Tuesday, March 01, 2016

1st March,2016 Daily Exclusive ORYZA rice e-newsletter by riceplus magazine


Indian Finance Minister Enhances Agricultural Credit in 2016-17 Union Budget
Feb 29, 2016

The Indian Finance Minister, who presented the Union Budget 2016-17 today, has enhanced the agricultural credit to Rs.9 lakh crore (around $131 billion) from Rs.8.5 lakh crore ($124 billion) last year.
A total of Rs.35,984 crore (around $5.2 billion) is allotted for agriculture in the 2016-17 budget, he said. The Minister also announced that the government aims to cover all the 140 million farm holdings in the country under the soil health card scheme by March 2017. The soil health card scheme was introduced in last budget. Under the scheme, the government will advise farmers on the usage of inputs like fertilizers for different types of soils and for different types of crops after testing the soil in various soil testing labs across the country.
He also noted that about 200,000 hectares would be brought under organic farming over a period of three years. He stated that Rs.6,000 crore (around $874 million) would be allocated for sustainable management of ground water resources.
The Minister announced that Rs.15,000 crore ($219 million) would be allocated towards interest subvention to lower burden for farmers.
He also announced that a Unified Agricultural Marketing ePlatform would be provided for wholesale markets.

Government of Rwanda May Stop Rice Imports by 2018 to Reduce Trade Deficit

Feb 29, 2016

The government of Rwanda may stop importing rice by 2018 as part of its efforts to reduce the bulging trade deficit, according to local sources. Rwanda imported around $37 million worth rice in 2015 compared to around $31.1 million in 2014. The country 's trade deficit stood at around $1,761.3 million in 2015. Higher deficit is attributed to a fall in the country’s exports due to falling global prices.
The State Minister for Agriculture reportedly told the Parliament recently that the Agriculture Ministry has drafted a new plan aimed at increasing the local rice production, enough to meet all the country's needs by 2018.
The measures reportedly include expanding the rice planting in marshland areas as well as allocating more land to private investors who are interested in venturing into commercial rice growing activities. Currently, only 28,500 hectares of marshland areas are used for rice cultivation, while the country has a total capacity of 66,094 hectares.
"The new plan involves working with co-operatives and easing access to farm inputs to boost production. The government is currently trying to address the challenges in rice production including limited Post-harvest infrastructures, insufficient amount of good quality seeds due to absence of efficient public seed production and distribution," said the Agriculture Ministry's Permanent Secretary.
The Permanent Secretary in the Ministry of Trade and Industry added that “streamlining the production and supply value chains will help increase local production."
The government of Rwanda is aiming to achieve rice self-sufficiency by increasing yields to 7 tons per hectares by 2018. In 2014, the Rwanda Agriculture Board (RAB) reportedly unveiled an initiative that sought to increase rice production, ensure quality along the value chain, and ease access to agro-inputs.
Rwanda imports about 40% of its annual rice demand of arbout 98,000 tons, according to the USDA.

Cambodia Lacks Comprehensive Rice Export Policy, Say Exporters

Feb 29, 2016

Cambodian rice exporters have expressed concerned that Cambodia lacks a comprehensive rice export policy, which can aid in boosting production and exports, according to the Phnompenh Post.
They noted that despite winning the world's best rice competition for three consecutive years, the Cambodian rice industry continues to face challenges such as access to finance, as well as inadequate irrigation, milling and storage facilities.
“Relevant ministries such as the Ministry of Economy and Finance together with the Ministry of Agriculture and CRF [Cambodian Rice Federation] have yet to come up with a thorough strategy design, accompanying policies and policy implementation framework that can be rolled out to enhance the competitiveness of our rice industry in the global market, especially within the context of how to allow Cambodian millers to become a cost leader to compete with the same level playing field [of our] Thai and Vietnamese counterparts,” one of the leading exporters was quoted.
“Cambodia’s rice industry has a huge potential but unless we manage to solve the cost impediments, this potential may be squandered. It is the survival of the fittest,” he added.
They noted that "a pragmatic, professional, and thorough marketing strategy with appropriate market positioning and implementation plan" is necessary along with the government's on-going efforts to develop a national brand name for the country's rice.
Meanwhile, the Cambodian Center for Study and Development in Agriculture (CEDAC) is planning to expand the production of organic rice in the country to around 1,000 - 1,500 tons this year due to its higher export potential. Local farmers affiliated with CEDAC produced around 400 tons of organic rice in 2014 and around 800 tons in 2015.
Cambodia has exported around 538,396 tons of milled rice in 2015 (January - December), up about 39% from around 387,061 tons exported in 2014. The government of Cambodia aimed to increase official rice exports to one million tons in 2015 but missed the target due to inadequate milling facilities and infrastructure as well as lack of access to funding.

