EU Rice Imports from Asian LDCs Increase Sharply
y/y in First Six Months of 2015-16
Mar 07, 2016
The European Union's
(EU) rice imports from the Least Developed Countries (LDCs) of Asia such as
Cambodia and Myanmar under the Everything But Arms (EBA) Agreement have reached
around 185,180 tons in the first six months of the crop year 2015-16 (September
2015 - February 2016), up about 42% from around 130,408 tons imported during
the same period last year, according to data from the European Commission (EC).
The EC data shows that
imports from Cambodia (which account for about 83% of total imports from Asian
LDCs in September 2015 - February 2016) increased about 51% to around 154,020
tons from around 102,184 tons during the same period last year. Meanwhile, rice
imports from Myanmar (which account for about 15% of total imports from Asian LDCs
in the first six months of 2015-16) have increased about 12% to around 28,348
tons from around 25,350 tons during the same period last year.
China Seeks to Stabilize Grain Production, Prices and Reduce Imports by
2020
The
government of China is planning to stabilize total grain, including rice,
production and prices by 2020, and rely less on foreign imports, Daily News
quoted the Agriculture Minister.
Addressing the annual
legislature meeting in Beijing, the Minister noted that the country aims to
improve mechanisms for grains pricing and enhance its stockpiling system. The
government is reportedly expecting the total grains output to exceed 550
million tons in 2016.
Recently, the Chinese
Premier prioritized increasing the agricultural production to ensure food
security in the country. He has urged the local grain producing companies to
take lead in developing genetically modified (GM) crops to boost gain
production.
Meanwhile, analysts
are criticizing the government's grain procurement policy at high prices for
distorting grain markets in the country. The country is said to be facing
severe grain storage problems owing to excessive buying by the government to
maintain prices and protect the local grain markets in the country.
China imported around 287,200
tons of rice in the first month of 2016 (January), about 2.3 times from around
122,400 tons imported during the same period last year, according to data from
China Customs General Administration. The East Asian nation imported about 3.35
million tons of rice in 2015, up about 31% from around 2.56 million tons
imported in 2014.
USDA estimates China
to produce around 145.77 million tons of milled rice in MY 2015-16 (July -
June). It estimates China to import around 4.7 million tons and export around 450,000
tons of rice in 2016.
Government of Laos Aims to Export One Million Tons of Rice in 2016
The government of Laos
is aiming to export one million tons of rice this year, local sources quoted
the Director of the Department of Planning and Cooperation under the Lao
Ministry of Agriculture and Forestry.
In order to achieve
the goal, the government targets a production of about 4.2 million tons of
paddy in the 2015-16 season, according to the official. He reportedly noted
that the target includes 40,000 tons of rice for reserve purposes and 60,000
tons for seeding purposes. The government is also keen on ensuring 2.1 million
tons for domestic consumption during the year.
To boost paddy rice
production, the government is encouraging local farmers to raise the area under
wet rice cultivation to one million hectares and that of upland rice to 100,000
hectares.
The Laos government is
keen on exploring new export markets after the country officially received
order to export about 8,000 tons of rice to China this year.
According to the
Ministry of Agriculture and Forestry, Laos unofficially sells 300,000 to
400,000 tons of paddy rice to neighboring countries through land borders every
year.
The USDA estimates
Laos to produce around 2.778 million tons of paddy rice (around 1.75 million
tons, basis milled) from around 925,000 hectares in MY 2015-16 (January –
December 2016).
UNISAME President Calls for Modernization of Pakistan Rice Sector to Cope
with Growing Competition
The President of the
Union of Small and Medium Enterprises (UNISAME) has urged the government of
Pakistan to modernize the rice farming, milling, processing and marketing to
enable the country's rice sector to meet the global challenges, according to
local sources.
The official had
called for a coordinated effort by the Ministries of Agriculture, Commerce,
Industry, and Science and Technology for the upliftment of the rice sector. He
noted that the rice sector is being neglected despite being the second largest
foreign exchange earner. Dedicated efforts are required from grass root level
to modernization of all the related activities.
The UNISAME President
urged the Small and Medium Enterprises Development Authority (SMEDA) under the
ministry of industries and the Pakistan Council of Scientific and Industrial
Research (PCSIR) under the ministry of science and technology to join hands for
modernization of the rice industry.
He also noted that the
Rice Research Institute under the Agriculture Ministry should invest more in
the development of new varieties to boost production. The Ministry of Commerce
also needs to step up efforts to get geographical indication (GI) recognition
to Pakistan’s basmati rice, he said.
The official also
called the Trade Development Authority of Pakistan (TDAP) and Rice Exporters
Association of Pakistan (REAP) to increase efforts to regain lost market shares
in Iran, Gulf and the Middle East as well as find new markets for Pakistan's
basmati rice.
Government of Philippines Advised to Consider 35% Tariff on Rice Imports
after QRs End Next Year
A Senior Research
Fellow at the state-run Philippine Institute of Development Studies (PIDS) has
advised the government to consider imposing a 35% tariff on rice imports after
the WTO-imposed quantitative restrictions (QRs) on rice imports expire in July
2017, according to local sources.
