Wednesday, March 30, 2016

30 March,2016 daily exclusive oryza rice e-newsletter by riceplus magazine

Asia Rice Quotes Unchanged Today

Asia rice sellers kept their quotes unchanged Today.
5% Broken Rice
Thailand 5% rice is indicated at around $365 - $375 per ton, about $15 per ton discount to Vietnam 5% rice shown at around $380 - $390 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, about $10 per ton discount to Vietnam 25% rice shown at around $365- $375 per ton. India 25% rice is indicated at around $335- $345 per ton, about $30 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 $20 per ton discount to Vietnam 100% broken rice shown at around $350 - $360 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.

 Cambodian Foreign Minister Calls for Malaysian Investments in Rice Milling Sector



Mar 29, 2016
Cambodia's Foreign Minister has urged Malaysian businessmen to invest in the country's rice milling sector as part of discussions with the Malaysian Ambassador to Cambodia this week, according to Khmer Times.
“His excellency [Foreign Minister] told the ambassador that Cambodian fields can produce four million tons of rice to export. But Cambodia is facing the problem of lacking rice mills to produce quality rice for exporting to foreign markets,” said the Foreign Ministry spokesman.
He noted that Malaysian investment in Cambodian sectors reached around $62 million in 2015, up from around totalled $24 million in 2014.
Domestic rice millers and exporters have been since long time urging the government to boost investment in rice milling sector to enhance rice exports.
Cambodia exported around 95,945 tons of milled rice in the first two months of 2016, up about 30% from around 73,597 tons exported during the same period last year, according to data from the Secretariat of One Window Service for Rice Export Formality (SOWS-REF). Cambodia exported around 538,396 tons of milled rice in 2015 (January - December), up about 39% from around 387,061 tons exported during the same period last year.
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.

Oryza U.S. Rough Rice Recap – Cash Prices Continue to Drop amid Weak Demand



Mar 30, 2016
The U.S. cash market was weaker yet again today, falling with the futures market on continued soft demand.

There were even reports of rice trading at the lowest levels seen this marketing despite limited farmer selling.

Analysts note that most farmers are preoccupied getting their crop planted and not interested in selling at the levels buyers are willing to pay today.

Going forward, all eyes will be on the USDA’s Rice Stocks and Prospective Planting Report that comes out on Thursday.

European Farmers Unions Call for Simplified Risk Management Tools Under EU CAP


Mar 29, 2016
The European farmers unions Copa and Cogeca have stressed on the need for protecting farmers against risks such as higher market volatility, greater exposure to new animal and plant diseases, as well as the impact of climate change.
The newly re-elected Chairwoman of Copa and Cogeca Working Party said measures (such as insurance) to help protect famers against these risks as well stabilize their incomes are important.
“We need to intensify work on risk management. It’s crucial to ensure a coherent approach with the other working parties like cereals. We need to deepen innovation technology to help develop the measures further," she said.
She aims to simplify the risk management toolkit under the Common Agricultural Policy (CAP) Second Pillar of Rural Development Policy. She also aims to cut red tape to ensure the measures are more effective under the CAP simplification initiative.
The farmers unions also stressed that such tools must complement the existing system of direct payments and market management measures under the CAP.

Italy Urges European Commission to Apply Safeguard Clause to Zero Duty Rice Imports

Mar 29, 2016
The Italian Minister of Agriculture has submitted a document to the European Commission (EC) Rice Committee urging it to apply duties to zero-duty EU rice imports from the Asian Least Developed Countries (LDCs) through a safeguard clause to protect the local rice sector, according to local sources. It says the EU rice "import situation totally out of control."
According to the document, the Ministry seeks to activate emergency measures to limit imports of rice at zero duty. It states the aim is "to rebalance internal production according to the real needs of the market. On this point Italy has already required to restore normal duties through the activation of the safeguard clause.”
The document states that an increase in rice imports coupled with the slowdown in the volume of Communitarian exports and low international prices, is creating surplus rice supplies in the EU further leading to lower paddy market prices.
It also states that total rice imports to EU, including those from the Asian LDCs under the 'Everything But Arms' agreement as well the other free trade agreements, reached around 633,000 tons (milled equivalent) in the first six months of crop year (cy) 2015-16 (September 2015 - February 2016), up about 112,000 tons compared to the imports during the same period last year. It says the increase in imports has already surpassed the EC's target increase of 97,000 tons for the whole year.
Based on the EU data, the document also says the EU stock level in cy 2015-16 is likely to reach 585,000 tons as against 440,000 tons in cy 2014-15, 472,000 tons in cy 2013-2014 , 540,000 tons in cy 2012-13, 494,000 tons in cy 2011-12 and cy 471,000 tons in 2010-11.


