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Global
Rice Quotes
June
9th, 2015
Long
grain white rice - high quality
Thailand
100% B grade 365-375 ↔
Vietnam
5% broken 350-360 ↔
India
5% broken 375-385 ↔
Pakistan
5% broken 390-400 ↓
Myanmar
5% broken 415-425 ↔
Cambodia
5% broken 430-440 ↔
U.S.
4% broken 465-475 ↔
Uruguay
5% broken 565-575 ↔
Argentina
5% broken 555-565 ↔
Long
grain white rice - low quality
Thailand
25% broken 340-350 ↔
Vietnam
25% broken 330-340 ↔
Pakistan
25% broken 350-360 ↔
Cambodia
25% broken 410-420 ↔
India
25% broken 360-370 ↔
U.S.
15% broken 455-465 ↔
Long
grain parboiled rice
Thailand
parboiled 100% stxd 360-370 ↓
Pakistan
parboiled 5% broken stxd 410-420 ↔
India
parboiled 5% broken stxd 355-365 ↔
U.S.
parboiled 4% broken 555-565 ↔
Brazil
parboiled 5% broken 570-580 ↔
Uruguay
parboiled 5% broken NQ ↔
Long
grain fragrant rice
Thailand
Hommali 92% 840-850 ↔
Vietnam
Jasmine 475-485 ↓
India
basmati 2% broken NQ ↔
Pakistan
basmati 2% broken NQ ↔
Cambodia
Phka Mails 820-830 ↔
Brokens
Thailand
A1 Super 315-325 ↔
Vietnam
100% broken 315-325 ↔
Pakistan
100% broken stxd 295-305 ↔
Cambodia
A1 Super 350-360 ↔
India
100% broken stxd 280-290 ↔
Egypt
medium grain brokens NQ ↔
U.S.
pet food 365-375 ↔
Brazil
half grain NQ ↔
All prices USD per ton, FOB
vessel, oryza.com
Philippines Agriculture Ministry Recommends Water-Saving Rice Cultivation
Methods Amid El Nino Fears
Jun 08, 2015
The Philippines
Department of Agriculture (DA) is recommeding the use of water-saving rice
cultivation tehniques such as Alternate Wetting and Drying (AWD) and Aerobic
cultivation which can significantly reduce water usage for farmers amid fears
of an impending El Nino, according to the Philippines government website.
In AWD, rice farmers
can dry out their fields occasionally, but have to ensure that the water
content in the soil is sufficient enough for the rice crop to sustain. In this
technique, farmers use a plastic or bamboo pipe of 40 centimeters length and
about 15 centimeters diameter with drilled holes. The tube, which can be used
to measure water content in the soil, is inserted into the unflodded soil such
that half of it is inside the soil and the other half is above the soil.
Usually, for rice crops to sustain, water level should not fall below 15
centimeters below the soil level. So farmers can dry out the soil as long as
the water level remains above 15 centimeters. They can re-flood the soil if the
water level falls below the required level.
Water usage in this method can be cut down by up to 30% without affecting the yields. The roots also become resilient to adverse weather conditions with the use of this methods, according to the International Rice Research Institute (IRRI). An Engineer at the Philippine Rice Research institute noted that AWD also mitigates greenhouse gas emmissions significantly.
Water usage in this method can be cut down by up to 30% without affecting the yields. The roots also become resilient to adverse weather conditions with the use of this methods, according to the International Rice Research Institute (IRRI). An Engineer at the Philippine Rice Research institute noted that AWD also mitigates greenhouse gas emmissions significantly.
On the other hand,
aerobic rice cultivation is aimed at increasing yields in dry soils with the
use of external inputs such as supplementary irrigation facilities and
fertilizers. "Growing rice aerobically saves water by eliminating
continuous seepage and percolation, reducing evaporation and eliminating wetland
preparation," said the PhilRice Engineer.
The PSA expects
paddy production in the first half of 2015 (January - June) at around 8.27
million tons, down about 1.32% from around 8.38 million tons last year. It
expects harvest area during the six-month period to decline to around 2.07
million hectares, own about 1.49% from around 2.1 million hectares last year.
