Thursday, April 07, 2016

6th April,2016 daily exclusive oryza rice e-newsletter by riceplus magazine


Wholesale Basmati Rice Prices in India Continue to Rise on Increased Buying for Stockpiling

Apr 05, 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 April 5, 2016, prices of Pusa 1121 increased to around Rs.4,300 - 5,300 per quintal (around $651 - $802 per ton) from previous levels of around Rs.4,250 - 5,200 per quintal (around $637 - $779 per ton).
Prices of common basmati increased to around Rs.5,600 - 5,700 per quintal (around $848 - $863 per ton) from previous levels of around Rs.5,500 - 5,600 per quintal (around $824 - $839 per ton).
"Stockists buying against restricted supplies from producing belts led to the rise in rice basmati prices," traders were quoted.

Philippines May Import Another 500,000 Tons of Rice This Year, Says NFA Administrator

Apr 05, 2016

The government of the Philippines may import another 500,000 tons of rice this year over and above the 750,000 tons imported during the last six months, as part of its efforts to mitigate the impact of El Nino-induced drought on food supply, reports Manila Bulletin citing Reuters.
The National Food Authority (NFA) Administrator told reporters that the President has given the NFA a “standby authority” to import up to half a million tons for this year’s requirements. He note that the NFA can buy rice under a government-to-government (G2G) deal. The Philippines currently has import deals with Vietnam, Thailand and Cambodia.
The NFA Council will reportedly decide on the timing of the additional purchases, he said. The official noted that the imports will not arrive during the harvest season.
Separately, the Economic Planning Secretary noted that the government needs to monitor rice supply and imports to avoid price volatility, according to Bloomberg. “Although El Nino has entered its weakening stage, the risk of higher food prices remains given the onset of the summer season,” he was quoted.
The Philippine Statistics Authority (PSA) estimates the Philippines 2016 first half paddy rice production at around 8.2 million tons, down about 1.5% from around 8.32 million tons in 2015, due to on-going dry weather conditions.
The Philippines Department of Agriculture (DA) estimates that around 131,649 tons of rice worth 5.33 billion pesos (around $114.2 million) has been lost since February 2015. Total crop losses amount to around P 10 billion (around $217 million) between February 2015 and April 2, 2016, accordign to the DA Under Secretary. The government has put in place a program to address the impact of El Nino on agriculture. It had established a P 19 billion (around $409 million) El Nino mitigation fund which will be used to improve irrigation systems and to support the food-for-work program in drought-affected areas.

Pakistan, Iran Agree to Sign Free Trade Agreement, Says Government Official

Apr 05, 2016

The governments of Pakistan and Iran have agreed to prepare a ground to sign a free trade agreement (FTA), which would boost bilateral trade between the two countries, Daily Times quoted the Pakistan Industrial and Traders Associations Front (PIAF) Chairman.
He told reporters that both the countries would remove non-tariff barriers in bilateral trade under the FTA. He added that they mutually agreed to work on issuing long-term multiple visas to businessmen and increasing direct air flights to boost the prospects of trade.
The development is particularly a good news to the basmati rice exporters who have been urging the government to sign a FTA with Iran, which is the largest importer of basmati rice. Following sanctions by the western countries, most of the Iranian demand for basmati rice shifted to India. The FTA is likely to help Pakistan regain its share in the Iranian market.
The PIAF Vice-Chairman noted that the latest development along with the re-continuation of banking system with Iran would be beneficial to Pakistan exports.

South Korea Purchases 69,444 Tons of Rice Under 2016 TRQ Plan, Says USDA Post

Apr 05, 2016
South Korea will purchase 408,700 MT of rice (milled basis) under the 2016 tariff rate quota (TRQ) purchasing plan, according to the USDA Post. As of March 30, 2016, Korea has bought 69,444 tons of brown rice for processing purposes or 17% of the total 2016 TRQ, consisting of 42,222 tons of medium-grain brown rice (38,000 tons on milled basis) from the U.S., 5,000 tons of broken milled rice from India and 22,222 tons of Chinese short grain brown rice (20,000 tons on milled basis), respectively.
The USDA post forecasts South Korea's MY 2015-16 (November 2015-October 2016) at around 470,000 tons, slightly up from last year's 465,000 tons and unchanged from USDA's official estimates. The Post, however, estimates that some portion of the 2016 TRQ (tariff rate quota) will roll over into next year.
In MY 2014-15, Korea’s rice imports were 464,892 tons, consisting of 217,855 tons imported under the 2014 minimum market access (MMA) quota and 247,037 tons imported under 2015 TRQ, respectively, according to the Post. In the calendar year 2015, U.S. exports to South Korea amounted to 142,806 tons, including 34,114 tons imported under 2014 MMA quota and 108,682 tons imported under 2015 TRQ, respectively.
The Post estimates Korea's MY 2015-16 milled rice production at around 4.327 million tons, up from 4.24 million tons last year and unchanged from USDA's official estimates. It forecasts 2016-17 production to decline to 4 million tons due to a decline in acreage.
Since the per capita rice consumption has been declining significantly over the past few years, the government has decided to seek a balance between rice supply and demand by 2018 through a gradual reduction in area and promotional activities to expand consumption.
In its previous report, the Post reports that the Ministry of Agriculture, Food and Rural Affairs (MAFRA) recently released its plan to reduce arable land for rice cultivation to 711,000 hectares by 2018, significantly smaller than the 749,000 hectares of paddies that would be reached without any action taken. In line with the rice reduction scheme, the government is also planning to introduce the Production Adjustment Program, under which rice farmers will be encouraged to cultivate other crops in their paddy lands, up to 30,000 hectares across the nation in CY 2017.

Private Indian Weather Agency Forecasts Above Normal, Well Distributed Rainfall in 2016

Apr 05, 2016

A long-range weather forecast by a private Indian climate management company predicts that monsoon this year may be 5 - 10% above normal and well-distributed across the country, after two consecutive years of drought, according to the Hindu Business Line.
Based on the dynamic climate model CFSV2 used by the  US national weather agency National Oceanic and Atmospheric Administration (NOAA), the agency noted that some areas in the North-East may receive lower-than-normal rainfall.
“We will be coming up with our monsoon forecast every 15 days. While it is possible that the forecast based on data collected in April will be different from that in March, I do not expect much variation,” said a Climate scientist and consultant at the agency. He noted that the optimism is due to the absence of significant variation in the data collected in March.
The agency noted that during mid-March 2016, the tropical sea surface temperature in the Pacific Ocean was weakening, but was still at a stronger level. However, most of the prediction models indicate that the El Nino conditions would weaken in the coming months, returning to normal by late spring or early summer of 2016. They are also predicting chances of La Nina development by autumn

Oryza U.S. Rough Rice Recap - Prices Hold Steady as IGB Issues New Tender

Apr 06, 2016

The U.S. cash market held steady today after the Iraqi Grain Board issued another anticipated white rice tender for a minimum of 30,000 tons from Argentinian, Uruguayan, or U.S origin.
According to the IGB, offers need to be submitted by April 10 and must remain valid until April 24.
Analysts note that many are hopeful that Iraq will buy more than the 30,000 MT that they tendered for as this would increase the likelihood that the U.S will get a portion of the business which would be a much needed shot in the arm for the industry.
However, if the IGB fails to award any U.S. origin, U.S. prices will likely continue to fall.

Malaysia to Introduce Crop Insurance for Paddy Farmers

Apr 05, 2016

The government of Malaysia is planning to introduce crop insurance for paddy farmers to protect them from risks related to climate change such as drought, diseases and floods, according to the Star Online.
The Agriculture and Agro-based Industry Minister noted that the government would first introduce the crop insurance only to paddy farmers. Later, it will extend the insurance coverage to other agriculture activities such as livestock, agro-food commodities such as fruits and vegetables as well as the fisheries sector, he said.
The Minister noted that the insurance would make the agriculture sector more attractive to investors and protect farmers from risks of any unfortunate eventualities.
He stated that the self-sufficiency of rice is only 70% in Malaysia. He added that: "Ministry had identified strategies to increase export and control imports such as intensifying production and efficiency, enhancing the competitiveness of Malaysian products and developing import substitution, which included changing Malaysian lifestyles to create more demand for local products."
According to the USDA, Malaysia produces about 64% of rice needed for annual consumption of about 2.8 million tons and imports about one million tons of rice annually. Thailand accounts for about 80% to 90% of them. The USDA estimates Malaysia to produce about 1.8 million tons of milled rice and import about 1.02 million tons of rice in MY 2015-16 (January - December 2016) to meet an annual consumption demand of around 2.82 million tons.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Go Nowhere as Market Weighs U.S. Chances at Recently Announced Iraqi Tender

Apr 06, 2016

Chicago rough rice futures for May delivery settled 1 cent were cwt (about $0.22 per ton) lower at $9.790 per cwt (about $216 per ton). The other grains finished the day with mixed results; Soybeans closed about 1% lower at $9.0475 per bushel; wheat finished about 0.2% lower at $4.7400 per bushel, and corn finished the day about 0.6% higher at $3.5675 per bushel.
U.S. stocks traded lower Tuesday, following declines in overseas developed markets, despite better domestic data. Outside of overnight declines in European and Japanese stock indexes on soft data, issues weighing on U.S. stocks included concerns about the coming earnings season, the Treasury's announcement of fresh moves to limit inversions, and low oil prices. Trade in oil was choppy, with U.S. crude oil futures struggling for gains as of 1:37 p.m. ET. WTI earlier hit its lowest since March 4. European stocks closed sharply lower, with the STOXX Europe 600 off 1.9% and the German DAX 2.6% lower. The Nikkei 225 fell 2.4% and the Hang Seng closed more than 1.5% lower. The Shanghai composite closed up nearly 1.5%.In other economic news, the U.S. trade deficit widened more than expected in February, increasing 2.6% to $47.1 billion, Reuters said. January's trade deficit was revised slightly up to $45.9 billion from the previously reported $45.7 billion. In afternoon trade, the Dow Jones industrial average declined 96 points, or 0.55%, to 17,640. The S&P 500 traded down 17 points, or 0.86%, to 2,048, with utilities leading all 10 sectors lower. The Nasdaq composite declined 38 points, or 0.78%, to 4,853. Gold is seen trading about 0.9% higher, crude oil is seen trading about 0.3% lower, and the U.S. dollar is seen trading about 0.1% higher at about  1:00pm Chicago time.
Monday, there were 1,010 contracts traded, down from 2,293 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday decreased by 220 contracts to 13,061. 

Thailand Rice Sellers Increase Some of Their Quotes Today; Vietnam, India Rice Sellers Lower Some of Their Today

Apr 05, 2016

Thailand rice sellers increased their quotes for 5% broken rice by about $5 per ton to around $370-$380 per ton today. Vietnam rice sellers lowered their quotes for 100% broken rice by about $5 per ton to around $340-$350 per ton respectively.  India rice sellers lowered their quotes for parboiled rice by about $10 per ton to around $345-$355 per ton. Pakistan rice sellers kept their quotes unchanged today.        
5% Broken Rice
Thailand 5% rice is indicated at around $370 - $380 per ton, on par with Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $370 - $380 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $340 - $350 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- $65 per ton. India 25% rice is indicated at around $335- $345 per ton, about $25 per ton premium on Pakistan 25% rice shown at around $310 - $320 per ton.
Parboiled Rice           
Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is indicated at around $345 - $355 per ton, about $60 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 $10 per ton discount to Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100% broken rice is shown at around $270 - $280 per ton, about $15 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Rice Growers Need Proper Guidance to Earn Carbon Credits, Say Experts

Apr 05, 2016

Recently, the California Air Resources Board has reportedly allowed rice growers to earn carbon credits under the Cap-and-Trade program, from companies that need to offset their greenhouse gas (GHG) emissions, for mitigating the release of GHGs into the atmosphere.
The Cap-and-Trade program keeps the companies from being subjected to regulatory punishment for excessive greenhouse gas pollution.
“In California, growers can receive credit through practices such as dry seeding and early drainage of fields in preparation for harvest. These growing practices allow for continued use of flooded fields as winter bird habitat, but reduce the amount of rice straw left to decompose in the water (decomposition produces gases),” says the California Environmental Protection Agency Air Resources Board.
Rice growers receive a credit for each ton of carbon dioxide not released into the atmosphere, and the verified credits can be sold to companies regulated by the Cap-and-Trade program.
An official from the USA Rice noted that, however, before selling credits to companies, they should be verified by a third party. The whole process turns out to be costly for rice growers, he says. 

AG Professional reports that helping farmers implement the necessary practices for the carbon credit program is necessary. Some experts suggested that crop consultants and agriculture retailers can assist farmers in participating in the program.

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