3rd June (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes

Global Rice Quotes

June 3rd, 2015

Long grain white rice - high quality
Thailand 100% B grade	375-385	↔
Vietnam 5% broken	350-360	↔
India 5% broken	375-385	↔
Pakistan 5% broken	385-395	↔
Myanmar 5% broken	415-425	↔
Cambodia 5% broken	430-440	↔
U.S. 4% broken	465-475	↔
Uruguay 5% broken	565-575	↔
Argentina 5% broken	555-565	↔

Long grain white rice - low quality
Thailand 25% broken	345-355	↔
Vietnam 25% broken	325-335	↔
Pakistan 25% broken	335-345	↔
Cambodia 25% broken	410-420	↔
India 25% broken	350-360	↔
U.S. 15% broken	455-465	↔

Long grain parboiled rice
Thailand parboiled 100% stxd	365-375	↔
Pakistan parboiled 5% broken stxd	410-420	↔
India parboiled 5% broken stxd	355-365	↔
U.S. parboiled 4% broken	555-565	↔
Brazil parboiled 5% broken	570-580	↔
Uruguay parboiled 5% broken	NQ	↔

Long grain fragrant rice
Thailand Hommali 92%	845-855	↔
Vietnam Jasmine	470-480	↔
India basmati 2% broken	NQ	↔
Pakistan basmati 2% broken	NQ	↔
Cambodia Phka Mails	815-825	↔

Brokens
Thailand A1 Super	315-325	↔
Vietnam 100% broken	310-320	↔
Pakistan 100% broken stxd	305-315	↔
Cambodia A1 Super	350-360	↔
India 100% broken stxd	280-290	↔
Egypt medium grain brokens	NQ	↔
U.S. pet food	365-375	↔
Brazil half grain	NQ	↔

Medium grain milled
U.S. Calrose 4% broken	845-855	↔
Egypt medium grain 6%	NQ	↔

All prices USD per ton, FOB vessel, oryza.com

Myanmar Poses Threat to Cambodian Rice Exports to European Union, Say Exporters

Jun 02, 2015

Cambodian rice exporters are expressing concern that the country's rice exports to the European Union (EU) under the Everything But Arms (EBA) agreement have been facing a stiff competition from Myanmar, which also exports rice to the eU under the EBA agreement, according to local sources.  According to data from the European Commission (EC), Cambodia's rice exports to the EU in the first eight months of the crop year 2014-15 (September - August) have declined about 1% to around 165,940 tons from around 167,660 tons during the same period last year.

On the other hand, Myanmar's rice exports to the EU during the eight-month period increased about 81% to around 144,550 tons from around 79,940 tons last year.Reacting to the EC data, some exporters noted that Cambodia's rice exports to the EU may slow down due to a stiff competition from Myanmar. The Vice-President of the Cambodia Rice Federation (CRF) told local sources that the presence of Myanmar as a competitor cannot be ignored as their rice cheaper than the Cambodian rice. He added that Cambodia should focus more on fragrant rice exports to retain margins. “Myanmar and other major rice exporters cannot produce fragrance rice as we do,” he said.Export prices of Cambodia 5% broken rice currently stand at $435 per ton while those of Myanmar 5% broken rice stand at around $425 per ton.

The CRF Vice-President also noted that other factor such as limited milling capacity and other infrastructural inefficiencies also would have reduced Cambodia's rice exports to the EU.Meanwhile, climate experts are expecting the impending El Nino over the next two months to cause a severe drought in Cambodia affecting the country's 2015 rice production. A technical adviser with the Mekong River Commission noted that satellite images suggest record drought conditions in Cambodia this year. “A very large water deficit has already built up. This really is a very bad time to start going into an even harsher drought event,” he said.

Last month, the UN's Food and Agriculture Organization (FAO) estimated Cambodia's total paddy rice production in 2015 at around 9.3 million tons (around 5.76 million tons, basis milled) assuming favorable weather conditions.USDA estimates Cambodia MY 2014-15 (January 2015 - December 2015) paddy rice production at around 7.344 million tons (around 4.7 million tons, milled basis), slightly down from around 7.383 million tons (around 4.725 million tons, milled basis) in MY 2013-14. It estimates Cambodia to export around 1.1 million tons of rice in 2015, up about 10% from an estimated 1 million tons in 2014.  

Oryza Afternoon Recap - Chicago Rough Rice Futures Continue to Move Higher as US Dollar Weakness Provides Support to US Grain Prices; Wheat Sees Second Day of +3% Gain

Jun 02, 2015

Chicago rough rice futures for Jul delivery settled 12.5 cents per cwt (about $3 per ton) higher at $9.775 per cwt (about $215 per ton). The other grains finished the day sharply higher, led by a rally in the wheat market; Soybeans closed about 1.6% higher at $9.4075 per bushel; wheat finished about 3.8% higher at $5.1250 per bushel, and corn finished the day about 1.9% higher at $3.5900 per bushel.U.S. stocks turned higher on Tuesday, shaking off a decline in European equities, as investor optimism on Greece increased. Stocks opened lower and recovered losses around noon following the European close.

 The German DAX came off lows in the close to end about 0.9% lower. In the United States, stock gains remained muted. The Dow Jones industrial average traded about 30 points higher after falling more than 100 points soon after the open. The U.S. dollar fell more than 1.5% against major world currencies. Earlier, the greenback hit a 13-year high against the yen. Factory orders for April showed a decline of 0.4%. March's figure was increased to 2.2% from 2.1%.Aside from factory orders and vehicle sales, Tuesday is a quiet day for economic data ahead of a slew of releases in the next few days leading up to Friday's key monthly jobs report. The Dow Jones Industrial Average traded up 36 points, or 0.20%, at 18,076. The S&P 500 traded up 4 points, or 0.20%, at 2,115, with energy leading seven sectors higher and utilities the greatest laggard. The Nasdaq traded up 13 points, or 0.26%, at 5,096. Gold is trading about 0.5% higher, crude oil is seen trading about 1.8% higher, and the U.S. dollar is seen trading about 1.6% lower at about  12:45pm Chicago time.Monday, there were 1,052 contracts traded, down from 1,284 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 244 contracts to 12,187.

