23rd February,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

China Rice Imports Increase Sharply y/y in January 2016

Feb 22, 2016

China imported around 287,200 tons of rice in January 2016, about 2.3 times from around 122,400 tons imported during the same period last year, according to data from China Customs General Administration.

Month-on-month, China's rice imports in January 2016 declined about 27% m/m from around 395,500 tons in December 2015.

In January 2016, China exported around 22,200 tons of rice, down about 20% from around 27,900 tons exported in December 2015 and up about 15% from around 19,300 tons exported in January 2015.

China imported about 3.35 million tons of rice in 2015, up about 31% from around 2.56 million tons imported in 2014. China exported about 285,800 tons of rice in 2015, down about 32% from around 419,069 tons 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.

El Niño Damages $24 Million Worth Rice Crops So Far in Philippines, Says Agriculture Department

Feb 22, 2016

Extending dry conditions due to the El Niño phenomenon have damaged about 94,934 tons of rice worth P1.62 billion (around $24 million) as of February 18, 2016 in the Philippines, Business Mirror quoted a report by the Department of Agriculture (DA).

The report showed that about 59,463 hectares of paddy are affected, but about 40,221 hectares have a chance of recovery. Based on the latest projections by the Philippine Statistics Authority (PSA),the DA Field Operation Service Officer in Charge told reporters that the effects of El Niño to rice production in the first half of 2016 would be “minimal.”

The PSA estimates the Philippines 2016 first half paddy rice production at around 8.2 million tons, down about 1.5% from around 8.32 million tons in 2015. The Philippines paddy production in 2015 declined about 4.31% to around 18.15 million tons, down from around 18.97 million tons in 2014 due to the El Niño phenomenon.

Around 304,104 tons of total crops worth P4.002 billion (around $84 million) from around 194,056 hectares are affected by the El Nino, according to the report.

Meanwhile, the Philippine Atmospheric, Geophysical and Astronomical Services Administration is expecting the El Niño to gradually weaken from March to May this year, while El Niño-Southern Oscillation (Enso)-neutral is likely between May to July 2016. Enso-neutral refers to a period when neither El Niño nor La Niña is present

FAO Forecasts Japan MY 2015-16 Rice Imports at 700,000 Tons

Feb 22, 2016

The UN's Food and Agricultural Organization (FAO) forecasts Japan's MY 2015-16 (April - March) rice imports at around 700,000 tons. It estimates the country's total cereal imports at around 24 million tons. Cereal imports cover nearly 60% of the total domestic cereal utilization.

The FAO forecasts Japan's 2015 paddy rice production at around 10.2 million tons, down about 5% from 10.77 million tons in 2014 due to a reduction in the paddy area reflecting a decline in prices.

European Commission Reduces Maximum Residue Level of Pirimiphos-Methyl Insecticide in Rice Cultivation Feb 22, 2016

The European Commission (EC) has reduced the maximum residue level (MRL) for the pirimiphos-methyl insecticide to 0.5 parts per million (ppm/milligrams per kilogram) for rice cultivation under the regulation Reg.53/2016 from the earlier 5 ppm under the previous regulation Reg.396/2005 in accordance with the guidance provided by the European Food Safety Authority (EFSA), according to local sources.

The pirimiphos-methyl insecticide used to prevent and combat infestations by storerooms and stored products, contained in various commercial products authorized for the treatment of foodstuffs or for storage rooms.

The EC has also allowed for similar reduction of MRL for the insectide in corn, rye and buckwheat cultivation, while it as retained at the earlier level for other cereals.

The Reg. 53/2016 EU came into force on February 9, 2016, but under the article 2, it apples to agricutlural products marketed after August 9, 2016. Until then the  MRLs will be applicable under the Reg. 396/2005.

The development may demand more attention in the management of warehouses and stored paddy. 

Government of South Korea Plans to Use Black Rice in Medicines, Health Products

Feb 22, 2016

South Korea's Rural Development Administration is planning to encourage local companies to produce medicines and other health products using black rice as it contains one of the highest levels of anthocyanin antioxidants, which act as anti-cancer agents, according to Arirang News. Black rice is also known to act as an anti-ageing agent and prevent various diseases.

A recent research report also proved that black rice also fights against obesity. Researchers noted that substances found in the outermost layer of black rice are found to inhibit lipogenesis and fat absorption. They conducted a study in which they fed ten out of 20 mice with black rice extract for three months, and found that the mice that were fed with the extract saw a nearly 26% reduction in obesity index and 27% reduction in abdominal fat. They also found that the blood cholesterol in the experimental group of mice was reduced by about 10%.

Recently, another study also showed that post-menopausal women who took black rice extract capsules for 12 weeks could see more than 5% reduction in abdominal fat.

Considering the various health benefits associated with black rice, Korea’s rural department has decided to transfer its extraction technology to companies to help then produce and promote medicines and other health products.