It however says the yield during the January-June 2015 period may increase by
about 0.17% to around 4 tons per hectare from around 3.99 tons per hectare last
year.
Oryza May 2015 Rice Market Review
The Oryza White Rice
Index (WRI), a weighted average of global white rice export quotes, ended at
about $406 per ton in May 2015, down about $2 per ton from a month ago and down
about $54 per ton from a year ago.In global market, with the exception of
Pakistan, all the other major origins witnessed a softening in rice prices in
May. Thai rice export prices softened due to a lackluster demand from importers
and the announcement of large sales of rice from public stocks through tenders
in June and July. As competition for markets intensified, prices were also down
in India and Viet Nam, while a tightening of supplies along with steadfast
demand from Eastern Africa boosted non-basmati prices in Pakistan. Rice export
quotes in the U.S. also declined largely on slow export sales.
As of end of May,
global rice crop condition remains mixed. In India, harvest is complete and end of season conditions are
favorable for second season crop. In China, conditions are mostly favorable however there is
concern due to excessive wetness in the South China. In Thailand, conditions remain poor for the dry season rice. Harvest
is almost complete and production is expected to be considerably less than last
year, mainly due to insufficient water for cultivation that resulted in reduced
planted area and poor yield as well as due to pest damage and cold weather.
Field preparation for the wet season crop is underway. In Vietnam, in the north, the winter-spring crop is in good
condition. In the Southern Vietnam, harvest is almost complete for the
winter-spring crop. Conditions are fair despite some lack of precipitation and
yields are slightly down relative to the previous year. In the U.S. and Argentina, conditions are favorable. In Brazil harvest is complete. Even though planted area was slightly
reduced, production increased relative to last year owing to increased yields.
In Indonesia, conditions
for the wet season rice remain good. In the Philippines, planting of the wet season crop has begun. Harvest has
concluded for the dry season rice and conditions are slightly poor in the
Philippines.
El Niño conditions
continue to strengthen in the equatorial Pacific and there is a higher than 80%
chance they will persist through the end of 2015, according to reports by the
Australian Bureau of Meteorology, the International Research Institute for
Climate and Society (IRI), and the U.S. National Oceanic and Atmospheric
Administration.
The FAO forecasts global
milled rice production in 2015-16 will
increase about 1.3% from 2014-15 due to improved prospects for China and
western African countries. The FAO estimates 2015-16 global
rice utilization will increase about 1.8%
from 2014-15 with global food consumption rising sufficiently to keep rice per
capita food intake stable about 57.4 kg per year. Global rice
stocks will decrease about 4.5% from last
year with much of the drawdown concentrated in India and Thailand. The
FAO estimates 2016 global rice trade to be about 42.5 million tons, up about 2.4% from 2015.
Thailand
Thailand 5% broken
rice ended the month of May at about $370 per ton, down about 4% per ton from a
month ago and down about 3% per ton from a year ago.
Thai rice exports
have increased for the second consecutive month in March 2015 after declining
by more than half in January 2015, according to data from Thai Rice Exporters
Association (TREA). Thailand has exported about 785,891 tons of rice in March
2015, up about 7% from about 732,151 tons exported in February 2015, and down
about 2% from about 799,534 tons exported in March 2014, according to TREA.
The FAO has
forecasted Thailand's 2015 rice exports at a record 11.2 million tons, slightly
up from last year due to high levels of public stocks and government's
intentions to clear more of the existing rice stockpiles. The agency estimates
Thailand's 2015 aggregate paddy rice production at about 35 million tons (about
23.1 million tons, basis milled), slightly above the reduced 2014 harvest of
about 34.3 million tons (about 22.64 million tons, basis milled). Meanwhile,
the USDA post forecasts that Thailand will export about 11 million tons rice in
2015 and expect that Thailand rice export will accelerate in the second half of
the year due to the sales of the government stocks.
Thailand's Commerce
Ministry is planning to reopen bidding for about one million tons of rice in
the middle of June, after suspending the auctions since the end of harvest
season in March to avert downward pressure on prices, according to local
sources. The government conducted two auctions this year selling about 496,243
tons of rice worth 7.85 billion baht (about $233 million) in the first auction
and about 780,000 tons worth an estimated 8 billion (about $238 million) in the
second auction. The Thai military government currently holds about 16 million
tons of rice accumulated from the rice pledging scheme introduced by the
previous government. It had sold about 1.88 million tons of rice from six
auctions raising about 25.58 billion baht (about $785.2 million) since it
seized power in May 2014. It also reportedly sold one million tons of rice
under government-to-government contracts. It aims to sell about 10 million tons
of stockpiled rice this year and about 7 million tons next year. Separately,
Thailand government is also reportedly negotiating with the governments of several
countries, including Japan, to increase their rice import quotas from Thailand.
The Commerce Minister is confident that the country's exports would reach 10
million tons this year. Meanwhile, Thailand is planning to increase the volume
of premium and high value-added/fancy rice exports, including those of Hom Mali
rice, riceberry and sungyod, to Japan, according to local sources.
Of the 16 million
tons of stockpiled rice with the Thai government, nearly 11 million tons are
substandard, Thailand Commerce Permanent Secretary said. She also said
that the government is expecting to earn about 200 billion baht (about
$5.97 billion) from selling the entire rice stocks while the total cost
associated with holding the stocks is about 600 billion baht (about $17.9
billion).
Separately, Thailand
economic minister has agreed in the beginning of May 2015 to distribute coupons
or cards to rice farmers allowing them to claim a discount on the purchase of
cultivation materials, including seed and fertilizer, according to the local
media. He told to local media that the discount method will be more effective
than handing out cash subsidies to the farmers.
Thailand Prime
Minister has called for high-standard rice mills in the country in order to
ensure top quality rice, according to local sources. He noted that fierce
competition in the global rice market also call for high-quality rice mills in
the country.
India
India 5% broken rice
ended the month of May at about $375 per ton, up about 1% per ton from a
month ago, and down about 13% per ton from a year ago. Average monthly
wholesale rice prices in India increased to about Rs.2,908.66 per quintal
(about 4456 per ton) in May 2015, up about 2% from about Rs.2,846.4 per quintal
(about $450 per ton) in April 2015, and slightly down from their year-ago
levels of about Rs.2,916.24 per quintal (about $494 per ton).
The government of
India, in its third advance estimates for major crops, has estimated India's
rice production for 2014-15 marketing year (October 2014 - September 2015) at
about 102.54 million tons, down about 4% from an estimated 106.65 million tons
in 2013-14, according to a statement from the agriculture Ministry. According
to government sources, India's total food grain production, which includes
Kharif (June - December) and Rabi (November - March) crops, in 2014-15 is
likely to reach about 251.12 million tons, down about 5% from last year's
265.57 million tons. Meanwhile, Indian rice exporters are expecting the
country's basmati rice acreage in 2015-16 kharif season (June - December) to
increase about 5% to about 2.2 million hectares despite getting lower returns
last year, according to local sources. The USDA estimates rice production for
the 2014-15 marketing year (October to September) to be 102.5 million tons, down
from 106.54 million tons the previous year. This decline in production is
forecast to reduce carryover stocks and exports. The USDA Post forecasts
2015-16 rice exports to decline to 8.5 million tons from 10.2 million tons in
2014-15.
Planting for India
2015-16 Kharif (main) rice crop (June - December) which began on May 8, 2015 is
picking up fast and stands at about 308,000 hectares as of May 29, 2015; up
about 21% from about 254,000 hectares planted during the same period last year,
according to preliminary data released by the Indian Agriculture Ministry. A
likely drought-inducing El Nino this year is expected to lower production
prospects this year.
Separately, Iran is
likely to lift the ban on rice imports from India after Ramzan in this July,
local sources quoted an official at India's Agricultural and Processed Foods
Export Development Authority (Apeda) as saying.
