29 April,2016 daily exclusive oryza rice e-newsletter by riceplus magazine

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EU Exports 146,371 Tons of Rice in September 1, 2015 - April 19, 2016; Down 15% from Previous Year

Apr 28, 2016

According to the latest export data issued by the European Union (EU) for the crop year 2015-16 (September 1, 2015 - August 31, 2016), the EU exported about 146,371 tons of rice during the period September 1, 2015 - April 19, 2016, down about 15% from around 171,446 tons exported during the same period last year.

Japonica rice exports declined about 18% to around 122,000 tons in September 1, 2015 - April 19, 2016 period from around 148,282 tons during the same period last year. Indica rice exports increased about 5% to around 24,371 tons during the said period from around 23,164 tons last year.

Italy remained the largest exporter in September 1, 2015 - April 19, 2016 period with around 75,789 tons followed by Spain (19,013 tons), Greece (18,838 tons), and Portugal (11,780 tons). Other EU countries imported 20,951 tons.

During the week ended April 19, 2016, the EU exported around 5,867 tons of rice, up about 23% from around 4,764 tons exported during the week ended April 12, 2016.

 

  Wholesale Basmati Rice Prices in India Decline on Low Retail Demand

Apr 28, 2016

Wholesale basmati rice prices in the national capital declined today, due to low demand from retailers against adequate supplies from producing regions, according to Business Standard citing the Press Trust of India.

On April 28, 2016, prices of Pusa 1121 declined to around Rs.4,600 - 5,600 per quintal (around $692 - $843 per ton) from previous levels of around Rs.4,800 - 5,800 per quintal (around $726 - $877 per ton).

Prices of common basmati declined to around Rs.5,800 - 5,900 per quintal (around $873 - $888 per ton) from previous levels of around Rs.6,000 - 6,100 per quintal (around $907 - $922 per ton).

“Sluggish demand from retailers against adequate stocks position mainly kept pressure on rice basmati prices,” traders were quoted.

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  Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Continue to Slip as Traders Eye Increased Global Production

Apr 28, 2016

Chicago rough rice futures for Jul delivery settled 8.5 cents were cwt (about $2 per ton) lower at $11.005 per cwt (about $243 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.1% lower at $10.2750 per bushel; wheat finished about 0.4% higher at $4.8550 per bushel, and corn finished the day about 1.7% higher at $3.9125 per bushel.

U.S. stocks traded mixed Thursday, shaking off pressure from sharp declines in the Nikkei 225 overnight after the Bank of Japan kept policy unchanged. The major U.S. averages opened lower before coming well off lows. Overnight, the Bank of Japan maintained the pace of its asset purchase program and kept steady its 0.1% negative rate it applies to some deposits. The central bank also cut its inflation forecasts and again pushed back the timing for hitting its 2% price target by six months. In U.S. economic news, the first quarter U.S. GDP advance read was 0.5%, the slowest pace since the first quarter of 2014. Consumer spending increased at a 1.9% rate, the slowest since the first quarter of 2015 and down from the fourth quarter's 2.4% rate. However, most analysts expect growth to recover later in the year, especially as oil prices stabilize and the labor market remains solid. Weekly jobless claims rose to 257,000, but the four-week moving average of claims fell to the lowest since December 1973. In afternoon trade, the Dow Jones industrial average traded down 49 points, or 0.28%, at 18,017. The S&P 500 traded down less than a point, to 2,095, with telecommunications leading seven sectors lower and consumer staples leading advancers. The Nasdaq composite gained 1 point, or 0.3%, to 4,865. Gold is seen trading about 1.3% higher, crude oil is seen trading about 1.5% higher, and the U.S. dollar is seen trading about 0.7% lower at about  1:00pm Chicago time.

Wednesday, there were 3,788 contracts traded, up from 2,814 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday decreased by 293 contracts to 10,457. 

 

  TCP Chief Calls for Increased Interaction with REAP to Boost Pakistan Rice Exports

Apr 28, 2016

The Chairman of the Trade Corporation of Pakistan (TCP) has called for increased interaction between the TCP and the Rice Exporters Association of Pakistan (REAP) to boost Pakistan's rice exports, according to Business Recorder citing the Associated Press of Pakistan.

He met with the officials of REAP and noted that the two organizations should join hands to prepare a roadmap for enhancing rice exports. He assured that the TCP would support rice exporters to double rice exports in next two years. He reiterated that the TCP had many times in the past extended maximum support to the REAP.

The TCP chief also assured that the state-run organization would provide all the needed support for the REAP delegation to Indonesia. He suggested that Pakistan rice exporters should also focus on new markets such as Qatar and Cuba market as Pakistan rice is competitively priced compared to the Indian rice.

"Recommendation from REAP had always been forwarded to the Ministry of Commerce and other concerned quarters in letter and spirit," he said.