FAO Forecasts China MY 2015-16 Rice Imports to Decline 6% y/y to 5.8 Million Tons


Mar 29, 2016


The UN's Food and Agriculture Organization (FAO) forecasts China's MY 2015-16 (June - May) rice imports (both official and unofficial) to decline about 6% y/y to around 5.8 million tons due to government's efforts to limit informal imports. The FAO forecasts china's total cereal imports in the 2015-16 marketing year to fall by 9% y/y to 28 million tons from last year's exceptionally high level due to record 2015 harvests and large stocks.
The FAO forecasts China's 2015 paddy rice output at around 208.25 million tons, up from around 206.507 million tons in 2014 due to favourable weather conditions.
Retail prices of Japonica rice were stable in February 2016 mainly due to adequate availabilities from the 2015 record production, according to the FAO. However, prices were below their year-ago levels.
Global Rice Quotes
March 30th, 2016
Long grain white rice - high quality
Thailand 100% B grade          375-385           ↔
Vietnam 5% broken    380-390           ↔
India 5% broken         365-375           ↔
Pakistan 5% broken    340-350           ↑
Myanmar 5% broken   415-425           ↓
Cambodia 5% broken             420-430           ↔
U.S. 4% broken           440-450           ↔
Uruguay 5% broken    435-445           ↔
Argentina 5% broken 425-435           ↔
Long grain white rice - low quality
Thailand 25% broken 355-365           ↔
Vietnam 25% broken 360-370           ↓
Pakistan 25% broken 310-320           ↑
Cambodia 25% broken           400-410           ↔
India 25% broken       335-345           ↔
U.S. 15% broken (sacked)      470-480           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            370-380           ↔
Pakistan parboiled 5% broken stxd    NQ      ↔
India parboiled 5% broken stxd         350-360           ↔
U.S. parboiled 4% broken       480-490           ↔
Brazil parboiled 5% broken    490-510           ↔
Uruguay parboiled 5% broken            NQ      ↔
Long grain fragrant rice
Thailand Hommali 92%          665-675           ↓
Vietnam Jasmine         470-480           ↓
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             755-765           ↔
Brokens
Thailand A1 Super      330-340           ↔
Vietnam 100% broken            350-360           ↔
Pakistan 100% broken stxd    285-295           ↔
Cambodia A1 Super   345-355           ↔
India 100% broken stxd         265-275           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 315-325           ↔
Brazil half grain          NQ      ↔


All prices USD per ton, FOB vessel, oryza.com


Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Continue to Fall as Market Looks Ready to Test $10.000/cwt; U.S. Grain Prices Move Higher as Traders Await Thursday's USDA Reports

Mar 29, 2016

Chicago rough rice futures for May delivery settled 12.5 cents were cwt (about $3 per ton) lower at $10.065 per cwt (about $222 per ton). The other grains finished the day higher; Soybeans closed about 0.9% higher at $9.1700 per bushel; wheat finished about 1% higher at $4.7575 per bushel, and corn finished the day about 0.7% higher at $3.7300 per bushel.
U.S. stocks traded higher Tuesday as investors digested afternoon remarks from Fed Chair Janet Yellen. The Dow Jones industrial average briefly traded 100 points higher, after dipping 101 points in morning trade. In a question-and-answer session following her speech, Yellen said there are risks, but "not all to the downside." According to prepared remarks, Yellen said that economic readings are mixed and it is appropriate to proceed cautiously. At 12:20 p.m. ET, Yellen was scheduled to speak on the "Economic Outlook and Monetary Policy" at the Economic Club of New York. Investors will scrutinize her comments for indications on the timing of the next rate hike. Recent policymaker comments have learned more hawkish than what came out of the March meeting, which was more dovish than many expected. Overseas, major European indexes closed mostly higher.
Asian equities closed mostly lower, with the Shanghai composite off more than 1% and the Nikkei 225 about 0.2% lower. The Hang Seng closed up 0.1%.In early afternoon trade, the Dow Jones industrial average gained 42 points, or 0.24%, to 17,577. The S&P 500 traded up 8 points, or 0.38%, to 2,044, with information technology leading eight sectors higher and energy and financials the only decliners. The Nasdaq composite rose 49 points, or 1.02%, to 4,815. Gold is seen trading about 1.5% higher, crude oil is seen trading about 2.7% lower, and the U.S. dollar is seen trading about 0.8% lower at about  1:45pm Chicago time.
Monday, there were 170 contracts traded, down from 848 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Monday increased by 14 contracts to 12,525. 