Oryza U.S. Rough Rice Recap - Prices Fall after Iraqi Tender Offers Revealed

Feb 23, 2016

The U.S. cash market was seen softer today after offers on the latest Iraqi tender were revealed, leading some market participants to believe Iraq will scrap the tender for U.S. origin only.

It was reported that 30,000 tons of U.S. origin was offered at $597 PMT CIF free out while another 90,000 tons were offered at $597.86 PMT CIF free out.

Although the tender only called for U.S. origin, one company offered 60,000 tons from Uruguay at $511 PMT CIF free out and 60,000 tons from Argentina at $501.50 PMT CIF free out.

Analysts note that no purchase decision has been made as of yet and that the offers remain valid until February 25^th, however the Iraqi Grain Board regularly extends tender deadlines.

FAO Forecasts Malaysia 2015-16 Rice Imports to Increase on Strong Domestic Demand

Feb 22, 2016

The UN's Food and Agriculture Organization (FAO) forecasts Malaysia's MY 2015-16 (July-June) rice imports to increase despite an estimated record rice production in 2015 due to a strong Domestic Demand. The FAO estimates Malaysia's 2015-16 total cereal imports, including rice, to increase about 2% y/y to around 6.5 million tons.

The FAO forecasts Malaysia's 2015 paddy rice production at a record 2.7 million tons, up about 2% from around 2.645 million tons in 2014 despite a slight contraction in paddy area due to favourable weather conditions, increased yields and continued government support to the rice sector.

Planting of the 2016 paddy crop is nearing completion. However, concerns of El Nino induced dry conditions during the  northeast monsoon period (December-March) are likely to impact the potential of the 2016 paddy crop.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Tumble as Offers on Iraqi Tender Revealed

Feb 23, 2016

Chicago rough rice futures for Mar delivery settled 31.5 cents per cwt (about $7 per ton) lower at $10.705 per cwt (about $236 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.4% higher at $8.8425 per bushel; wheat finished about 0.6% lower at $4.6400 per bushel, and corn finished the day about 0.8% higher at $3.7225 per bushel.

U.S. stocks traded more than 1% higher Monday, trying to build on their best weekly gain of 2016, as oil prices climbed. WTI futures for March delivery, which expire after the settle Monday, traded about 7% higher near $31.70 a barrel after the International Energy Agency said in its medium-term outlook Monday that U.S. shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017. U.S. crude briefly climbed above $32 a barrel at session highs. The forecast added to last week's drop in U.S. oil rig count to their lowest level since December 2009, according to Reuters. OPEC General Secretary Abdalla Salem El-Badri is scheduled to speak at the CERAWeek energy conference in Houston later on Monday. Globally stocks gained, with European stocks more than 1.5% higher and the Shanghai composite jumping more than 2% to lead gains in Asian equities. The Chinese yuan held steady overnight. In U.S. economic news, the flash read on Markit Manufacturing PMI for February was 51.0, down from the final January print of 52.4 and hitting its lowest since October 2012. In afternoon trade, the Dow Jones industrial average rose 263 points, or 1.61%, to 16,655. The S&P 500 gained 28 points, or 1.5%, to 1,946, with energy leading all 10 sectors higher. The Nasdaq composite rose 71 points, or 1.6%, to 4,575. Gold is seen trading about 1.8% lower, crude oil is seen trading about 5.8% higher, and the U.S. dollar is seen trading about 0.9% higher at about  1:00pm Chicago time.

Friday, there were 1,699 contracts traded, up from 1,018 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday decreased by 360 contracts to 12,773. 

Iraq Passes On Tenders to Purchase 90,000 Tons of U.S. Rice

Feb 22, 2016

Iraq has passed on tenders to purchase around 90,000 tons of U.S. non-glutinous rice in tenders, which closed on February 21, 2016 with the offers having to remain valid till February 25,2016, Reuters quoted the European traders.

The Iraqi Grain Board (IGB) reportedly received the lowest offer to supply 30,000 tons of U.S. rice at $597 per ton (c&f). Though, the tender had sought only the U.S. rice, the same company that offered lowest bid for 30,000 tons of U.S. rice also offered to supply 60,000 tons of Uruguay rice at $511 per ton (c&f) and 60,000 tons of Argentina rice at $501.50 per ton (c&f).

Other offers for the U.S. rice were reportedly made at $597.86 per ton, $612 per ton and $635 per ton (all c&f).

FAO Forecasts South Korea to Import 440,000 Tons of Rice in 2016

Feb 22, 2016

The UN's Food and Agriculture Organization (FAO) forecasts South Korea to import 440,000 tons of rice in 2016. The FAO forecasts South Korea's total cereal imports in MY 2015-16 (October-September) to increase slightly over the previous year due to an increase in wheat imports.

