Thursday, February 11, 2016

10th february 2016 daily exclusive oryza rice e-newsletter by riceplus magazine

Brazil Paddy Rice Index Declines about 1% From Previous Week
Feb 09, 2016

The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 41.95 real per 50 kilograms as of February 09, 2016, down about 1% from around 42.39 real per 50 kilograms recorded on January 28, 2016.
In terms of USD, the index reached around $214.91 per ton on February 09, 2016, up about 1.4% from around $212 per ton recorded a week ago.
Month-on-month, the index has increased about 2.4% from around 40.98 real per 50 kilograms recorded month ago. In terms of USD, the index increased about 5.6% during the month.
Government of Thailand Plans Water Resource Management Based on Supply, Demand Conditions
Feb 09, 2016

The Prime Minister of Thailand told in his national address last week that the government is planning a new water resource management system based on the current water demand and supply conditions, as well as crop planning, according to local sources.
He highlighted the need for managing water resources effectively to ensure uninterrupted agricultural production even in case of dry conditions
The Prime Mister stressed the importance of an agricultural zoning system which aims at planting of crops based on water availability in a particular area/region. He noted that more water intensive crops would be grown in highly irrigated areas and farmers in other areas should shift to loss water intensive crops. He assured that government officials would support farmers in this transition.
He also noted that the government will arrange  supplementary occupations for farmers, after they reduce the farming of major crops in line with available water.
Recently, the government has come up with a "full-cycle rice" plan, which aims adjust rice production with the demand. He noted that a committee comprising of representatives from the Ministry of Agriculture and Cooperatives, the Ministry of Interior, the Ministry of Commerce, and private organizations, such as the Thai Farmers Association, the Thai Rice Mills Association (TRMA), and the Thai Rice Exporters Association (TREA) is working on the rice plan.
Brazil Rice Stocks Decline About 4% m/m to 110,388 Tons in January 2016
Feb 09, 2016

Brazil rice stocks stood at around 110,388 tons in January 2016, down about 4% from around 115,126 tons in December 2015 and down over 50% from around 240,544 tons in January 2015, according to the country's national grain supplying agency Conab.
According to Conab, rice stocks with the Selling Option Contract of Agricultural Products (OPCAO) stood at around 60,802 tons, down about 7% from around 65,540 tons in December 2015 and down about 56% from around 137,089 tons in January 2015.
Rice stocks with the Federal Government Acquisition (AGF) stood at around 49,586 tons, unchanged from December 2015 and down about 52% from around 102,519 tons in January 2015.
Rice stocks with farmers (Agricultural Familiar) were nil and unchanged from December 2015 and down from around 936 tons in January 2015.
Wholesale Basmati Rice Prices in India Fall on Sluggish Demand from Retailers
Feb 09, 2016

Wholesale basmati rice prices in the national capital have declined today due to a slackened demand from retailers against adequate stocks, according to the Press Trust of India (PTI).
On February 9, 2016, prices of Pusa 1121 declined to around Rs.3,700 - 4,600 per quintal (around $546 - $678 per ton) from around Rs.3,750 - 4,650 per quintal (around $555 - $688 per ton) on February 5, 2016.
Prices of common basmati remained stable at  previous levels of around Rs.4,900 - 5,000 per quintal (around $725 - $740 per ton).
"Sufficient stocks against sluggish demand from retailers kept pressure on the rice basmati prices,"  traders were quoted as saying.
EU Removes Duties on 80,000 Tons of Rice Imports from Vietnam Annually Under EU-Vietnam FTA
Feb 09, 2016

The European Union (EU) - Vietnam Free Trade Agreement (FTA) has been formally released in January 2016. The whole text will be in force after a legal verification as well as ratification by the Council of the European Union and the European Parliament.
According to the Agreement text, the EU will completely remove duties on about 80,000 tons of rice imports annually from Vietnam, including 20,000 tons of husked rice imports, 30,000 tons of milled rice and 30,000 tons of aromatic rice imports. However, for other rice products, it will gradually remove tariffs over the next five years.
The following types of rice are qualified for zero percent duties - Jasmine 85, ST 5, ST 20, Nang Hoa 9 (Nàng Hoa 9), VD 20, RVT, OM 4900, OM 5451, Tai nguyen Cho Dao (Tài nguyên Chợ Đào).
USDA Lowers Forecasts for U.S. 2015-16 All Rice Average Farm Prices
Feb 09, 2016