USDA Post Forecasts Colombia MY 2016-17 Rice Imports to Decline 14% y/y on Higher Production


Mar 29, 2016


The USDA Post forecasts Colombia's MY 2016-17 (April - March) rice imports at around 320,000 tons, slightly up from an estimated 300,000 tons last year  due to an expected increase in production.
The Post reports that the U.S. market share could be challenged by new phytosanitary protocols for MERCOSUR milled rice creating more sourcing options for importers. Usually, Colombia imports more rice from neighboring countries. However, El Nino impacts and trade limitations have resulted in lower imports from Ecuador and Peru. Similarly, border issues with Venezuela have also reduced contraband rice flows into Colombia. The table below shows Colombia rice imports by country in 2014 and 2015.

The USDA Post forecasts Colombia's MY 2016-17 paddy rice production at around 2 million tons, up from an estimates 1.985 million tons last year. Planting operations of the first 2016 crop in February/early March were impacted by the El Nino weather conditions. But the second 2016 crop may be benefited by the La Nina induced rains.
The Colombian Agriculture Minister’s “Planting Plan” (Plan Siembra) initiative aims to increase the rice planting area by 100,000 hectares in 2016.  access to credit and technology and labor inputs, in addition to infrastructure challenges with storage and milling capacity may pose challenges to the target.
The Post forecasts Colombia's MY 2016-17 rice consumption to increase to 1.66 million tons from an estimated 1.6 million tons last year due to a likely increase in population.

Thailand's Decision to Fully Fund High-Speed Rail Project not to Impact Rice Deals with China, Says Minister



Mar 29, 2016
The Thai Commerce Minister has assured that the rice and rubber deals with China won't be affected due to a change in the investment pattern in the proposed Thai-Sino high-speed rail project, according to Bangkok Post.
The Thai government and the Chinese authorities signed a memorandum of understanding (MoU) in December 2014 for one million tons of each of old and new grains as well as for 200,000 tons of rubber as part of the Thai-Sino high-speed rail plan.
Originally, a 845 kilometre route from Bangkok to Nong Khai and another from Kaeng Khoi in Saraburi to Map Ta Phut in Rayong province were planned. But the government changed the plan and decided to construct only the 250 kilometre Bangkok-Nakhon Ratchasima section and wholly invest in the project without the need for China to fund the project. Accordingly, it has decided to cut the size of big-ticket infrastructure projects has been slashed to 1.5 trillion baht (around $42.5 billion) from 1.7 trillion baht (around $48.2 billion).
However, the government of Thailand has reportedly decided to invest solely and fully fund the proposed rail project but use the Chinese technology to build and operate the system. He noted that the change in government's decision will not impact the sales of 2 million tons of rice and 200,000 tons of rubber agreed earlier.
The Thai government aims to sell over 2 million ton s of rice this year on a government-to-government basis.

Vietnam Exporters Plan to Sell Rice to French Retail Group

Mar 29, 2016

Vietnam rice exporters are planning to sell to France's second largest retail chain, according to http://lecourrier.vn.
Representatives of about 27 Vietnamese rice producers and exporters met the import manager of the group in Paris on March 24, 2016. He reportedly presented to Vietnamese enterprises the types of agricultural quality standards required by his group. He also explained about the rice import needs of the French market as well as the European markets.
He noted that France is one of the largest in Europe rice consumers with nearly 240,000 tonnes per year. He advised Vietnamese enterprises to understand the habits and tastes of French consumers, as well as issues related to the needs of the market, if they want to export their products to France. He added that the Vietnamese fragrant rice may have a market in France if quality is guaranteed.
Currently, France imports mainly rice from India, Thailand and Cambodia, and also needs rice flour. Vietnamese rice is not widespread in France, and Vietnamese producers are keen on building their label on this market.
However, representatives of Vietnamese companies expressed concern about the high tax levied on Vietnamese rice, from 165 to 175 euros (around $185) per ton, in the French market.
The Secretary General of the Vietnam Food Association (VFA) added that Vietnam should pay special attention to food hygiene and quality of its products to boost exports to demanding markets. He expressed hope that the Vietnam - EU free trade agreement (FTA) may help Vietnamese companies to gain market share in the French and other EU markets.

Wholesale Basmati Rice Prices in India Rise on Increased Buying for Stocking



Mar 29, 2016

Wholesale basmati rice prices in the national capital increased today, owing to an increased buying for stockpiling against restricted supplies from producing regions, according to the Press Trust of India (PTI).
On March 29, 2016, prices of Pusa 1121 increased to around Rs.4,250 - 5,200 per quintal (around $637 - $779 per ton) from previous levels of around Rs.4,100 - 5,100 per quintal (around $614 - $764 per ton).
Prices of common basmati increased to around Rs.5,500 - 5,600 per quintal (around $824 - $839 per ton) from previous levels of around Rs.5,300 - 5,400 per quintal (around $794 - $809 per ton).

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