27th (Monday),2015 Daily Global Rice E-Newsletter by Riceplus Magazine

Global Rice Quotes

July 27th, 2015

Long grain white rice - high quality

Thailand 100% B grade          380-390           ↓

Vietnam 5% broken    345-355           ↔

India 5% broken         385-395           ↔

Pakistan 5% broken    370-380           ↔

Myanmar 5% broken   400-410           ↔

Cambodia 5% broken             425-435           ↔

U.S. 4% broken           470-480           ↔

Uruguay 5% broken    535-545           ↔

Argentina 5% broken 530-540           ↔

Long grain white rice - low quality

Thailand 25% broken 350-360           ↓

Vietnam 25% broken 325-335           ↔

Pakistan 25% broken 330-340           ↔

Cambodia 25% broken           410-420           ↔

India 25% broken       350-360           ↔

U.S. 15% broken         445-455           ↔

Long grain parboiled rice

Thailand parboiled 100% stxd            380-390           ↓

Pakistan parboiled 5% broken stxd    415-425           ↔

India parboiled 5% broken stxd         375-385           ↔

U.S. parboiled 4% broken       555-565           ↔

Brazil parboiled 5% broken    545-555           ↔

Uruguay parboiled 5% broken            NQ      ↔

Long grain fragrant rice

Thailand Hommali 92%          865-875           ↑

Vietnam Jasmine         485-495           ↔

India basmati 2% broken        NQ      ↔

Pakistan basmati 2% broken   NQ      ↔

Cambodia Phka Mails             835-845           ↔

Brokens

Thailand A1 Super      320-320           ↔

Vietnam 100% broken            310-320           ↔

Pakistan 100% broken stxd    285-295           ↔

Cambodia A1 Super   350-360           ↔

India 100% broken stxd         305-315           ↔

Egypt medium grain brokens NQ      ↔

U.S. pet food 325-335           ↔

Brazil half grain          NQ      ↔

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

Iran Extends Deadline for Registration of Rice, Other Basic Commodities Importers

Jul 27, 2015

The government of Iran has extended deadline for registration of rice, milling wheat, vegetable oil and raw sugar importers until August 17 from August 6, Bloomberg quoted the Deputy Managing Director for Foreign Trade at Iran's Governmental Trading Corporation. 

However, no decision has been made about the volume of rice and other commodities to be imported, the official told reporters.

Iran has temporarily banned rice imports from November 2014 citing excess stocks as reason. Iran primarily imports basmati rice from India and accounts for nearly 30% of India's total basmati rice exports. The Middle East nation imported around 900,000 tons of rice in 2014-15 compared to around 1.44 million tons in 2013-14. 

Meanwhile, Pakistan, which was once a major rice exporter to Iran in 2010-11, is planning to revive basmati rice exports to Iran after the lifting of sanctions, the Acting Chairman of the Rice Exporters Association (REAP) was quoted.

Pakistan, which exported about 3.72 million tons of rice in 2014-15 is planning to increase exports to 6 million tons after Iran's lifting of sanctions, he said.

Pakistan is expecting to produce around 7 million tons of milled rice in 2015-16 compared to around 5.5 million tons in 2014-15.  

Cambodia May Lose EU Market Share if EU-Vietnam Bilateral FTA Materializes, Say Exporters

Jul 27, 2015

Cambodian rice exporters are worried of losing market share in the European Union (EU) market if the EU-Vietnam Bilateral Free Trade Agreement (EU-V BFTA) is finalized, according to local sources.Under the proposed deal, EU is planning to import around 76,000 tons of rice, mostly husked and milled, from Vietnam at zero percent duty.

The EU imports rice from Asian least developed countries (LDCs) such as Cambodia and Myanmar at zero percent duty under the Everything but Arms (EBA) policy. Currently, Cambodia accounts for about 250,000 tons yearly or 22% of annual EU rice imports.

The President of a leading exporting company told local sources that if the EU-V BFTA is finalized, it would pose a great challenge to the Cambodian rice sector. He noted that Cambodia will have to compete with Vietnam and will certainly lose a part of the market share in the EU market to the neighboring country. “In the short-term, it will limit growth in rice production and exports, as well as the investment needed to improve the sector,” he was quoted as saying.

He noted that Cambodia needs to improve its production capacity and logistical services to remain competitive. Especially, farmers need to improve paddy production yield and quality, he said. He also added that the government needs to support farmers and millers by provide requisite financing facilities to boost stocks of paddy for export, building adequate warehouse and dryer machines as well as help them reduce storage and transportation costs.

However, some analysts say Cambodia can focus more on fragrant rice exports to the EU in order to sustain the tough competition from Vietnam. 

A former senior advisor to Cambodia Rice Federation noted that exports to the EU constitute about 60% of Cambodia's rice exports and there is a need to diversify the export markets to reduced dependence on the EU market. “Cambodia should also double efforts to diversify to other Asian markets, like China and Malaysia, and Africa, which remains a much untapped destination,” he said. 

Ebola Virus Continues to Wage Havoc on West Africa, Lowering Rice Production in Sierra Leone

Jul 27, 2015

Sierra Leone is nearly done planting its new rice crop, and while weather has been beneficial, the Ebola virus’s toll on communities has curtailed farming activities, according to a FAO GIEWS Country Brief. 

In 2014, the Ebola outbreak is estimated to have reduced the nation’s food crop by about 5% and milled rice production alone – which accounts for 85% of cereal production - declined 8% to an estimated 770,000 tons, according to FAO. This has set the country back in reaching self-sufficiency in rice production and has resulted in higher domestic rice prices and food security issues.

Italy Milled Rice Exports Increase 3.8% y/y to 113,068 Tons in September 1, 2014 - July 21, 2015

Jul 27, 2015

Italy has exported around 113,068 tons of milled rice in September 1, 2014 - July 21, 2015, up about 3.8% from around 108,734 tons exported during the same period last year.

Turkey is the largest buyer of Italian rice during the period with 36,106 tons, followed by Switzerland (14,487 tons), Lebanon (12,245 tons), U.S. (9,352 tons) and Syria (6,994 tons). Italy also exported rice to Jordan, Bosnia-Herzegovina, Serbia, Australia, Kosovo, Brazil, Russia, Canada, Norway and Israel.

Italy exported around 86,361 tons of Long-A variety, up about 23% from around 70,212 tons exported last year. Italy's round varieties exports increased about 41% to around 15,659 tons from around 11,106 tons last year; and Italy's medium varieties exports increased about 49% to around 3,605 tons from around 2.419 tons last year. However, export of Long B varieties declined about 54% to around 7,443 tons during the period from around 16,180 tons last year.

Iraq Still Considering Tender to Purchase At Least 30,000 Tons of Rice Due to High Prices

Jul 27, 2015

Iraq is still considering its tender to purchase at least 30,000 tons of rice in international tenders from the U.S., Uruguay, Argentina, Thailand, Brazil and India, Reuters quoted European traders. The tenders closed on June 15, 2015 with offers having to remain valid till July 21, 2015.

India offered three bids of $470 per ton, $471 per ton and $472 per ton (c&f basis); U.S. offered a bid of $582 per ton (c&f); Brazil offered a bid of $589 per ton (c&f), Uruguay offered a bid at $605 per ton (c&f); Thailand offered a bid of $505 per ton; and Argentina offered a bid of $602 per ton (c&f).

Uruguay and Argentina reportedly offered bids for notably large tonnages of rice although they were not the cheapest.

Thailand Rice Quotes Mixed Today; Other Asia Rice Quotes Unchanged

Jul 27, 2015

Thailand rice sellers lowered their quotes for 5% broken rice, 25%  broken rice and parboiled rice by about $5 per ton each to around $370-$380 per ton, $350-$360 per ton and $380-$390 per ton, respectively,  and increased their quotes for Hommali rice by about $10 per ton to around $865-$875 per ton today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is indicated at around $370 - $380 per ton,  down about $5 per ton from Friday and about $25 per ton premium on Vietnam 5% rice shown at around $345 - $355 per ton. India 5% rice is indicated at around $385 - $395 per ton, about $15 per ton premium on Pakistan 5% rice shown at around $370 - $380 per ton.

25% Broken Rice

Thailand 25% rice is shown at around $350 - $360 per ton, down about $5 per ton from Friday and about $25 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is indicated at around $350 - $360, about $20 per ton premium on Pakistan 25% rice shown at around $330 - $340 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $380 - $390 per ton, down about $5 per ton from Friday. India parboiled rice is indicated at around $375- $385 per ton, about $40 per ton discount to Pakistan parboiled rice was last shown at around $415 - $425 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about $10 per ton from premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's 100% broken rice is shown at around $305 - $315 per ton, about $20 per ton premium on Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Thailand Postpones Auction for 1.29 Million Tons of Sub-Standard Rice to August 2015

Jul 27, 2015

The government of Thailand, which planned to hold an auction to sell about 1.29 million tons of sub-standard rice in early July has decided to postpone it to August to allow officials to conduct the rice separation process thoroughly, according to local sources.

The Commerce Ministry officials, academics, the National Farmers Council, surveyors, rice sellers and the Thailand Development Research Institute (TDRI) are involved in separating low quality rice from the good one meant for consumption as well as estimating the cost of improving the grains for various purposes. They will also decide whether to sell rice in smaller portions or as an entire silo.

Last week, the Commerce Ministry officials said all private traders would be allowed to take part in the auction.

The Minister assured the public that rotten and fungal-contaminated rice will not be mixed with rice meant for consumption and terms of each auctions will specify the industries targeted for the auction and officials would be assigned to follow up the process and delivery of the rice to respective destinations.

He also noted that the auction of around 400,000 - 500,000 tons of good quality rice meant for consumption that was planned in the last week of July would go ahead as scheduled.  