In the same meeting , the  REAP's Patron-in-Chief and Acting Chairman REAP highlighted the hindrances in rice exports to different countries and sought the TCP support. They expressed concern that no new rice seeds have been introduced in the country for a long time, a new seeds are needed to enhance the per hectare yield. They also emphasized on more rice research and called for privatization of the country's rice research institutes such as Kala Shah Kaku and Dokri Rice Research Institutes to ensure better research on rice.

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  Italian NGOs Volunteer to Support Rice Needs of Poor Countries with "We Laughed For a Serious Thing" Campaign

Apr 28, 2016

Italian non-governmental organizations (NGOs) CISV,  ProgettoMondo Mlal and Liva will take up a campaign called "We Laughed For a Serious Thing" to support poorer countries' rice exports without impacting the local Italian rice supplies, according to local sources. The campaign name has been coined from the word "riso," which means rice in Italian. It also means "laughed".

The campaign will take place in Piedmont and in the rest of Italy on May 14 and 15. More that 200 volunteers will promote the campaign in fifty of the main squares, markets, churches, shopping centers and schools. As part of the campaign, they will one kilogram of quality Italian rice, of Roma variety, produced by farmers belonging to Union Coldiretti, against a minimum bid of 5 euro per box (around $5.6). They will gather rice from the small farmers, transfer the returns to the farmers and rice to poor countries, under the campaign.

The NGOs CISV and ProgettoMondo Mlal will donate the proceeds to the people of Burkina Faso; and the NGO Lvia will donate to the people of Guinea Bissau.

The initiative is promoted by Focsiv - Federation International Christian bodies volunteer service,  Mission Foundation Campaign of the CEI (the National Episcopal Conference), Coldiretti and the Ministry of Agriculture, Food and Forestry.

The National President of Coldiretti said: "We have a duty to promote a more sustainable development model by eliminating the distorting factors that weigh on the food chain to ensure everyone's right to food, respect the environment and to give concrete responses to climate change. The Italian model of family farming, the center of the Country, is a challenge in which to invest and export".

"Joining an alliance with the north and south, through what is one of the first activities undertaken by humans, agriculture is an extraordinary idea," added the Deputy Minister of Agriculture.

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  AfricaRice to Set Up Rice Training Center in Senegal

Apr 28, 2016

The African Rice Center (AfricaRice) will open a training center dedicated to rice sector on May 7, 2016, in the city of Saint Louis, Senegal, according to reussirbusiness.com.

The training center will help for the improvement of whole rice value chain in the country. "In this center, we will train young people and operators to facilitate the transfer of technology and development of the industry," according to a statement by AfricaRice.

AfricaRice was created in 1971 by 11 African countries - Mauritania, Gabon, Senegal, Nigeria, Cameroon, Egypt, Madagascar, Uganda and the Democratic Republic of Congo - with an aim to improve livelihoods in Africa through research and international collaborations. The center supports the member countries in improving the rice processing and marketing sectors through providing the necessary training for farmers and other stakeholders.  

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  Oryza U.S. Rough Rice Recap - Bids Fall as Export Sales Numbers Disappoint

Apr 28, 2016

The U.S. cash market was slightly weaker again today as bids continue to retreat with the futures market while most offers remain firm near $11.11 per cwt fob farm (about $245 per ton).  

Analysts note that this week’s export sales were anemic for long grain rice which accounted for less than a third of this week’s totals. Many market participants blame the rapid run up in prices following the completion of recent Iraq tender for the weak sales figures.

The USDA reported that cumulative net export sales for the week that ended on April 21 totaled 31,700 tons, a decrease of 74% from the previous week and 57% lower than the prior 4-week average.

Increases were reported for the following destinations:  12,000 tons to Libya, 6,200 tons Jordan, 4,000 tons to unknown destinations, 3,000 tons to Mexico, 2,500 tons to Canada which were partially offset by reductions of 100 tons for Japan.

U.S. rice exporters shipped 28,000 tons, a decrease of 43% from last week and 64% lower than the prior 4-week average.

Increases were reported for the following destinations: 8,100 tons to Mexico, 6,900 tons to Jordan, 2,700 tons to Canada, 2,200 tons to Saudi Arabia, and 1,900 tons to South Korea.

 

  EU Farmers Unions Stress the Need for New CAP to Enhance Their Competitiveness

Apr 28, 2016

Presidents of the farm organisations and Agri-cooperatives from across Europe met in Brussels to warn of an unprecedented crisis hitting the EU agricultural markets and called on the EU for immediate solutions to tackle it.

The Committee of European Professional Agricultural Organisations (Copa) President expressed concern that the EU Commission is opening up the EU market to imports from the Latin American Trade bloc Mercosur. He said these imports do not meet the EU’s high environmental and quality standards and they are likely to have a catastrophic impact on the EU agricultural market. He, therefore, noted that the EU farmers want a level playing field and imports to the EU must meet their high production standards. He also said that the EU must also step up action to find new markets and boost promotion measures for their produce.

The General Committee for Agricultural Cooperation in the European Union (Cogeca) President highlighted the importance of getting the food chain working properly again so that farmers get a better return from the market and are not squeezed unfairly. He also noted that the European Investment Bank (EIB) should develop the right financial instruments to help farmers invest in their businesses and improve competitiveness. He assured that Agri-cooperatives would help farmers get a better price for their produce and can assist them on new innovative techniques, but they need the EU support to ensure this. He, therefore, stressed for immediately tackling these issues.

Under these circumstances, they noted that the EU needs a truly common agriculture policy (CAP) that is common in all member states and ensures the farmers' competitiveness. The current CAP has failed to address these issues, according to them. They emphasized that addressing these issues is vital not only to solve hunger and malnutrition but also to maintain attractive rural areas and biodiversity.

Copa & Cogeca are set to hold a workshop to start debating the future of the CAP in May.

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  Vietnam Rice Sellers Lowered Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Apr 28, 2016

Vietnam rice sellers lowered their quotes for 5% broken rice and Jasmine rice by about $5 per ton each to around $365-$375 per ton and $455-$65 per ton respectively today. Other Asia rice sellers kept their quotes unchanged.        

5% Broken Rice

Thailand 5% rice is indicated at around $380 - $390 per ton, about $15 per ton premium on Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $365 - $375 per ton, on par with Pakistan 5% rice shown at around $365 - $375 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $365 - $375 per ton, about $10 per ton premium on Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $335- $345 per ton, about $10 per ton premium on Pakistan 25% rice shown at around $325 - $335 per ton.

Parboiled Rice           

Thailand parboiled rice is indicated at around $390 - $400 per ton. India parboiled rice is indicated at around $340 - $350 per ton, about $65 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 $340 - $350 per ton, on par with Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100% broken rice is shown at around $280 - $290 per ton, about $10 per ton discount to Pakistan broken sortexed rice shown at around $290 - $300 per ton.

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  Major Exporters Oppose South Korea's Rice Import Tariff Levels

Apr 28, 2016

South Korea opened its rice import market in September 2014 and said it would impose a tariff of 513% on rice imports over and above the WTO tariff rate quota (TRQ) of around 409,000 tons from January 2015. However, the rate was opposed by its five major trading partners Australia, Vietnam, China, Thailand and the U.S saying it is too high.

Negotiations between South Korea and the remaining five countries have been on-going on over the appropriateness of the tariff rate. According to the WTO, the tariff rate is to be determined based on the difference between the prices of domestic and foreign rice in 1986 to 1988.

The five countries are claiming that the price used by South Korea to determine the tariff rate was inappropriate, according to Business Korea. They claim that South Korea used the price of imported rice used by China, instead of that of rice it imported, as the international price.

The South Korean government responded to the trading partners' claims that it "used China’s price in the calculation because it did import some rice at that time but the amount was too small and commercially insignificant.” However, the five countries have stated that the price used by China was also inappropriate because at that time, China was not a market economy and the Chinese government would have intervened in the determination of the price.

Under the WTO quotas, South Korea was obligated to import 4% of its annual rice consumption for ten years in 1993. The agreement was extended for another ten years in 2004 obligating the country to import 7.96% of annual rice consumption. With the annual consumption declining, South Korea is planning to limit rice imports to control food supplies in the country. Under current import quota system, South Korea cannot limit imports as it is under obligation to import at least 400,000 per year tons of rice as per WTO rules. If it decides to continue with the import quotas, it has to curtail its own domestic production, which may be not so advisable to the economy and farmers.

  Tanzania Bans Rice Imports, Suspends Import Permits Amid Increased Local Production

Apr 28, 2016

The government of Tanzania has reportedly banned rice imports and suspended all permits for importation of rice into the country amid increased local production, according to dailynews.co.tz citing the Prime Minister.

The Prime Minister has reportedly ordered security officials to tighten security in border points and along coastline to curb smuggling and unofficial imports of rice.

He told the National Assembly that the decision would help raise local rice prices, raise incomes of local farmers as well as improve their living standards. He also informed the Assembly that the rice production in the 2014-15 financial year reached around 1.94 million tons against the targeted 926,096 tons.

Tanzania is the largest rice producer in East Africa and according to the government data, the country's annual rice production almost doubled between 2001 and 2012 due to expanded cultivation.

USDA estimates Tanzania to produce around 1.75 million tons of rice, basis milled (around 2.652 million tons, basis paddy), and import around 200,000 tons in MY 2015-16 (June 2015 - May 2016). Tanzania is expected to export around 40,000 tons in MY 2015-16.