming sector to help increase the quality of
grains," said the Deputy Director of the ARDA.
Thailand Plans to Sell 641,000 Tons of Stockpiled Rice in March 2016
Mar 16, 2016
The government of
Thailand is planning to sell about 641,000 tons of stockpiled rice on March 30
and 31, 2016, Reuters quoted the Thai Commerce Ministry.
This will be the
second auction of this year. The Chief of the Foreign Trade Department told
reporters that bidding for 418,000 tons of rice fit for human consumption will
take place on March 30 and bidding for 223,000 tons unfit for human consumption
will take place on March 31, 2016.
"The government
will open bidding for rice in government stocks as it sees that the market
needs rice including rice for industrial use. This is a good time to offload
rice from government stockpiles," she said.
The government
reportedly sold 152,377 tons of rice worth 1.78 billion baht (around $50
million) in the first auction on February 16 for human consumption, lower than
the targeted 204,000 tons. It sold around 245,262 tons of stockpiled rice worth
1.53 billion baht (around $43 million) for industrial use on February 17, as
part of the first auction.
The government still
holds about 12 million tons of rice in its stockpiles and is keen on selling
about 5 million tons this year.
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Capture
Late Session Rally as U.S. Dollar Tumbles and Oil Surges in Wake of FOMC
Announcement
Mar 17, 2016
Chicago rough rice
futures for May delivery settled 11.5 cents were cwt (about $3 per ton) higher
at $10.485 per cwt (about $231 per ton). The other grains finished the day mostly
lower; Soybeans closed about 0.3% higher at $8.9450 per bushel; wheat finished
about 1.4% lower at $4.7075 per bushel, and corn finished the day about 0.1%
lower at $3.6825 per bushel.
U.S.
stocks struggled to hold gains Wednesday ahead of the scheduled afternoon
conclusion of the Fed meeting. The Federal Open Market Committee is due to
conclude its two-day meeting on Wednesday with the 2 p.m. ET release of its
statement and economic projections. Those include the highly scrutinized
"dot plot," which shows the targets for appropriate federal funds
rates by FOMC participants. Fed Chair Janet Yellen is also scheduled to give a
news conference at 2:30 p.m. U.S. crude oil futures traded near $37.84 a barrel
in midday trade, a touch off session highs. Earlier, WTI briefly traded more
than 4% higher after weekly crude oil inventories showed a
smaller-than-expected build of 1.3 million barrels and following news producers
will meet next month in Qatar to discuss a proposal to freeze output. In other
economic news, housing starts rose 5.2% in February.
Industrial production declined 0.5% in
February, with capacity utilization at 76.7%.In afternoon trade, the Dow Jones
industrial average traded down 29 points, or 0.17%, at 17,237. The S&P 500
traded down 3 points, or 0.17%, at 2,012, with health care leading five sectors
lower and energy the greatest advancer. The Nasdaq composite dipped 1 point, or
0.03%, to 4,727. Gold is seen trading about 0.1% lower, crude oil is seen
trading about 4% higher, and the U.S. dollar is seen trading about 0.2% higher
at about 1:00pm Chicago time.
Tuesday, there were
288 contracts traded, down from 352 contracts traded on Monday. Open interest –
the number of contracts outstanding – on Tuesday increased by 38 contracts to
12,495.
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