Oryza U.S. Rough Rice Recap - Prices Firm although Trade Enthusiasm is Limited

Jun 02, 2015

The U.S. cash market was firmer again today with both offers and bids increasing with the futures market however neither buyers are sellers were enthusiastic about trading these levels today.Analysts contend that most farmers will rice left to sell will wait until the very end before they sell at the current market price however some analysts warn that that could be bearish for prices going into harvest if all those still holding on dump their rice to make room for new crop

India Cuts Monsoon Forecast as Rajan Links Rates to Rainfall

by Pratik ParijaSwansy Afonso

June 2, 2015 — 3:36 AM EDT Updated on June 2, 2015 — 7:50 AM EDT

The monsoon rainfall in India will be deficient for a second straight year as the emergence of an El Nino event threatens weather worldwide, potentially hurting agriculture output and accelerating food inflation.The rainfall may be 88 percent of a 50-year average of 89 centimeters (35 inches) between June and September, less than the 93 percent predicted in April, Earth Sciences Minister Harsh Vardhan told reporters in New Delhi on Tuesday. The forecast came less than two hours after central bank Governor Raghuram Rajan cut interest rates and said further action will hinge on the monsoon rains.

Below-normal showers may fan prices of everything from rice to lentils and vegetables in Asia’s third-largest economy, where food costs account for almost 50 percent of the consumer price index. Rajan flagged deficient precipitation as the biggest risk to the economy as agriculture accounts for about 15 percent of India’s gross domestic product.“The forecast is a cause of concern for the economy as inflation may again go up and a lower interest rate regime, which the industry has been expecting, may not be possible,” Harish Galipelli, head of commodities and currencies at Inditrade Derivatives & Commodities Ltd., said by phone from Hyderabad. “There will be an upside in prices of pulses, oilseeds and vegetables.”

Inflation Target

Rajan has cut interest rates three times this year as consumer prices held below his 6 percent target for an eighth straight month. Prices are likely to fall until August and then start rising to about 6 percent by January 2016, higher than projections made in April, Rajan said on Tuesday.
A normal monsoon rainfall is critical to Prime Minister Narendra Modi’s plan to accelerate economic growth in a country where smartphone makers to gold jewelry retailers derive the bulk of their sales from 833 million people living in villages who depend on farming. The monsoon rainfall waters more than half of India’s farmland.
The monsoon forecast has a margin of error of plus or minus 4 percent, Vardhan said. Multiple factors including emergence of the El Nino weather conditions are seen lowering rainfall, he said. The rains have yet to arrive over India’s southern region, missing the normal onset date of June 1.

El Nino Threat

Australia declared an El Nino last month, joining weather agencies from the U.S. and Japan. Forecasters worldwide are seeking to map the probable impact of the pattern that can bake Asia, bring wetter weather to South America and crimp the frequency of Atlantic hurricanes.
Rain in July, the wettest month of the monsoon season, is seen at 92 percent of the average between 1951 and 2000, while August may record only 90 percent, the India Meteorological Department said in a statement. The prediction has a margin of error of plus or minus 9 percent, the agency said.
Northwest India, which includes cotton, rice and sugar cane growing states of Punjab, Haryana, Rajasthan and Uttar Pradesh, is forecast to get 85 percent of the average rainfall, the bureau said. While showers will be 90 percent of the average in central India, the main cotton and soybean regions, southern states of Karnataka, Kerala and Andhra Pradesh, the main producers of coffee, rice and rubber, may get 92 percent average precipitation, the bureau said.

Containing Prices

India, which gets more than 70 percent of its annual rainfall during the monsoon season, will be able to contain price increases with better management of its food economy and the slump in global commodity prices, Motilal Oswal, chairman of Motilal Oswal Financial Services Ltd., said in an e-mailed statement on Tuesday.
Modi has taken short-term steps to control food prices during his first year in office. These include selling some of the nation’s wheat stocks on the open market, pushing states to let farmers sell fruits and vegetables directly to consumers, and capping growth of guaranteed prices for cereal crops.
“We expect food inflation by and large to remain better anchored unless the monsoon shortage turns out to be worse than current forecasts,” Siddhartha Sanyal and Rahul Bajoria, economists at Barclays Plc, said in a report e-mailed on Tuesday. “The government assures that it will remain active in managing food-stocks, if needed, to contain food inflation.”
There is no direct correlation between monsoon and El Ninos, according to data from the India Meteorological Department. Of the eight El Nino years since 1991, India recorded monsoon failures and drought situations only on two occasions, according to CRISIL Ltd.
The crops at most risk from a monsoon failure will be rice, cotton, soybeans and lentils. India’s food grain output including rice and wheat fell 5.3 percent to 251.1 million tons in 2014-15, when monsoon rainfall was 12 percent below average, according to the Farm Ministry.

South Korea Buys 10,000 Tons of Non-Glutinous Brown Rice from China in Tender

Jun 02, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased 10,000 tons of non-glutinous brown rice of the Chinese origin for delivery by October 15, 2015 at $860 per ton, according to a statement on its website.
KAFTC originally sought to purchase about 75,378 tons of non-glutinous rice via eight tenders for which the bidding took place on May 21, 2015. It announced results for 36,026 tons of non-glutinous brown rice via four tenders on May 27, 2015. It was supposed to announce the results for three tenders - 10,000 tons of non-glutinous short-grain brown rice, 9,000 tons 10,000 tons of non-glutinous medium-grain brown rice - after sample tests are complete, according to the website.
However, results of 29,352 tons of non-glutinous medium-grain brown rice via three tenders (19,352 tons of non-glutinous brown medium rice and 10,000 tons of non-glutinous milled medium grain rice) are not specified on the website.

Urbanization Threatens Spectacular Cordillera Rice Terraces

Jun 02, 2015

Most popular and famous Cordillera rice terraces in the Philippines' Luzon province are facing threat from urbanization and modernization, according to local sources.The Cordillera rice terraces, which are spread across the districts Abra, Apayao, Benguet, Cagayan, Ifugao, Ilocos Norte, Kalinga, Baguio and Mountain Province, are recognized as world heritage sites by the United Nations Educational, Scientific and Cultural Organization (UNESCO).

Older generation rice farmers who cultivated rice on these terraces protected their heritage by adopting organic farming methods and avoiding pesticides and fertilizers. They showed a lot of care for limited natural resources, according to the UNESCO.

However, the terraces are now dominated by multi-storey concrete buidings, polluting diesel vehicles and other urbanized farming methods. Indonesia earthworms, other worms and snails, which are fed to crop as protein and are causing danger to the terraces, say local people. Some terraces are collapsing, they say.Though locals as well as the provincial authorities are keen on protecting the heritage of the rice terraces, they are also wanting modern lifestyles. Remembering the good old days, some farmers say life was getting simpler now with urbanization. They say selling their crop output has become much easier now compared to earlier. Their children and grand children are also getting better education facilities, they add.Conservation of these terraces depends on the mindset of local people, say experts. 

Government of Guyana to Investigate into Administration of PetroCaribe Deal, Says National Security Minister

Jun 02, 2015

The government of Guyana has begun investigating into the administration of the PetroCaribe rice agreement, under which Guyana imports oil from Venezuela and exports rice to the neighboring country, to find any discrepancies or fraud, according to local sources.The National Security Minister reportedly told in a televised program last weekend that there are doubts over rampant fraud and corruption in transportation and shipping thereby leading to higher shipping costs as well as high rice prices in the country.He noted that investigation was going on and once it is complete, there is a scope for prices of rice to come down.

Under the current PetroCaribe deal, Guyana will supply about 210,000 tons of paddy and polished rice annually to Venezuela. The deal has helped Guyana's rice industry develop significantly with increasing production and exports. It has been providing higher prices compared to other countries' offers. The deal also helped to achieve food security in the Caribbean region.

Meanwhile the Guyana Rice Development Board (GRDB) is trying to strike export deals with newer markets in Central America and Africa apart from maintaining deals with existing markets.Guyana produced around 633,000 tons of rice in 2014, up about 18% from around 535,212 tons from 2013; and exported around 501,208 tons of rice in 2014, up about 27% from around 394,000 tons exported in 2013, according to the Agriculture Minister. The Caribbean nation aims to produce about 618,000 tons of milled rice and export around 521,000 tons in 2015.

Philippines Agriculture Ministry Seeks Increased Budget for Rice Programs

Jun 02, 2015

The Department of Agriculture (DA) in the Philippines is seeking to increase budget for the rice sector development to around P11 billion (around $246 million) from next year from the current P6.6 billion (around $148 million) , according to local sources.The Department reportedly aims to sustain growth momentum of the rice sector as well as increase climate change adaptation and disaster-impact preparedness of the sector.

The DA Assistant Secretary for Field Operations told local sources that increased budget will also help in achieving self-sufficiency in rice production as well as increasing longer-term investments in research and development and small-scale irrigation projects.The current rice program focuses on increasing 2015 paddy rice production to around 20.09 million tons at a yield of 4.09 tons per hectare. However, the proposed rice program from next year aims to increase the competitiveness of local rice sector as well as the incomes of farmers. The Department is proposing to adopt high-yield technology, high-quality seed assistance to adverse environments, and disaster risk reduction and management for achieving the goals. It also seeks to enhance training and irrigation network services to support farmers.

Meanwhile the National Food Authority (NFA) is preparing for the onset of lean months from July to September. It is continuing with paddy procurement from farmers and has procured around 1.593 million tons of paddy as on May 26, over and above its procurement target of around 1.202 million tons. It noted that the selling prices of NFA rice will not be increased in the near term.

The NFA has called for tenders from Thailand, Vietnam and Cambodia for importing 250,000 tons of 25% broken well-milled long-grain rice on June 5. NFA is authorized to import another 250,000 tons of rice if the drought-inducing El Nino weather condition intensifies. 
The Philippines already imported 500,000 tons of rice from Vietnam and Thailand this year to curb price increases and boost buffer stocks. Last year, the South-east Asian nation imported more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons of 2013 residual imports) to replenish rice stocks and control price hikes.

Oryza Overnight Recap – Chicago Rough Rice Futures Little Changed Overnight Despite Robust Showing in Neighboring Grain Pits as Dollar Strength Slows

Jun 02, 2015

Chicago rough rice futures for Jul delivery are currently seen trading 0.5 cents per cwt (about $0.11 per ton) higher at $9.655 per cwt (about $213 per ton) ahead of floor trading in Chicago. The other grains are seen trading higher; soybeans are currently seen trading about 1% higher, wheat is listed about 1.4% higher and corn is currently noted about 0.7% higher.U.S. stock index futures pointed to a lower open on Tuesday as investors awaited some minor data releases ahead of Friday's key jobs report, amid continued concerns about Greece.

Tuesday is a quiet day for U.S. data, with factory orders for April at 10 a.m. ET and auto and truck sales for May, which are released throughout the day. On Monday, mixed data reports kept stocks in a trading range with the major indices closing mildly higher. April construction spending hit a nearly 6-1/2-year high and ISM Manufacturing beat expectations. However, consumer spending was flat month-over-month. Small-caps were under pressure in pre-market trade after rising on Monday to support stock gains. Also in focus is inflation data from the euro zone, which came in at 0.3% in May. This was higher than the 0.2% forecast and will help waylay fears of a deflationary spiral in the region. Gold is currently trading about 0.3% higher, crude oil is seen trading about 0.9% higher,  and the U.S. dollar is currently trading about 1% lower at 8:15am Chicago time.

Download above news in pdf format ,just click the following link

3rd June (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

3rd June (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes

Global Rice Quotes

June 3rd, 2015

Long grain white rice - high quality
Thailand 100% B grade	375-385	↔
Vietnam 5% broken	350-360	↔
India 5% broken	375-385	↔
Pakistan 5% broken	385-395	↔
Myanmar 5% broken	415-425	↔
Cambodia 5% broken	430-440	↔
U.S. 4% broken	465-475	↔
Uruguay 5% broken	565-575	↔
Argentina 5% broken	555-565	↔

Long grain white rice - low quality
Thailand 25% broken	345-355	↔
Vietnam 25% broken	325-335	↔
Pakistan 25% broken	335-345	↔
Cambodia 25% broken	410-420	↔
India 25% broken	350-360	↔
U.S. 15% broken	455-465	↔

Long grain parboiled rice
Thailand parboiled 100% stxd	365-375	↔
Pakistan parboiled 5% broken stxd	410-420	↔
India parboiled 5% broken stxd	355-365	↔
U.S. parboiled 4% broken	555-565	↔
Brazil parboiled 5% broken	570-580	↔
Uruguay parboiled 5% broken	NQ	↔

Long grain fragrant rice
Thailand Hommali 92%	845-855	↔
Vietnam Jasmine	470-480	↔
India basmati 2% broken	NQ	↔
Pakistan basmati 2% broken	NQ	↔
Cambodia Phka Mails	815-825	↔

Brokens
Thailand A1 Super	315-325	↔
Vietnam 100% broken	310-320	↔
Pakistan 100% broken stxd	305-315	↔
Cambodia A1 Super	350-360	↔
India 100% broken stxd	280-290	↔
Egypt medium grain brokens	NQ	↔
U.S. pet food	365-375	↔
Brazil half grain	NQ	↔

Medium grain milled
U.S. Calrose 4% broken	845-855	↔
Egypt medium grain 6%	NQ	↔

All prices USD per ton, FOB vessel, oryza.com

Myanmar Poses Threat to Cambodian Rice Exports to European Union, Say Exporters

Jun 02, 2015

Cambodian rice exporters are expressing concern that the country's rice exports to the European Union (EU) under the Everything But Arms (EBA) agreement have been facing a stiff competition from Myanmar, which also exports rice to the eU under the EBA agreement, according to local sources.  According to data from the European Commission (EC), Cambodia's rice exports to the EU in the first eight months of the crop year 2014-15 (September - August) have declined about 1% to around 165,940 tons from around 167,660 tons during the same period last year.

On the other hand, Myanmar's rice exports to the EU during the eight-month period increased about 81% to around 144,550 tons from around 79,940 tons last year.Reacting to the EC data, some exporters noted that Cambodia's rice exports to the EU may slow down due to a stiff competition from Myanmar. The Vice-President of the Cambodia Rice Federation (CRF) told local sources that the presence of Myanmar as a competitor cannot be ignored as their rice cheaper than the Cambodian rice. He added that Cambodia should focus more on fragrant rice exports to retain margins. “Myanmar and other major rice exporters cannot produce fragrance rice as we do,” he said.Export prices of Cambodia 5% broken rice currently stand at $435 per ton while those of Myanmar 5% broken rice stand at around $425 per ton.

The CRF Vice-President also noted that other factor such as limited milling capacity and other infrastructural inefficiencies also would have reduced Cambodia's rice exports to the EU.Meanwhile, climate experts are expecting the impending El Nino over the next two months to cause a severe drought in Cambodia affecting the country's 2015 rice production. A technical adviser with the Mekong River Commission noted that satellite images suggest record drought conditions in Cambodia this year. “A very large water deficit has already built up. This really is a very bad time to start going into an even harsher drought event,” he said.

Last month, the UN's Food and Agriculture Organization (FAO) estimated Cambodia's total paddy rice production in 2015 at around 9.3 million tons (around 5.76 million tons, basis milled) assuming favorable weather conditions.USDA estimates Cambodia MY 2014-15 (January 2015 - December 2015) paddy rice production at around 7.344 million tons (around 4.7 million tons, milled basis), slightly down from around 7.383 million tons (around 4.725 million tons, milled basis) in MY 2013-14. It estimates Cambodia to export around 1.1 million tons of rice in 2015, up about 10% from an estimated 1 million tons in 2014.  

Oryza Afternoon Recap - Chicago Rough Rice Futures Continue to Move Higher as US Dollar Weakness Provides Support to US Grain Prices; Wheat Sees Second Day of +3% Gain

Jun 02, 2015

Chicago rough rice futures for Jul delivery settled 12.5 cents per cwt (about $3 per ton) higher at $9.775 per cwt (about $215 per ton). The other grains finished the day sharply higher, led by a rally in the wheat market; Soybeans closed about 1.6% higher at $9.4075 per bushel; wheat finished about 3.8% higher at $5.1250 per bushel, and corn finished the day about 1.9% higher at $3.5900 per bushel.U.S. stocks turned higher on Tuesday, shaking off a decline in European equities, as investor optimism on Greece increased. Stocks opened lower and recovered losses around noon following the European close.

 The German DAX came off lows in the close to end about 0.9% lower. In the United States, stock gains remained muted. The Dow Jones industrial average traded about 30 points higher after falling more than 100 points soon after the open. The U.S. dollar fell more than 1.5% against major world currencies. Earlier, the greenback hit a 13-year high against the yen. Factory orders for April showed a decline of 0.4%. March's figure was increased to 2.2% from 2.1%.Aside from factory orders and vehicle sales, Tuesday is a quiet day for economic data ahead of a slew of releases in the next few days leading up to Friday's key monthly jobs report. The Dow Jones Industrial Average traded up 36 points, or 0.20%, at 18,076. The S&P 500 traded up 4 points, or 0.20%, at 2,115, with energy leading seven sectors higher and utilities the greatest laggard. The Nasdaq traded up 13 points, or 0.26%, at 5,096. Gold is trading about 0.5% higher, crude oil is seen trading about 1.8% higher, and the U.S. dollar is seen trading about 1.6% lower at about  12:45pm Chicago time.Monday, there were 1,052 contracts traded, down from 1,284 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 244 contracts to 12,187.

Oryza U.S. Rough Rice Recap - Prices Firm although Trade Enthusiasm is Limited

Jun 02, 2015

The U.S. cash market was firmer again today with both offers and bids increasing with the futures market however neither buyers are sellers were enthusiastic about trading these levels today.Analysts contend that most farmers will rice left to sell will wait until the very end before they sell at the current market price however some analysts warn that that could be bearish for prices going into harvest if all those still holding on dump their rice to make room for new crop

India Cuts Monsoon Forecast as Rajan Links Rates to Rainfall

by Pratik ParijaSwansy Afonso

June 2, 2015 — 3:36 AM EDT Updated on June 2, 2015 — 7:50 AM EDT

The monsoon rainfall in India will be deficient for a second straight year as the emergence of an El Nino event threatens weather worldwide, potentially hurting agriculture output and accelerating food inflation.The rainfall may be 88 percent of a 50-year average of 89 centimeters (35 inches) between June and September, less than the 93 percent predicted in April, Earth Sciences Minister Harsh Vardhan told reporters in New Delhi on Tuesday. The forecast came less than two hours after central bank Governor Raghuram Rajan cut interest rates and said further action will hinge on the monsoon rains.

Below-normal showers may fan prices of everything from rice to lentils and vegetables in Asia’s third-largest economy, where food costs account for almost 50 percent of the consumer price index. Rajan flagged deficient precipitation as the biggest risk to the economy as agriculture accounts for about 15 percent of India’s gross domestic product.“The forecast is a cause of concern for the economy as inflation may again go up and a lower interest rate regime, which the industry has been expecting, may not be possible,” Harish Galipelli, head of commodities and currencies at Inditrade Derivatives & Commodities Ltd., said by phone from Hyderabad. “There will be an upside in prices of pulses, oilseeds and vegetables.”

Inflation Target

Rajan has cut interest rates three times this year as consumer prices held below his 6 percent target for an eighth straight month. Prices are likely to fall until August and then start rising to about 6 percent by January 2016, higher than projections made in April, Rajan said on Tuesday.
A normal monsoon rainfall is critical to Prime Minister Narendra Modi’s plan to accelerate economic growth in a country where smartphone makers to gold jewelry retailers derive the bulk of their sales from 833 million people living in villages who depend on farming. The monsoon rainfall waters more than half of India’s farmland.
The monsoon forecast has a margin of error of plus or minus 4 percent, Vardhan said. Multiple factors including emergence of the El Nino weather conditions are seen lowering rainfall, he said. The rains have yet to arrive over India’s southern region, missing the normal onset date of June 1.