Mexico Rice Imports Projected to Rise in 2015/16 Marketing Year, Says USDA Post

Jul 27, 2015

Rice paddy production in Mexico is projected to be little changed y/y at about 240,000 tons in the 2015/16 marketing year (October- September), according to a USDA Post report citing data from Mexico’s Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Foodstuffs (SAGARPA). However, with carryover from 2014/15 down and production steady, rice imports for 2015/16 are expected to be higher than in 2014/15; the USDA Post projects 785,000 tons for 2015/16 up from 685,000 tons estimated for 2014/15. 

Oryza Afternoon Recap - Chicago Rough Rice Futures Dip Back below $11.000 per cwt on Spillover Selling Pressure

Jul 27, 2015

Chicago rough rice futures for Sep delivery settled 8.5 cent per cwt (about $2 per ton) lower at $10.960 per cwt (about $242 per ton). The other grains finished the day sharply lower; Soybeans closed about 3.3% lower at $9.3325 per bushel; wheat finished about 1.8% lower at $5.0225 per bushel, and corn finished the day about 4.8% lower at $3.8325 per bushel.

U.S. stocks traded lower on Monday as the continued decline in commodities and an overnight plunge in Shanghai stocks pressured sentiment amid a lackluster earnings season. Stocks struggled to remain above session lows. The S&P 500 briefly dipped below its 200-day moving average of 2,064.14 and attempted to hold above it. The energy sector was one of the worst performers in the S&P 500 as oil extended losses to trade below $48 a barrel. The Dow Jones industrial average fell more than 150 points in the open as nearly all the blue chips declined. The Nasdaq Composite declined more than 1%.Mainland Chinese stocks extended Friday's losses, with the Shanghai Composite dropping nearly 8.5% for its largest one-day loss since 2007. The Hang Seng closed about 3% lower.

The China Securities Regulatory Commission said late Monday night that the local government will increase purchases of stocks in an effort to keep the equity market up. Stocks around the world closed lower on Friday as weak PMI data in China and the euro zone increased global growth concerns. European stocks closed lower, with the DAX off about 2.5% Monday. U.S. stock index futures gave up early gains to trade lower, with Dow Jones industrial average futures down more than 100 points. The Dow Jones Industrial Average traded down 136 points, or 0.78%, at 17,432. The S&P 500 traded down 12 points, or 0.55%, at 2,068, with information technology leading eight sectors lower and utilities and telecommunications the only advancers. The Nasdaq traded down 47 points, or 0.92%, at 5,041. Gold is trading about 0.9% higher, crude oil is seen trading about 1% lower, and the U.S. dollar is seen trading at about 0.8% lower at about  1:15pm Chicago time.

Friday, there were 510 contracts traded, down from 528 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday decreased by 21 contracts to 8,602.

Vietnam Exports About 2.926 Million Tons Rice During January 1 – July 23, 2015

Jul 27, 2015

Vietnam exported about 2.926 million tons of rice in January 1 - July 23, 2015, down about 19% from about 3.63 million tons of rice exported in first seven months of 2014, according to data from the Vietnam Food Association (VFA). The average rice export price so far in this year stands at about $414 per ton (FOB), down about 4% per ton from about $431 per ton recorded during same last year.

During July 1-23, 2015, Vietnam exported about 213,619 tons of rice, down about 65% from about 615,844 tons rice exported in full month of July 2014, and down about 66% from about 632,010 tons rice exported in full month of June 2015. The average export price so far in July stands at about $380 per ton, down about 12% per ton from a year ago and down about 6.5% per ton from a month ago.

Pakistan Exports Increase 6% y/y to 3.93 Million Tons in FY 2014-15

Jul 27, 2015

Pakistan exported around 3.93 million tons of rice in FY 2014-15 (July-June), up about 6% from around 3.72 million tons exported in FY 2013-14, according to preliminary data from the Pakistan Bureau of Statistics (PBS).

In terms of value, Pakistan earnings declined about 6% to around $2.035 billion in FY 2014-15 from around $2.163 billion in FY 2013-14 due to a decline in global rice prices since the beginning of this year.

Pakistan's basmati rice exports declined sharply in FY 2014-15. Pakistan exported around 495,649 tons of basmati rice during the fiscal year, down about 667,523 tons exported in the last fiscal year. In terms of value, Pakistan's basmati rice exports earned around $533 million, down about 31% from around $770 million last year. 

Pakistan exported around 3.43 million tons of non-basmati rice in FY 2014-15, up about 26% from around 2.73 million tons exported last year. In terms of value, Pakistan's non-basmati rice exports earned around $1.5 billion, up about 8% from around $1.39 billion last year.

Myanmar Prepares to Send First Legal Rice Export Shipment to China

Jul 27, 2015

The Myanmar Agribusiness Public Company Limited (MAPCO) will export 3,000 Tons of Rice to China, part of the 100,000 tons to be exported to China under a memorandum of understanding (MoU) signed between the Myanmar Rice Federation (MRF) and China's National Cereals, Oils and Foodstuffs Corporation (COFCO), according to local sources.While nine companies, including MAPCO, Myanmar Rice Mill, FPR from the Myanmar Rice Traders Association, Golden Land East Asia, MRDC from Mandalay region, a company from Yangon’s Bayintnaung commodities market,  Ayer-Pathein company from Ayeyarwady Region, SPRDC formed by Muse traders and Rakhine Ethnic Rice Company, have been granted permission to export rice to China under the MoU, the MAPCO agreed to send the first shipment shortly, according to local sources.

The MAPCO has reportedly invited companies to invest about one million kyat (around $9,043) each and MAPCO will coordinate buying and selling rice with this investment.China is a major destination for Myanmar rice, but most of the rice is exported to China through Myanmar's northern borders. However, the Chinese authorities banned unofficial exports through borders in August 2014 seeking a trade agreement between the two countries. China is particular that the exported rice meets its quality and health standards.Myanmar exported about 1.8 million tons of rice in FY 2014-15, of which around 1.1 million tons were exported to China.

USDA estimates Myanmar to produce 20 million tons of paddy rice (around 12.8 million tons, milled basis) and export around 2 million tons of rice in MY 2015-16 (January - December 2015).

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27th July (Monday), 2015 Daily Global Rice E-Newsletter byRiceplus Magazine

27th July (Monday), 2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Can India Replace PDS Rice with Cash Transfers?

Jul 24, 2015

The present government of India, which took charge last year, has come out with an ambitious plan of replacing the rice distributed to the below poverty line (BPL) families under the public distribution system (PDS) with direct cash transfers in order to address some problems such as corruption. However, whether India can smoothly handle the transition is a big question. An aticle in Bloomberg analyses the issues related to the Indian cash transfer system.

Nearly two-thirds of the India population, especially in villages, receive the PDS rice. The Indian government distributes about 10 kilograms of rice to each family every month as part of efforts to ensure food security.

But certain problems like middlemen, corruption and missing stocks have been making the system inefficient. The High Level Committee set up by the Prime Minister to make recommendations for the Food Corporation of India (FCI) restructuring has suggested to replace PDS rice with cash transfers. The suggestion is beneficial as it reduces a lot of financial burden on the government to procure, store and distribute rice as well as ensure financial security to the people of India.

However, the implementation of the system is associated with several problems. Most of the rural Indians do not have bank accounts, which are crucial for implementing cash transfer system. The government helped open nearly 170 million bank accounts in the rural areas and also started pilot testing of the cash transfer in three states. A testing in the state of Pondicherry has not proven fruitful and has been dismantled after three months. Several beneficiaries complained of hardships in collecting money from the banks.

A Professor in the Indian Institute of Technology (IIT), New Delhi, who surveyed the PDS across 10 states in 2013, noted that lack of proper financial/banking infrastructure in India is a major hurdle to the cash transfer system. There are not sufficient bank branches in rural India to make payments to the beneficiaries on time and most importantly, they may not be able to afford to buy rice in the private shops. Some experts say, they may even spend the whole lot of money paid by the government on other things and remain hungry. In that case, the purpose of the government to ensure food security is lost.

The Senior Vice-President for sovereign risk at Moody’s Investors Service noted that the success of cash transfers would depend on the public administration and the extent to which it is understood and accepted by the public.

Oryza Overnight Recap – Chicago Rough Rice Futures Turn Negative as Sharply Lower Grains Weigh on Prices

Jul 24, 2015

Chicago rough rice futures for Sep delivery are currently seen trading 13 cents per cwt (about $3 per ton) lower at $10.980 per cwt (about $242 per ton) during early floor trading in Chicago. The other grains are seen trading lower this morning; soybeans are currently seen trading about 0.9% lower, wheat is listed about 1.4% lower and corn is currently noted about 1.9% lower.

U.S. stocks traded mixed on Friday, despite surprisingly strong Amazon earnings, as signs of slower global growth weighed on sentiment. Stocks briefly attempted gains before turning lower, with the Dow and S&P a touch below the flatline and the Nasdaq clinging to gains. Overnight, the Caixin Markit flash general manufacturing PMI for July came it at 48.2, a 15-month low. The July euro zone flash PMI was 52.2, a 2-month low. The flash manufacturing PMI for the U.S. comes at 9:45 a.m. and new home sales comes at10:00 a.m. European stocks traded lower and Asian stocks closed in the red, with metals falling further and gold hitting a fresh five-year low. The precious metal held near $1,081 an ounce in early trade. The Dow Jones Industrial Average traded 17 points lower, or 0.11%, at 17,713. The S&P 500 traded down 3 points, or 0.12%, at 2,099, with health care leading six sectors lower and consumer discretionary leading gainers. The Nasdaq traded up 6 points, or 0.12%, at 5,151. Gold is currently trading about 1.1% lower, crude oil is seen trading about 0.3% higher,  and the U.S. dollar is currently trading about 0.3% higher at 8:45am Chicago time.

India 2015-16 Main Paddy Rice Sowing Area Continues to Pick Up Despite Deficient Monsoons

Jul 24, 2015

Total area planting to India's 2015-16 Kharif (main) rice crop (June - December) stood at around 18.85 million hectares as of July 24, 2015, up about 7% from around 17.65 million hectares planted during the same time last year, according to a press release by the Agriculture Ministry.

India received 7% below normal rainfall in the fourth week of July, according to the Indian Meteorological Department (IMD). Central, south peninsular and north-east regions received 12%, 12% and 6% below average rains during the week. However, the north-west region received 6% above-average rainfall. Some areas of Maharashtra are still dry. Analysts are still concerned that a long dry patch in major rice growing areas could severely impact rice yields.

Monsoon rains in July were only 7% below normal though they were forecast to be 12% below normal. According to the Economic Times, the Director of the Central Rice Research Institute (CRRI) noted that the 2015-16 kharif rice output may not be significantly impacted if the monsoon deficit is curbed at 10. "Current rainfall is very encouraging to farmers. If distribution of rains is same and there are no major spells of drought, we should not worry about the deficit," he was quoted as saying.

A likely drought-inducing El Nino this year is expected to lower production prospects this year. The IMD has forecasted the El Nino pattern to reach to moderate to a strong one during the monsoon season (June – September).

The total Kharif crop sown area stands at 69.38 million hectares as on July 24, 2015, up about 26% from around 55.04 million hectares during the same period last year, according to the Agriculture Ministry.

Oryza Weekly: Global Rice Prices Rebound on Supply Slump

Jul 24, 2015

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $404 per ton, down about $3 per ton from a week ago, down about $1 per ton from a month ago and down about $73 per ton from a year ago.

The USDA estimates 2015-16 will be the third crop year in a row with declining global rice stocks due to lower carryover from the 2014-15 crop year.  Stocks are expected to tighten in Thailand and India in particular, as dampened exports prices and lower demand; dry weather from El Nino; and declining government support in Thailand all lower production incentives.

Thailand

Thailand 5% broken rice is today shown at about $380 per ton, down about $15 per ton from a week ago, up about $10 per ton from a month ago and down about $45 per ton from a year ago.

The Thai Commerce Ministry, which planned to hold an auction to sell about 1.29 million tons of sub-standard rice in early July, is likely to postpone the auction to early August as the separation procedure of the rice is delaying the preparation process.

The government of Thailand has decided to conduct a large-scale survey of drought-affected farm land in the Central Region in order to assess the severity of the damage in order to provide adequate support to the affected farmers.

The Thai Rice Exporters Association (TREA) expects this year’s rice exports to be lower than the target of 10 million tons due to extending drought conditions and a sluggish world economy.  New estimates are around 9.5 million tons.

The TREA expects that the ongoing drought conditions will increase Thailand’s domestic and export rice prices in the second half of 2015.

The Thai Commerce Ministry plans to auction about 500,000 tons of rice in its next auction, the fifth of this year.

Vietnam

Vietnam 5% broken rice is today shown at about $350 per ton, unchanged from a week and a month ago and down about $100 per ton from a year ago.

The Vietnam Food Association (VFA) has forecasted Vietnam to export around 5.91 million tons of rice in 2015, down about 6.5% from an earlier estimated 6.32 million tons exported in 2014 due to a likely fall in exports in the fourth quarter.

Vietnam rice exporters are expecting the Philippines traders to import the entire quota of 293,100 tons from Vietnam under the WTO minimum access volume (MAV) country specific quota (CSQ).

Vietnam exported about 2.875 million tons of rice during the period January 1 – July 16, a decrease of about 21% from the first seven months of 2014.

Rice exports from Vietnam declined about 10% y/y in the first half of 2015, reaching only about 2.71 million tons.  The decline is due to stiff competition from countries such as India, Thailand, Pakistan, Myanmar, and Cambodia, but analysts expect Vietnam’s exports to improve in the second half of 2015.

Vietnam’s Ministry of Agriculture and Rural Development has converted around 78,735 hectares of rice are in the Mekong Delta into higher value crops under a two-year agricultural restructuring project.

As negations between the European Union and Vietnam regarding the EU-Vietnam Bilateral Free Trade Agreement (EU-V BFTA) are in their final stages, the European association of EU farmers unions and cooperatives (Copa-Cogeca) has expressed concern about the future of the EU rice growing sector. The Secretary General of Copa-Cogeca is reportedly sending a document highlighting all the concerns regarding the EU rice sector in the light of increasing duty free imports from Asian countries to the Directorate General (DG) Trade and DG Agriculture.

India

India 5% broken rice is today shown at about $390 per ton, unchanged from a week and a month ago, and down about $50 per ton from a year ago.

Total area planting to India's 2015-16 Kharif (main) rice crop (June - December) stood at around 18.85 million hectares as of July 24, 2015, up about 7% from around 17.65 million hectares planted during the same time last year

The government has removed quantitative restrictions on exports of rice bran oil and allowed for its bulk export, according to local sources. Exporters anticipate higher interest from Japan.

Rice farmers in Bangladesh are avoiding hybrid rice varieties this year due to high production costs.

Pakistan

Pakistan 5% broken rice is today shown at about $375 per ton, unchanged from a week ago, down about $15 per ton from a month ago and down about $65 per ton from a year ago.

Pakistan Finance Minister has met with the Kenyan High Commissioner and requested him to review the high level of import duty on Pakistani rice as the high import duty was affecting Pakistan rice exports to Kenya in recent months.

The rice sector in Pakistan is currently facing problems with excess stocks as it faces stiff competition from other rice exporting countries such as Thailand, India, and Vietnam.  High input costs and low crop prices, along with low global demand, are further impacting stocks.

Rice exporters in the country are expressing concern that the rice sector lacks a specific forum that would fix, maintain and control rice prices in the country.

Central & South America

Brazil 5% broken rice is today shown at about $500 per ton, unchanged from a week ago, down about $50 per ton from a month ago and down about $165 per ton from a year ago.

Five percent broken rice from Uruguay and Argentina is today shown at about $540 per ton, unchanged from a week ago, down about $25 per ton from a month ago, and down about $85 per ton from a year ago.

Peru lost its trade dispute against Guatemala at the World Trade Organization Appellate Body, who said that Peru’s “additional duty” on rice and other agricultural imports was illegal under global trade.

Ecuador’s winter rice crop (December-June) output is expected to increase about 3% y/y due to a 3% y/y increase in acreage.

U.S.

U.S. 4% broken rice is today shown at about $475 per ton, unchanged from a week ago, up about $20 per ton from a  month ago and down about $80 per ton from a year ago.

The United States Agriculture Department’s Animal and Plant Health Inspection Service has published a new rule further restricting entry of certain commodities, including rice, from countries where the Khapra beetle is known to exist.

Other Markets

The Chairperson of Senate Agriculture and Food Committee urged the government of the Philippines to consider rice imports only through G2G deals and avoid imports through the private sector in efforts to curb rice smuggling in the country.

An NFA official says that Philippines rice traders may not import all 805,200 tons of rice under the WTO MAV quota.  The government is studying demand and supply conditions and assessing whether more rice imports are needed.

Monsoon rains have damaged about 18.8 million peso (around $415,455) worth of rice crop in the northern Luzon region of the Philippines.

Myanmar is looking to secure an export deal with the Philippines as part of its efforts to diversify its export markets and reduce dependence on China.

China’s rice imports increased sharply in the first six months of 2015, reaching 1.42 million tons, up about 7% from the same period last year.

Rice farmers in Laos are worried that dry conditions and insufficient rainfall linked to the El Nino phenomenon are likely to severely impact rice production in the country.

Scientists from China, Sweden and the U.S. have developed a new genetically-modified rice variety called SUSIBA2 that is low methane-emitting.

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) is seeking to buy about 41,000 tons of non-glutinous rice in tenders for delivery between October 15, 2015 and February 29, 2016.

Italy will host its 105^th rice seed contest for breeders, with applications due by September 30.

Rice prices for Italian paddy remain unchanged in the second week of July 2015.

South Korea Seeks to Buy 41,000 Tons of Non-Glutinous Brown Rice in Tenders

Jul 24, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) is seeking to buy about 41,000 tons of non-glutinous rice in tenders for delivery between October 15, 2015 and February 29, 2016, according to a statement on its website.

The details of the tonnage and volume of the rice sought:

Registration of tenders will close at 4.00 p.m on July 30, 2015. Electronic bidding will take place on July 31, 2015 between 10:00 and 11:00 a.m.

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

Jul 24, 2015

Thailand rice sellers lowered their quotes for 5% broken rice by about $5 per ton each to around $375-$385 per ton today. Vietnam rice sellers lowered their quotes for 100% broken rice by about $5 per ton to around $310-$320 per ton.  India rice sellers lowered their quotes for parboiled rice by about $5 per ton to around $375-$385 per ton. Pakistan rice sellers kept their quotes mostly unchanged.                                                                                                                  

5% Broken Rice

Thailand 5% rice is indicated at around $375 - $385 per ton, down about $5 per ton from yesterday and about $30 per ton premium on Vietnam 5% rice  shown at around $345 - $355 per ton. India 5% rice is indicated at around $385 - $395 per ton, about $15 per ton premium on Pakistan 5% rice shown at around $370 - $380 per ton.

25% Broken Rice

Thailand 25% rice is shown at around $355 - $365 per ton, about $30 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is indicated at around $350 - $360, about $20 per ton premium on Pakistan 25% rice shown at around $330 - $340 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $390 - $400 per ton. India parboiled rice is indicated at around $375- $385 per ton, down about $5 per ton from yesterday and about $40 per ton discount to Pakistan parboiled rice last  shown at around $415 - $425 per ton.                                                                                                                                                                        

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about $10 per ton from premium on Vietnam 100% broken rice shown at around $310 - $320 per ton, down about $5 per ton from yesterday. India's 100% broken rice is shown at around $305 - $315 per ton, about $20 per ton premium on  Pakistan broken sortexed rice shown at around $285 - $295 per ton.

University of Arkansas Pathologist Suggests Means to Cope with Rice Sheath Blight

Jul 24, 2015

Rice sheath blight, which is caused by a soil pathogen/fungus, is considered to be a major disease affecting rice plants in Arkansas. The disease is said to prevail in rice fields if there are prolonged periods of high humidity and high temperatures. Experimental plots inoculated on July 9 have started showing symptoms of a spreading disease.

Experts are concerned if the disease may impact the state yields this year.  Currently, temperatures are not very high for the fungus to survive, but they fear it may develop in fields where inoculum is active and nights are dewy and warm.

The fungus survives as “sclerotia” (tiny masses of fungal structure called “mycelia”) which are capable of floating on flooded rice fields. These floating fungal structures come into contact with the rice plant at or just above the waterline and spread throughout the plant tissue. Sheath blight starts at the panicle initiation (green-ring) and spreads to panicle differentiation (1/2” internode elongation).

Yeshi Wamishe, a University pathologist says farmers should search for the presence of sheath blight from green ring to pre-heading. Further he adds that any rice variety is not completely resistant to sheath blight. But its intensity varies between short and long rice verities and the ambience under which it develops. But application of appropriate level of fertilizer may reduce the sheath blight incidence. He warns that sheath blight may be confused with other rice diseases such as “aggregate sheath spot”, “bordered sheath spot”, “stem rot”, or “black (crown) sheath rot”, which do not require fungicides.

He notes that fungicide application also depends on varietal susceptibility, the height of the variety, weather condition, the field management (seeding rate and nitrogen fertilizer rate), and the treatment threshold. He says that optimum fungicide treatment should be between 7-14 days after it reaches panicle differentiation. However, adequate knowledge of the distribution of the disease in a field and its intensity between ½” internode elongation and early heading” can decide the correct usage of fungicides.

The following table shows the recommended fungicides and their usage.

Venezuela Orders Rice Farmers to Sell Output to State to Overcome Food Shortages

Jul 24, 2015

The government of Venezuela has ordered rice farmers to sell between 30% and 100% of their output to state stores to address the problem of food shortages, according to the Telegraph. Producers of milk, pasta, oil, sugar and flour have also been asked to sell their output to the state.

However, the decision is criticised by some experts. They say there are only 7,245 state stores in the country compared to nearly 113,000 private stores. People may have to travel several kilometers to reach a state store and wait in the queues for longer times.

The President of the Venezuelan Food Industry Chamber noted that the decision does not help address the issue of food shortages. Most of the traders will resort to hoarding by buying from the state owned shops and then resell at higher profits.

The only way is to increase production in the country, he said. The official added that the government has not discussed the plan with the Chamber before implementing it.

Venezuelan government imposes rigid currency controls and consequently a shortage of foreign exchange makes it very difficult for traders to import rice and other goods.

Recently, Venezuelan government also hinted that it would not renew the PetroCaribe deal with Guyana after it expires in November this year. Local sources say the government is in talks with the Uruguayan government to strike a new rice import deal.

VFA Lowers Vietnam Rice Export Forecast to 5.91 Million Tons

Jul 24, 2015

The Vietnam Food Association (VFA) has forecast Vietnam to export around 5.91 million tons of rice in 2015, down about 6.5% from an earlier estimated 6.32 million tons exported in 2014, Reuters quoted a report from the VFA.

The decline is mainly due to a likely fall in the last quarter shipments. The VFA is forecasting Vietnam to export around 1.4 million tons of rice in October-December 2015 period, down about 22% from an estimated 1.8 million tons in July-September 2015 period. Vietnam exported around 2.71 million tons of rice the first six months of 2015, down about 10% from around 3.015 million tons last year.

The VFA's latest forecast is much below the government's projection at around 7 million tons.

The  UN's Food and Agriculture Organization (FAO) is estimating Vietnam to export around 6.3 million tons , almost unchanged from last year. USDA estimates Vietnam to export around 6.7 million tons of rice in 2015.

Vietnam 5% broken rice is currently quoted at around $350 per ton compared to Thai 5% rice at around $380 per ton, India 5% rice at around $390 per ton and Pakistan 5% rice at around $375 per ton.

EU Farmers Association Warns About Impact of Increasing Duty-Free Rice Imports

Jul 24, 2015

As negations between the European Union and Vietnam regarding the EU-Vietnam Bilateral Free Trade Agreement (EU-V BFTA) are in their final stages, the European association of EU farmers unions and cooperatives (Copa-Cogeca) has expressed concern about the future of the EU rice growing sector.

The EU may import about 76,000 tons of rice, mostly husked and milled, from Vietnam at zero percent duty if the EU-V BFTA goes ahead. The Secretary General of Copa-Cogeca is reportedly sending a document highlighting all the concerns regarding the EU rice sector in the light of increasing duty free imports from Asian countries to the Directorate General (DG) Trade and DG Agriculture.

In the document, the Copa-Cogeca Secretary General noted that already increasing rice imports from Cambodia (about 22% of EU rice imports) and Myanmar (about 3% of EU rice imports) in the past three years have led to a decline of about 40% in the EU indica rice acreage to around 96,000 hectares from around 156,000 hectares. He warned that if the zero-duty rice imports continue at this pace, there is a danger that the cultivation of Indica rice in Europe will disappear entirely by 2020.

The Copa-Cogeca official noted that inclusion of Vietnam rice will further deteriorate the EU rice situation as Vietnam FOB prices are the lowest in the South East Asia region and at zero percent duty, they would be even more competitive and may directly compete with European local indica varieties.

He also noted that the EU's ongoing FTA negotiations with India (which already accounts for 24% of EU rice imports), Thailand (which accounts for 18% of EU imports) and the U.S. (which accounts for 4% of EU imports) despite granting all the tariff rate quotas (TRQs) to the third world countries are likely to lead to an unrecoverable crisis in the EU rice sector.

He reiterated that the EU's stance to decouple specific support for rice production since 2012 has put the position of European rice producers in even more vulnerable position. He also noted that continuation of rice production in the delta area of the EU is most important to maintain biodiversity in the region.

The official urged the EU not to grant further duty free TRQ for rice to any other country after the EU-Vietnam FTA. He also stressed on the inclusion of a strict safeguard clause mechanism in the same FTA in order to avoid any future crises in the EU rice sector. 

Pakistan Urges Kenya to Lower Import Duty on Rice

Jul 24, 2015

Pakistan Finance Minister has met with the Kenyan High Commissioner and requested him to review the high level of import duty on Pakistani rice, according to local sources.

He reportedly told the Kenyan official that the high import duty was affecting Pakistan rice exports to Kenya in recent months.

Pakistan has accumulated around 600,000 tons of surplus stocks for the last two years and this year's bumper crop of around 7 million tons is expected to push up the surplus stocks to over one million tons. This year, Pakistan has been facing a stiff competition with India, Thailand and Vietnam. Declining global prices and lack of demand from traditional importers is also a major concern for Pakistani rice exporters.

Kenya, which is a part of the East African Community (EAC), imposes 75% duty on rice imports from non-EAC countries. The EAC is keen on protecting the region's local rice sector from the cheap imported rice from the Asian countries.

Both Pakistan and Kenya agreed to discuss matters related to trade and business cooperation at the upcoming Pak-Kenya Joint Ministerial Commission (JMC) meeting that will be held in Pakistan.

Pakistan exported a total of around 3.73 million tons of rice in FY 2014-15 (July-June), up about 11% from around 3.37 exported in FY 2013-14, according to data from the Rice Exporters Association of Pakistan (REAP).

Vietnam Expects High Interest from Philippines Private Rice Traders

Jul 24, 2015

The Philippines National Food Authority (NFA), which has already imported around 550,000 tons of rice from Vietnam under government-to-government (G2G) contracts to ensure adequate stocks in the lean season (June – September). It has further allowed private rice traders to import around 805,200 tons of 25% broken rice at 35% tariff under WTO minimum access volume (MAV) country specific quota (CSQ) before November 30, 2015.

Under the quota, Philippines traders can import up to 293,100 tons each from Thailand and Vietnam; up to 50,000 tons each from China, India and Pakistan; 15,000 tons from El Salvador and the rest from other countries.

Vietnam rice exporters are expecting the Philippines traders to import the entire quota of 293,100 tons from Vietnam, according to local sources. The Vietnam rice export sector is facing trouble as China, its major importer has increased imports from Thailand.

Vietnam is struggling hard to increase its exports this year due to a stiff competition from Thailand, India, Pakistan as well as emerging exporters such as Cambodia and Myanmar.

Vietnam exported about 2.875 million tons of rice in January 1 - July 16, 2015, down about 21% from about 3.63 million tons of rice exported in first seven months of 2014, according to data from the Vietnam Food Association (VFA). Average rice export price so far in this year stands at about $415 per ton (FOB), down about 4% per ton from about $431 per ton recorded during same last year.

The Philippines private rice traders have so far applied to import only 300,000 tons of rice from Thailand and Vietnam, Reuters quoted a NFA official.

While the NFA is authorized to import another 250,000 tons of rice if the El Nino-induced drought conditions intensify. The government is currently assessing the need for importing the additional volume of rice, the Director of the Department of Economic Research at the Bangko Sentral ng Pilipinas (BSP) told reporters. 

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27th July (Monday), 2015Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine