Tuesday, March 08, 2016

8th march ,2016 Daily exclusive oryza rice enewsletter by riceplus magazine

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       ↔
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 BaƱos 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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