Wednesday, February 24, 2016

24th February 2016 daily exclusive oryza rice enewsletter by riceplus magazine

Pakistan May Soon Resume Banking Ties with Iran, Says SBP Official

Feb 23, 2016

The State Bank of Pakistan (SBP) may soon allow local banks to resume ties with their Iranian counterparts following the government's recent lifting of sanctions on the neighboring nation, local sources quoted the Chief spokesman at the SBP.He told reporters that the Central Bank will shortly issue instructions to banks regarding the decision. Thereafter, "all permissible transactions with Iran will be possible," he said. He also noted that the Pakistan's decision will also be intimated to the Iranian Central Bank.Rice exporters and other business community stakeholders have been urging the government to resume official banking channels with Iran to streamline trade but the government has not obliged due to the sanctions on Iran. In February this year, the government lifted sanctions on Iran following the UN Security Council Resolution 2231.

During sanctions, the bilateral trade between Iran and Pakistan fell to $431.76 million in 2010-11 from around $1.32 billion in 2008-09, according to the local sources."The lifting of sanctions will enable the two countries to fully reinvigorate various bilateral and multilateral arrangements for promoting investments and cooperation," a finance ministry’s statement said. The resumption of banking ties will reportedly allow banks to set up an appropriate payment mechanism for enhancing trade ties between the two countries.Iran was a major importer of Pakistan basmati rice prior to the sanctions. “However, after tough economic sanctions, Pakistan lost this market to India,” said an official at Trade Development Authority of Pakistan (TDAP).

GI Recognition to Indian Basmati Rice Will Stabilize Prices and Boost Exports, Say Experts

Feb 23, 2016

Experts are expecting that the geographical indications (GI) recognition to Indian basmati rice will help to stabilize prices, which have been falling since the beginning of this financial year (April - March) due to excess supplies, as well as boost exports, according Business Standard.
Basmati rice supplies have increased significantly this year due to an increase in acreage. Basmati rice farmers earned between Rs.3,000 to Rs.3,500 per quintal (around $438 - $511 per ton) for some basmati rice varieties in kharif 2014-15. Expecting same kind of returns, they increased the basmati acreage in 2015-16 to over 500,000 hectares by converting some of the non-basmati rice acreage. However, sudden fall in prices have undermined the interests of the traditional farmers.

Even the export prices for basmati fell from around $1,295 per ton in FY 2013-14 to around $1,220 in FY 2014-15 and to around $885 per ton in FY 2015-16, according to the Agriculture and Processed Food Exports Development Authority (APEDA).The APEDA officials noted that such situation can be averted going further as the GI tag for basmati grown in Indo-Gangetic plains would protect from varieties grown in other areas being claimed as "basmati." Rice grown in Punjab, Haryana, Himachal Pradesh and parts of Uttar Pradesh, Uttarakhand, Jammu and Kashmir and Delhi is certified as "basmati" under the GI tag.

They also noted that they are planning to apply for GI recognition in the EU, U.S. and Gulf to protect the interests of the traditional basmati rice growers


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

Feb 23, 2016
Wholesale basmati rice prices in the national capital have increased today owing to an increase in buying for stockpiling against restricted supplies from producers, according to the Press Trust of India (PTI).
On February 23, 2016, prices of Pusa 1121 increased to around Rs.4,100 - 5,000 per quintal (around $598 - $730 per ton) from previous levels of around 4,050 - 4,950 per quintal (around $592 - $724 per ton).
Prices of common basmati remained stable at previous levels of around Rs.5,300 - 5,400 per quintal (around $773 - $789 per ton).
"Some buying by stockists against restricted supplies from producing regions mainly led to the rise in rice basmati prices," traders were quoted as saying.

Global Rice Quotes
February 23rd, 2016
Long grain white rice - high quality
Thailand 100% B grade          365-375           ↔
Vietnam 5% broken    350-360           ↔
India 5% broken         360-370           ↔
Pakistan 5% broken    340-350           ↔
Myanmar 5% broken   420-430           ↑
Cambodia 5% broken             410-420           ↔
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 345-355           ↔
Vietnam 25% broken 340-350           ↔
Pakistan 25% broken 305-315           ↔
Cambodia 25% broken           395-405           ↔
India 25% broken       325-335           ↔
U.S. 15% broken (sacked)      440-450           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            365-375           ↔
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%          680-690           ↔
Vietnam Jasmine         415-425           ↑
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             760-770           ↔
Thailand A1 Super      325-335           ↔
Vietnam 100% broken            325-335           ↔
Pakistan 100% broken stxd    285-295           ↔
Cambodia A1 Super   335-345           ↔
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,

Vietnam Trade Ministry Seeks to Expand Rice Export Markets in 2016

Feb 23, 2016

The Ministry of Industry and Trade (MOIT) has urged the trade counsellors and domestic rice exporting companies to reduce their dependence on China and expand into other markets including Europe, Japan, South Korea and the U.S., according to the local sources.In a meeting with the traders and exporters on February 22, 2016, the Ministry discussed various measures to expand export markets for Vietnamese rice in 2016. The Ministry reportedly noted that China was the main export market for Vietnamese rice in 2015, accounting for more half of Vietnam rice exports during the year. However, the Ministry stressed that too much dependence on China would pose a high risk to Vietnam, and highlighted the need for the exporters to diversify their export markets.

But the Ministry noted that these markets use premium rice products and therefor Vietnam ha to focus on high quality rice exports. Currently, premium rice exports account for only 27% of total Vietnam rice exports, according to the Ministry. The Ministry, therefore emphasized the need for developing a national rice brand in addition to adopting newer trade promotion strategies.
The MOIT Deputy Minister noted that the domestic rice exporters still lack information on rice markets, particularly information on new markets, and depend for more support and co-operation from trade counsellors in foreign countries and authorised agencies to help them promote their exports. He noted that the MOIT would work towards renewing trade promotion activities in accordance to specific market needs."In the coming time, the MoIT will increase the dissemination of information on free trade agreements to farmers and rice exporters to help raise their competitiveness and take advantage of such agreements," he said.

In 2015, Vietnam exported about up about 6.568 million tons, up about 4% from about 6.33 million tons of rice exported in 2014. This year, the Ministry is expecting exports to be impacted by extending drought conditions, salt water intrusion and competition from top exporting nations, including Thailand, India and Pakistan

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

Feb 23, 2016

Vietnam rice sellers increased their quotes for Jasmine rice by about $5 per ton  to around $415-$425 per ton today. Other Asia rice sellers kept their quotes unchanged today. 
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, about $5 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $345 - $355 per ton, about $5per ton premium on Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.
Parboiled Rice           
Thailand parboiled rice is indicated at around $365 - $375per 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, on par with Vietnam 100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $25 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Philippines Researchers Adapt LAMP Virus Detection Tool for Rice

Feb 23, 2016
Researchers from the Philippine Rice Research Institute (PhilRice) have adapted the loop-mediated isothermal amplification (LAMP) technique, which has been proven useful in detecting viruses in animals and humans, to detect viruses in rice plants, according to a press release on the government website.
The LAMP technique can be the rice tungro bacilliform virus (RTBV), rice ragged stunt virus (RRSV) and the rice dwarf virus (RDV) in rice plants even before the common symptoms are noticed, according to the lead researcher of the adaptation technique. “Through this application, major rice virus diseases and insect vectors can be diagnosed in a fast, efficient, and accurate method,” he said.
He noted that "the existing rice virus detection tools have difficulties in detecting viruses that are of low titer (strength of a substance’s solution) aside from being arduous and time consuming."
"This early, virus detection tool is useful for pest control officers. The reliable and prompt results it provides can lead to proactive solutions, and hence, prevent viral disease epidemic," he said.

Vietnam Ships 284,450 Tons of Rice from Saigon Port in February 1 - 20, 2016

Feb 23, 2016
Vietnam rice exporters have shipped around 284,450 tons of rice from Saigon port, Reuters quotes industry reports.
Shipments include 167,050 tons to Indonesia, 83,900 tons to the Philippines, 29,000 tons to Cuba and 4,500 tons to East Timor.

Saigon port is the country's largest port located on Saigon river in Ho Chi Minh City.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Continue to Fall as Sharply Lower Crude Pressures U.S. Grain Prices

Feb 24, 2016

Chicago rough rice futures for Mar delivery settled 11 cents per cwt (about $2 per ton) lower at $10.595 per cwt (about $234 per ton). The other grains finished the day sharply lower as well; Soybeans closed about 1.3% lower at $8.7300 per bushel; wheat finished about 1.8% lower at $4.5575 per bushel, and corn finished the day about 1.5% lower at $3.6675 per bushel.
U.S. stocks traded about 1% lower Tuesday, weighed by declines in oil prices and a miss in the consumer confidence index. Stocks extended losses after The Conference Board said its consumer confidence index fell to 92.2 in February, down from a downwardly revised 97.8 in January. Analysts polled by Reuters had expected the index to hold near January levels. U.S. crude oil futures for April delivery settled down $1.52, or 4.55%, at $31.87 a barrel, below Monday's closing price of $33.39 a barrel but a touch above the final price on the March contract of $31.48 a barrel.

The March contract rolled to April after the settle Monday. Saudi Oil Minister Ali al-Naimi said at the CERAWeek energy conference that production cuts won't happen, although producers will hopefully meet in March to negotiate an output freeze. On the data front, the S&P/Case-Shiller 20-city composite home price index showed a 5.7% increase year-over-year in December. U.S. home resales unexpectedly rose in January, reaching a six-month high, in the latest sign that the economy remains on firmer ground despite slowing global growth and tightening financial market conditions, Reuters said. In afternoon trade, the Dow Jones industrial average traded down 170 points, or 1.03%, to 16,437. The S&P 500 traded down 20 points, or 1.06%, to 1,924, with energy leading nine sectors lower and consumer staples the only advancer. The Nasdaq composite declined 53 points, or 1.17%, to 4,517. Gold is seen trading about 1.1% higher, crude oil is seen trading about 4.6% lower, and the U.S. dollar is seen trading about 0.1% higher at about  2:00pm Chicago time.
Monday, there were 3,243 contracts traded, up from 1,699 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 243 contracts to 12,773. 

Brazil Paddy Rice Index Unchanged From Previous Week

Feb 23, 2016
The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 41.91 real per 50 kilograms as of February 19, 2016, unchanged from last week.

In terms of USD, the index reached around $212.5 per ton on February 19, 2016, up around 1% from around $210 per ton recorded a week ago.Month-on-month, the index has increased around 1% from around 41.47 real per 50 kilograms recorded month ago. In terms of USD, the index increased around 5% during the month.