Thailand to
Encourage Farmers to Store Rice During Harvest Period
Oct 26, 2015
The Thai government is
planning to encourage farmers to store rice during the harvest period to protect
rice prices from falling, according to Bloomberg.
The Permanent
Secretary for Commerce told reporters that the Bank for Agriculture and
Agricultural Cooperatives (BACC) will seek cabinet approval to provide loans to
farmers in northern and north-eastern provinces to encourage them to store
rice.
The BACC will
reportedly lend 2.9 billion baht (around $2.54 million0 baht to farmers at low
interest rate as well as about 12.5 billion baht (around $11 million) to
cooperatives to process rice.
Last week, the
Commerce Ministry said it is planning to introduce a new pledging scheme for
Hom Mali rice as part of measures to control prices during the harvest season.
Thailand exported
about 6.61 million tons of rice in the first nine months of 2015, down about 13%
y/y, according to Commerce Ministry data.
The government has
decided to sell 2 million tons of rotten rice from stockpiles. It is reportedly
planning to another 9 million tons will be sold later.
Government of India
Allows Private Traders to Procure One Million Tons of Rice in KMS 2015-16
Oct 26, 2015
The government of
India has allowed private traders to procure around one million tons of rice
during the 2015-16 Kharif Marketing Season (KMS) in the states of Uttar
Pradesh, Bihar, Jharkhand, West Bengal and Assam, according to local sources.
The Indian government
is targeting to procure a total of 6.9 million tons of rice from the five
states in the on-going procurement season, local sources quoted a Food Ministry
official.
The decision to
involve private players in the rice procurement operations is based on the
recommendations of the Committee set up to restructure the Food Corporation of
India (FCI) operations. The Committee headed by a former Food Minister noted
that the government needs to focus on the procurement operations in the five
north-eastern states to improve efficiency in transportation, packaging and
storage facilities in those states.
The five states
contribute to over 40% of India's rice production by the FCI reportedly does
not have a robust procurement mechanism in these states and often forces
farmers to go for a distress sale. In order to avoid such a situation and help
farmers receive the minimum support price (MSP), the Food Ministry has decided
to involve private players in the rice procurement process.
The FCI is in the
process of shortlisting companies for procurement in the five states.
The government of
India is planning to procure around 30 million tons of rice in the KMS 2015-16,
including around 2.7 million tons from Uttar Pradesh, 2 million tons from
Bihar, 1.8 million tons from west Bengal, 300,000 tons from Jharkhand and
50,000 tons from Assam.
The MSP for common and
grade A varieties of paddy is respectively fixed at Rs.1,410 (around $211 per
ton) and Rs.1,450 (around $217 per ton) per quintal for the 2015-16 KMS.
Oryza CBOT Rough
Rice Futures Recap - Chicago Rough Rice Futures Continue to Slide as Market
Turns Bearish
Oct 26, 2015
Chicago rough rice futures
for Jan delivery settled 19.5 cents per cwt (about $4 per ton) lower at $11.945
per cwt (about $263 per ton). The other grains finished the day with mixed
results; Soybeans closed about 1.2% lower at $8.8450 per bushel; wheat finished
about 4% higher at $5.0900 per bushel, and corn finished the day about 1.3%
higher at $3.8450 per bushel.
U.S. stocks traded in
a range Monday, attempting to hold last week's gains, as investors readied for
another week of earnings and central bank announcements. Stocks rallied last
week, with the S&P 500 ending in positive territory for 2015, after hints
of further stimulus from the European Central Bank Thursday and a surprise rate
cut by the People's Bank of China Friday. European equities closed lower
Monday, while most Asian stocks closed mildly higher. The Hang Seng ended a
touch lower. In U.S. economic news, September new home sales fell 11.5% to near
a one-year low after two straight months of gains, Reuters said.
The Federal Open Market Committee kicks off
its two-day meeting Tuesday and is scheduled to release its statement Wednesday
afternoon. In early afternoon trade, the Dow Jones Industrial Average declined
16 points, or 0.09%, at 17,630. The S&P 500 traded down 2 points, or 0.12%,
at 2,072, with energy leading seven sectors lower and consumer discretionary
leading advancers. The Nasdaq traded up 12 points, or 0.23%, at 5,043. Gold is
trading about 0.2% higher, crude oil is seen trading about 1.2% lower, and the
U.S. dollar is seen trading about 0.3% lower about 1:30pm Chicago time.
Friday, there were
2,940 contracts traded, down from 2, 976 contracts traded on Thursday. Open
interest – the number of contracts outstanding – on Friday decreased by 163
contracts to 12,644.
Vietnam Exports
4.48 Million Tons of Rice in January 1 - October 20, 2015
Oct 26, 2015
Vietnam exported about 4.48 million tons of rice in January 1 - October
20, 2015, down about 17% from about 5.37 million tons of rice exported in first
ten months of 2014, according to data from the Vietnam Food Association (VFA).
The average rice export price so South
Korea Plans to Procure 590,000 Tons tons of Rice in 2015 to Stabilize Prices
Oct 26, 2015
The government of
South Africa is planning to purchase about 590,000 tons of locally produced
rice as part of efforts to stabilize rice prices, local sources quoted the Farm
Ministry. It earlier planned to purchase about 360,000 tons of rice. However,
due to a decline in prices due to an expected increase in rice production third
year, it decided to increase the local rice procurement by another 200,000
tons.
South Korea's rice
production (milled basis) is estimated to increase about 0.4% to around 4.258
million tons in 2015 from around 4.241 million tons in 2014 due to higher
yields, according to the Ministry if Agriculture, Food and Rural Affairs.
Average rice prices have declined about 7.5% y/y to around 156,880 won per 80
kilograms (around $1,720 per ton) as of October 15, 2015.
The government has
reportedly decided to set aside 360,000 tons of the procured volume as part of
the country's strategic reserves and to contribute 30,000 tons to the ASEAN
Plus Three Emergency Rice Reserve.
The Farm Ministry
noted that the government may purchase more rice depending on the movement of
rice prices and overall production. It is reportedly planning to release a
long-term rice stabilization plan later this year.
The Ministry said it
would release about 200 billion won (around $176.4 million) to help the private
sector to buy up rice. It also noted that it would consider increasing the
payment guarantee coverage of rice processing plants from the current 3 billion
won (around $2.63 million) to 5 billion won (around $4.4 million) so as to help
private sector to buy about 2.13 million tons of rice this year, up about
85,000 tons from last year.
The country's current
rice reserves stand at around 1.32 million tons. The Ministry is expecting the
demand for rice at around 3.97 million tons in 2016. The government is
currently facing the challenge of falling consumption and increasing stocks.
far in this year
stands at about $418.7 per ton (FOB), down about 4% per ton from about $435.6
per ton recorded during same last year.
During October 1-20,
2015, Vietnam exported about 130,300 tons of rice, down about 77% from about
570,769 tons rice exported in full month of October 2014, and down about 75%
from about 532,267 tons rice exported in full month of September 2015. The
average export price so far in August stands at about $400.09 per ton, down
about 15% per ton from a year ago and down about 2% per ton from a month ago.
Global Rice Quotes
October 27th, 2015
Long grain white rice - high quality
Thailand 100% B grade 360-370
↓
Vietnam 5% broken 370-380
↔
India 5% broken 350-360
↔
Pakistan 5% broken 305-315
↔
Myanmar 5% broken 415-425
↔
Cambodia 5% broken 415-425
↔
U.S. 4% broken 490-510
↔
Uruguay 5% broken 535-545
↔
Argentina 5% broken 530-540
↔
Long grain white rice - low quality
Thailand 25% broken 330-340
↔
Vietnam 25% broken 355-365
↔
Pakistan 25% broken 280-290
↔
Cambodia 25% broken 400-410
↔
India 25% broken 330-340
↔
U.S. 15% broken 500-510
↔
Long grain parboiled rice
Thailand parboiled 100% stxd 360-370 ↔
Pakistan parboiled 5% broken stxd 405-415 ↔
India parboiled 5% broken stxd 340-350 ↔
U.S. parboiled 4% broken 590-610
↔
Brazil parboiled 5% broken 545-555
↔
Uruguay parboiled 5% broken NQ
↔
Long grain fragrant rice
Thailand Hommali 92% 815-825
↔
Vietnam Jasmine 475-485
↔
India basmati 2% broken NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Mails 830-840
↔
Brokens
Thailand A1 Super 305-315
↔
Vietnam 100% broken 305-315
↔
Pakistan 100% broken stxd 275-285
↔
Cambodia A1 Super 355-365
↔
India 100% broken stxd 285-295
↓
Egypt medium grain brokens NQ
↔
U.S. pet food 330-340 ↔
Brazil half grain NQ
↔
All prices USD per ton, FOB vessel, oryza.com
Italian Paddy Rice
Prices Continue to Increase in Third Week of October 2015
Oct 26, 2015
Italian paddy rice
prices, which were quite low in the last week of September last week and first
week of October, have increased in the second week of October and are
continuing to increase in the third week as well. Prices of both Indica and
Japonica varieties increased during the week. Harvesting of 2015-16 (September
- August) rice land is almost complete and the total amount of paddy available
can be known shortly, according to local sources.
Below are farm gate
paddy quotes from the Milan grain exchange, as of October 20:
Arborio-Volano rice is
quoted 650-675 euros (about $ 716-743) per ton, up 100 euros (about $ 110) per
ton from 550-575 euros (about $ 605-633) per ton of October 13;
Balilla, Centauro and
similar paddies are out at 315-335 euros (about $ 347-369) per ton, up from
290-310 euros (about $ 319-341) per ton of October 13.
Lido, Crono, Flipper
and similar varieties are quoted 285-305 euros (about $ 314-336), up from
265-285 euros (about $ 292-336) per ton of a week prior.
Padano, Argo is out at
385-430 euros (about $ 424-474) per ton, unchanged from a week prior.
Vialone Nano is quoted
515-540 euros (about $ 568-595) per ton, up from 465-490 euros (about $
512-540) per ton from a week prior.
Carnaroli is quoted
650-685 euros (about $ 716-755) per ton, up from 590-625 euros (about $
650-689) per ton of one week prior.
Thaibonnet and similar
varieties were indicated at 265-285 euros (about $ 292-314) per ton, unchanged
from a week prior.
Sant'Andrea is quoted
350-380 euros (about $ 385-419) per ton, up from 325-355 euros (about $
358-391) per ton of October 13.
Luna Cl, Dardo and
similar varieties are shown 285-305 ($ 314-336), up from 265-285 euros (about $
292-336) per ton of October 13.
Baldo is quoted
360-380 euros (about $ 397-426) per ton, up from 335-355 euros (about $
369-391) per ton of one week prior.
Roma was quoted 370-400 euros (about $ 408-441) per ton, up from 350-380 euros (about $ 385-419) per ton of October 13.
Roma was quoted 370-400 euros (about $ 408-441) per ton, up from 350-380 euros (about $ 385-419) per ton of October 13.
Selenio is quoted
315-355 euros (about $ 347-391) per ton, up from 295-335 euros (about $
325-369) per ton of October 13.
Augusto is out at
305-325 euros (about $ 336-358) per ton, unchanged from a week prior;
Loto and Nembo are
quoted 295-325 euros (about 325-358) per ton, unchanged from a week
prior.
Vietnam Rice
Sellers Alter Some Their Quotes Today; Other Asian Quotes Remain Unchanged
Oct 26, 2015
Vietnam rice sellers
have increased their quotes for 25% broken rice by about $5 per ton to around
$355 - $365 per ton today. They lowered their quotes for jasmine rice by about
$5 per ton to around $475 - $485 per ton. Other Asian rice sellers kept their
quotes unchanged today.
5% Broken Rice
Thailand 5% rice is
indicated at around $355 - $365 per ton about $15 per ton discount on Vietnam
5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at
around $350 - $360 per ton, about $45 per ton premium on Pakistan 5% rice shown
at around $305 - $315 per ton.
25% Broken Rice
Thailand 25% rice is
indicated at around $330 - $340 per ton, about $25 per ton discount on Vietnam
25% rice shown at around $355- $365 per ton. India 25% rice is indicated at
around $330 - $340 per ton, about $50 per ton premium on Pakistan 25% rice
shown at around $280 - $290 per ton.
Parboiled Rice
Thailand parboiled
rice is indicated at around $360 - $370 per ton. India parboiled rice is
indicated at around $340 - $350 per ton, about $65 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 $305 - $315 per ton, at par with Vietnam 100%
broken rice shown at around $305 - $315 per ton. India's 100% broken rice is
shown at around $290 - $300 per ton, about $15 per ton premium on Pakistan
broken sortexed rice shown at around $275 - $285 per ton.
Unreasonable
Government Policies Hindering Vietnam Rice Exports, Say Experts
Oct 26, 2015
Unreasonable
government policies are hindering Vietnam rice exports, local sources quoted
experts as saying. They noted that though rice exports of all the major exports
have been impacted due to
The Head of the Mekong
River Delta Research and Development Institute noted that rice exporters are
governed by several legal documents with overlapping content and unreasonable
regulations. They are hindering the normal operations of the rice value chain,
he said.
The Director of an
exporting company noted that the recently released Prime Minister's Decision No
68 is aimed at helping farmers in reducing their production losses but does not
support exporters in any manner. While exporters need to invest heavily in rice
processing and milling systems as part of the 'large paddy field model', they
are not getting adequate support from the government, he added.
The exporter also
noted that they are not getting easy access to bank finance also despite the
commitment made by the State Bank of Vietnam to provide financial support to
implement the 'large paddy field model'.
Some experts pointed
out that the current regulations have in fact weakened the competitiveness of
Vietnamese rice exporters.
Thailand to Sell 2
Million Tons of Rotten Rice from Stockpiles Beginning November 2015
Oct 26, 2015
The government of
Thailand has approved the sale of 2 million tons of rotten rice from the
stockpiles to industries starting from November 2015, Reuters quoted the
Commerce Ministry Permanent Secretary.
"This rice is 2
million tonnes of rotten rice which humans and animals cannot consume and it
must be sold to the industrial sector only," said the Commerce Ministry
official. She assured that the Ministry would ensure that the rotten stocks
would not enter the markets for human and animal consumption.
The official noted
that the Ministry is planning to sell the rotten rice at prices below those of
edible rice. However, she did not hint at the likely price that could be
fetched.
Thailand is currently
holding about 13.3 million tons of rice in its stockpiles.