The researcher noted
that the expiration of QRs would intensify competition among rice importers and
foreign suppliers leading to a fall in domestic prices and affecting the
incomes of local farmers and traders.
He also noted that the
government should simultaneously consider a direct cash transfer program for
farmers to promote competition as well as increase their standard of living. He
stated that government should consider the direct cash transfers over and above
the current support in the form of irrigation investments as well as subsidies
for farm machinery, and farm inputs. "The government should continue to
continue providing these traditional support programs as these have significant
medium term and long term impact but direct payments to farmers would have
immediate impact as it would provide an immediate safety net for local
producers," he said.
The PIDS researcher,
however, noted that the proposal would demand significant resources but is
financially feasible and would directly address the problems faced by farmers
once the protection renegotiated by the government with the WTO ends next year.
QRs apparently allow
the government to import a stated amount of rice at lesser duty and imports
over and above the quota attract higher duties. Last year, the WTO allowed the
Philippines to extend the QRs until 2017. Under the new QR policy, the
Philippines can import 805,200 tons of rice under the minimum access volume
(MAV) of at 35% duty. Imports above the MAV will attract 50% duty.
Global Rice Quotes
March 7th, 2016
Long grain white rice -
high quality
Thailand 100% B grade 370-380 ↑
Vietnam 5% broken 370-380 ↑
India 5% broken 370-380 ↑
Pakistan 5% broken 335-345 ↔
Myanmar 5% broken 420-430 ↔
Cambodia 5% broken 410-420 ↔
U.S. 4% broken 455-465 ↔
Uruguay 5% broken 445-455 ↔
Argentina 5% broken 435-445 ↔
Long grain white rice -
low quality
Thailand 25% broken 350-360 ↔
Vietnam 25% broken 350-360 ↔
Pakistan 25% broken 305-315 ↔
Cambodia 25% broken 395-405 ↔
India 25% broken 330-340 ↔
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 355-365 ↔
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% 660-670 ↔
Vietnam Jasmine 445-455 ↑
India basmati 2% broken NQ ↔
Pakistan basmati 2%
broken NQ ↔
Cambodia Phka Mails 755-765 ↔
Brokens
Thailand A1 Super 325-335 ↔
Vietnam 100% broken 335-345 ↑
Pakistan 100% broken
stxd 285-295 ↔
Cambodia A1 Super 335-345 ↔
India 100% broken stxd 265-275 ↔
Egypt medium grain
brokens NQ ↔
U.S. pet food 280-290 ↔
Brazil half grain NQ ↔
All
prices USD per ton, FOB vessel, oryza.com
Oryza U.S.
Rough Rice Recap - Prices Firm Slightly with Futures; Everyone Waiting on Iraq
Tender Results
Mar 08, 2016
The U.S. cash market
was slightly firmer with offers from resellers increasing with the futures
market while farmer sell interest was nearly non-existent today.
Analysts note that
both buyers and sellers are sitting on the sidelines waiting to see the results
of the latest Iraq tender which is supposed to be announced on March 14.
If the U.S. is able to
secure a cargo or two of this business many market participants expect prices
to stabilize or firm slightly. However, if the U.S. is overlooked prices
will likely continue their downward trajectory.
Vietnam Domestic Paddy, Rice Prices Increase on Higher Export Demand, Says
MARD
Mar 07, 2016
Domestic paddy and
rice prices in Vietnam are increasing due to increased exports to Indonesia and
the Philippines, as well as higher orders from China, local sources quoted the
Ministry of Agriculture and Rural Development (MARD).
Prices are also said
to increase amid concerns of lower production due to severe saltwater intrusion
and serious water shortages in rivers.
Paddy prices in An
Giang and Vinh Long in the Mekong Delta region increased between 50 to 150 VND
to around 4,550 VND per kilogram (around $204 per ton) and 4,650 VND per
kilogram (around $208 per ton) respectively.
Harvesting of the
winter-spring rice crop is on-going, and more than 200,000 tons of rice worth
at least 1 trillion Vietnamese dong (around $44.64 million) is likely to be
damaged by the salt water intrusion, according to the MARD officials.
Domestic prices of
rice have been declining since November 2015, according to the data from the
UN's Food and Agriculture Organization (FAO). The decline can be attributed to
low export demand.
Vietnam 5% and 25%
broken rice exports are quoted at around $375 per ton and $355 per ton
respectively, on par with Thai quotes of around $375 per ton and $355 per ton.
However, the MARD officials are expecting a stiff competition for Vietnam rice
exports this year from India, Thailand and Pakistan.
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Start the
Week on Bullish Note as Rally in Crude Supports U.S. Grain Prices
Chicago rough rice
futures for May delivery settled $0.195 cents were cwt (about $4/ton) higher at
$10.700 per cwt (about $236 per ton). The other grains finished the day higher;
Soybeans closed about 0.4% higher at $8.8175 per bushel; wheat finished about
0.4% higher at $4.6275 per bushel, and corn finished the day about 0.2% higher
at $3.5900 per bushel.
U.S. stocks traded
mostly lower Monday, after their first three-week rally of the year so far, as
investors eyed oil prices and awaited indications on monetary policy around the
world. Brent crude topped $40 a barrel for the first time in 2016, while WTI
traded more than 5% higher above $37.50 a barrel. The major averages opened lower
before trying to hold mildly higher in afternoon trade. The key event in the
data-light week is the European Central Bank's Thursday meeting. The Federal
Open Market Committee meets March 15 to 16. European stocks came off session
lows in the close. Asian stocks closed mixed, with the Shanghai composite
ending about 0.8% higher. Over the weekend, Chinese Premier Li Keqiang
announced a 2016 target GDP growth range between 6.5% and 7%.In afternoon
trade, the Dow Jones industrial average traded up 58 points, or 0.35%, at
17,065. The S&P 500 was flat, with energy leading six sectors higher and
information technology the biggest laggard. The Nasdaq composite declined 16
points, or 0.36%, to 4,700. Gold is seen trading about 0.6% lower, crude oil is
seen trading about 4.8% higher, and the U.S. dollar is seen trading about 0.2%
lower at about 1:30pm Chicago time.
Friday, there were 352
contracts traded, down from 795 contracts traded on Thursday. Open interest –
the number of contracts outstanding – on Friday decreased by 44 contracts to
11,849.
Philippines Scientist Developing Eco-Friendly Mechanical Rice Pest Remover
A scientist from the
University of Philippines in Los Baños is developing a mechanical device called
Mechanical Postharvest Pest Removal System (MPReS) to easily remove pests from
rice and corn in an environment-friendly manner, according to GMA News.
Normally, pests are
removed using a two-pronged method. First cooling with dry ice to reduce pest
activity and then fumigating to kill the pests. However, the scientist says,
the method is expensive for many farmers.
She says the newly
developed MPReS device is more useful for farmers in rural areas where there
are no proper storage facilities. She adds that the device works in a very
simple manner.
"It tumbles the
produce, shaking off pests that then fall through a sieve on the contraption's
floor. Thus, pests are sifted out and the cleaned produce can be safely removed
from the device," she says. Thus device can process up to 50 kilograms of
rice at a time. It would take between 5 - 8 minutes for one round of spin, and
the cleaned rice can be easily tilted into another sack by pushing up to tilt
the compartment. The device also does not need electricity or expensive fuel,
she says.
The scientist said: “The
device must be affordable for farmers, easy to clean and operate, and durable
so that it can be used for years.” The device is still in the planning stages
and she is planning to release in the market soon.
She is planning to
present the device in the Young Agriprenuer Program, a global contest for
young agricultural entrepreneurs.
Vietnam Rice Exports Double y/y in First Two Months of 2016
Vietnam exported
856,219 tons of rice in first two months of 2016, up about 103% from 421,202
tons of rice exported during same period in last year, according to data from
the Vietnam Food Association (VFA). The average rice export price so far in
this year stands at around$406 per ton (FOB), down about 10% per ton from
around $452 per ton recorded during same last year.
In February, 2016, Vietnam exported 439,449 tons of rice,
up about 119% from 200,814 tons rice exported in February 2015, and up about 5%
from 416,770 tons rice exported in full month of January 2016. The average
export price in February stands at around $405 per ton, down about 11% per ton
from a year ago and down about 0.6% per ton from a month ago
Thailand, Vietnam, India Rice Sellers Increase Some of Their Quotes Today;
Pakistan Rice Quotes Unchanged
Mar 07, 2016
Thailand rice sellers
increased their quotes for high quality rice, 100% B grade, rice by about
$5 per ton to around $370-$380 per ton. Vietnam rice sellers increased their
quotes for 5% broken rice, 100% broken rice and Jasmine rice by about $10 per
ton, $5 per ton and $15 per ton to around $370-$380 per ton, $335-$345
per ton and $445-$455 per ton, respectively, today. India rice sellers
increased their quotes for 5% broken rice by about $5 per ton to around
$370-$380 per ton. Pakistan rice sellers kept their quotes unchanged today.
5% Broken Rice
Thailand 5% rice is
indicated at around $360 - $370 per ton, about $10 per ton discount to Vietnam
5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at
around $370 - $380 per ton, about $35 per ton premium on Pakistan 5% rice shown
at around $335 - $345 per ton.
25% Broken
Rice
Thailand 25% rice is
indicated at around $350 - $360 per ton, on par with Vietnam 25% rice shown at
around $350- $360 per ton. India 25% rice is indicated at around $330 - $340
per ton, about $25 per ton premium on Pakistan 25% rice shown at around $305 -
$315 per ton.
Parboiled
Rice
Thailand parboiled
rice is indicated at around $365 - $375 per ton. India parboiled rice is
indicated at around $355 - $365 per ton, about $50 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 $10 per ton discount
to Vietnam 100% broken rice shown at around $335 - $345 per ton. India's 100%
broken rice is shown at around $265 - $275 per ton, about $20 per ton discount
to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
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