March 10,2016 daily exclusive orza rice e-newsletter by riceplus magazine

Brazil Exports 170,751 Tons of Rice in First Two Months of 2016, Up 42% from Previous Year

Mar 09, 2016

Brazil exported around 170,751 tons of rice in the first two months of 2016, up about 42% from around 119,828 tons exported during the same period in 2015, according to data released by the Rice Institute of Rio Grande do Sul (IRGA).

In February 2016, Brazil exported around 74,701 tons of rice, down about 22% from around 96,050 tons in January 2016 and up about 50% from around 49,915 tons exported in February 2015.

The U.S. remained the largest importer of Brazilian rice in February 2016 with around 34,726 tons, or about 46% of Brazil's total rice exports during the month. Switzerland accounted for around 16,550 tons (about 22% of Brazil's total rice exports during the month); and Peru accounted for around 5,882 tons (about 8% of Brazil's total rice exports during the month).

Bolivia (2,266 tons), Gambia (2,220 tons), Angola (2,195 tons), Belgium (1,614 tons), Benin (1,471 tons), Chile (1,309 tons), The Netherlands (1,103 tons), and others (5,365) accounted for the remaining 24% of Brazil's total rice exports in February 2016. 

Iraq Passes On Tenders to Buy At least 30,000 Tons of Rice

Iraq has passed on tenders to buy at least 30,000 tons of rice to be sourced from the U.S., Uruguay or Argentina, Reuters quoted European traders.

Argentina's quote for 30,000 tons at $468 per ton (c&f free out) was reportedly the lowest quote received. Another offer from Argentina was quoted at $492 per ton (c&f free out) for 60,000 tons.

Two offers from the U.S. included $561 per ton (c&f free out) for 60,000 tons and $573.9 per ton (c&f free out) for 100,000 tons.

Uruguay rice was offered at $4478 per ton for 30,000 tons.

Indian rice was also offered at $478 per ton (c&f free out) for 90,000 tons despite Indian origin rice was not requested in the tender.

The rice was sought for delivery between March and April this year. Offers are valid till March 14, 2016.

Iraq also passed off the previous tender for 90,000 tons U.S. origin rice, which closed on February 21, 2016, after submission of uninvited cheaper offers from Uruguay and Argentina.

Oryza U.S. Rough Rice Recap - Prices Fall after USDA Increases Global Carryover; U.S. Ending Stocks Unchanged

Mar 10, 2016

The U.S. cash market was weaker today after the USDA left the U.S. long grain sheet unchanged with 23.0 million cwt in ending stocks while increasing global ending carryover by 1.2 million tons.

The USDA raised global production by 1.8 million tons on increased production in India which was partly offset by a decrease in production in Indonesia while increasing global consumption by 0.6 million tons.

Analysts note that on the surface this report appears bearish, however many believe that the USDA’s domestic consumption figure is too low and their Indian production figure is too high. 

Experts Call for Private-Public Partnerships in African Rice R&D

Mar 09, 2016

Experts have stressed the need for public and private sector institutions in Africa to join hands to address rice research and production challenges in the continent, according to Sci Dev Net.

Speaking at the 2016 AfricaRice Science Week and Global Rice Science Partnership-Africa Science Forum last month, the AfricaRice Deputy Director-General urged the African rice farmers to increase production capacity as the demand for rice in Africa would increase to around 38 million tons by 2040. To achieve this task, the role of private sector is very crucial, he said. AfricaRice Director-General added that such partnerships should intensify advances in scientific research to boost rice production in Africa.

Other experts noted that the joint efforts and strengths of public-private sector partnerships of all actors in the rice value chain could help boost production and enhance research on rice in Africa.

The conference was organized by AfriaRice, a member of the Consultative Group for International Agricultural Research (CGIAR) Consortium to review the activities carries out by rice teams in 2015, and was attended by 200 experts from 30 countries. In the conference, the teams reportedly decided to disseminate scalable technologies for rice production and carry out effective and efficient planning of rice research-for-development (R4D) activities in 2016.

USDA Lowers Forecast for U.S. 2015-16 All Rice Exports

Mar 09, 2016

In its March 2016 World Agricultural Demand and Supply Estimates (WASDE) report, the USDA lowered the forecast for U.S. all rice exports to around 4.54 million tons in 2015-16, from an estimated 4.76 million tons in 2014-15 and down from its previous estimates of around 4.63 million tons due to reduced shipments of southern medium-grain rough rice, especially to Turkey. The USDA forecasts 2015-16 medium-grain exports at around 1.41 million tons, down from an estimated 1.45 million tons in 2014-15 and down from its previous estimates of around 1.5 million tons.

The USDA forecasts 2015-16 all rice use at around 10.02 million tons, down from around 10.61 million tons last year and down from its previous estimates of around 10.12 million tons. It forecasts 2015-16 medium-grain use at around 2.9 million tons, up from an estimated 2.86 million tons in 2014-15 and down from its previous estimates of around 2.99 million tons.

The USDA forecasts 2015-16 all rice ending stocks at around 1.99 million tons, up from an estimated 1.95 million tons last year and up from its previous estimates of around 1.9 million tons. It forecasts 2015-16 medium-grain ending stocks at around 860,000 tons, up from an estimated 570,000 tons in 2014-15 and up from its previous estimates of around 770,000 tons.

The USDA kept its forecasts for the U.S. long-grain exports, use and stocks unchanged at its previous estimates of around 3.99 million tons, 3.13 million tons and 1.04 million tons respectively.

The USDA lowered all rice average farm prices to around $273.37 - $291.00 per ton from its last month's forecast of $275.57 - $293.21 per ton due to lower projected medium- and short-grain prices. It lowered the U.S. combined medium- and short-grain rice average farm prices to around $352.74 - $370.37 per ton from its last month's forecast of $354.94 - $372.57 per ton.

The USDA, however kept the U.S. all rice production and supply projections unchanged from the previous month.

Bangladesh Domestic Rice Prices Increase Temporarily on Higher Mill-Gate Prices, Say Traders

Mar 09, 2016

Bangladesh domestic rice prices have been increasing for the last few days in most of Bangladesh's city markets following a hike in prices at the mill-gates, according to the Financial Express.

Traders told reporters that prices of most rice varieties increase by Tk 1.0 - 4.0 per kilogram (around $13 - $52 per ton) in Dhaka and other markets. Coarse rice prices are in the range of Tk 30 - 33 per kilogram (around $392 - $430 per ton).

Bangladesh Auto Major Husking Mill Owners Association secretary noted that t is a normal market trend that rice prices fluctuate after completion of a harvesting season until the next harvest. However, some traders are predicting that prices may fall again when the Boro (January - May) harvest would begin next month.

According to the UN's Food and Agriculture Organization (FAO), wholesale and retail prices of coarse rice declined in February due to higher supplies from the Aman crop (July - December).

The Department of Agriculture Extension (DAE) targets about 34.9 million tons of rice in FY 2015-16 (July - June) from three rice seasons - Aman, Aus and Boro. DAE officials noted that Aman and Aus (February - August) rice production remained almost static this FY due to flood in the cultivation period. An official said the total production of Aman and Aus is likely to be 15.5 million tons. Bangladesh produced about 34.7 million tons of milled rice in FY 2014-15.

Last month, the government proposed to sell about 1.5 million tons of rice and wheat at reduced prices in the open market in order to clear the stocks before the arrival of the newly harvest rice. The government storage capacity for storage of food grains is 1.9 million tons. The government aims to sell rice in OMS at around Tk 23-25 per kilogram (around $300 - $326 per ton).

Currently, the government rice stocks stand at around 1.065 million tons. However, the sale had been slow. A renowned agricultural economist noted that availability of better quality rice in the market at affordable prices has been refraining consumers from buying the OMS rice.

However, he noted that: "A little-bit hike in rice prices this month might benefit the Boro farmers, who will begin harvest from next month." 

Global Rice Quotes

March 10th, 2016

Long grain white rice - high quality

Thailand 100% B grade           370-380           ↔

Vietnam 5% broken     365-375           ↔

India 5% broken          365-375           ↔

Pakistan 5% broken     335-345           ↔

Myanmar 5% broken   420-430           ↔

Cambodia 5% broken 410-420           ↔

U.S. 4% broken           440-450           ↓

Uruguay 5% broken    445-455           ↔

Argentina 5% broken   435-445           ↔

Long grain white rice - low quality

Thailand 25% broken 350-360           ↔

Vietnam 25% broken   355-365           ↔

Pakistan 25% broken   305-315           ↔

Cambodia 25% broken            395-405           ↔

India 25% broken        330-340           ↔

U.S. 15% broken (sacked)       440-450           ↔

Long grain parboiled rice

Thailand parboiled 100% stxd             365-375           ↔

Pakistan parboiled 5% broken stxd      NQ       ↔

India parboiled 5% broken stxd           355-365           ↔

U.S. parboiled 4% broken       480-490           ↔

Brazil parboiled 5% broken     520-530           ↔

Uruguay parboiled 5% broken             NQ       ↔

Long grain fragrant rice

Thailand Hommali 92%           660-670           ↔

Vietnam Jasmine         450-460           ↔

India basmati 2% broken         NQ       ↔

Pakistan basmati 2% broken    NQ       ↔

Cambodia Phka Mails 755-765           ↔

Brokens

Thailand A1 Super       330-340           ↑

Vietnam 100% broken             340-350           ↔

Pakistan 100% broken stxd     285-295           ↔

Cambodia A1 Super    335-345           ↔

India 100% broken stxd          260-270           ↔

Egypt medium grain brokens   NQ       ↔

U.S. pet food   280-290           ↔

Brazil half grain           NQ       ↔

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

Indian Private Company Developing High-Yielding Salinity-Tolerant Rice

Mar 09, 2016

An Indian agri-biotech company is developing a high-yielding and salinity-tolerant rice variety jointly with a U.S. based Biosciences company, according to the Press Trust of India (PTI).

The two companies announced in a statement this week that good progress is seen in the development of the variety. According to the statement, two years of initial field trials using rice varieties with the U.S. company's salinity-tolerant (ST) trait showed double-digit yield growth under saline conditions, and no loss of yield under normal conditions.

Following the successful field trials, the Indian company is reportedly planning to advance these lead ST rice lines into their trait introgression programme, and conduct further multi-location field trials to validate trait performance. "We will now move forward to incorporate these rice lines into elite materials to bring commercial benefits for rice growers," said the Chief Technology officer of the Indian company.

This particular ST trait has been applied to a wide variety of crops, including wheat, rice, cotton, sugarcane and vegetables.

Salinity is the most challenging issue in rice cultivation across the world. It occurs when ground water supplies are salinized due to seawater intrusion and mineral deposits. Such areas are reportedly more prevalent in North America, India, China, Australia and other regions of Asia.

 

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Tumble as USDA Leaves Data Nearly Unchanged and Fails to Add Support

Mar 10, 2016

Chicago rough rice futures for May delivery settled 15 cents were cwt (about $3/ton) lower at $10.385 per cwt (about $229 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.1% higher at $8.8575 per bushel; wheat finished about 0.6% higher at $4.6825 per bushel, and corn finished the day about 0.3% lower at $3.5950 per bushel.

U.S. stocks held mostly higher in choppy trade Wednesday as oil prices rose and investors awaited the outcome of Thursday's European Central Bank meeting. ECB President Mario Draghi is expected to announce more stimulative measures, with hopes of expansion of the asset purchase program and a possible further cut to the already negative deposit rate. U.S. crude oil futures held near $37.70 a barrel in afternoon trade. Earlier, WTI extended gains to trade more than 4% higher above $38 a barrel after weekly crude oil inventories showed a rise of 3.9 million barrels but a drop of 4.5 million barrels in gasoline inventories. Hopes of curbing production also supported oil gains.

An Iraqi oil official told state newspaper Al-Sabah that OPEC and non-OPEC members would meet in Moscow on March 20 to discuss an output freeze. However, Russian Energy Minister Alexander Novak said Wednesday that no time or place had been agreed for such a meeting this month, Reuters reported, citing the Russian TASS news agency. In economic news, weekly mortgage application volume increased 0.2% on a seasonally adjusted basis, according to the Mortgage Bankers Association. Wholesale inventories rose 0.3% in January, while sales declined 1.3%.European stocks came off session highs to end about half a percent higher. The STOXX Europe 600 Banks index closed about a third of a percent higher.

Asian stocks closed mostly lower, with the Shanghai composite off about 1.3% and the Nikkei 225 0.8% lower. In afternoon trade, the Dow Jones industrial average gained 55 points, or 0.33%, to 17,019. The S&P 500 traded up 10 points, or 0.52%, to 1,989, with energy leading eight sectors higher, with telecommunications and consumer discretionary as the only decliners. The Nasdaq composite rose 16 points, or 0.35%, to 4,665. Gold is seen trading about 0.5% lower, crude oil is seen trading about 3.6% higher, and the U.S. dollar is seen trading about 0.2% lower at about  1:15pm Chicago time.Tuesday, there were 352 contracts traded, down from 677 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday increased by 4 contracts to 11,923. 

Vietnam Rice Exports Increase Slightly m/m in January 2016, Reports USDA Post

Mar 09, 2016

Vietnam has exported around 508,153 tons of rice in January 2016, slightly up from around 505,851 tons exported in December 2015, and up about 58% from around 320,750 tons exported in January 2015, reports USDA Post based on data from the General Customs Office and the Vietnam Food Association (VFA) .Asia accounted for around 322,076 tons (about 63% of total rice exports by Vietnam in January 2016) during the month. Month-on-month, Vietnam's rice exports to Asian destinations declined about 26% from around 435,780 tons exported in December 2015.

Year-on-year, they increased about 2.4 times from around 132,097 tons exported in January 2015.Vietnam exported around 88,802 tons of rice to Africa (about 17% of total January 2016 exports) in January 2016, about 3.25 times from around 27,337 tons exported in December 2015, and down about 23% from around 114,912 tons exported in January 2015.Vietnam exported around 84,732 tons of rice to American destinations (about 17% of January 2016 exports), about 2.4 times more from around 34,770 tons exported in December 2015, and up about 35% from around 62,625 tons exported in January 2015.

Vietnam's exports to Australia (about 0.2% of January 2016 exports) increased about 3.76 times to around 9,464 tons in January 2016 from around 2,513 tons exported in December 2015 and increased about 6.6 times from around 1,429 tons exported in January 2015.Vietnam's exports to Europe and CIS countries (about 0.6% of total January 2016 exports) accounted for around 3,079 tons in January 2016, down about 43% from around 5,451 tons exported in December 2015 and down about 68% from around 9,687 tons exported in January 2015.In terms of grade, 5% broken rice exports accounted for around 149,747 tons (or, about 29% of total January 2016 exports);

Jasmine rice exports accounted for around 117,208 tons (or, about 23% of total January 2016 exports); 15% broken rice exports accounted for around 129,414 tons (or, about 25% of total exports in January 2016); 25% broken rice exports accounted for around 52,294 tons (or, about 10% of total exports in January 2016); glutinous rice exports accounted for around 46,386 tons (or, about 9% of total January 2016 exports); and 10%, 100% and other varieties accounted for around 13,104 tons (or, about 2.5% of total exports in January 2016).

Vietnam Rice Quotes Mixed Today; Other Asia Rice Quotes Unchanged

Mar 09, 2016  

Vietnam rice sellers lowered their quotes for 5% broken rice by about $5 per ton to around $365-$375 per ton and increased their quotes for 25% broken rice, 100% broken rice and Jasmine rice by about $5 per ton each to around $355-$365 per ton, $340-$350 per ton and $450-$460 per ton respectively today. Other Asia rice sellers kept their quotes unchanged today.                      

5% Broken Rice

Thailand 5% rice is indicated at around $360 - $370 per ton, about $5 per ton discount to Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $365 - $375 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $335 - $345 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $350 - $360 per ton, about $5 per ton discount to Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $330 - $340 per ton, about $25 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice           

Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is indicated at around $355 - $365 per ton, about $50 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, about $15 per ton discount to Vietnam 100% broken rice shown at around $340 - $350 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.

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

March 15,2016 daily exclusive orza rice e-newsletter by riceplus magazine

Vietnam Ships 150,500 Tons of Rice from Saigon Port in February 23 - March 9, 2016

Vietnam rice exporters have shipped around 150,500 tons of rice from Saigon port, Reuters quotes industry reports.

Shipments include 48,400 tons to the Philippines; 28,100 tons to Indonesia, 29,000 tons to Cuba; 22,000 tons to West Africa and 23,000 tons to other nations.The Saigon Port is the country's largest port located on Saigon river in Ho Chi Minh City.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Trade Higher to Begin the Week on Bullish Note

Chicago rough rice futures for May delivery settled 12 cents were cwt (about $3 per ton) higher at $10.345 per cwt (about $230 per ton). The other grains finished the day with mixed results; Soybeans closed unchanged at $8.9575 per bushel; wheat finished about 0.6% higher at $4.7875 per bushel, and corn finished the day about 1% higher at $3.6875 per bushel.

U.S. stocks traded mostly higher Monday, shaking off a decline in oil prices ahead of the Federal Reserve's meeting later in the week. The major averages opened slightly lower and crept higher throughout the day. The major data for the week include retail sales due Tuesday, ahead of the highly anticipated Fed meeting statement and press conference scheduled for Wednesday. No move on rates is expected, but policymaker commentary will be scrutinized for indications on the path of tightening. Oil extended losses as hopes of a coordinated production freeze faded. The Iranian News Agency Shana quoted Russian Energy Minister Alexander Novak saying Russia accepts Iranian rights to increase oil output post sanctions, according to Reuters.

Over the weekend, Iran Oil Minister Bijan Zanganeh said the country would join discussions among other producers about a possible oil production freeze after its own output reached four million barrels per day, according to a Reuters article citing Iran's ISNA news agency. European stocks held higher but off session highs as declines in oil weighed. Asian equities closed higher, with the Nikkei 225 and Shanghai composite both up more than 1.7%.In afternoon trade, the Dow Jones industrial average gained 35 points, or 0.2%, to 17,248. The S&P 500 declined 0.8 points, or 0.04%, to 2,021, with materials leading six sectors lower and consumer discretionary the top gainer. The Nasdaq composite gained 6 points, or 0.13%, to 4,754. Gold is seen trading about 1.8% lower, crude oil is seen trading about 3.1% lower, and the U.S. dollar is seen trading about 0.5% higher at about  2:00pm Chicago time.

Friday, there were 382 contracts traded, down from 1,043 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 40 contracts to 12,440. 

Philippines Defers Additional Rice Imports on Adequate Supplies, Says NFA Official

Mar 14, 2016

The National Food Authority (NFA) of the Philippines has deferred plans to import additional 500,000 tons of rice due to adequate supplies, The Phil Star Global quoted the NFA Public Affairs Head.

He noted that the Food Security Council and the NFA Council have decided not to approve the proposed additional 500,000 tons of rice in the second quarter. “The council will meet sometime in April or May to determine whether there’s a need to import in the third and fourth quarter,” he said.

Last year, the government approved 500,000 tons of rice imports, for delivery in the first quarter of 2016. In January this year, the NFA planned to import 400,000-500,000 tons of additional rice in the second quarter through a government-to-government (G2G) deal with Vietnam, Thailand or Cambodia or allow private traders to import under the WTO minimum access volume (MAV) rule.

The Philippine Statistics Authority (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, due to on-going dry weather conditions. The government has put in place a program to address the impact of El Nino on agriculture. It had established a P 19 billion (around $409 million) El Nino mitigation fund which will be used to improve irrigation systems and to support the food-for-work program in drought-affected areas.

The Philippines Department of Agriculture (DA) estimates that around 131,649 tons of rice worth 5.33 billion pesos (around $114.2 million) has been lost since February 2015. However, the DA noted that the crop losses are lesser than expected.

Thailand Rice Sellers Increase Some of Their Quotes Today; Vietnam Rice Quotes mixed

Mar 14, 2016

Thailand rice sellers increased their quotes for parboiled rice by about $5 per ton to around $370-$380 per ton today. Vietnam rice sellers increased their quotes for 5% broken rice, 25% broken rice, 100% broken rice by about $5-$10 per ton to around $375-$385 per ton,  $360-$370 per ton $345-$355 per ton respectively and lowered their quotes for Jasmine rice by about $5 per ton to around $445-$455 per ton. Other Asia rice sellers kept their quotes unchanged today.                      

5% Broken Rice

Thailand 5% rice is indicated at around $360 - $370 per ton, about $15 per ton discount to Vietnam 5% rice shown at around $375 - $385 per ton. India 5% rice is indicated at around $365 - $375 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $335 - $345 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $350 - $360 per ton, about $10 per ton discount to Vietnam 25% rice shown at around $360- $370 per ton. India 25% rice is indicated at around $335- $345 per ton, about $30 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice           

Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is indicated at around $355 - $365 per ton, about $50 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $330 - $340 per ton, about $15 per ton discount to Vietnam 100% broken rice shown at around $345 - $355 per ton. India's 100% broken rice is shown at around $265 - $275 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Government of Nigeria Assures Stable Rice Prices from April 2016

Mar 14, 2016

The government of Nigeria assured that it would stabile the price of rice from April to make it more affordable to all the everyone in the country, All Africa Global Media quotes the Agriculture Ministry.

He noted that price stability of rice is necessary given its demand. However, he did not specify the details of how the government would stabilize rice.

"The government will continue to support farmers to encourage agricultural activity, enhance food security and employment generation in the country," he was quoted.

Recently, prices of rice and other coarse grains increased in January due to a sharp depreciation of the Naira on the parallel market, coupled with reduced supplies of foreign exchange reserves, and persisting civil conflict in northern Nigeria, according to the UN's Food and Agriculture Organization (FAO).

Nigeria is the world's second largest importer of rice and imports over half of its annual rice consumption demand. The government of Nigeria is aiming to attain self-sufficiency in rice production in the next two years and stop imports.

USDA estimates Nigeria to produce around 2.709 million tons of rice and import around 2.5 million tons of rice in MY 2015-16 (October – September) to meet a consumption demand of around 5.85 million tons.

Indica Paddy Rice Acreage Declines Sharply in 2016 On Increasing Imports from Asian LDCs

Mar 14, 2016

Based on the first results of the survey on the current sowing, the Ente Nazionale Risi (ENR), the National Agency for Rice, expects the overall Italian rice growing area to increase in 2016. The current results of the survey show that the Italian rice acreage currently reached around 230,000 hectares, up about 1% from around 227,000 hectares in 2015.

While the acreage for japonica paddy varieties increased about 3% to around 197,000 hectares from around 192,000 hectares in 2015, the indica paddy acreage declined about 6% to around 33,000 hectares from around 35,000 hectares in 2015.

The decline in Indica paddy acreage is attribute to increasing milled rice imports from Asian least developed countries (LDCs). Italy's Indica paddy acreage more than halved from around 71.446 hectares in 2013, according to the ENR report.

Global Rice Quotes

March 15th, 2016

Long grain white rice - high quality

Thailand 100% B grade          375-385           ↑

Vietnam 5% broken    375-385           ↔

India 5% broken         365-375           ↔

Pakistan 5% broken    335-345           ↔

Myanmar 5% broken   420-430           ↔

Cambodia 5% broken             410-420           ↔

U.S. 4% broken           440-450           ↔

Uruguay 5% broken    445-455           ↔

Argentina 5% broken 435-445           ↔

Long grain white rice - low quality

Thailand 25% broken 355-365           ↑

Vietnam 25% broken 360-370           ↔

Pakistan 25% broken 305-315           ↔

Cambodia 25% broken           395-405           ↔

India 25% broken       330-340           ↓

U.S. 15% broken (sacked)      460-470           ↔

Long grain parboiled rice

Thailand parboiled 100% stxd            370-380           ↔

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%          665-675           ↑

Vietnam Jasmine         445-455           ↔

India basmati 2% broken        NQ      ↔

Pakistan basmati 2% broken   NQ      ↔

Cambodia Phka Mails             755-765           ↔

Brokens

Thailand A1 Super      330-340           ↔

Vietnam 100% broken            345-355           ↔

Pakistan 100% broken stxd    285-295           ↔

Cambodia A1 Super   335-345           ↔

India 100% broken stxd         265-275           ↔

Egypt medium grain brokens NQ      ↔

U.S. pet food 280-290           ↔

Brazil half grain          NQ      ↔

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

USDA Forecasts 2016 Global Rice Trade to Decline 2% y/y to 41.7 Million Tons

  In its March 2016 Rice Outlook report, the USDA forecasts 2016 global rice trade at around 41.7 million tons, down about 2% from an estimated 42.45 million tons in 2015, and up about 100,000 tons from last month's forecast of around 41.6  million tons.

Weaker shipments from Australia, India, Cambodia, and the U.S. will not be fully offset by increased shipments from Egypt, Pakistan, Thailand, and Uruguay, says the USDA.

The USDA forecasts lower exports from Cambodia, India and China. It forecasts Cambodia's 2016 rice exports (both official and unofficial) to decline about 18% y/y to around 900,000 tons based on larger expected sales to China. It expects India's 2016 rice exports to decline about 22% y/y to around 8.6 million tons. The USDA lowered export forecasts for China's 2016 rice exports to 350,000 tons based on a recent slowdown in shipment pace.

On the 2016 import side, the USDA forecasts higher imports from China and Indonesia. It forecasts China's 2016 rice imports to decline about 3% y/y to around 5 million tons. It forecasts Indonesia's 2016 rice imports to increase 67% y/y to around 2 million tons based on expectations of a smaller crop.

India Rice Stocks in Central Pool Stand at 29.234 Million Tons as of March 1, 2016; Up 23% from Previous Year

India’s rice stocks in the central pool as of March 1, 2016 stood at around 29.234 million tons (including a milled equivalent of about 9.81 million tons of paddy), up about 23% from around 23.794 million tons recorded during the same period last year, according to data from the Food Corporation of India (FCI). The increase in stocks can be contributed to higher than expected paddy procurement by the FCI and government agencies in the KMS 2015-16 (October  - September). The FCI and other government agencies procured around 28.4 million tons as of March 2, 2016, up about 21% from around 23.42 million tons last year, the Economic Times quoted Food Ministry sources.

Month-over-month, India's rice stocks in the central pool are up about 2% from around 28.95 million tons recorded on February 1, 2016. However, current rice stocks are up from the required buffer and strategic reserve norms of around 7.61 million tons for this time of the year, according to the FCI.

Total food grain stocks (including rice and wheat) in the central pool stand at around 46.233 million tons as of March 1, 2016, up about 6% from last year's stock of around 43.618 million tons, and down about 6% from last month's stock of around 49.329 million tons. Wheat stocks stand at around 16.865 million tons, down about 14% from last year's stock of around 19.525 million tons and down about 17% from last month's stock of around 20.335 million tons.

The government of India had revised the buffer norms for food grains, including rice, in the Central Pool in January 2015. According to the new norms, buffer stocks for food grains to be maintained with the FCI at this part of the year is 21.41 million tons.

Vietnam Urged to Formulate New Production, Export Policies to Cope with Increasing Competition

A leading rice expert in Vietnam has urged the Vietnamese government to focus on formulating new production and exports to cope with increasing competition from Thailand and Cambodia, according to local sources.

He noted that recently, Cambodia's rice exports to Vietnam's major export destination China have increased significantly. Cambodia's rice exports to China in 2015 more than doubled to around 116,000 tons from around 48,739 tons in 2014.

Though some experts are expecting Cambodia is feared to offer a stiff competition to Vietnam in the near future, he said Vietnamese rice has its own advantages over the Cambodian rice. Cambodian rice growers prefer high-quality rice with low yield, but Vietnamese rice producers prefer low-quality and high-yielding rice. But he says China still needs low-cost rice for majority of its people.

The expert advises that Vietnamese rice growers should not focus on competing with Thailand and Cambodia in growing high-quality rice because it is more profitable to grow high-yielding rice. However, he warns them to be cautious about the increasing threat from climate change and salt water intrusion.

He says they can overcome the negative effects from climate change and salt water intrusion by reducing rice cultivation in saline areas and restrict to only one crop in rainy season. Farmers can benefit by considering options like cultivating shrimp instead of growing the second rice crop.

He also noted that Vietnam need not worry about Thailand's moves to divert water from the Mekong River to help its rice farmers in the North East region.

 Vietnam Needs $1.515 Billion to Cope with Drought, Salinity Damages, Says Agriculture Minister

 The government of Vietnam will need about 34 trillion dong (around $1.515 billion) to cope with damages from drought and salinity, Bloomberg quotes the Agriculture Ministry.

The Minister confirmed and about 10% of 1.5 million hectares of rice planted in winter-spring crop in Mekong delta is hurt by drought. He also noted that saline intrusion has damaged about one million tons of rice.

Experts opine that the saline intrusion's is likely to peak by mid-April.

USDA Forecasts 2016 Global Rice Trade to Decline 2% y/y to 41.7 Million Tons

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In its March 2016 Rice Outlook report, the USDA forecasts 2016 global rice trade at around 41.7 million tons, down about 2% from an estimated 42.45 million tons in 2015, and up about 100,000 tons from last month's forecast of around 41.6  million tons.

Weaker shipments from Australia, India, Cambodia, and the U.S. will not be fully offset by increased shipments from Egypt, Pakistan, Thailand, and Uruguay, says the USDA.

The USDA forecasts lower exports from Cambodia, India and China. It forecasts Cambodia's 2016 rice exports (both official and unofficial) to decline about 18% y/y to around 900,000 tons based on larger expected sales to China. It expects India's 2016 rice exports to decline about 22% y/y to around 8.6 million tons. The USDA lowered export forecasts for China's 2016 rice exports to 350,000 tons based on a recent slowdown in shipment pace.

On the 2016 import side, the USDA forecasts higher imports from China and Indonesia. It forecasts China's 2016 rice imports to decline about 3% y/y to around 5 million tons. It forecasts Indonesia's 2016 rice imports to increase 67% y/y to around 2 million tons based on expectations of a smaller crop.

UPDATE: Iraq Buys 30,000 Tons of Argetnine Rice

Mar 14, 2016

Iraq has purchased 30,000 tons of Argentine rice at $468 per ton (c&f free out), reportedly the lowest quote received, trade sources say.  Another offer from Argentina was quoted at $492 per ton (c&f free out) for 60,000 tons.

Two offers from the U.S. included $561 per ton (c&f free out) for 60,000 tons and $573.9 per ton (c&f free out) for 100,000 tons.

Uruguay rice was offered at $4478 per ton for 30,000 tons.

Indian rice was also offered at $478 per ton (c&f free out) for 90,000 tons despite Indian origin rice was not requested in the tender.

The rice was sought for delivery between March and April this year. The deadline for submission was March 8, 2016; offers were valid till March 14, 2016.

Iraq  passed off the previous tender for 90,000 tons U.S. origin rice, which closed on February 21, 2016, after submission of uninvited cheaper offers from Uruguay and Argentina.

Indonesia Launches Paddy Rice Purchase Program to Stabilize Prices

Mar 14, 2016

The government of Indonesia has launched a paddy rice purchase program to stabilize paddy prices at the farmers' level, Reuters quoted local sources.

The program was launched by the Agriculture Minister on Saturday. He noted that the state logistics agency Bulog will purchase paddy directly from farmers under this program, which mainly aims to cut the distribution chain as well as reduce the involvement of middle men. With the Bulog directly purchasing paddy, farmers would be encouraged to plant more rice and contribute to a higher output in the country, he added.The Minister also noted that currently, price of paddy at the farmers' level was only Rp 3,700 per kilogram (around $289 per ton) and the middle men are benefited to a greater extent. He noted that middle men buy from farmers at much lower than the government's sanctioned reference price (HPP) of Rp 4,600 per kilogram (around $360 per ton).

Retail rice prices in Indonesia have been increasing September 2015. They stood at around 10.89 million rupiah per ton (around $810) in February 2016, according to the data from the UN’s Food and Agriculture Organization (FAO).

Oryza U.S. Rough Rice Recap - Prices Firm Slightly despite the IGB Booking One Argentinian Cargo

Mar 15, 2016

The U.S. cash market was slightly firmer today despite news that the Iraqi Grain board overlooked U.S. origin offers on their latest tender and purchased 30K tons from Argentina.

Analysts note that the IGB booked 1 cargo of Argentinian rice which was the cheapest offer of any origin at $468 PMT CIF Umm Qasr Free Out. 

Many market participants were disappointed that the U.S. did not receive any of the business; however, others are hopeful that Iraq will issue another tender soon giving the U.S. a second chance at booking some business.

USDA Forecasts 2015-16 Global Rice Production to Decline 2% y/y to 471.09 Million Tons on Lower Acreage

In its March 2016 Rice Outlook report, the USDA forecasts 2015-16 global rice production (milled basis) at around 471.09 million tons, down about 2% from last year’s 480.7 million tons due to an expected decline in acreage as well as decline in average yields, which are likely to be affected by adverse weather conditions in key growing areas. However, the USDA's projection is up from last month's projection of around 465.5 million tons. South Asia, Southeast Asia, and North America account for most of the projected decline in 2015-16 global rice production, according to the USDA. The U.S. agency also expects production to decline slightly in South America also in 2015-16.

This month, the USDA lowered 2015-16 production prospects mainly for Indonesia and Peru. It has raised production for India.

The USDA forecasts 2015-16 global rice acreage at 157.7 million hectares, down from an estimated 159.95 million hectares in 2014-15, and slightly down from its previous month's estimate of about 158.5 million tons. The USDA is projecting the rice area to be smaller than the previous year in Brazil, Burma, Cambodia, India, Indonesia, Nigeria, Tanzania, Thailand, and the U.S. Much of this area decline was due to adverse weather attributed to El Nino, says the USDA.

The USDA forecasts the average global yield at 4.45 tons per hectare (on rough rice basis), slightly down from 4.46 tons per hectare in 2014-15.

The USDA estimates 2015-16 global rice consumption and residual use at around 484.2 million tons, up about 1.6 million tons from last year, and slightly up from last month's forecast of around 483.7 million tons. India accounts for most of this month’s upward revision in global consumption, according to the USDA. It forecasts 2015-16 rice consumption to increase in  Brazil, China, India, Thailand, and Vietnam. On the other hand, it forecasts consumption to decline in South Korea and the U.S. during the year. Consumption is projected to exceed production for the third consecutive year, says the USDA.

Accordingly, the U.S. agency estimates 2015-16 global rice ending stocks to decline by about 13% y/y to around 90.5 million tons, and up about 1% from last month's forecast of around 89.3 million tons. Despite this month's upward revision, global ending stocks are lowest since 2007-08, says the USDA.

The USDA forecasts global stocks-to-use ratio at 18.7%, down from 21.5% last year, and the lowest since 2006-07.

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26 february daily exclusive orza rice e-newsletter by riceplus magazine

Global Rice Quotes

February 26th, 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    335-345           ↔

Myanmar 5% broken   420-430           ↔

Cambodia 5% broken             410-420           ↔

U.S. 4% broken           455-465           ↔

Uruguay 5% broken    445-455           ↔

Argentina 5% broken 435-445           ↔

Long grain white rice - low quality

Thailand 25% broken 345-355           ↔

Vietnam 25% broken 340-350           ↔

Pakistan 25% broken 305-315           ↔

Cambodia 25% broken           395-405           ↔

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%          665-675           ↔

Vietnam Jasmine         415-425           ↔

India basmati 2% broken        NQ      ↔

Pakistan basmati 2% broken   NQ      ↔

Cambodia Phka Mails             760-770           ↔

Brokens

Thailand A1 Super      325-335           ↔

Vietnam 100% broken            325-335           ↔

Pakistan 100% broken stxd    285-295           ↔

Cambodia A1 Super   335-345           ↔

India 100% broken stxd         260-270           ↔

Egypt medium grain brokens NQ      ↔

U.S. pet food 280-290           ↔

Brazil half grain          NQ      ↔

 

 

 

 

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

March 7 the EU to Vote on Relicense of Glyphosate

Feb 26, 2016

European environmental organizations, some scientistics, and organic farmers are seeking to stop the use of glyphosate in European Union (EU) agriculture.  The Italian movement is using the hashtag #stopglifosato.

In early 2015, the International Agency for Research on Cancer (IARC), the cancer-research arm of the World Health Organization (WHO), announced that glyphosate, the world’s most widely used herbicide, is probably carcinogenic to humans. 

In November 2015, the European Union’s food watchdog, the European Food Safety Authority (EFSA) ruled that glyphosate was unlikely to be carcinogenic.   Now the the European Commission plans to grant a new 15-year lease to relicense glyphosate, a move being fought by critics of the herbicide. 

On March 7, EU national representatives will vote on whether to relicense glyphosate

Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged

Feb 25, 2016

Thailand rice sellers lowered their quotes for Hommali rice by about $5 per ton  to about $665-$675 per ton today. Other Asia rice sellers kept their quotes unchanged today.                       

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 $25 per ton premium on Pakistan 5% rice shown at around $335 - $345 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $345 - $355per 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.

Thailand Announces Long-Term Rice Strategy to Boost Consumption and Limit Production

Feb 25, 2016

The government of Thailand has announced a long term rice strategy, scheduled to being next year, in hopes of increasing domestic rice consumption and limiting domestic rice production, according to the Thai PBS. 

The Prime Minister is reported saying the nation’s average per capita rice consumption has fallen from 190 kilograms per year to 106 kilograms over the last decade.

The plan is also supposed to supply farmers with high-quality seeds and financing, in addition to encouraging them to rotate crops for better soil health.

Indian Scientists to Develop Hearty Rice Variety Using Resistance of a Weed with Historical Significance

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Feb 25, 2

Researchers at M S Swaminathan Research Foundation (MSSRF), Chennai, India are trying to develop rice varieties that can yield rice in drought conditions. After studying about 12 years, researchers have identified genes in Prosopis juliflora, a weed that can thrive in adverse conditions like soil salinity and drought. Using the genetic makeup of the weed, researcher can develop transgenic rice grains that can also cope with salinity and drought.

Prosopis juliflora is native to south and central America and the Caribbean, grows fast and is tolerant to arid conditions and saline soil. The plant was introduced to India during the 1870s, by the British to meet firewood shortages but quickly took over and adversely affected the biodiversity of parts of India, according to the Times of India.

The research team at MSSRF is also looking at other plants that show similar stress tolerance like Avicennia marina, a halophytic (salt loving) plant and Chrysopogon zizanioides (vetiver), a perennial grass.

Common Wholesale Basmati Rice Prices Advance, Catching up with an Increase in Pusa 1121 Earlier This Week

Feb 25, 2016

Wholesale basmati rice prices in the national capital are mixed today, according to data from the Press Trust of India (PTI).On February 25, 2016, prices of Pusa 1121 held steady at Rs.4,100 - 5,000 per quintal (around $597 - $728 per ton).

Prices of common basmati increased, catching up with a previous rise in Pusa 1121 on February 23.  Common basmati rice is quoted Rs. 100 higher to around Rs.5,400 - 5,500 per quintal (around $786 - $801 per ton).

Oryza U.S. Rough Rice Recap - Cash Prices Fall after IGB Fails to Award Tender

Feb 26, 2016

The U.S. cash market was seen materially weaker today after the Iraqi Grain Board failed to make any awards on their latest tender.

Analysts note that it is not uncommon for the IGB to request an extension on the validity of the offers; however, many believe that they will cancel this tender and reissue another tender in the coming weeks.

Many in the industry believe that they will include South American origin on their next tender which was excluded on this tender.

In the meantime, the USDA reported that cumulative net export sales for the week that ended on February 18^th, totaled 55,800 tons, a decrease of 38% from the previous week but 9% higher than the prior 4-week average.Increases were reported for the following destinations:  15,400 tons to Japan, 11,500 tons to Haiti, 9,500 tons to unknown destinations, 8,300 tons to Mexico,  and 4,000 tons to Canada which was partially offset by a 200 ton reductions from Belgium.

U.S. rice exporters shipped 68,500 tons, an increase of 80% from than last week and 62% higher than the prior 4-week average.Increases were reported for the following destinations: 22,700 tons to Costa Rica, 18,000 tons to Mexico, 14,000 tons to Haiti, 4,200 tons to Canada, and 2,800 tons to South Korea.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Collapse as Iraqis Cancel Latest Tender

Feb 26, 2016

Chicago rough rice futures for Mar delivery settled 22.5 cents per cwt (about $5 per ton) lower at $10.435 per cwt (about $230 per ton). The other grains finished the day with mixed results; Soybeans closed about 0.8% lower at $8.6550 per bushel; wheat finished about 0.6% higher at $4.5400 per bushel, and corn finished the day about 1.1% lower at $3.6050 per bushel.U.S. stocks traded higher Thursday, following the prior day's massive intraday reversal, as low oil prices continued to weigh. The major averages fluctuated between slight gains and losses, after opening higher following a better-than-expected durable goods report. Also weighing on sentiment was the overnight 6.4% plunge in the Shanghai composite, while the Hang Seng lost nearly 1.6%. In contrast, Japan's Nikkei 225 rose 1.4%.European stocks pared gains but held about 2% higher.

The STOXX Europe 600 Banks outperformed, briefly trading more than 4% higher but still more than 30% below its 52-week intraday high. In afternoon trade, the Dow Jones industrial average rose 131 points, or 0.8%, to 16,616. The S&P 500 rose 12 points, or 0.64%, to 1,942, with financials leading nince advancers and energy the only decliner. The Nasdaq composite gained 15 points, or 0.33%, to 4,557. Gold is seen trading about 0.2% lower, crude oil is seen trading about 2.1% higher, and the U.S. dollar is seen trading about 0.1% lower at about  1:15pm Chicago time.Wednesday, there were 3,105 contracts traded, down from 3,959 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 390 contracts to 12,773. 

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