El Nino Threat

Australia declared an El Nino last month, joining weather agencies from the U.S. and Japan. Forecasters worldwide are seeking to map the probable impact of the pattern that can bake Asia, bring wetter weather to South America and crimp the frequency of Atlantic hurricanes.
Rain in July, the wettest month of the monsoon season, is seen at 92 percent of the average between 1951 and 2000, while August may record only 90 percent, the India Meteorological Department said in a statement. The prediction has a margin of error of plus or minus 9 percent, the agency said.
Northwest India, which includes cotton, rice and sugar cane growing states of Punjab, Haryana, Rajasthan and Uttar Pradesh, is forecast to get 85 percent of the average rainfall, the bureau said. While showers will be 90 percent of the average in central India, the main cotton and soybean regions, southern states of Karnataka, Kerala and Andhra Pradesh, the main producers of coffee, rice and rubber, may get 92 percent average precipitation, the bureau said.

Containing Prices

India, which gets more than 70 percent of its annual rainfall during the monsoon season, will be able to contain price increases with better management of its food economy and the slump in global commodity prices, Motilal Oswal, chairman of Motilal Oswal Financial Services Ltd., said in an e-mailed statement on Tuesday.
Modi has taken short-term steps to control food prices during his first year in office. These include selling some of the nation’s wheat stocks on the open market, pushing states to let farmers sell fruits and vegetables directly to consumers, and capping growth of guaranteed prices for cereal crops.
“We expect food inflation by and large to remain better anchored unless the monsoon shortage turns out to be worse than current forecasts,” Siddhartha Sanyal and Rahul Bajoria, economists at Barclays Plc, said in a report e-mailed on Tuesday. “The government assures that it will remain active in managing food-stocks, if needed, to contain food inflation.”
There is no direct correlation between monsoon and El Ninos, according to data from the India Meteorological Department. Of the eight El Nino years since 1991, India recorded monsoon failures and drought situations only on two occasions, according to CRISIL Ltd.
The crops at most risk from a monsoon failure will be rice, cotton, soybeans and lentils. India’s food grain output including rice and wheat fell 5.3 percent to 251.1 million tons in 2014-15, when monsoon rainfall was 12 percent below average, according to the Farm Ministry.

South Korea Buys 10,000 Tons of Non-Glutinous Brown Rice from China in Tender

Jun 02, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased 10,000 tons of non-glutinous brown rice of the Chinese origin for delivery by October 15, 2015 at $860 per ton, according to a statement on its website.
KAFTC originally sought to purchase about 75,378 tons of non-glutinous rice via eight tenders for which the bidding took place on May 21, 2015. It announced results for 36,026 tons of non-glutinous brown rice via four tenders on May 27, 2015. It was supposed to announce the results for three tenders - 10,000 tons of non-glutinous short-grain brown rice, 9,000 tons 10,000 tons of non-glutinous medium-grain brown rice - after sample tests are complete, according to the website.
However, results of 29,352 tons of non-glutinous medium-grain brown rice via three tenders (19,352 tons of non-glutinous brown medium rice and 10,000 tons of non-glutinous milled medium grain rice) are not specified on the website.

Urbanization Threatens Spectacular Cordillera Rice Terraces

Jun 02, 2015

Most popular and famous Cordillera rice terraces in the Philippines' Luzon province are facing threat from urbanization and modernization, according to local sources.The Cordillera rice terraces, which are spread across the districts Abra, Apayao, Benguet, Cagayan, Ifugao, Ilocos Norte, Kalinga, Baguio and Mountain Province, are recognized as world heritage sites by the United Nations Educational, Scientific and Cultural Organization (UNESCO).

Older generation rice farmers who cultivated rice on these terraces protected their heritage by adopting organic farming methods and avoiding pesticides and fertilizers. They showed a lot of care for limited natural resources, according to the UNESCO.

However, the terraces are now dominated by multi-storey concrete buidings, polluting diesel vehicles and other urbanized farming methods. Indonesia earthworms, other worms and snails, which are fed to crop as protein and are causing danger to the terraces, say local people. Some terraces are collapsing, they say.Though locals as well as the provincial authorities are keen on protecting the heritage of the rice terraces, they are also wanting modern lifestyles. Remembering the good old days, some farmers say life was getting simpler now with urbanization. They say selling their crop output has become much easier now compared to earlier. Their children and grand children are also getting better education facilities, they add.Conservation of these terraces depends on the mindset of local people, say experts. 

Government of Guyana to Investigate into Administration of PetroCaribe Deal, Says National Security Minister

Jun 02, 2015

The government of Guyana has begun investigating into the administration of the PetroCaribe rice agreement, under which Guyana imports oil from Venezuela and exports rice to the neighboring country, to find any discrepancies or fraud, according to local sources.The National Security Minister reportedly told in a televised program last weekend that there are doubts over rampant fraud and corruption in transportation and shipping thereby leading to higher shipping costs as well as high rice prices in the country.He noted that investigation was going on and once it is complete, there is a scope for prices of rice to come down.

Under the current PetroCaribe deal, Guyana will supply about 210,000 tons of paddy and polished rice annually to Venezuela. The deal has helped Guyana's rice industry develop significantly with increasing production and exports. It has been providing higher prices compared to other countries' offers. The deal also helped to achieve food security in the Caribbean region.

Meanwhile the Guyana Rice Development Board (GRDB) is trying to strike export deals with newer markets in Central America and Africa apart from maintaining deals with existing markets.Guyana produced around 633,000 tons of rice in 2014, up about 18% from around 535,212 tons from 2013; and exported around 501,208 tons of rice in 2014, up about 27% from around 394,000 tons exported in 2013, according to the Agriculture Minister. The Caribbean nation aims to produce about 618,000 tons of milled rice and export around 521,000 tons in 2015.

Philippines Agriculture Ministry Seeks Increased Budget for Rice Programs

Jun 02, 2015

The Department of Agriculture (DA) in the Philippines is seeking to increase budget for the rice sector development to around P11 billion (around $246 million) from next year from the current P6.6 billion (around $148 million) , according to local sources.The Department reportedly aims to sustain growth momentum of the rice sector as well as increase climate change adaptation and disaster-impact preparedness of the sector.

The DA Assistant Secretary for Field Operations told local sources that increased budget will also help in achieving self-sufficiency in rice production as well as increasing longer-term investments in research and development and small-scale irrigation projects.The current rice program focuses on increasing 2015 paddy rice production to around 20.09 million tons at a yield of 4.09 tons per hectare. However, the proposed rice program from next year aims to increase the competitiveness of local rice sector as well as the incomes of farmers. The Department is proposing to adopt high-yield technology, high-quality seed assistance to adverse environments, and disaster risk reduction and management for achieving the goals. It also seeks to enhance training and irrigation network services to support farmers.

Meanwhile the National Food Authority (NFA) is preparing for the onset of lean months from July to September. It is continuing with paddy procurement from farmers and has procured around 1.593 million tons of paddy as on May 26, over and above its procurement target of around 1.202 million tons. It noted that the selling prices of NFA rice will not be increased in the near term.

The NFA has called for tenders from Thailand, Vietnam and Cambodia for importing 250,000 tons of 25% broken well-milled long-grain rice on June 5. NFA is authorized to import another 250,000 tons of rice if the drought-inducing El Nino weather condition intensifies. 
The Philippines already imported 500,000 tons of rice from Vietnam and Thailand this year to curb price increases and boost buffer stocks. Last year, the South-east Asian nation imported more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons of 2013 residual imports) to replenish rice stocks and control price hikes.

Oryza Overnight Recap – Chicago Rough Rice Futures Little Changed Overnight Despite Robust Showing in Neighboring Grain Pits as Dollar Strength Slows

Jun 02, 2015

Chicago rough rice futures for Jul delivery are currently seen trading 0.5 cents per cwt (about $0.11 per ton) higher at $9.655 per cwt (about $213 per ton) ahead of floor trading in Chicago. The other grains are seen trading higher; soybeans are currently seen trading about 1% higher, wheat is listed about 1.4% higher and corn is currently noted about 0.7% higher.U.S. stock index futures pointed to a lower open on Tuesday as investors awaited some minor data releases ahead of Friday's key jobs report, amid continued concerns about Greece.

Tuesday is a quiet day for U.S. data, with factory orders for April at 10 a.m. ET and auto and truck sales for May, which are released throughout the day. On Monday, mixed data reports kept stocks in a trading range with the major indices closing mildly higher. April construction spending hit a nearly 6-1/2-year high and ISM Manufacturing beat expectations. However, consumer spending was flat month-over-month. Small-caps were under pressure in pre-market trade after rising on Monday to support stock gains. Also in focus is inflation data from the euro zone, which came in at 0.3% in May. This was higher than the 0.2% forecast and will help waylay fears of a deflationary spiral in the region. Gold is currently trading about 0.3% higher, crude oil is seen trading about 0.9% higher,  and the U.S. dollar is currently trading about 1% lower at 8:15am Chicago time.

3rd June (Wednesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes

Global Rice Quotes

June 3rd, 2015

Long grain white rice - high quality
Thailand 100% B grade	375-385	↔
Vietnam 5% broken	350-360	↔
India 5% broken	375-385	↔
Pakistan 5% broken	385-395	↔
Myanmar 5% broken	415-425	↔
Cambodia 5% broken	430-440	↔
U.S. 4% broken	465-475	↔
Uruguay 5% broken	565-575	↔
Argentina 5% broken	555-565	↔

Long grain white rice - low quality
Thailand 25% broken	345-355	↔
Vietnam 25% broken	325-335	↔
Pakistan 25% broken	335-345	↔
Cambodia 25% broken	410-420	↔
India 25% broken	350-360	↔
U.S. 15% broken	455-465	↔

Long grain parboiled rice
Thailand parboiled 100% stxd	365-375	↔
Pakistan parboiled 5% broken stxd	410-420	↔
India parboiled 5% broken stxd	355-365	↔
U.S. parboiled 4% broken	555-565	↔
Brazil parboiled 5% broken	570-580	↔
Uruguay parboiled 5% broken	NQ	↔

Long grain fragrant rice
Thailand Hommali 92%	845-855	↔
Vietnam Jasmine	470-480	↔
India basmati 2% broken	NQ	↔
Pakistan basmati 2% broken	NQ	↔
Cambodia Phka Mails	815-825	↔

Brokens
Thailand A1 Super	315-325	↔
Vietnam 100% broken	310-320	↔
Pakistan 100% broken stxd	305-315	↔
Cambodia A1 Super	350-360	↔
India 100% broken stxd	280-290	↔
Egypt medium grain brokens	NQ	↔
U.S. pet food	365-375	↔
Brazil half grain	NQ	↔

Medium grain milled
U.S. Calrose 4% broken	845-855	↔
Egypt medium grain 6%	NQ	↔

All prices USD per ton, FOB vessel, oryza.com

Myanmar Poses Threat to Cambodian Rice Exports to European Union, Say Exporters

Jun 02, 2015

Cambodian rice exporters are expressing concern that the country's rice exports to the European Union (EU) under the Everything But Arms (EBA) agreement have been facing a stiff competition from Myanmar, which also exports rice to the eU under the EBA agreement, according to local sources.  According to data from the European Commission (EC), Cambodia's rice exports to the EU in the first eight months of the crop year 2014-15 (September - August) have declined about 1% to around 165,940 tons from around 167,660 tons during the same period last year.

On the other hand, Myanmar's rice exports to the EU during the eight-month period increased about 81% to around 144,550 tons from around 79,940 tons last year.Reacting to the EC data, some exporters noted that Cambodia's rice exports to the EU may slow down due to a stiff competition from Myanmar. The Vice-President of the Cambodia Rice Federation (CRF) told local sources that the presence of Myanmar as a competitor cannot be ignored as their rice cheaper than the Cambodian rice. He added that Cambodia should focus more on fragrant rice exports to retain margins. “Myanmar and other major rice exporters cannot produce fragrance rice as we do,” he said.Export prices of Cambodia 5% broken rice currently stand at $435 per ton while those of Myanmar 5% broken rice stand at around $425 per ton.

The CRF Vice-President also noted that other factor such as limited milling capacity and other infrastructural inefficiencies also would have reduced Cambodia's rice exports to the EU.Meanwhile, climate experts are expecting the impending El Nino over the next two months to cause a severe drought in Cambodia affecting the country's 2015 rice production. A technical adviser with the Mekong River Commission noted that satellite images suggest record drought conditions in Cambodia this year. “A very large water deficit has already built up. This really is a very bad time to start going into an even harsher drought event,” he said.

Last month, the UN's Food and Agriculture Organization (FAO) estimated Cambodia's total paddy rice production in 2015 at around 9.3 million tons (around 5.76 million tons, basis milled) assuming favorable weather conditions.USDA estimates Cambodia MY 2014-15 (January 2015 - December 2015) paddy rice production at around 7.344 million tons (around 4.7 million tons, milled basis), slightly down from around 7.383 million tons (around 4.725 million tons, milled basis) in MY 2013-14. It estimates Cambodia to export around 1.1 million tons of rice in 2015, up about 10% from an estimated 1 million tons in 2014.  

Oryza Afternoon Recap - Chicago Rough Rice Futures Continue to Move Higher as US Dollar Weakness Provides Support to US Grain Prices; Wheat Sees Second Day of +3% Gain

Jun 02, 2015

Chicago rough rice futures for Jul delivery settled 12.5 cents per cwt (about $3 per ton) higher at $9.775 per cwt (about $215 per ton). The other grains finished the day sharply higher, led by a rally in the wheat market; Soybeans closed about 1.6% higher at $9.4075 per bushel; wheat finished about 3.8% higher at $5.1250 per bushel, and corn finished the day about 1.9% higher at $3.5900 per bushel.U.S. stocks turned higher on Tuesday, shaking off a decline in European equities, as investor optimism on Greece increased. Stocks opened lower and recovered losses around noon following the European close.

 The German DAX came off lows in the close to end about 0.9% lower. In the United States, stock gains remained muted. The Dow Jones industrial average traded about 30 points higher after falling more than 100 points soon after the open. The U.S. dollar fell more than 1.5% against major world currencies. Earlier, the greenback hit a 13-year high against the yen. Factory orders for April showed a decline of 0.4%. March's figure was increased to 2.2% from 2.1%.Aside from factory orders and vehicle sales, Tuesday is a quiet day for economic data ahead of a slew of releases in the next few days leading up to Friday's key monthly jobs report. The Dow Jones Industrial Average traded up 36 points, or 0.20%, at 18,076. The S&P 500 traded up 4 points, or 0.20%, at 2,115, with energy leading seven sectors higher and utilities the greatest laggard. The Nasdaq traded up 13 points, or 0.26%, at 5,096. Gold is trading about 0.5% higher, crude oil is seen trading about 1.8% higher, and the U.S. dollar is seen trading about 1.6% lower at about  12:45pm Chicago time.Monday, there were 1,052 contracts traded, down from 1,284 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 244 contracts to 12,187.

Oryza U.S. Rough Rice Recap - Prices Firm although Trade Enthusiasm is Limited

Jun 02, 2015

The U.S. cash market was firmer again today with both offers and bids increasing with the futures market however neither buyers are sellers were enthusiastic about trading these levels today.Analysts contend that most farmers will rice left to sell will wait until the very end before they sell at the current market price however some analysts warn that that could be bearish for prices going into harvest if all those still holding on dump their rice to make room for new crop

India Cuts Monsoon Forecast as Rajan Links Rates to Rainfall

by Pratik ParijaSwansy Afonso

June 2, 2015 — 3:36 AM EDT Updated on June 2, 2015 — 7:50 AM EDT

The monsoon rainfall in India will be deficient for a second straight year as the emergence of an El Nino event threatens weather worldwide, potentially hurting agriculture output and accelerating food inflation.The rainfall may be 88 percent of a 50-year average of 89 centimeters (35 inches) between June and September, less than the 93 percent predicted in April, Earth Sciences Minister Harsh Vardhan told reporters in New Delhi on Tuesday. The forecast came less than two hours after central bank Governor Raghuram Rajan cut interest rates and said further action will hinge on the monsoon rains.

Below-normal showers may fan prices of everything from rice to lentils and vegetables in Asia’s third-largest economy, where food costs account for almost 50 percent of the consumer price index. Rajan flagged deficient precipitation as the biggest risk to the economy as agriculture accounts for about 15 percent of India’s gross domestic product.“The forecast is a cause of concern for the economy as inflation may again go up and a lower interest rate regime, which the industry has been expecting, may not be possible,” Harish Galipelli, head of commodities and currencies at Inditrade Derivatives & Commodities Ltd., said by phone from Hyderabad. “There will be an upside in prices of pulses, oilseeds and vegetables.”

Inflation Target

Rajan has cut interest rates three times this year as consumer prices held below his 6 percent target for an eighth straight month. Prices are likely to fall until August and then start rising to about 6 percent by January 2016, higher than projections made in April, Rajan said on Tuesday.
A normal monsoon rainfall is critical to Prime Minister Narendra Modi’s plan to accelerate economic growth in a country where smartphone makers to gold jewelry retailers derive the bulk of their sales from 833 million people living in villages who depend on farming. The monsoon rainfall waters more than half of India’s farmland.
The monsoon forecast has a margin of error of plus or minus 4 percent, Vardhan said. Multiple factors including emergence of the El Nino weather conditions are seen lowering rainfall, he said. The rains have yet to arrive over India’s southern region, missing the normal onset date of June 1.

El Nino Threat

Australia declared an El Nino last month, joining weather agencies from the U.S. and Japan. Forecasters worldwide are seeking to map the probable impact of the pattern that can bake Asia, bring wetter weather to South America and crimp the frequency of Atlantic hurricanes.
Rain in July, the wettest month of the monsoon season, is seen at 92 percent of the average between 1951 and 2000, while August may record only 90 percent, the India Meteorological Department said in a statement. The prediction has a margin of error of plus or minus 9 percent, the agency said.
Northwest India, which includes cotton, rice and sugar cane growing states of Punjab, Haryana, Rajasthan and Uttar Pradesh, is forecast to get 85 percent of the average rainfall, the bureau said. While showers will be 90 percent of the average in central India, the main cotton and soybean regions, southern states of Karnataka, Kerala and Andhra Pradesh, the main producers of coffee, rice and rubber, may get 92 percent average precipitation, the bureau said.

Containing Prices

India, which gets more than 70 percent of its annual rainfall during the monsoon season, will be able to contain price increases with better management of its food economy and the slump in global commodity prices, Motilal Oswal, chairman of Motilal Oswal Financial Services Ltd., said in an e-mailed statement on Tuesday.
Modi has taken short-term steps to control food prices during his first year in office. These include selling some of the nation’s wheat stocks on the open market, pushing states to let farmers sell fruits and vegetables directly to consumers, and capping growth of guaranteed prices for cereal crops.
“We expect food inflation by and large to remain better anchored unless the monsoon shortage turns out to be worse than current forecasts,” Siddhartha Sanyal and Rahul Bajoria, economists at Barclays Plc, said in a report e-mailed on Tuesday. “The government assures that it will remain active in managing food-stocks, if needed, to contain food inflation.”
There is no direct correlation between monsoon and El Ninos, according to data from the India Meteorological Department. Of the eight El Nino years since 1991, India recorded monsoon failures and drought situations only on two occasions, according to CRISIL Ltd.
The crops at most risk from a monsoon failure will be rice, cotton, soybeans and lentils. India’s food grain output including rice and wheat fell 5.3 percent to 251.1 million tons in 2014-15, when monsoon rainfall was 12 percent below average, according to the Farm Ministry.

South Korea Buys 10,000 Tons of Non-Glutinous Brown Rice from China in Tender

Jun 02, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased 10,000 tons of non-glutinous brown rice of the Chinese origin for delivery by October 15, 2015 at $860 per ton, according to a statement on its website.
KAFTC originally sought to purchase about 75,378 tons of non-glutinous rice via eight tenders for which the bidding took place on May 21, 2015. It announced results for 36,026 tons of non-glutinous brown rice via four tenders on May 27, 2015. It was supposed to announce the results for three tenders - 10,000 tons of non-glutinous short-grain brown rice, 9,000 tons 10,000 tons of non-glutinous medium-grain brown rice - after sample tests are complete, according to the website.
However, results of 29,352 tons of non-glutinous medium-grain brown rice via three tenders (19,352 tons of non-glutinous brown medium rice and 10,000 tons of non-glutinous milled medium grain rice) are not specified on the website.

Urbanization Threatens Spectacular Cordillera Rice Terraces

Jun 02, 2015

Most popular and famous Cordillera rice terraces in the Philippines' Luzon province are facing threat from urbanization and modernization, according to local sources.The Cordillera rice terraces, which are spread across the districts Abra, Apayao, Benguet, Cagayan, Ifugao, Ilocos Norte, Kalinga, Baguio and Mountain Province, are recognized as world heritage sites by the United Nations Educational, Scientific and Cultural Organization (UNESCO).

Older generation rice farmers who cultivated rice on these terraces protected their heritage by adopting organic farming methods and avoiding pesticides and fertilizers. They showed a lot of care for limited natural resources, according to the UNESCO.

However, the terraces are now dominated by multi-storey concrete buidings, polluting diesel vehicles and other urbanized farming methods. Indonesia earthworms, other worms and snails, which are fed to crop as protein and are causing danger to the terraces, say local people. Some terraces are collapsing, they say.Though locals as well as the provincial authorities are keen on protecting the heritage of the rice terraces, they are also wanting modern lifestyles. Remembering the good old days, some farmers say life was getting simpler now with urbanization. They say selling their crop output has become much easier now compared to earlier. Their children and grand children are also getting better education facilities, they add.Conservation of these terraces depends on the mindset of local people, say experts. 

Government of Guyana to Investigate into Administration of PetroCaribe Deal, Says National Security Minister

Jun 02, 2015

The government of Guyana has begun investigating into the administration of the PetroCaribe rice agreement, under which Guyana imports oil from Venezuela and exports rice to the neighboring country, to find any discrepancies or fraud, according to local sources.The National Security Minister reportedly told in a televised program last weekend that there are doubts over rampant fraud and corruption in transportation and shipping thereby leading to higher shipping costs as well as high rice prices in the country.He noted that investigation was going on and once it is complete, there is a scope for prices of rice to come down.

Under the current PetroCaribe deal, Guyana will supply about 210,000 tons of paddy and polished rice annually to Venezuela. The deal has helped Guyana's rice industry develop significantly with increasing production and exports. It has been providing higher prices compared to other countries' offers. The deal also helped to achieve food security in the Caribbean region.

Meanwhile the Guyana Rice Development Board (GRDB) is trying to strike export deals with newer markets in Central America and Africa apart from maintaining deals with existing markets.Guyana produced around 633,000 tons of rice in 2014, up about 18% from around 535,212 tons from 2013; and exported around 501,208 tons of rice in 2014, up about 27% from around 394,000 tons exported in 2013, according to the Agriculture Minister. The Caribbean nation aims to produce about 618,000 tons of milled rice and export around 521,000 tons in 2015.

Philippines Agriculture Ministry Seeks Increased Budget for Rice Programs

Jun 02, 2015

The Department of Agriculture (DA) in the Philippines is seeking to increase budget for the rice sector development to around P11 billion (around $246 million) from next year from the current P6.6 billion (around $148 million) , according to local sources.The Department reportedly aims to sustain growth momentum of the rice sector as well as increase climate change adaptation and disaster-impact preparedness of the sector.

The DA Assistant Secretary for Field Operations told local sources that increased budget will also help in achieving self-sufficiency in rice production as well as increasing longer-term investments in research and development and small-scale irrigation projects.The current rice program focuses on increasing 2015 paddy rice production to around 20.09 million tons at a yield of 4.09 tons per hectare. However, the proposed rice program from next year aims to increase the competitiveness of local rice sector as well as the incomes of farmers. The Department is proposing to adopt high-yield technology, high-quality seed assistance to adverse environments, and disaster risk reduction and management for achieving the goals. It also seeks to enhance training and irrigation network services to support farmers.

Meanwhile the National Food Authority (NFA) is preparing for the onset of lean months from July to September. It is continuing with paddy procurement from farmers and has procured around 1.593 million tons of paddy as on May 26, over and above its procurement target of around 1.202 million tons. It noted that the selling prices of NFA rice will not be increased in the near term.

The NFA has called for tenders from Thailand, Vietnam and Cambodia for importing 250,000 tons of 25% broken well-milled long-grain rice on June 5. NFA is authorized to import another 250,000 tons of rice if the drought-inducing El Nino weather condition intensifies. 
The Philippines already imported 500,000 tons of rice from Vietnam and Thailand this year to curb price increases and boost buffer stocks. Last year, the South-east Asian nation imported more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons of 2013 residual imports) to replenish rice stocks and control price hikes.

Oryza Overnight Recap – Chicago Rough Rice Futures Little Changed Overnight Despite Robust Showing in Neighboring Grain Pits as Dollar Strength Slows

Jun 02, 2015

Chicago rough rice futures for Jul delivery are currently seen trading 0.5 cents per cwt (about $0.11 per ton) higher at $9.655 per cwt (about $213 per ton) ahead of floor trading in Chicago. The other grains are seen trading higher; soybeans are currently seen trading about 1% higher, wheat is listed about 1.4% higher and corn is currently noted about 0.7% higher.U.S. stock index futures pointed to a lower open on Tuesday as investors awaited some minor data releases ahead of Friday's key jobs report, amid continued concerns about Greece.

Tuesday is a quiet day for U.S. data, with factory orders for April at 10 a.m. ET and auto and truck sales for May, which are released throughout the day. On Monday, mixed data reports kept stocks in a trading range with the major indices closing mildly higher. April construction spending hit a nearly 6-1/2-year high and ISM Manufacturing beat expectations. However, consumer spending was flat month-over-month. Small-caps were under pressure in pre-market trade after rising on Monday to support stock gains. Also in focus is inflation data from the euro zone, which came in at 0.3% in May. This was higher than the 0.2% forecast and will help waylay fears of a deflationary spiral in the region. Gold is currently trading about 0.3% higher, crude oil is seen trading about 0.9% higher,  and the U.S. dollar is currently trading about 1% lower at 8:15am Chicago time.