The FAO estimates South Korea's 2015 paddy rice production at around 5.8 million tons, up about 2% from around 5.638 million tons in 2014 due to favourable weather conditions, which boosted yields to an all-time record of 7.2 tons per hectare.

The government is currently facing problem of increasing supplies (from production and imports) and falling consumption. It is planning to strike a balance between rice supply and demand by 2018 through a gradual reduction in paddy production and an increase in consumption.

USDA estimates South Korea to produce around 4.3 million tons of milled rice and import around 470,000 tons in MY 2015-16 (November - October).

Pakistan Rice Export Earnings Decline Sharply in First Seven Months of FY 2015-16 Despite Increase in Tonnage

Feb 22, 2016

Pakistan exported around 2.445 million tons of rice (including 223,634 tons of basmati and 2.22 million tons of non-basmati) in the first seven months of FY 2015-16 (July 2015 - January 2016), up about 11% from around 2.196 million tons (290,013 tons of basmati and 1.91 million tons of non-basmati) exported during the same period in FY 2014-15, according to provisional data from the Pakistan Bureau of Statistics (PBS).

However, Pakistan's rice exports declined in terms of value during the said period. Pakistan earned around $1,026 million during the seven months of FY 2015-16, down about 13% from around $1,181 million earned last year. The decline is attributed to a sharp decline in global rice prices as well as a slow demand.

In January 2016, Pakistan exported around 390,223 tons of rice, down about 18% from around 475,346 tons exported in December 2015 and down about 6% from around 413,660 tons exported in January 2015. In terms of value, Pakistan earned about $158 million in January 2016, down about 13% from around $180.9 million earned in December 2015 and down about 23% from their year-ago levels of around $204.6 million.

Pakistan exported around 34,550 tons of basmati rice in January 2016, down about 13% from around 39,589 tons exported in December 2015, and down about 10% from around 38,517 tons exported in January 2015. In terms of value, Pakistan's basmati rice exports earned $33 million in January 2016, down about 3% from around $34 million earned in December 2015, and down about 23% from around $43 million earned in January 2015.

Pakistan exported around 355,673 tons of non-basmati rice in January 2016, down about 18% from around 435,757 tons exported in December 2015 and down about 5% from around 375,143 tons in January 2015. In terms of value, Pakistan's non-basmati rice exports earned $125 million in January 2016, down about 15% from around $147 million earned in December 2015, and down about 22% from around $161 million earned in January 2015.

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

Feb 22, 2016

Vietnam rice sellers increased their quotes for 5% broken rice, 25% broken rice and 100% broken rice by about $5 per ton each to around $350-$360 per ton, $340-$350 per ton and $325-$335 per ton respectively today. India and Pakistan rice sellers kept their quotes unchanged today. Thailand rice sellers are out today due to national holiday.       5% Broken Rice

Thailand 5% rice is indicated at around $355 - $365 per ton, about $5 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $345 - $355 per ton, about $5per ton premium on Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice           

Thailand parboiled rice is indicated at around $365 - $375per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, on par with Vietnam 100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $25 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Thai Commerce Ministry Confirms No Loss of Stocks Under Rice Pledging Scheme

Feb 22, 2016

Thailand's Commerce Ministry has confirmed that there was no loss of rice stocks under the previous government's rice pledging scheme as testified by an auditor to the court, according to Bangkok Post.

The Ministry noted that the difference in figures had occurred due to incorrect bookkeeping method used. The weight of the rice sacks had not been accounted for by the auditor, it said.

Separately, a rice-pledging scheme investigation panel seeking financial compensation from ex-premier Yingluck Shinawatra has submitted its findings to the government. The panel found that the former Premier had committed dereliction of duty in overseeing the implementation of the scheme. But it stated that the scheme itself did not cause any damage to the state.

Vietnam Rice Exports Increase Sharply y/y in January 1 – February 18, 2016

Feb 22, 2016

۔News have been shared with written permission of ORYZA.com with thanks.

Vietnam exported around 589,646 tons of rice in January 1 - February 18, 2016, up about 40% from around 421,202 tons of rice exported in first two months of 2015, according to data from the Vietnam Food Association (VFA). The average rice export price so far in this year stands at around $400 per ton (FOB), down about 11% per ton from around $452 per ton recorded during same last year.

During February 1-18, 2016, Vietnam exported around172,875 tons of rice, down about 14% from around 200,814 tons rice exported in full month of February 2015, and down about 59% from around 416,770 tons rice exported in full month of January 2016. The average export price so far in February stands at  around $382 per ton, down about 16% per ton from a year ago and down about 6% per ton from a month ago.

22nd February,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

China Faces Rice Storage Problems Due to Government Procurement Policy

Feb 19, 2016

China is currently facing rice storage problems due to the government's procurement policy at high prices, according to experts, reports Caixin Online.