In its February 2016 World Agricultural Demand and Supply Estimates (WASDE) report, the USDA lowered the U.S. all rice paddy average farm prices to around $242.51-$255.73 per ton from its last month's forecast of $279.98 - $302.03 per ton, based on reported prices to date and expectations regarding prices for the remainder of the market year.
The USDA lowered the U.S. long-grain rice paddy average farm prices to around $275.57 - $293.21 per ton from its last month's forecast of $242.51 - $255.73 per ton. It lowered the U.S. combined medium- and short-grain rice paddy average farm prices to around $354.94 - $372.58 per ton from its last month's forecast of $365.96 - $388 per ton.
The USDA, however kept the U.S. all rice production, supply and use projections unchanged from the previous month.
Oryza U.S. Rough Rice Recap – Prices Dip After USDA WASDE Report Leaves U.S. Balance Sheet Unchanged
Feb 10, 2016

The U.S. cash market was weaker today after the USDA WASDE report left the U.S. balance sheet completely unchanged from last month while decreasing the average farm price from $11.00-$12.00 per cwt to $11.00-$11.60 per cwt.
Analyst note that the one bright spot in today’s report for U.S. prices was the fact that the USDA cut global rice supplies by 1.0 million tons.
This reduction was on account of a 0.5 million ton decline in production in Thailand, a 0.4 million tons cut in beginning stocks primarily due to Vietnam, and a 0.1 million tons cut in production in Brazil, Nicaragua and other Central American Countries to reflect drought conditions that have been blamed on El Nino.
Analysts note that any cut in to global production is welcome news to producers in the U.S. however cuts in the West Hemisphere carry even more weight.
Myanmar Rice Federation Urges Government to Formulate Appropriate Rice Policy
Feb 09, 2016

Members of the Myanmar Rice Federation (MRF) have urged the upcoming government, which will take power in March this year, to formulate an appropriate rice policy for the country, according to local Myanmar Times.
Speaking at the federation’s annual meeting on February 5, 2016, the MRF President noted that they have been urging the government to legislate rice policy since the MRF was founded in 2009. He expressed optimism that the new government to pass policies needed to develop the sector.
He also urged the new government to allocate sufficient funds to develop the rice infrastructure. "Myanmar was once considered the 'rice bowl' of Asia and has the potential to become a major exporter, but this will require investment," he said.
Though next year's budget he been passed, he requested the government to revise the agriculture budget to include funds for the rice sector development. “To draw up a rice policy, we need to collect data on plantation area, local consumption and exports. For now we are still working with estimates,” he noted.
"If the government can pass new laws and procedures to help develop the sector, it would be very helpful," added the MRF Vice-President.
They reminded that the National League for Democracy, which will form the government in March has prioritized agriculture in its election manifesto.
Government of Philippines Targets Sharp Cut in Paddy Rice Production Costs
Feb 09, 2016

The Philippines Department of Agriculture (DA) is targeting to cut the production cost of paddy rice by about 22% to around P 8.50 per kilogram (around $178 per ton) from around P 11 per kilogram (around $231) as part of its efforts to help farmers become more competitive, Business Mirror quoted the Agriculture Secretary.
The Agriculture Secretary noted that the government is planning to implement the plan by expanding its farm-mechanization program and improving farmers' access to finance.
“We need to lower the cost of producing palay [paddy] to P8.50 per kg so local farmers can become more competitive. This needs a lot of work, particularly in the area of farm mechanization,” he was quoted. “Making locally produced rice cheaper will discourage smugglers, as retail prices of Philippine rice would be on a par with rice brought into the country illegally,” he added.
He ensured to support farmers with modern technology and post-harvest facilities needed to boost production. The government would also enhance market access to farmers, he said.

11th february 2016 daily exclusive oryza rice e-newsletter by riceplus magazine

EU Imports 496,804 Tons of Rice in September 1, 2015 - February 02, 2016; Up 18% from Previous Year

Feb 10, 2016
According to the latest data issued by the European Union (EU), rice imports by the EU increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31, 2016).
The EU imported about 496,804 tons of rice during the period September 1, 2015 - February 02, 2016, up about 18% from around 422,639 tons imported during the same period last year.
Japonica rice imports declined about 6% to around 36,092 tons in September 1, 2015 - February 02, 2016 period from around 38,304 tons during the same period last year. Indica rice imports increased about 20% to around 460,712 tons during the said period from around 384,335 tons last year.
The UK remained the largest importer in September 1, 2015 - February 02, 2016 period with around 118,198 tons followed by France (86,807 tons), The Netherlands (57,261 tons), Germany (37,654 tons), Poland (36,136 tons) and Italy (34,041 tons). Other EU countries imported 126,707 tons.
During the week ended February 02, 2016, the EU imported around 19,668 tons of rice, down about 24% from around 26,035 tons imported during the week ended January 26, 2015.
The EU imported around 1.143 million tons of rice in the crop year 2014-15, up about 12.7% from around 1.013 million tons imported in the crop year 2013-14.

Global Rice Quotes
February 10th, 2016
Long grain white rice - high quality
Thailand 100% B grade          380-390           ↔
Vietnam 5% broken    350-360           ↔
India 5% broken         360-370           ↔
Pakistan 5% broken    330-340           ↔
Myanmar 5% broken   415-425           ↔
Cambodia 5% broken             425-435           ↔
U.S. 4% broken           460-470           ↔
Uruguay 5% broken    440-450           ↔
Argentina 5% broken 430-440           ↔
Long grain white rice - low quality
Thailand 25% broken 355-365           ↔
Vietnam 25% broken 340-350           ↔
Pakistan 25% broken 310-320           ↔
Cambodia 25% broken           405-415           ↔
India 25% broken       325-335           ↔
U.S. 15% broken         440-450           ↔
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    520-530           ↔
Uruguay parboiled 5% broken            NQ      ↔
Long grain fragrant rice
Thailand Hommali 92%          690-700           ↔
Vietnam Jasmine         425-435           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             750-760           ↔
Thailand A1 Super      325-335           ↔
Vietnam 100% broken            320-330           ↔
Pakistan 100% broken stxd    280-290           ↔
Cambodia A1 Super   345-355           ↔
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,

Syria Issues Tender to Buy 8,113 Tons of White Long-Grain Rice

Feb 10, 2016

Syria's General Foreign Trade Organization (GFTO) has issued a tender to purchase 8,113 tons of white long-grain rice of third class, according to a notice dated February 8, 2016, on its website.
Rice is for delivery in three tranches between May 15, 2016 to December 15, 2016. The schedule of delivery is as below:

Offers should be submitted to GFTO Secretariat by 3 p.m. Damascus time, February 23, 2016, according to the notice. Tender closes on February 24, and the offers will be valid for 60 days from closing date.

This is the second tender issued by the GFTO this year. The GFTO issued a tender on January 17, 2016 to purchase 8,113 tons of long-grain white rice for delivery between May 1, 2016 to December 15, 2016

Thailand's Parboiled Rice Exports Decline Sharply in 2015, Says USDA Post

Feb 10, 2016
The USDA Post reports that Thailand's 2015 rice exports declined about 11% to around 9.8 million tons from around 11 million tons in 2014 mainly due to a sharp decline in parboiled rice exports.
The Post reports that Thailand exported about 2.2 million tons of parboiled rice in 2015, down about 30% from around 3.14 million tons in 2014. The decline is attributed to a sluggish demand from Nigeria, which the largest importer of Thai Parboiled rice. Thai parboiled rice exports to Nigeria declined about 50% to around 600,000 tons in 2015. The Post reports that 2015 white rice exports also declined about 3% to around 5.6 million tons.
The Post forecasts Thailand's 2016 rice exports to further decline to around 8 million tons.
The USDA Post forecasts Thailand's MY 2015-16 (January - December 2016) paddy rice production at around 24 million tons, down from last year's 29.4 million tons and down from USDA's official estimates of around 29.4 million tons due to a sharp reduction in off-season rice acreage and production. The Post forecasts Thai MY 2015-15 off-season rice area at around 900,000 hectares, down about 52% from last year due to limited water resources. It forecasts off-season paddy production to decline to around 3.1 million tons, down about 57% from last year.

The USDA Post reports that Thailand's MY 2014-15 rice consumption declined about 3% to around 10.6 million tons (basis milled), due to lower-than- expected-demand for broken rice in swine feed. Following tight domestic supplies of broken rice in the second half of 2015 due to G2G contracts with China, Indonesia, and the Philippines, led to higher prices of broken rice forcing swine farmers to shift to imported feed wheat, which was 20-30% cheaper than broken rice. It forecasts MY 2015-16 rice consumption at around 11.5 million tons, unchanged from USDA's official estimates. But, it estimates supplies of broken rice to remain tight in the first half of 2016 as well.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Rally as Questions Arise about Thai Production

Feb 11, 2016

Chicago rough rice futures for Mar delivery settled 37 cents per cwt (about $8 per ton) higher at $11.130 per cwt (about $245 per ton). The other grains finished the day mostly lower; Soybeans closed about 0.1% lower at $8.6225 per bushel; wheat finished about 0.8% higher at $4.6125 per bushel, and corn finished the day about 0.2% higher at $3.6025 per bushel.
U.S. stocks traded mostly higher on Wednesday as investors digested remarks from Fed Chair Janet Yellen, as well another choppy trading in oil. Yellen delivered her remarks to Congress at 10 a.m. ET, in which she notes that, if the U.S. economy were to disappoint, the Fed would have to reconsider its rate hike path. Yellen answered questions after delivering her remarks, saying "I don't think it will be necessary to cut rates but like I said monetary policy is not on a preset course." The Dow Jones industrial average traded 44 points higher, or 0.29%. The S&P 500 rose 19 points, or 1.03%, to trade at 1,871, with health care leading eight sectors higher and utilities and telecommunications lagging. The Nasdaq gained 77 points, or 1.8%, to 4,345. Gold is seen trading about 0.5% lower, crude oil is seen trading about 1.6% lower, and the U.S. dollar is seen trading slightly higher at about  1:15pm Chicago time.
Tuesday, there were 1,249 contracts traded, up from 716 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday increased by 5 contracts to 13,196. 

Asia Rice Quotes Unchanged Today

Feb 10, 2016

Vietnam rice sellers are out today on account of a holiday. Other Asia rice sellers kept their quotes unchanged today.                                
5% Broken Rice
Thailand 5% rice is indicated at around $370 - $380 per ton, about $20 per ton premium on Vietnam 5% rice last shown at around $350 - $360 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $330 - $340 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $355 - $365 per ton, about $15 per ton premium on Vietnam 25% rice last shown at around $340- $350 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $15 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 $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 premium on Vietnam 100% broken rice last shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at around $280 - $290 per ton.

Thai Committee Finds Former Premier Guilty in Rice Pledging Case

Feb 10, 2016

A Finance Ministry fact-finding committee, chaired by a Deputy Permanent Secretary at the Prime Minister's Office, found the former Prime Minister Yingluck Shinawatra guilty of dereliction of duty in the rice pledging case, according to Bangkok Post.
The committee was set up to study the role of the former PM in overseeing and monitoring her government’s rice-pledging scheme as well as to decide the amount of compensation to be sought from her, if found guilty.
The committee reportedly found that the former PM was negligent in failing to stop corruption and losses in the rice scheme. However, the committee has not revealed the amount of compensation that will be sought from Ms.Yingluck. The Chair of the committee noted that the report has been sent to the Prime Minister and the Deputy Prime Minister, and once approved by them, it will be sent to another committee chaired by the Comptroller-General to finalize the compensation that the former PM and other offenders should pay.
He also noted that the committee had used a fair approach to arrive at the actual loss incurred from the scheme, and the approach is reportedly different from the one used by the Finance Ministry sub-committee earlier. The approach excluded all the benefits given to farmers, including interest rate on loans, as well as costs incurred on state agencies for carrying out the scheme.
Another panel is investigating the role of the former Commerce Minister and 20 other individuals fake G2G rice sale deals. It is expected to submit a report on compensation to sought from them.
After the compensation order is released, the accused can challenge the order in an Administrative Court within 30 days.

Impact of AEC on Cambodian Rice Exports Cannot be Seen Immediately, Says Agricultural Official

Feb 10, 2016

Experts have noted that effect of the ASEAN Economic Community (AEC), which came into effect at the end of last year, on rice exports cannot be immediately seen, Khmer Times quoted the Deputy Director of the General Department of Agriculture.
“Since the AEC has come into effect for a month, we see nothing changing in terms of export of agricultural products. We continue to wait and see,”  he said.
The official told reporters that the AEC may not be completely helpful for Cambodian rice exporters to boost exports to the ASEAN Nations. He noted that the AEC calls for removal of tariffs among the member nations. However, he said, the member countries may impose other non-tariff barriers, such as hygiene/quality standards, to control imports.
He, therefore, called on the exporters to focus on increasing productivity as well as maintaining quality and hygiene standards of all goods, including rice.
Speaking about the country's rice exports to the ASEAN member countries in 2016, he said Malaysia topped the list with 2,736 tons followed by Brunei with 1,974 tons and Singapore with 418 tons. He noted that Brunei imported Cambodian rice for the first time. He, however, said that the development may not be linked to the AEC, but due to the government's efforts as well as political stability. He also noted that the government is keen on exporting rice to the Philippines but Cambodia has to compete with cheaper rice from Thailand and Vietnam.
The official noted that increasing demand for rice in the ASEAN countries would certainly be a positive factor for the exporters in the long run.
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam and the Philippines are the members of the ASEAN.

USDA Post Forecasts Argentina MY 2015-16 Paddy Rice Production to Decline 17% to 1.262 Million Tons on Low Acreage

Feb 10, 2016
The USDA Post forecasts Argentina's MY 2015-16 (December 2015 - November 2016) paddy rice production at around 1.262 million tons, down about 17% from an estimated 1.523 million tons in MY 2014-15, and down from the USDA's official estimates of around 1.431 million tons.
The Post attributes the decline to a fall in the paddy rice acreage following heavy rains in the northern part of the country. The Post forecasts the country's MY 2015-16 paddy rice acreage at around 202,000 hectares, down from last year's 228,000 hectares and down from USDA's official estimates of around 215,000 hectares.   
The Post forecasts Argentina's 2016 rice exports to increase to around 520,000 tons from an estimated 400,000 tons in 2015.
The USDA Post reports that in December 2015, new government had eliminated export taxes on most of the agricultural commodities including rice. Prior to elimination of export duties, rice attracted an export tax of 5-10%. The government also removed currency controls and eliminated the multiple exchange rate system. "These policy changes will have a significant impact domestically and in international markets as these changes will make Argentine agricultural commodities more competitive and encourage an increase in export sales in the next few months," said the Post in its earlier report

Fourteen New Hybrid Rice Varieties to Help Boost Pakistan Rice Production

Feb 10, 2016

The Variety Evaluation Committee (VEC) under the Pakistan Agriculture Research Council (PARC) has selected 14 new rice hybrids for commercial cultivation in the country, according to local sources.
The VEC has reportedly selected the 14 new hybrid rice varieties based on their high-yielding capacity, good grain quality and resistance to pests. The new varieties are said to have yielded about 106 maunds per acre (around 10.6 tons per hectare). It has advised the National Seed Council to push for their commercial cultivation.
About sixteen private seed companies have reportedly presented about 29 rice hybrids to the VEC. But, the VEC had selected only 14 of them. It had rejected the remaining 15 varieties due to poor paddy yield, BLB disease susceptibility and poor grain quality.
The National Coordinator (Cereal Systems) of the PARC complimented the private seed companies for their initiation in rice research and development and for coordinating with the government to help boost rice production in the country.
Pakistan rice exporters have been urging the government to encourage more research in the rice sector to boost production and exports.

Oryza U.S. Rough Rice Recap - Prices Jump on Iraqi Tender Rumors

Feb 11, 2016

The U.S. cash market was substantially firmer today with offers from farmers and resellers increasing with the futures market a day after the USDA WASDE report left the U.S. balance sheet unchanged while decreasing their global supply forecast by 1 million tons.
Today’s price strength could likely be attributed to unsubstantiated rumors that Iraq will issue a tender shortly for 90,000 tons of milled rice with the U.S. being the only origin included in the tender.
Analysts note that if this is the case then it would be a much welcome shot in the arm for U.S. producers and mills.