Indonesia Targets to Produce Over 80 Million
Tons of Paddy Rice in 2015
Dec
26, 2014
Indonesia needs to produce over 80 million tons (around 52.8
million tons, basis milled) of paddy rice in 2015 to achieve food
self-sufficiency target in the next three years, local sources quoted the
Agriculture Minister as saying.The Minister noted that he has set a target of
over 80 million tons, or about 11 million tons higher than an estimated 70.6
million tons produced in 2014 to support the food self-sufficiency program
initiated by the new President.
He noted that he expects all the major rice producing provinces
to contribute to the increased paddy rice production. He said an increase of 2
million tons each in the provinces of East Java and West Java; 1.5 million tons
in Central Java; and one million tons each in West Sumatra and North
Sumatra.The Minister said the government is planning to increase the allocation
for farming in the 2015 budget to around Rp20 trillion (around $1.6 billion)
from the current Rp4.1 trillion (around $330 million) as part of efforts to
achieve the food self-sufficiency target.
He noted that in order to
increase production in the major rice producing provinces, the government needs
to address certain issues such as damaged irrigation channels, inefficient
distribution of fertilizer and seeds, farming tools and lack of agricultural
extension. The Minister noted that the President has already approve the
Ministry's plan to repair damaged irrigation system for 1 million hectares of
rice fields next year.
The Minister also noted that the
government would distribute 57,000 tons of fertilizer and seeds for about five
million hectares of rice fields across the country.The government has actually
targeted an increase of about 4% in the paddy rice production in 2015 to around
73.4 million tons (around 48.44 million tons, basis milled) from an estimated
70.61 million tons (around 46.65 million tons, basis milled) in 2014, according
to local sources.
USDA estimates Indonesia to
produce around 36.5 million tons of rice, basis milled (around 57.4 million
tons, basis paddy), and import around 1.3 million tons of rice in MY 2014-15
(January 2014 - December 2014. Consumption in 2015 is estimated at around 39.2
million tons.
Thai NACC and OAG to Gather More Evidence in
Rice Pledging Case
Dec 26, 2014
Thailand's National
Anti-Corruption Commission (NACC) and the Office of the Attorney General (OAG)
have decided to gather further evidences in the controversial rice pledging
scheme before deciding over the prosecution of indicting the former Prime
Minister (PM), according to local sources.
The NACC initially refused to
question more witnesses following OAG's ruling to gather more evidences,
regarding a government-to-government (G2G) deal with China, saying it's
investigative report is complete in all respects. However, in a joint meeting
on December 25, 2014, both the NACC and OAG decided to gather more evidences
against the former PM as well as question two more witnesses in regarding the
G2G deal.
The NACC will question an accuser
over the G2G deal and a researcher from the Thailand Development Research
Institute (TDRI).
The NACC Secretary-General said
he was hopeful of the OAG to carry out the prosecution of the former PM at the
Supreme Court's Criminal Division for Holders of Political Offices after its
completion of interviewing the witnesses by the end of January 2015. He added
that if OAG did not take up the prosecution case, it would take the case to the
Court individually.
The former PM is also facing
charges of ignoring warnings against misdealing in the controversial rice
pledging scheme, which brought losses of over 500 billion baht (around $15.6
billion) to the exchequer.
Oryza Overnight Recap - Chicago Rough Rice
Futures Slightly Higher on Light Volume
Dec 26, 2014
Chicago rough rice futures for
Jan delivery were trading 2 cents per cwt (about $0.44 per ton) higher at
$12.145 per cwt (about $268 per ton) during early floor trading in Chicago. The
other grains are seen trading mostly higher: soybeans are currently seen 0.8%
higher, wheat is listed about 0.2% higher and corn is currently trading
unchanged.
U.S. stocks rose in light volume
on Friday as Wall Street reopened following the Christmas holiday, with the Dow
and S&P 500 at or near records. Around the globe, most major markets were
closed, with trading shuttered in cities including London, Paris, Milan, Hong
Kong and Toronto. Crude-oil futures for February delivery rose 21 cents, or
0.3%, to $56.05 a barrel as fighting between government troops and Islamist
militias in Libya fostered supply concerns. Benchmark indexes were in position
for a second week of gains. The Dow Jones Industrial Average rose 45.26 points,
or 0.3%, to 18,075.47. The S&P 500 gained 6.27 points, or 0.3%, to
2,088.15, with energy leading sector gains that extended to all 10 of its major
industry groups. The Nasdaq gained 18.43 points, or 0.4%, to 4,791.89. Gold is
currently trading about 1.7% higher, crude oil is seen trading slightly
lower, and the U.S. dollar is currently trading about 0.2% higher at
8:40am Chicago time.