Though the policy is very attractive to farmers, they are now the victims as the state grain buying agency Sinograin is not in a position to buy rice as all its warehouses are filled up. While Sinograin's warehouses can hold up to 500,000 tons of rice annually, it had to buy nearly 1.7 million tons of rice in 2013, 1.2 million tons in 2014 and 1.5 million tons in 2015.

Sinograin has been building new granaries and partnering with private companies, which can provide storage facilities. The agency opened about 115 new warehouses across the country, but the storage problems are still persisting. This year, several farmers in various provinces are reportedly waiting for the agency to buy up their rice.

Industry sources say the agency still holds rice from 2013, which is feared to have spoilt. The Sinograin planned to sell some stockpiled rice in the domestic market, but there were very few buyers for the rice as the government is reluctant to lower selling prices.

The sources say farmers support the government's high procurement prices, which have almost doubled import prices from Thailand and Vietnam in 2015. But other market players noted that the government's policy of high procurement prices has distorted grain markets in the country. One of the rice processing factory owner expressed concern that the government's purchase policy continues would be a threat to the processing factories.

Most of the factories are managing by leasing some of their space to the Sinograin for storing reserves. Experts are warning that more alternatives should be sought to protect farmers. They are suggesting that the government should let the market determine the prices. They noted that the private companies should be allowed to compete with the Sinograin in running the whole procurement process.

Meanwhile, farmers are just hoping that more warehouses would come up and the government would buy up their rice. 

Drought and Salt Water Intrusion to Affect 330,000 Hectares of Winter-Spring Rice in Mekong Delta, Says MARD

Feb 19, 2016

Vietnam's Ministry of Agriculture and Rural Development (MARD) is estimating that the on-going drought and consequent salt water intrusion are likely to affect about 330,000 hectares (or about 35%) of winter-spring rice in the Mekong Delta region, according to local sources. Winter-spring crop accounts for about 62% of the Delta’s annual rice production.

More than 950,000 hectares of winter-spring rice has been planted in the delta's eight coastal provinces – Long An, Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Kien Giang, and Hau Giang.

The delta is reportedly facing the worst drought and salt water intrusion in 90 years, according to the MARD sources. They noted that last year rainy season started late and ended early due to the El Nino phenomenon. Lesser rains have caused a shortage of fresh water and salt water intrusion to begin two months earlier than normal, they said. Salt water reportedly encroached 40-90 kilometers inland up the delta's major rivers, 10-15 kilometers further than usual.

The provincial administrations are taking measures to mitigate the damages, including restructuring crop cultivation schedules, building temporary dams and dredging canals to store fresh water and installing public pumps. However, they are not able to contain the damages to agriculture.

Speaking at a seminar in Can Tho City on Wednesday, the Agriculture Minister called for long-term solutions to deal with drought and salt water intrusion. But mobilizing funds to implement sustainable solutions is a major challenge, he said.

In the same seminar, the Deputy Prime Minister said each province should have a comprehensive plan to combat the current situation. He noted that the government would allocate VND2.3 trillion (around $104 million) from bonds and official development assistance loans for the delta to combat drought and salt water intrusion. He also ordered the Ministry of Finance to allocate around VND2 million (around $95) per hectare to affected households.

FAO Forecasts China MY 2015-16 Rice Imports to Decline 6% y/y to 5.8 Million Tons

Feb 19, 2016

The UN's Food and Agriculture Organization (FAO) forecasts china's MY 2015-16 (June - May) rice imports to decline about 6% y/y due to government's efforts to limit informal imports. The FAO forecasts china's total cereal imports in the 2015-16 marketing year to fall by 6% y/y to 29 million tons from last year's exceptionally high level due to record 2015 harvests and large stocks.

The FAO forecasts China's 2015 paddy rice output at around 208.25 million tons, up from around 206.507 million tons in 2014 due to favourable weather conditions.

Retail prices of Japonica rice increased slightly in January 2016 mainly due to sustained domestic demand. However, they are mostly similar to their year-ago levels, according to the FAO. Oryza Weekly: Rice Prices Continue to Fall on Low Demand

Feb 20, 2016

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $381 per ton, down about $2 per ton from a week ago down about $3 per ton from a month ago and down about $38 per ton from a year ago.

U.S. stock markets were dragged lower on Friday amid a slide in crude oil prices; the S&P 500 is poised for the best week of 2016.  Rising rents and healthcare costs are boosting prospects that the U.S. Federal Reserve will gradually raise interest rates this year.  Most analysts see other major central banks holding interest rates steady, an atmosphere that could lead to a comparatively stronger U.S. dollar against other major currencies. 

Thailand

Thailand 5% broken rice is today quoted at about $360 per ton, down about $10 per ton from a week ago, up about $5 per ton from a month ago and down about $45 per ton from a year ago.

The government sold about 152,377 tons of stockpiled rice worth about 1.78 billion baht (about $50 million) in the first auction of this year.  Bids of 15 private companies were reportedly successful. In the second auction this year the government  sold about 245,262 tons of stockpiled rice worth about 1.53 billion baht (about $43 million).  Bids of nine private companies were reportedly successful in today’s auction.

In 2015, Thailand exported about 9.795 million tons of rice, down about 11% from the same period last year.

Thailand, which is part of the Mekong River Commission, is being accused of diverting water from the Mekong River to its Northeastern states that are suffering from drought conditions without proper notice to the MRC, according to Vietnamese media reports.

Witnesses present in Court on February 17 to testify against the former Prime Minister told judges that the scheme lacked appropriate accounting systems leading to loopholes in disbursements of the state budget.

Thailand’s 2015-16 secondary rice crop (January-June) acreage declined by about half to around 800,000 hectares due to extending drought conditions.

Vietnam

Vietnam 5% broken rice is today quoted at about $350 per ton, down about $5 per ton from a week and a month ago and down about $10 per ton from a year ago.

Experts warn that increasing salt water intrusion in Vietnam is likely to impact the nation’s rice production and exports significantly.

Vietnam's Ministry of Agriculture and Rural Development (MARD) is estimating that the on-going drought and consequent salt water intrusion are likely to affect about 330,000 hectares (or about 35%) of winter-spring rice in the Mekong Delta region. Winter-spring crop accounts for about 62% of the Delta’s annual rice production.

Cambodia

Cambodia 5% broken rice is today quoted at about $415 per ton, down about $15 per ton from a week ago and a month ago, and down about $20 per ton from a year ago.

Myanmar

Myanmar 5% broken rice is today quoted at about $420 per ton, unchanged from a week and a month ago and up about $5 per ton from a year ago.

Officials of the Myanmar Rice Federation are urging the government to prepare rice reserves in anticipation of El Nino-induced drought conditions in the country.

India

India 5% broken rice is today quoted at about $365 per ton, unchanged from a week ago, up about $5 per ton from a month ago, and down about $30 per ton from a year ago.

India’s total rice exports during the first nine months of FY 2015-16 (April-December) have declined about 10% y/y to around 7.79 million tons.

The government of India forecasts India’s 2015-16 (July-June) milled rice output to decline about 2% y/y to around 103.61 million tons.

Wholesale basmati rice prices in the national capital increased Wednesday due to an increase in buying for stockpiling.

The government hopes to secure a one million ton rice export deal with Indonesia, which is likely to experience a decline in rice production this year due to ongoing dry conditions.

The Food Corporation of India and other government agencies have procured about 26.13 million tons of paddy in the 2015-16 kharif marketing season, up about 21% from the same time last year.

The USDA Post forecasts India’s exports in the current marketing year at around 8 million tons, a decrease of about 33% from last year.

The Agricultural and Processed Food Products Export Development Authority has made it mandatory for all Indian rice mills/processing units exporting basmati rice to the U.S. to register with India’s plant quarantine organization to ensure quality rice exports to the U.S.

The India-based Geographical Indications registry has granted the GI certification to India’s basmati rice, providing it a legal protection from other countries and companies using the “basmati” tag.  India’s central state Madhya Pradesh sought inclusion in the GI tag application, but was opposed, and the case will now be going to court.

A report by the National Sample Survey using data collected between January and December 2013 found that only 5% of rice farmers in the country insured their crops, and the majority of them were not even aware of the insurance concept.

The UN's Food and Agriculture Organization (FAO) forecasts India's rice exports to decline in 2016 from last year's high level. It forecasts India's 2015 paddy rice output to decline about 2% to around 155.407 million tons from around 158.210 million tons in 2014 due to an expected decline in secondary rabi rice crop (November - May).

Pakistan

Pakistan 5% broken rice is today quoted at about $345 per ton, up about $10 per ton from a week ago, up about $5 per ton from a month ago and down about $5 per ton from a year ago.

The Rice Exporters Association of Pakistan (REAP) has urged the government to provide zero-rated sales tax status to them as they are facing severe liquidity crunch due to pending tax refund claims.

The Kenya Port Authority (KPA) has reportedly agreed to release Pakistani rice consignments stuck at the Mombasa port in Kenya since January 20, 2016, following the cancellation of licence of two port yards Auto Ports Container Freight Station (CFS) and Portside CFS over allegations of dealing in contraband goods.

Central & South America

Brazil 5% broken rice is today quoted at about $460 per ton, unchanged from a week and a month ago and down about $90 per ton from a year ago. The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 42.1 real per 50 kilograms as of February 15, 2016, up around 0.36% from around 41.95 real per 50 kilograms recorded on February 08, 2016.  In terms of USD, the index reached around $207 per ton on February 15, 2016, down around 3.7% from around $215 per ton recorded a week ago.  Month-on-month, the index has increased around 1.84% from around 41.34 real per 50 kilograms recorded month ago. In terms of USD, the index increased around 1.24% during the month.

Five percent broken rice from Uruguay and Argentina is today quoted at about $440 per ton, unchanged from a week ago, down about $45 per ton from a  month ago and down about $160 per ton from a year ago.

The UN’s FAO estimates Bolivia’s 2015-16 rice and other cereal imports to decline from the high levels of the previous two years due to a record production in 2015.  It estimates total cereal imports (including rice) in 2015 will decline about 19% y/y to around 476,000 tons.  Bolivia’s 2015 paddy rice production increased by about 25% y/y, to around 472,000 tons.

U.S.

U.S. 4% broken rice is today quoted at about $465 per ton, unchanged from a week ago, down about $5 per ton from a  month ago and down about $20 per ton from a year ago.

Chicago rough rice futures for March delivery fluctuated this week, moving higher early in the week after the Monday holiday and then closing back below $11.000/cwt (about $243 per ton) on Thursday.  The weekly high was on Wednesday, when futures reached $11.175/cwt (about $246 per ton).

The U.S. cash market saw little action this week but oscillated with the futures market as farmers remained on the sidelines.

The USDA’s Grain Inspection, Packers, and Stockyards Administration is developing a new software called “Rice Studio,” which can be used along with consumer-grade photo scanners to grade rice by measuring the percentage of broken kernels in milled rice quickly and accurately.

Other Markets

The government of the Philippines may not import rice for the lean season (July-September) this year due to adequate stocks.

The government of Sri Lanka plans to export some of its 200,000 tons of surplus paddy rice to Southern African nations.

The Maldives plans to import rice and other products from Bangladesh.

The UN’s FAO estimates Bhutan’s MY 2015-16 (July-June) rice imports at around 70,000 tons.  It estimates total cereal imports, including rice, will decline about 8% y/y due to good 2015 harvests.

South Korea’s state-run Agro Fisheries & Food Trade Corporation is seeking to buy about 40,000 tons of non-glutinous rice in tenders for delivery between May 31 and June 30.

The government of China, which is facing storage problems, plans to clear old rice and corn stocks from reserves. The government’s procurement program is being criticized for the country’s storage problems.

The UN's Food and Agriculture Organization (FAO) forecasts china's MY 2015-16 (June - May) rice imports to decline about 6% y/y due to government's efforts to limit informal imports. It forecasts China's 2015 paddy rice output at around 208.25 million tons, up from around 206.507 million tons in 2014 due to favorable weather conditions.

The Rice growers Association of Australia is urging the government to expedite the process of signing a biosecurity protocols agreement with China in order to export rice there.

Ukraine’s 2016 rice output is expected to increase about 12% y/y due to an expected increase in acreage by about 23%.

Rice imports by the European Union have increased sharply since the beginning of the crop year 2015-16 (September-August), with the EU importing about 526,984 tons of rice during the period September 1 – February 9, an increase of about 19% from the same period last year.

The EU’s rice imports from the Least Developed Countries of Asia such as Cambodia and Myanmar under the Everything But Arms Agreement have reached about 151,326 tons in the first five months of the crop year 2015-16 (September-January), an increase of about 40% from the same period last year.

The European Commission will soon present a proposal authorizing the temporary inclusion of tricyclazole fungicide, used to contain rice blast disease, among those authorized in agriculture.

The President of the Association of the Italian Milling Industries is urging rice farmers to increase the hectarage of Indica rice varieties.

The UN’s FAO estimates Tanzania’s MY 2015-16 (July-June) rice imports at around 100,000 tons, and estimates its 2015 paddy rice production to decline about 7% y/y to around 2.4 million tons.

Rice farmers in Ghana are concerned that there are no buyers for locally produced rice due to the influx of imported rice.

The government of Angola has set up the National Council of Pricing to monitor prices of rice and other food items such as sugar, milk, beef, fish, and corn.

FAO Forecasts 2016 India Rice Exports to Decline from Last Year's Elevated Level

Feb 19, 2016

The UN's Food and Agriculture Organization (FAO) forecasts India's rice exports to decline in 2016 from last year's elevated level. It forecasts India's total cereal exports in the 2015-16 marketing year (April/March) to decline about 27% y/y to around 12.5 million tons mainly due to a sharp decline in wheat exports.

The FAO forecasts India's 2015 paddy rice output to decline about 2% to around 155.407 million tons from around 158.210 million tons in 2014 due to an expected decline in secondary rabi rice crop (November - May). The FAO estimates the rabi rice planting area to decline about 7% over last year. The final outcome of this season’s harvests will depend on the availability of water supplies for irrigation and rainfall in the coming weeks, which are critical for crop development, says the FAO.

Harvesting of the 2015 kharif rice crop (July - December) is complete and the FAO estimates the kharif output at around 90.6 million tons, marginally below last year's level.

Retail prices of rice were stable in most markets in January 2016, despite the progressive arrival of the 2015 main crop in the market, due to the on-going government procurement purchases.

Kenya Port Authority Agrees to Release Pakistan Rice Consignments, Says REAP Chairman

Feb 19, 2016

The Kenya Port Authority (KPA) has reportedly agreed to release Pakistani rice consignments stuck at the Mombasa port in Kenya since January 20, 2016, following the cancellation of licence of two port yards Auto Ports Container Freight Station (CFS) and Portside CFS over allegations of dealing in contraband goods, Pakistan media quoted the Chairman of the Rice Exporters Association of Pakistan (REAP).

Over 1,300 containers carrying 37,000 tons of rice worth $13 million have been held up at the Kenyan port despite paying all local duties and taxes. The release of the containers was reportedly linked with 100% examination.

The REAP Chairman and the Pakistan High Commission Commercial Counsellor in Nairobi met with the Managing Director of the KPA and other related officials and requested them to release the containers without 100% examination as they were imported by genuine importers. He also reportedly sought for the waiving of all demurrages and storage/re-marshalling charges that would have accrued over the past few days. It is understood that the KPA agreed to waive off the charges and asked REAP to provide the details of Bill of Lading along with container numbers of the consignments lying at the KPA.

"We have also asked for a deadline of 15th March, 2016 for removing the balance rice consignments from KPA without any storage or additional charge and KPA officials are almost agreed to it," the REAP Chairman was quoted.

Kenya is a traditional importer of Pakistani rice and the bilateral trade between Kenya and Pakistan is more than $600 million, according to the Pakistan High Commission Commercial Counsellor.

Oryza U.S. Rough Rice Recap - Prices Firm with Strong Export Sales

Feb 20, 2016

The U.S. cash market was slightly firmer today after the USDA reported respectable export sales figures despite most buyers being hand-to-mouth.

The USDA reported that cumulative net export sales for the week that ended on February 11 totaled 90,600 tons, an increase of 71% from the previous week and considerably higher than the prior 4-week average.

Increases were reported for the following destinations:  41,400 tons to Mexico, 22,100 tons to Colombia, 5,400 tons to Saudi Arabia, 4,900 tons to Haiti,  and 4,700 tons to Jordan.

U.S. rice exporters shipped 38,000 tons, a decrease of 23% from than last week and 26% lower than the prior 4-week average.

Increases were reported for the following destinations: 7,300 tons to Taiwan, 7,000 tons to Haiti, 6,100 tons to El Salvador, 3,900 tons to Mexico, and 2,900 tons to Canada

Pakistan Exporters Seek Zero Sales Tax Status

Feb 19, 2016

The Rice Exporters Association of Pakistan (REAP) has urged the government to provide zero sales tax status to them as they are facing severe liquidity crunch due to pending tax refund claims, according to local sources.

The REAP Chairman was responding to the Prime Minister's recent decision to restore zero tax status to five export sectors, including textile, leather, carpet, sports goods and surgical goods. He said the Prime Minister should include rice sector also in the list.

“Rice exporters contribute a major share to the country’s export earnings and are providing direct and indirect employment to millions, ” he said. “Rice is the second largest export commodity, but despite earning $2 billion annually, we are not being given benefits while exporters of other commodities are facilitated,” he added.

The REAP Chairman also noted that rice exporters are facing with several problems and consequently their export capacity is being severely impacted. He noted that exports are already below target both in terms of value and volume. Absence of zero-rated facility and imposition of sales tax would further be burdensome to exporters.

He said that the association has also written letters to the Finance and Commerce Ministers asking them to provide zero sales tax facility to rice exporters and exempt them from sales tax and income tax on utility services.

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

Feb 19, 2016

Wholesale basmati rice prices in the national capital have increased today for third consecutive day owing to an increase in buying for stockpiling against restricted supplies from producers, according to the Press Trust of India (PTI).

On February 19, 2016, prices of Pusa 1121 increased to around Rs.4,050 - 4,950 per quintal (around $592 - $724 per ton) from previous levels of around 3,900 - 4,800 per quintal (around $572 - $703 per ton).

Prices of common basmati increased to around Rs.5,300 - 5,400 per quintal (around $775 - $790 per ton) from previous levels of around Rs.5,100 - 5,200 per quintal (around $747 - $762 per ton).

"Steady inflow of buying by stockists against restricted supplies from producing regions kept rice basmati prices higher," traders were quoted as saying.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Recover to Finish the Week $0.26/cwt Higher as Market Participants Eye Potential Demand

Feb 20, 2016

Chicago rough rice futures for Mar delivery settled 16 cents per cwt (about $4 per ton) higher at $11.020 per cwt (about $243 per ton). The other grains finished the day lower; Soybeans closed about 0.2% lower at $8.8075 per bushel; wheat finished about 0.4% lower at $4.6675 per bushel, and corn finished the day about 0.1% lower at $3.6925 per bushel.

