Pakistan Basmati Rice Export Prices Increase for Third Consecutive Month in
February 2016
Mar 15, 2016
Pakistan basmati rice
export prices have increased for third consecutive month in February 2016,
after declining continuously for three months from September 2015, according to
the UN's Food and Agriculture Organization (FAO).
In February 2015,
Pakistan's basmati rice export prices have increased by about 1.4% to around
$745 per ton from around $734 per ton in January 2015, and down about 24% from
their year-ago levels of around $978 per ton. In terms of local currency,
average Pakistan basmati rice prices in February 2016 increased about 2% to
around PKR 77,110 per ton from around PKR 75,602 per ton in January 2015, and
down about 23% from around PKR 88,305 per ton in February 2015.
The average basmati
rice export price declined about 20% to around $740 per ton in the first two
months of 2016 from around $927 per ton during the same period last year.
Pakistan exported
around 2.445 million tons of rice (including 223,634 tons of basmati and 2.22
million tons of non-basmati) in the first seven months of FY 2015-16 (July 2015
- January 2016), up about 11% from around 2.196 million tons (290,013 tons of basmati
and 1.91 million tons of non-basmati) exported during the same period in FY
2014-15, according to provisional data from the Pakistan Bureau of Statistics
(PBS).
Global
Rice Quotes
March 16th, 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 355-365
↓
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 460-470
↑
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
EU Imports 656,430 Tons of Rice in September 1, 2015 - March 8, 2016; Up
19% from Previous Year
According to the
latest data issued by the European Union (EU), rice imports by the EU increased
sharply since the beginning of the crop year 2015-16 (September 1, 2015 -
August 31, 2016).
The EU imported about
656,430 tons of rice during the period September 1, 2015 - March 8, 2016, up
about 19% from around 553,797 tons imported during the same period last year.
Japonica rice imports
increased about 8% to around 51,568 tons in September 1, 2015 - March 8, 2016
period from around 47,831 tons during the same period last year. Indica rice
imports increased about 20% to around 604,862 tons during the said period from
around 505,966 tons last year.
The UK remained the
largest importer in September 1, 2015 - March 8, 2016 period with around 149,520
tons followed by France (112,018 tons), The Netherlands (77,329 tons), Germany
(51,748 tons), Poland (48,467 tons), and Italy (48,107 tons). Other EU
countries imported 169,241 tons.
During the week ended March
8, 2016, the EU imported around 22,708 tons of rice, down about 15% from around
26,776 tons imported during the week ended March 1, 2015.
The EU imported around
1.143 million tons of rice in the crop year 2014-15, up about 12.7% from around
1.013 million tons imported in the crop year 2013-14.
Brazil
Rice Stocks Decline About 16% m/m to 92,260 Tons in February 2016
Mar 15, 2016
Brazil rice stocks
stood at around 92,260 tons in February 2016, down about 16% from around
110,388 tons in January 2016 and down about 32% from around 135,717 tons in
February 2015, according to the country's national grain supplying agency
Conab.
According to Conab,
rice stocks with the Selling Option Contract of Agricultural Products (OPCAO)
stood at around 51,879 tons in February 2016, down about 15% from around 60,802
tons in January 2016 and down about 36% from around 81,671 tons in February
2015.
Rice stocks with the
Federal Government Acquisition (AGF) stood at around 40,381 tons, down about
19% 49,586 tons in January 2016 and down about 24% from around 53,193 tons in
February 2015.
Rice stocks with
farmers (Agricultural Familiar) were nil and unchanged from January 2016 and
down from around 853 tons in February 2015.
Oryza CBOT Recap – Chicago Rough Rice Pull Back as Market Fails to Find
Follow-Through Buying Interest
Mar 16, 2016
Chicago rough rice
futures for May delivery settled 8 cents per cwt (about $2 per ton) lower at
$10.370 per cwt (about $229 per ton). The other grains finished the day lower;
Soybeans closed about 0.4% lower at $8.9200 per bushel; wheat finished about
0.3% lower at $4.7725 per bushel, and corn finished the day about 0.1% lower at
$3.6850 per bushel.
U.S. stocks traded
mostly lower Tuesday, led by declines in energy and health care stocks, ahead
of the Wednesday conclusion of the Federal Reserve meeting. WTI briefly fell to
$36.04 a barrel, its lowest since March 4, before paring losses and holding
near $36.30 as of 1:34 p.m. ET. The Federal Open Market Committee is kicked off
its two-day meeting Tuesday and is scheduled to release its statement and
economic projections Wednesday afternoon. Fed Chair Janet Yellen is also due to
hold a press conference.
Retail sales fell a
less-than-expected 0.1% in February, but January's figure was revised down to
show a 0.4% decline versus the previously reported 0.2% increase. U.S. producer
prices fell 0.2% in February, but were unchanged over the last 12 months. That
marked the first time since January 2015 that the year-on-year PPI did not
decline, Reuters said. The Bank of Japan left rates unchanged, as expected.
European stocks ended lower, with the pan-European Stoxx 600 index falling
1.1%. Asian stocks closed mostly lower, except for the Shanghai composite which
eked out a gain of nearly 0.2%.In afternoon trade, the Dow Jones industrial
average traded down 15 points, or 0.09%, to 17,213. The S&P 500 declined 7
points, or 0.37%, to 2,012, with health care leading six sectors lower and
information technology the top gainer. The Nasdaq composite traded down 21
points, or 0.45%, to 4,728. Gold is seen trading about 1% lower, crude oil is
seen trading about 2.3% lower, and the U.S. dollar is seen trading marginally
lower at about 1:00pm Chicago time.
Monday, there were 352
contracts traded, down from 382 contracts traded on Friday. Open interest – the
number of contracts outstanding – on Monday increased by 17 contracts to
12,457.
European Commission Postpones Vote on Glyphosate Authorization for Another
Fifteen Years
Mar 15, 2016
The European
Commission (EC) has reportedly postponed the voting on the new authorization
for glyphosate for another fifteen years, after some member states such as
Italy expressed concern over the use of this herbicide on human health.
The International
Agency for Research on Cancer (IARC) has included the glyphosate in the list of
food items that are "probably carcinogenic."
Though the European
Food Safety Authority (EFSA) argued that the herbicide is unlikely to be
carcinogenic, some cases have brought to light traces of glyphosate in some
food items, such as German beer, in the EU.
Following these
contradictory arguments, the European Chemicals Agency (ECHA) is said to
conduct further investigations into the impact of glyphosate to get to a health
official classification of the EU. The process is likely to end by the end of
2017.
Halal Certification Opens More Export Markets in Middle East for
Philippines Rice
Mar 15, 2016
Halal certification by
the Islamic Da'wah Council of the Philippines opens more export markets for the
country's rice in the Middle East, according to the Business World Online.
Halal signifies a
requirement of importing countries. Two varieties of rice - Jasponica (mix of
Thailand’s special Jasmine rice and Japan’s premium Japonica) and Miponica
(sticky type of rice for use in sushi)- produced by a private company in the
Philippines are Halal certified.
The company is
planning to export a bigger share of rice to the Gulf Cooperation Council (GCC)
countries. It is also keen on targeting Overseas Filipino Workers (OFWs).
The Philippines has been
exporting premium quality rice since 2013 when the government lifted the
decades-long export ban on specialty fancy rice. However, ban on regular milled
rice still continues.
China
Agrees to Release Water into Mekong River to Help Vietnam Deal with Drought
Mar 15, 2016
China has agreed to
release water from its Jinghong Hydropower Station reservoir into the lower
Mekong River to help Vietnam deal with drought and salinity in a number of
provinces in Mekong Delta, according to Vietnam Net.
More than 150,000
regional households with 600,000 people are lacking fresh water. China will
reportedly release water between March 15 and April 4, 2016.
China has agreed for
Vietnam's proposal to increase the outflow from its Jinghong Hydropower Station
to the lower reach of the Mekong River. “We held that the protection and
sustainable use of water in the Mekong River is the responsibility shared by
countries along the river to harmonise the interests of relevant nations and
regional people’s lives,” said the Vietnamese Foreign Ministry’s Vice
Spokesperson.
Nearly 140,000
hectares of rice area has been damaged by drought and salt water intrusion. A
total of 339,200 hectares of 2015-16 winter-spring rice, or 22% of total rice
area, in coastal Mekong Delta provinces are prone to saltwater intrusion and
drought. Government authorities fear that if the drought conditions continue
till June 2016, nearly 500,000 hectares may have to remain unsown.
EU Exports 119,116 Tons of Rice in September 1, 2015 - March 8, 2016; Down
18% from Previous Year
Mar 15, 2016
According to the
latest export data issued by the European Union (EU) for the crop year 2015-16
(September 1, 2015 - August 31, 2016), the EU exported about 119,116 tons of
rice during the period September 1, 2015 - March 8, 2016, down about 18% from
around 145,713 tons exported during the same period last year.
Japonica rice exports
declined about 21% to around 99,173 tons in September 1, 2015 - March 8, 2016
period from around 125,303 tons during the same period last year. Indica rice
exports declined about 5% to around 19,943 tons during the said period from
around 20,410 tons last year.
Italy remained the
largest exporter in September 1, 2015 - March 8, 2016 period with around 63,440
tons followed by Spain (16,504 tons), Greece (14,383 tons), and Portugal (7,628
tons). Other EU countries imported 17,161 tons.
During the week ended
March 8, 2016, the EU exported around 4,238 tons of rice, up about 13% from
around 3,764 tons during the week ended March 1, 2016.
Government
of Egypt Launches Crackdown on Hoarders Amid Rice Shortages, Surging Prices
Mar 15, 2016
The government of
Egypt has launched a crackdown on firms it believes are hoarding rice in
expectation of getting better prices, according to according to AfricaNews.com.
Due to rice hoarding
by many traders, the country is currently is facing severe rice shortages
despite having an estimated one million tons of rice surplus. The government is
not in a position to get rice for its public distribution purposes. It was
forced to increase prices to get rice from traders. The price paid by the
government has reportedly increased by about 50% in the past two months. This
situation has led to acute rice shortages in the country with most of the
underprivileged people not getting subsidized rice.
According to the Head
of the Rice Committee of Egypt's Agricultural Export Council, Egypt produced
3.75 million tons of rice in 2015 and carried over 700,000 tons of rice from
2014. After accounting for consumption of 3.3 million tons, the country will
have a surplus of more than one million tons.
Experts have noted
that the government's failure to stockpile rice during the harvest season has
led to this situation. The government has decided to take on hoarders to
increase supplies of rice in the market as well as to stabilize prices.
However, the
government authorities are said to be targeting rice mill owners rather than
the traders, according to the rice mill owners. Some mill owners noted that the
government is not pursuing with the real perpetrators.
“The investigators
came here because they were supposed to go after the traders, but instead they
are going after the factories and these factories aren’t under the authority of
the supply ministry, they’re under the trade and industry ministry,” said one
of the rice mill owners. “We have a permanent license, we have an industrial
record, we have a permit from the Industrial Development Authority. But it’s
easier for them to attack the mills – the known mills,” he adds.
Expecting a surplus, the
government has allowed the exports to resume, but now traders are discouraging
exports as well and are holding back supplies in expectation of rising prices
Thailand Rice Sellers Increase Their Quotes Today; India Rice Sellers Lower
Their Quotes
Mar 15, 2016
Thailand
rice sellers increased their quotes for 5% broken rice, 25% broken rice, and
Hommali rice by about $5 per ton each to around $365-$375 per ton, $355-$365
per ton and $665-$675 per ton, respectively, today. India rice sellers lowered
their quotes for 25% broken rice and parboiled rice by about $5 per ton to
around $330-$340 per ton and $350-$360 per ton respectively. Other Asia rice
sellers kept their quotes unchanged today.
5%
Broken Rice
Thailand
5% rice is indicated at around $365 - $375 per ton, about $10 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 $355 - $365 per ton, about $5 per ton discount
to Vietnam 25% rice shown at around $360- $370 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 $370 - $380 per 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 $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.
Thai Rice Exports Likely to Remain Sluggish in First Quarter of 2016, Says
TREA Official
Mar 15, 2016
The Honorary President
of the Thai Rice Exporters Association (TREA) noted that exports during the
first quarter of 2016 are likely to be sluggish due to low demand from
traditional markets as well as increasing competition from India, Vietnam and
Pakistan, according to local sources.He specifically noted that lack of
government-to-government (G2G) deals and absence of new demand from the
Philippines and Indonesia have contributed to rice export slump.
Thai rice exports in
February 2016 reportedly declined to around 700,000 tons from around 1.2
million tons in January 2016. The official attributed the fall to the
reluctance of rice exporters to take orders from some customers such as Nigeria
due to export and currency problems faced by them. They fear if their payments
would be defaulted, he said. Local sources report that some exporters are
facing liquidity problems due to export slump, stiff competition from other
exporting nations and payments from some African customers.
The TREA official,
however, predicted that exports would recover in the second quarter.
Philippines Rice Stocks Decline for Second Consecutive Month in February
2016
Mar 15, 2016
Oryza U.S. Rough Rice Recap - Prices Soften a Day after IGB Books
Argentinian Cargo
Mar 16, 2016
The
U.S. cash market gave up yesterday’s small gains today following news that the
Iraqi Grain Board purchased 30K tons from Argentina, although farmers remain
disinterested in selling.Analysts note that price of the Argentinian cargo that
was booked was $93 per ton cheaper than the best offer shown from the U.S.Many
market participants believe that there will be more demand coming from Iraq in
the coming months; however, U.S. prices will need to soften if the U.S. is
going to stand a chance of getting that business.
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