Oryza Afternoon Recap - Chicago Rough Rice
Futures Push Slightly Higher Near Session Close but Remain Lower on the
Shortened Week
Dec 26, 2014
Chicago rough rice futures for
Jan delivery settled 4 cents per cwt (about $1 per ton) higher at $12.165 per
cwt (about $268 per ton). Rough rice futures pushed slightly higher in the
final moments of trading as the market finished a shortened holiday week over
20 cents per cwt (about $5 per ton) lower from their starting point of $12.370
per cwt (about $273 per ton) at which they opened for Monday’s session. Overall
the market continues to trade in a sideways pattern and will likely continue to
do so through the coming weeks.
The other grains closed mostly
higher today; Soybeans closed about 1.8% higher at $10.5400 per bushel; wheat
finished about 0.1% lower at $6.1075 per bushel, and corn finished the day
about 1.7% higher at $4.1475 per bushel.U.S. stocks rose in light volume on
Friday following the Christmas holiday, with the Dow and S&P 500 at or near
records. Around the globe, most major markets were closed, with trading
shuttered in cities including London, Paris, Milan, Hong Kong and Toronto.
Benchmark indexes were in position for a second week of gains. After rising 73
points to an intraday record, the Dow Jones Industrial Average was more
recently up 42.38 points, or 0.2%, at 18,072.59.
The S&P 500 gained 8.04
points, or 0.4%, to 2,089.92, with utilities leading sector gains that extended
to all 10 of its major industry groups. The Nasdaq gained 28.01 points, or
0.6%, to 4,801.48. Gold is trading about 1.9% higher, crude oil is seen trading
about 1.6% lower, and the U.S. dollar is seen trading about 0.2% higher at
about 1:00pm Chicago time.Wednesday, there were 672 contracts traded,
down from 1,064 contracts traded on Tuesday. Open interest – the number of
contracts outstanding – on Wednesday decreased by 304 contracts to 9,218.
Philippines Targets to Produce 20 Million Tons
of Paddy Rice in 2015; Up 6% from 2014
Dec 26, 2014
The Philippines Department of
Agriculture (DA) is targeting to produce around 20 million tons of paddy rice
in 2015, up about 6% from an estimated 18.8 million tons in 2014, according to
local sources.The Agriculture Secretary was quoted as saying that they are
planning to achieve their target by expanding paddy rice acreage and increasing
the yield per hectare to around 3.89 tons per hectare from an estimated 2.09
tons per hectare. He also noted that the government would encourage farmers to
increase hybrid seeds planting to ensure higher output. He added that the
government is planning to provide about 52,000 hectares of irrigated land to
plant hybrid rice seeds.
The Secretary told local sources
that the government is also planning to increase the budget allocation to its
credit assistance program, Sikat Saka, to about P1 billion (around $22 million)
from next year from the current P400 million (around $8.9 million).The
Philippines government aimed to achieve self-sufficiency in rice production in
2013, but could achieve only 92% of the self-sufficiency target due to a series
of typhoons that hit the country. Now the government has temporarily put off
the rice self-sufficiency target and is planning to import sufficient rice to
ensure adequate stocks and control price hikes.
The South-East Asian nation has
imported around 1.8 million tons of rice since the beginning of 2014 (including
1.5 million tons of this year's imports and 300,000 tons of last year's imports)
to replenish rice stocks and control price hikes. It has recently allowed the
private sector to import another 187,000 tons of rice under the minimum access
volume (MAV) program.USDA estimates Philippines MY 2014-15 (July - June)
paddy rice production at around 19.365 million tons (around 12.2 million tons,
basis milled), up about 3% from around 18.822 million tons (around 11.8 million
tons, basis milled) produced in the previous year. It estimates Philippines
2014-15 milled rice exports at around 1.6 million tons, up about 10% from last
year.