U.S. stocks traded in a range Friday, continuing to consolidate after solid gains earlier in the week and mostly shaking off pressure from declines in oil prices. The major averages held mixed in afternoon trade, but well off session lows with the Nasdaq composite trading mostly higher. WTI futures for March delivery, which expires Monday, pared losses to trade about 2% lower blower $30 a barrel after the U.S. oil rig count showed a decline of 26 in the last week, Baker Hughes said. As of the close Thursday, the major U.S. averages were up more than 2.5% for the week so far, on pace for their best week since November. In economic news, the consumer price index showed a 0.3% rise ex-food and energy in January. The headline figure was unchanged from the previous month. Year-over-year, the core CPI advanced 2.2%, the largest rise since June 2012, Reuters said. European stocks closed lower amid the negotiations and declines in oil. Asian stocks were mostly lower Friday, but the Nikkei 225 ended the week with gains of nearly 6.8%, while the Shanghai composite was up about 3.5% for the week. In afternoon trade, the Dow Jones Industrial Average traded down 33 points, or 0.2%, to 16,379. The S&P 500 declined less than a point, or 0.04%, to 1,917, with energy leading five sectors lower and information technology the top gainer. The Nasdaq composite traded up 18 points, or 0.4%, at 4,505. Gold is seen trading about 0.4% higher, crude oil is seen trading about 3.3% lower, and the U.S. dollar is seen trading about 0.3% lower at about  1:30pm Chicago time.

Thursday, there were 1,018 contracts traded, up from 952 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday increased by 168 contracts to 13,133. 

Thailand, Vietnam, Pakistan Rice Sellers Lower Their Quotes Today; India Rice Quotes Unchanged

Feb 19, 2016

Thailand rice sellers lowered their quotes for 5% broken rice and parboiled rice by about $5 per ton each to around $355-$365 per ton and $365-$375 per ton respectively today. Vietnam rice sellers lowered their quotes for 5% broken rice and Jasmine rice by about $5 per ton and $20 per ton to around $345-$355 per ton and $410-$420 per ton, respectively. Pakistan rice sellers lowered their quotes for 25% broken rice and 100% broken rice by about $5 per ton each to around $305-$315 per ton and $285-$295 per ton respectively. India rice sellers kept their quotes unchanged today.                                

5% Broken Rice

Thailand 5% rice is indicated at around $355 - $365 per ton, about $10 per ton premium on Vietnam 5% rice shown at around $345 - $355 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $345 - $355 per ton, about $10 per ton premium on Vietnam 25% rice shown at around $335- $345 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice           

Thailand parboiled rice is indicated at around $365 - $375per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, about $5 per ton premium on Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $25 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Global Rice Quotes

February 22nd, 2016

Long grain white rice - high quality
Thailand 100% B grade	365-375	↔
Vietnam 5% broken	350-360	↑
India 5% broken	360-370	↔
Pakistan 5% broken	340-350	↔
Myanmar 5% broken	415-425	↔
Cambodia 5% broken	425-435	↔
U.S. 4% broken	460-470	↔
Uruguay 5% broken	440-450	↔
Argentina 5% broken	430-440	↔

Long grain white rice - low quality
Thailand 25% broken	345-355	↔
Vietnam 25% broken	340-350	↑
Pakistan 25% broken	305-315	↔
Cambodia 25% broken	405-415	↔
India 25% broken	325-335	↔
U.S. 15% broken (sacked)	440-450	↔

Long grain parboiled rice
Thailand parboiled 100% stxd	365-375	↔
Pakistan parboiled 5% broken stxd	NQ	↔
India parboiled 5% broken stxd	350-360	↔
U.S. parboiled 4% broken	480-490	↔
Brazil parboiled 5% broken	520-530	↔
Uruguay parboiled 5% broken	NQ	↔

Long grain fragrant rice
Thailand Hommali 92%	680-690	↔
Vietnam Jasmine	410-420	↔
India basmati 2% broken	NQ	↔
Pakistan basmati 2% broken	NQ	↔
Cambodia Phka Mails	750-760	↔

Brokens
Thailand A1 Super	325-335	↔
Vietnam 100% broken	325-335	↑
Pakistan 100% broken stxd	285-295	↔
Cambodia A1 Super	345-355	↔
India 100% broken stxd	260-270	↔
Egypt medium grain brokens	NQ	↔
U.S. pet food	280-290	↔
Brazil half grain	NQ	↔

Medium grain milled
U.S. Calrose 4% broken	785-795	↔
Egypt medium grain 6%	NQ	↔

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

News have been shared with written permission of ORYZA.com with thanks.