Bangladesh Signs G2G Deal with Sri Lanka to Export 50,000
Tons of Rice
Dec
03, 2014
Bangladesh
has signed a government-to-government (G2G) deal with Sri Lanka to export
50,000 tons of rice, according to Reuters.A senior official from Bangladesh's
Food Ministry was quoted as saying that the deal has been struck at $450 per
ton (CIF basis) and is for delivery by January 31, 2015.The government has
assured that the current rice stocks are adequate to meet the country's
consumption needs. According to the Ministry of Food, the country has around
1.083 million tons of rice stocks as on December 2, 2014, up about 67% from
stocks of about 650,160 tons during same period last year.
Bangladesh
usually imports rice to meet consumption needs and exports aromatic rice in
small quantities.
During the last two financial years (July - June), it
exported aromatic rice worth Tk77 crore (around $9.7 million), according to
government data. This is the first deal to export non-fragrant coarse rice.Bangladesh
produced around 34.36 million tons of rice in 2013-14, up about 2% from around
33.76 million tons last year, according to data from Bangladesh Bureau of
Statistics (BBS).
Sri Lanka’s
rice production is impacted from a severe drought. The UN's Food and
Agricultural Organization (FAO) has forecasted Sri Lanka's 2014 rice imports to
increase about nine-fold to around 200,000 tons from around 22,900 tons in
2013. It has forecasted Sri Lanka's total paddy production to decline to around
3.6 million tons in 2014 (around 2.4 million tons, basis milled), down about
22% from around 4.6 million tons (around 3.1 million tons, basis milled) produced
in 2013.
Food Corporation of India Revamp May be Delayed
Dec 03,
2014
The restructuring has been taken up to
address some functional and cost inefficiencies associated with the FCI
operations. It is part of the new government's agenda to divide FCI into three
divisions separately handling procurement, management and distribution. FCI is
being criticized for inefficient management of food grains in the country.The
FCI has also been facing liquidity crunch for sometime due to lesser allocation
of funds against the estimated subsidy bill in the last three-four years. Meanwhile,
the Junior Agriculture Minister declared that the government has no plans to
increase grain allocation under the Food Security Law. Currently, five
kilograms of grains (wheat and rice) are guaranteed for below poverty line
(BPL) families under the Food Security Law.
El Nino Threat Resurfaces; Effects on Rice Production
Likely to be Minimal
Dec 03,
2014
Australia's Bureau of Meteorology (ABM) and
New Zealand's National Institute of Water & Atmospheric Research (NIWAR)
pointed out to a possible El Nino weather pattern between December 2014 and
February 2015, according to the Financial Times.The ABM was quoted as saying
that climate indicators were “currently close to, or exceed, El Niño
thresholds.” It issued an alert indicating a 70% probability of an El Nino
pattern occurring in the coming months.However, the Australian weather
officials noted that patterns are consistent with a weak or moderate El Nino
weather pattern since some indicators have remained near-average or have only
temporarily approached El Nino levels. New Zealand's NIWAR also confirmed the
same.
The Southern Oscillation Index (SOI), which
indicates the development and intensity of El Nino or La Nina events, has
remained between -11 and -7 over the last two weeks. Sustained negative values
below -8 usually indicate a strong El Nino, according to the Australian Bureau.The
Australian Bureau noted that El Nino-like effects have already emerged in
Australia, Asia, South America and Southern Africa.
El Nino pattern increases temperatures of
Pacific Ocean leading to extreme weather conditions such as droughts in Asia
and Australia, and floods in Latin America affecting agricultural output. In
the past El Ninos had impacted rice production in India, Thailand and Vietnam.
However, this time the effects on rice production is likely to be minimal,
according to a Food and Agricultural Organization (FAO) senior economist. An
El Nino pattern was predicted between July – September 2014 in many parts of
the globe but probability of its occurrence was lowered as conditions
associated with El Nino patterns were not properly established.
Tags: El Niño, Rice Production
Climate Change May Reduce India Rice Yields
by 6% Over Next Six Years
Dec 03,
2014
The Minister's comments were based on a
vulnerability report prepared by the Indian Council for Agricultural Research
(ICAR) on the impact of climate changes on yields of major food crops,
including rice, in different production zones under the National Initiative on
Climate Resilient Agriculture.According to the report, output of irrigated rice
is expected to decline by 4% and the output of rain fed rice is expected to
decline by 6% by 2020. Rice production is most vulnerable to climate changes in
the states of Andhra Pradesh, Telangana, Gujarat, Karnataka, Madhya Pradesh,
Maharashtra, Odisha, Tamil Nadu and Uttar Pradesh due to frequent erratic
rainfall patterns.ICAR's estimates of rice yields are based on a climate change
impact analysis on crop yields using crop simulations models.
The Minister noted that the ICAR along with
the State Agricultural Universities and the concerned State Departments are
preparing agricultural contingency plans for about 580 districts across the
country to help farmers deal with extreme weather conditions. The government
had allocated Rs.1,500 crore (around $242 million) in the 2014-15 budget to promote
productive, sustainable, remunerative and climate resilient agriculture.India
produced around 106.54 million tons (91.69 from kharif and 14.85 from rabi) of
rice in 2013-14 (October – September), up about 1% from around 105.31 million
tons in 2012-13. 2014-15 Rice production is likely to be lower due to delayed
monsoons. The Indian government has estimated 2014-15 kharif rice
production at around 88.02 million tons, down about 4% from around 91.69
million tons produced during the same time in 2013-14, according to a statement
from the Agriculture Ministry.
Global Rice Quotes
December 3rd, 2014
Long grain white rice - high quality
Thailand 100% B grade 420-430 ↔
Vietnam 5% broken 385-395 ↑
India 5% broken 395-405 ↔
Pakistan 5% broken 380-390 ↔
Cambodia 5% broken 455-465 ↔
U.S. 4% broken 540-550
↔
Uruguay 5% broken 595-605 ↔
Argentina 5% broken 595-605 ↔
Long grain white rice - low quality
Thailand 25% broken NQ ↔
Vietnam 25% broken 350-360 ↔
Pakistan 25% broken 335-345 ↔
Cambodia 25% broken NQ ↔
India 25% broken 355-365 ↔
U.S. 15% broken 515-525 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 405-415 ↔
Pakistan parboiled 5% broken stxd 420-430 ↔
India parboiled 5% broken stxd 380-390 ↔
U.S. parboiled 4% broken 580-590 ↔
Brazil parboiled 5% broken 570-580 ↔
Uruguay parboiled 5% broken NQ ↔
Long grain fragrant rice
Thailand Hommali 92% 915-925 ↔
Vietnam Jasmine 515-525 ↓
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Malis 835-845 ↔
Brokens
Thailand A1 Super 330-340 ↔
Vietnam 100% broken 325-335 ↔
Pakistan 100% broken stxd 305-315 ↔
Cambodia A1 Super NQ ↔
India 100% Broken stxd 300-310 ↔
Egypt medium grain brokens NQ ↔
U.S. pet food 445-455
↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon Recap - Chicago
Rough Rice Futures Erase Yesterday's Gains, Remain in Sideways Range
Dec
03, 2014
Chicago rough rice futures for Jan
delivery settled 4.5 cents per cwt (about $1 per ton) lower at $12.140 per cwt
(about $268 per ton). Rough rice futures continued their pattern of up one day
down the next trading today, exactly erasing gains earned yesterday and once
again charting an inside day. The market continues to consolidate, a breakout
of the current consolidation pattern will likely signal future trade direction
and will be closely watched by trade participants. However, the market appears
to be settling into a wider $11.800-$12.800 per cwt (about $260-$282 per ton)
trading range, and barring any change in fundamental outlook will likely
continue to trade within this price envelope. The other grains finished the day
with mixed results; Soybeans closed about 0.3% higher at $9.9825 per bushel;
wheat finished about 2.3% lower at $5.8950 per bushel, and corn finished the
day about 0.2% higher at $3.8200 per bushel.
U.S. stocks held gains amid data
reports and the Federal Reserve's Beige Book report that said the economy
continues to expand. The Dow Jones Industrial Average closed at an all-time high
of 17,879.55 on Tuesday and traded mostly higher on Wednesday. The S&P 500
also neared its closing record of 2,072.83. The energy sector rose about 1% and
was a leader on the S&P 500, helped by stabilization in oil prices and a
report that showed a drop in oil supply for the last week. The ISM services
index beat expectations with a leap to a three-month high of 59.3 for November.
Before the open, ADP report on
private payrolls showed sector employment is keeping up its recent pace in
November, although the 208,000 new jobs was a shade below expectations. U.S.
nonfarm productivity grew a bit faster than initially thought in the third
quarter, while sharp downward revisions to compensation pointed to muted wage
inflation that should give the Federal Reserve room to keep interest rates low
for a while. The European Central Bank is expected to discuss monetary policy
on Thursday.
The Dow Jones Industrial Average
rose 13 points, or 0.07%, to 17,892. The S&P 500 gained 4 points, or 0.22%,
to 2,071, with energy leading sector gains across six sectors and consumer
staples the greatest laggard. The Nasdaq rose 10 points, or 0.21%, to 4,765.
Gold is trading about 0.7% higher, crude oil is seen trading about 0.1% higher,
and the U.S. dollar is seen trading about 0.4% higher at about 1:00pm
Chicago time.Tuesday, there were 918 contracts traded, down from 1,701
contracts traded on Monday. Open interest – the number of contracts outstanding
– on Tuesday increased by 217 contracts to 10,399.
One Rice Nursery Every 4 metres
in Rice Farms Keeps BPH at Bay
Dec
03, 2014
Dr V Krishnayya, Retd Principal Scientist, directorate of rice
research, Rajender Nagar, Hyderabad, talks about the latest solutions that
farmers world over are practicing to keep the dreaded Paddy Brown Plant Hopper
away.
Oryza: Despite so much of advancement in rice
cultivation, what do you think is still a matter of big concern for paddy
farmers?
Dr V Krishnayya: Paddy Brown Plant Hopper invades the paddy plant with alarming regularity. While it used to affect paddy crops in delta regions in Kharif season till a few years ago, now it has become rampant in Rabi season as well. The Paddy Brown Plant Hopper (BPH) has been affecting the fields of Japan and china for over 300 years now. Over usage of chemical fertilizers and Nitrogen rich manures along with higher moisture levels in air help the BHP to multiply fast and cause enormous damage.
Dr V Krishnayya: Paddy Brown Plant Hopper invades the paddy plant with alarming regularity. While it used to affect paddy crops in delta regions in Kharif season till a few years ago, now it has become rampant in Rabi season as well. The Paddy Brown Plant Hopper (BPH) has been affecting the fields of Japan and china for over 300 years now. Over usage of chemical fertilizers and Nitrogen rich manures along with higher moisture levels in air help the BHP to multiply fast and cause enormous damage.
Oryza: How rapidly does the BHP invade the plant? How can
it be identified?
Dr V Krishnayya: There are two kinds of BPH - brown and white. While an adult female mosquito can lay up to 150 eggs, a short-winged female can lay up to 2000 eggs. These eggs look like vertical lines on the surface of the leaves. The eggs hatch within a week to let out the babies onto the plant. The adult and baby BPH suck the juice from the plant stem. This results in the weakening of the stem and its collapse. It is easy to identify farms which are affected by BHP. Within 20 days of sowing the paddy, the insect affects the plant. Although the number of the eggs may seem small and its very presence looks harmless, the eggs multiply fast to mercilessly assault the plant. Soon the farmer can spot the disease spreading in a circular fashion and is called hopper burn. The disease occurs in the centre of the farm, instead of the borders.
Dr V Krishnayya: There are two kinds of BPH - brown and white. While an adult female mosquito can lay up to 150 eggs, a short-winged female can lay up to 2000 eggs. These eggs look like vertical lines on the surface of the leaves. The eggs hatch within a week to let out the babies onto the plant. The adult and baby BPH suck the juice from the plant stem. This results in the weakening of the stem and its collapse. It is easy to identify farms which are affected by BHP. Within 20 days of sowing the paddy, the insect affects the plant. Although the number of the eggs may seem small and its very presence looks harmless, the eggs multiply fast to mercilessly assault the plant. Soon the farmer can spot the disease spreading in a circular fashion and is called hopper burn. The disease occurs in the centre of the farm, instead of the borders.
It is dangerous disease as it spreads form one plant to the other, one farm
to the other and they can spread up to a few hundred kilometres for mass
destruction. As paddy that is ready to be harvested is not ideal fodder for
BHP, it moves up to the top half of the plant, flies up to 2 km in the air and
then gets carried away the seasonal winds, thus increasing its range and reach.
Oryza: What do you think would be the effective solutions?
Dr V Krishnayya:
Dr V Krishnayya:
Farmers should plant the trees judiciously as more than 36 plants in one
square means over-population of the plant and less than that means giving ample
space for the disease to spread.
- Carve out a small walkways, also known as rice nurseries or seed beds for every 4 metres of the plant as it helps spacing, more breeze and light is not favourable to the plant
- Carve out a small walkways, also known as rice nurseries or seed beds for every 4 metres of the plant as it helps spacing, more breeze and light is not favourable to the plant
As even the best soil, natural enemies of the BHP cannot prevent the growth
of it, thuse emphasising the need to use external methods to control the growth
of the disease.
Oryza Overnight Recap - Chicago
Rough Rice Futures Trade Lower as Bearish Grains and Stronger Dollar Exert
Downward Pressure
Dec
03, 2014
Chicago rough rice futures for Jan
delivery are currently trading 5 cents per cwt (about $1 per ton) lower at
$12.135 per cwt (about $268 per ton) during early floor trading in Chicago. The
other grains are seen lower this morning: soybeans are currently seen 0.7%
lower, wheat is listed about 1.6% lower and corn is noted about 0.5% lower.U.S.
stocks traded narrowly mixed as investors weighed a slew of data expected over
the next two days. The ISM services index beat expectations with a leap to a
three-month high of 59.3 for November. Before the open, ADP report on private
payrolls showed sector employment is keeping up its recent pace in November,
although the 208,000 new jobs was a shade below expectations.
U.S. nonfarm productivity grew a bit
faster than initially thought in the third quarter, while sharp downward
revisions to compensation pointed to muted wage inflation that should give the
Federal Reserve room to keep interest rates low for a while. Other data for
Wednesday the Federal Reserve's Beige Book report on the economy. Weekly
jobless claims come out on Thursday, and the all-important jobs report is due
on Friday. The Dow Jones Industrial Average lost 6 points, or 0.03%, at 17,873.
The S&P 500 gained 2.66 points, or 0.13%, at 2,069, with energy leading
sector gains and telecommunications the greatest of six sector decliners. The
Nasdaq lost 7 points, or 0.15%, at 4,748. Gold is currently trading about 0.4%
higher, crude oil is seen trading about 1.2% higher, and the U.S. dollar
is currently trading about 0.3% higher at 8:10am Chicago time.
Oryza U.S. Rough
Rice Recap - Steady Market as Holiday Doldrums Set in
Dec
03, 2014
The U.S. cash market held steady today with little to no trades to report
as the market settles into the holiday doldrums which is the norm this time of
year.Analysts insist that it will take a substantial increase in prices to get
farmers to sell their rice in December; however, most buyers appear well
covered considering the bids many are showing.
Tags: U.S. rice prices, U.S. rice market
Ozone Treatment
May Help Thailand Restore Quality of Rice Stocks
Dec
03, 2014
Ozone treatment of rice costs about
800-1,000 baht (around $24 - $30) per ton.Local sources say the government
could use the process to treat the rice in the warehouses that is identified as
below standard before releasing it for sale.Thailand government is currently
holding around 18 million tons of rice stocks according to the Thai Prime
Minister, of the 18 million tons of rice, only 10% are of standard quality,
about 70% were below-standard and about 20% were unfit for human consumption.
Vietnam Rice Quotes Mixed Today;
Other Asia Rice Quotes Unchanged
Dec
03, 2014
Vietnam rice sellers increased their quotes for 5% broken rice by about $5
per to about $385 - $395 per ton and lowered their quotes for Jasmine rice by about
$15 per ton to about $515 - $525 per ton today. Other Asia rice sellers kept
their quotes mostly unchanged.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $20 per ton
premium on Vietnam 5% rice shown at around $385 - $395 per ton, up about $5 per
ton from yesterday. India 5% rice is quoted at around $395 - $405 per ton,
about $15 per ton premium on Pakistan 5% rice quoted at around $380 - $390 per
ton.
25% Broken Rice
Thailand 25% rice was last quoted at around $350 - $360 per ton, on par
with Vietnam 25% rice shown at around $350 - $360 per ton. India 25% rice is
quoted at around $355 - $365, about $20 per ton premium on Pakistan 25% rice
quoted at around $335 - $345 per ton.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton. India
parboiled rice is quoted at around $380 - $390 per ton, about $40 per ton
discount to Pakistan parboiled rice quoted at around $420 - $430 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is quoted at around $330 - $340 per ton,
about $5 per ton premium on Vietnam 100% broken rice shown at around $325 -
$335 per ton. India's 100% broken rice is shown at around $300 - $310 per ton, about
$5 per ton discount to Pakistan broken sortexed rice quoted at around $305 -
$315 per ton.