Vietnam's 2014 Rice Exports Estimated at 6.53
Million Tons; Down 1% from 2013
Dec 26, 2014
Vietnam's rice exports in 2014
are expected to reach around 6.53 million tons, down about 0.9% from around
6.59 million tons in 2013 due to a stiff competition from other exporting
nations such as Thailand and India, according to Reuters.The Agriculture
Ministry was quoted as saying in a monthly report that total earnings from rice
exports are however expected to increase to around $3.05 billion in 2014,
up about 4.2% from around $2.93 billion earned in 2013.
The Ministry noted in the report
that Vietnam's total paddy production in 2014 would reach around 44.84 million
tons (around 28 million tons, basis milled), up about 1.8% from around 44
million tons (around 27.5 million tons, basis milled) produced in 2013.Increase
in the paddy rice output is attributed to increase in yields despite a decline
in paddy rice acreage by about 1.2% to around 7.8 million hectares from around
7.89 million hectares in 2013. According to the Ministry sources average yield
increased by about 3% to around 5.83 tons per hectare from around 5.66 tons per
hectare in 2013.
Vietnam exported around 5.961
million tons of rice in January 1 - December 18, 2014, down about 11% from
about 6.71 million tons of rice exported in full year of 2013, according to
data from the Vietnam Food Association (VFA). Average rice export price so far
in this year stands at about $439 per ton (FOB), up about 2% per ton from same
time last year.
USDA estimates Vietnam to produce
around 28.16 million tons of rice, basis milled (around 45 million tons, basis
paddy) and export around 6.5 million tons in MY 2013-14 (January 2014 –
December 2014) .
Global
Rice Quotes
December 26th, 2014
Long grain white rice - high quality
Thailand 100% B grade 420-430
↔
Vietnam 5% broken 385-395 ↔
India 5% broken 385-395
↔
Pakistan 5% broken 370-380
↔
Cambodia 5% broken 460-470 ↔
U.S. 4% broken 510-520
↔
Uruguay 5% broken 595-605 ↔
Argentina 5% broken 595-605 ↔
Long grain white rice - low quality
Thailand 25% broken NQ ↔
Vietnam 25% broken 350-360 ↔
Pakistan 25% broken 330-340 ↔
Cambodia 25% broken 435-445
↔
India 25% broken 350-360
↔
U.S. 15% broken 495-505
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 405-415
↔
Pakistan parboiled 5% broken stxd 395-405
↔
India parboiled 5% broken stxd 375-385
↔
U.S. parboiled 4% broken 580-590
↔
Brazil parboiled 5% broken 570-580
↔
Uruguay parboiled 5% broken NQ
↔
Long grain fragrant rice
Thailand Hommali 92% 890-900
↔
Vietnam Jasmine 525-535
↔
India basmati 2% broken NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Mails 805-815 ↔
Brokens
Thailand A1 Super 330-340
↔
Vietnam 100% broken 330-340
↔
Pakistan 100% broken stxd 300-310
↔
Cambodia A1 Super 385-395 ↔
India 100% broken stxd 295-305
↔
Egypt medium grain brokens NQ
↔
U.S. pet food 390-400 ↔
Brazil half grain NQ
↔
All prices USD per ton, FOB vessel, oryza.com
Asia Rice Quotes Unchanged Today
Dec 26, 2014
Asia rice sellers kept their
quotes mostly unchanged today.
5%
Broken Rice
Thailand 5% rice is quoted at
around $405 - $415 per ton, about $20 per ton premium on Vietnam 5% rice shown
at around $385 - $395 per ton. India 5% rice is quoted at around $385 - $395
per ton, about $15 per ton premium on Pakistan 5% rice quoted at around $370 -
$380 per ton.
25%
Broken Rice
Thailand 25% rice was last quoted
at around $350 - $360 per ton, on par with Vietnam 25% rice shown at around
$350 - $360 per ton. India 25% rice is quoted at around $350 - $360, about $20
per ton premium on Pakistan 25% rice quoted at around $330 - $340 per ton.
Parboiled
Rice
Thailand parboiled rice is quoted
at around $405 - $415 per ton. India parboiled rice is quoted at around $375 -
$385 per ton, about $20 per ton discount to Pakistan parboiled rice quoted at
around $395 - $405 per ton.
100%
Broken Rice
Thailand broken rice, A1 Super,
is quoted at around $330 - $340 per ton, on par with Vietnam 100% broken rice
shown at around $330 - $340 per ton. India's 100% broken rice is shown at
around $295 - $305 per ton, about $5 per ton discount to Pakistan broken
sortexed rice quoted at around $300 - $310 per ton.
Myanmar's Illegal Rice Exports to China
Increase Despite Ban
Dec 26, 2014
Myanmar rice exports to China
through its northern borders have reached about 716,272 tons accounting for
nearly 78% of the total rice exports since the beginning of this fiscal year,
which began on April 1, according to local sources. Total rice exports of the
country reached around 915,000 tons from April 1 - December 15, 2014, up about
75% from around 522,857 tons exported during the same period last year,
according to the Ministry of Commerce. Sources at the Ministry were quoted as
saying that illegal rice exports to China through northern borders have
increased despite China officially banning rice imports through borders.
Official rice exports from the country constituted only 198,698 tons, according
to the Ministry.
The Chairman of the Myanmar Rice
Federation (MRF) noted that though rice exports through the northern
borders is considered to be legal from Myanmar's point of view, Chinese
authorities have been treating these cross border imports as illegal as there
is no formal rice export agreement between China and Myanmar. China, which had
been demanding a phyto-sanitary agreement with Myanmar, had officially banned
rice imports through Myanmar's northern borders in August this year.
Myanmar government has been
negotiating with the Chinese authorities to chart a formal trade agreement
between the two countries. In November, on the sidelines of the ASEAN summit,
the Chinese Premier reportedly promised to import one million tons of rice from
Myanmar in 2015 as well as legalize imports through borders. The MRF Chairman
said a delegation would visit China to carry out further negotiations with the
Chinese authorities next month.
The Chairman of the Myanmar
Farmers Association added that China Certification and Inspection Group is
planning to set up an office in Rangoon soon in order to monitor the quality of
Myanmar rice before exporting to China.
Myanmar exported record 1.33
million tons of rice in 2012-13, but exports dropped to around 1.2 million tons
in MY 2013-14. The government is keen on increasing rice exports to around 3
million tons over the next few years and is planning to prioritize rice in its
National Export Strategy, which is likely to be released in January 2015. It is
planning to explore newer markets for its rice exports under the new strategy.
The South-East Asian nation
expects to export over 1.5 million tons of rice this year. USDA estimates
Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million tons,
milled basis) and export around 1.4 million tons of rice in MY 2014-15 (January
- December 2015).
About 42% of Taiwan's Rice Imports Under 2014
U.S. CSQ Remains Untendered
Dec 26, 2014
Of the 38,634 tons to be imported under normal
tenders, Taiwan imported around 9,750 tons or about 12% of the U.S. 2014 CSQ
and has invited tenders for around 12,384 tons of U.S. long grain rice on
December 25. Tenders have to be invited for the remaining 16,230 tons or 42% of
the total 2014 U.S. CSQ, according to the USDA Post.
According to the Post, as the
year 2014 was coming to an end, Taiwan issued five tenders for a total of about
22,100 tons of U.S. rice during the week of December 8 - 13, 2014. Of this,
tenders for only 5,600 tons were successfully awarded.
Tenders for 1,500 tons of U.S.
origin long grain brown rice for delivery between May 1 - June 30, 2015 on
December 11 and 18 failed due to no bidder participating in the bid. About
1,000 tons of rice were awarded on December 10 at NT$24,490 per ton ($784.66
per ton). Tender for another 500 tons of rice on December 18 failed due to high
prices. Of 9,000 tons of U.S. origin medium/short grain brown rice tendered on
December 11, only 2,000 tons were awarded at NT$24,990 per ton ($800.96 per
ton) for delivery between May 1-June 30, 2015. Tender for the remaining 7,000
tons will be scheduled shortly on a global basis. Tenders for 1,500 tons of
U.S. origin medium/short grain brown rice for delivery between May 1 - June 30,
2015 failed because of high prices. Of the 8,600 tons of U.S. origin
medium/short grain brown rice tendered for delivery between May 1 - June 30,
2015, around 2,600 tons were awarded to two bidders at NT$26,095 per ton
(around $836.83 per ton). Tender for remaining 6,000 tons is expected in
January 2015.
Recently, Taiwan has removed the longstanding eight-year ban on U.S.
long grain rice imports. Taiwan has to import around 64,634 tons of rice
under 2014 U.S. country specific quota (CSQ), of which around 38,634 tons of
rice are to be imported in normal tenders and around 26,000 tons of rice are to
be imported in Simultaneous Buy Sell (SBS) tenders.News are published with permission of ORYZA.com
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29th December(Monday),2014 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine