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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