India Average Wholesale Rice Prices Decline Slightly m/m in February 2016

Feb 29, 2016
India average wholesale rice prices have declined slightly in February 2016, after increasing for three consecutive months. The decline can be contributed to increasing supplies from the on-going Rabi/secondary rice crop (November - May) harvests.
Average monthly wholesale rice prices in India stood at around Rs.2,773.3 per quintal in February 2016, slightly up from around Rs.2,782.77 per quintal in January 2016, and slightly down from their year-ago levels of around Rs.2,787.06 per quintal.
In terms of USD per ton, wholesale rice prices in India stand at around $404 per ton (using current exchange rates) in February 2016, down about 3% from around $415 per ton (using historical exchange rates) in January 2016, and down about 10% from around $450 per ton (using historical exchange rates) in February 2015.     
Analysts are expecting India’s average prices to increase due to a likely reduction in this year's output following below-average monsoon rains during the kharif season (July - December).The government, in its second advance estimates for major crops, forecasts India's 2015-16 (July - June) milled rice output to decline about 2% to around 103.61 million tons from around 105.48 million tons in 2014-15.

Indian Authorities Unearth $146 Million Scam in Basmati Rice Exports Routed to Iran

Feb 29, 2016

Authorities from the Directorate of Revenue Intelligence (DRI) have unearthed a massive scam involving over 200,000 tons of basmati rice worth Rs.1,000 crore (around $146 million) in rice exports routed to Iran, according to the Press Trust of India (PTI).
The DRI authorities found that the rice routed to the Bandar Abbas port in Iran was being fraudulently diverted mid-sea to Dubai. They noted that exporters involved in the scam would load the rice at the Kandla port in Gujarat. They have also filed shipping bills to Iran. However, the consignment was diverted mid-sea to Dubai allegedly with the connivance of cargo ship operators carrying the goods. They also noted that payments are understood to be made from Iran to these exporters with the importers and port officials officially acknowledging the receipt of rice.
The authorities are reportedly suspecting the involvement of about 25 rice exporters from Haryana and Punjab in this scam.
Local sources noted that the intelligence agencies are investigating the end use of the rice off-loaded in Dubai. They noted that the authorities are suspecting the use of rice as barter system to fund some illegal activities. Locally, they are expecting the proceeds of the scam are a form of black money, the sources said.
The DRI has reportedly involved the Supreme Court-appointed Special Investigation Team on black money as well as the Enforcement Directorate to resolve the case. It is also in touch with the concerned authorities in Dubai

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Bounce Higher to Start the Week on a Positive Note

Mar 01, 2016

Chicago rough rice futures for Mar delivery settled 10.5 cents per cwt (about $2 per ton) higher at $10.495 per cwt (about $231 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.3% lower at $8.6100 per bushel; wheat finished about 0.2% higher at $4.5325 per bushel, and corn finished the day about 0.7% lower at $3.5700 per bushel.
U.S. stocks traded higher Monday, the last trading day of February, amid higher oil prices and after some disappointing data. U.S. crude oil futures extended gains trading more than 2.5% higher near $33.70 a barrel in afternoon trade. In economic news, Chicago PMI came in at 47.6 in February, missing expectations and dropping from 55.6 in January. Pending home sales fell 2.5% in January, versus expectations for a slight gain. Key data for the week include ISM manufacturing on Tuesday and the jobs report on Friday.
European equities came off session lows to close mixed after China's central bank announced further stimulus measures. The People's Bank of China cut further the reserve requirement ratio, the amount of cash the country's banks have to hold, by 0.5% points after China's markets closed Monday. The cut was the first since October and the fifth since last February. The reserve requirement ratio comes into effect Tuesday and means most large Chinese banks will have a reserve ratio of 17%, Reuters said. Asian equities closed mostly lower, with the Shanghai composite down about 2.9% but above session lows and the Nikkei 225 reversing gains to close down 1%.In afternoon trade, the Dow Jones industrial average was up 42 points, or 0.25%, at 16,682. The S&P 500 traded 5 points higher, or 0.4%, at 1,953, with utilities leading eight sectors higher and health care and energy the only decliners. The Nasdaq composite was up 17 points, or 0.38%, to 4,607. Gold is seen trading about 1.1% higher, crude oil is seen trading about 2.6% higher, and the U.S. dollar is seen trading about 0.1% higher at about  1:00pm Chicago time.
Friday, there were 4,710 contracts traded, up from 3,079 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 264 contracts to 13,037. 

Iraq Seeks to Buy 30,000 Tons of Rice in Tenders

Feb 29, 2016

Iraq is seeking to buy about 30,000 tons of rice in tenders from the U.S., Uruguay and Argentina, Bloomberg quoted a statement from Iraq's Trade Ministry.
Deadline for submission of bid is reportedly March 8, 2016, and the offers will be valid till March 14, 2016.
Last week, Iraq passed off tenders to buy 90,000 tons of U.S. rice due to high prices. Bidders reportedly offered South American rice at low prices.

Pakistan Resumes Banking Ties with Iran as Sanctions End

Feb 29, 2016

The State Bank of Pakistan (SBP) has resumed banking ties with Iran allowing all commercial banks and financial institutions in the country to restart business with their Iranian counterparts, according to Reuters.
"In line with the federal government's decision to implement the United Nations Security Council Resolution regarding lifting of sanctions against Iran, the State Bank of Pakistan has communicated to banks/financial institutions that previous sanctions on Iran have been removed and normal business activities can be commenced within the scope of the Resolution," the central bank was quoted.
"It is expected that the lifting of sanctions and restoration of banking channels between Pakistan and Iran would revive normal trade and business activities between the two neighbours," it added.
Major Pakistani exports to Iran include basmati rice, plastics, paper and oranges, and the big imports items include liquefied petroleum gas, petroleum products, electric transformers and dry fruits. The Rice Exporters Association of Pakistan (REAP) has been urging the government to restore payment mechanisms between the two countries to help boost exports.
Earlier this month, the global transaction network Society for Worldwide Interbank Financial Telecommunication (SWIFT) reconnected a number of Iranian banks to its system, allowing them to restart cross-border transactions with foreign banks. The move came after sanctions were lifted on Iran in January this year. Iranian banks were removed from the Belgium-based SWIFT in March 2012, following the tightening of the international sanctions against Iran over its disputed nuclear program.
Global Rice Quotes
February 29th, 2016
Long grain white rice - high quality
Thailand 100% B grade          365-375           ↔
Vietnam 5% broken    355-365           ↑
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 345-355           ↑
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%          665-675           ↔
Vietnam Jasmine         415-425           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             755-765           ↔
Brokens
Thailand A1 Super      325-335           ↔
Vietnam 100% broken            330-340           ↑
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

Vietnam Exports About 727,847 Tons of Rice During January 1 – February 25, 2016

Feb 29, 2016
Vietnam exported about 727,847 tons of rice in January 1 - February 25, 2016, up about 73% 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 about $399 per ton (FOB), down about 11% per ton from around $452 per ton recorded during same last year.
During February 1-25, 2016, Vietnam exported around 311,077 tons of rice, up about 55% from around 200,814 tons rice exported in full month of February 2015, and down about 25% from around 416,770 tons rice exported in full month of January 2016. The average export price so far in February stands at around $387 per ton, down about 15% per ton from a year ago and down about 5% per ton from a month ago.

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

Feb 29, 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 $355-$365 per ton, $345-$355 per ton and $330-$340 per ton respectively today. Other Asia rice sellers kept their quotes unchanged today.                       
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, on par with Vietnam 5% rice shown at around $355 - $365 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 - $355 per ton, on par with Vietnam 25% rice shown at around $345- $3505per 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, about $5 per ton discount to Vietnam 100% broken rice shown at around $330 - $340 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.

Oryza U.S. Rough Rice Recap - Prices Seen Steady after IGB Reissues Another Tender Including South American Origins

Mar 01, 2016

The U.S. cash market was seen mostly unchanged today after it was confirmed that Iraq canceled their U.S. origin only tender and reissued another tender to buy at least 30,000 MT from either the U.S., Uruguay, or Argentina.
Analyst note that the lower and unsolicited offers from South America on the old tender likely complicated things for the Iraqi Grain Board as they likely faced difficulties justifying paying a roughly $90 per ton premium for U.S. rice over South American.
Going forward, analysts expect that offers from the U.S. will decrease while offers from South America will increase which some believe will give the U.S. a decent shot at booking one cargo.
Offers need to be submitted no later than March 8 and need to remain valid until March 14.
 News have been shared with permission of ORYZA.com with thanks

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