The Chennai-based
Intellectual Property Appellate Board (IPAB) will reportedly hear the claims of
parties involved in the basmati geographical indications (GI) certification
case for three days starting from July 8, 2015, a move that could see legal
protection granted to Indian basmati rice, according to local sources.
Separately, In line
with the recommendations by the high level committee for the Food Corporation
of India (FCI) restructuring, the government of India may not be able to impose
the uniform taxation on rice and wheat procurement in all states in the near
term, local sources quoted Food Ministry officials as saying. Currently, taxes
on rice and wheat procurement differ from state to state. According to official
data, taxes on rice procurement is 14.5% in Punjab, it is 12.5% in Andhra
Pradesh, 11.5% in Haryana and 4.7% in Madhya Pradesh.
India’s rice stocks
in the central pool as of May 1, 2015 stood at about 22.23 million tons
(including a milled equivalent of about 7.968 million tons of paddy), down
about 22% from about 28.41 million tons recorded during the same period last
year, according to data from the Food Corporation of India (FCI).
Vietnam
Vietnam 5% broken
rice ended the month of May at about $355 per ton, down about 1% per ton from a
month ago and down about $12 per ton from a year ago.
Vietnam has
increased the floor price (minimum export price, MEP) of its lower quality (25%
broken) rice exports by about 3% to about $350 per ton from about $340 per ton.
The new MEP has been effective from June 1, 2015.
The Philippines
National Food Authority (NFA) invited tenders from Vietnam and Thailand to
supply 250,000 ton of 25% broken long-grain white rice for delivery between
July and August, to replenish stocks during the lean season (July -September)
as well as prevent commercial rice price hikes. The tender is scheduled on June
5, 2015.
Vietnam's rice
exports declined about 11.4% to about 2.4 million tons in the first five months
of 2015 from about 2.7 million tons exported during the same period in 2014,
according to the Ministry of Agriculture and Rural Development (MARD).
Meanwhile, Vietnam rice exporters have signed contracts to export 3.2 million
tons of rice so far this year, the MARD said.
Vietnam exported
about 2.081 million tons of rice in first five months of calendar year 2015,
down about 11% from about 2.34 million tons of rice exported during same time
in last year, according to data from the Vietnam Food Association (VFA).
Separately, Vietnam's rice exports to Africa, which declined about 58% y/y in
2014, are showing signs of recovery, according to the Department of Africa,
West Asia and South Asia Markets under the Ministry of Industry and Trade
(MOIT). According to the USDA data, Vietnam's rice exports to African countries
declined to about 772,537 tons in 2014 from about 1.83 million tons in 2013 due
to a stiff competition with Thailand and India. However, Vietnam's rice exports
to Africa in the first three months of 2015 stand at about 164,255 tons, a 95%
increase from about 84,289 tons exported during the same time last year.
The USDA has
estimated Vietnam's MY 2014-15 (January 2015 - December 2015) rice exports at
about 6.7 million tons, up about 5.5% from an estimated 6.35 million tons
exported in MY 2013-14 and unchanged from USDA's official estimates of about
6.7 million tons. The agency estimates Vietnam MY 2014-15 paddy rice production
at about 44.88 million tons (about 28.05 million tons, basis milled), down
about 2% from an estimated 45.058 million tons (about 28.16 million tons, basis
milled) produced in MY 2013-14 and slightly down about from USDA official
estimates of about 45.191 million tons (about 28.24 million tons, basis milled)
due to the adjustment of seasonal planted/harvested area.
Separately, the
government of Vietnam has allotted an additional 481 billion VND (about $22
billion) in the state budget towards rice land development and protection,
according to local sources. The Prime Minister of Vietnam has also approved a
national rice development plan under which the government aims to increase
competitiveness of Vietnamese rice globally and promote it as a high-quality
trademark by 2030, according to local sources.
Pakistan
Pakistan 5% broken
rice ended at about $410 per ton in May 2015, up about 8% per ton from a month
ago and down about 11% per ton from a year ago.
Pakistan exported
about 360,446 tons of rice (including basmati and non-basmati) in April 2015,
down about 24% from about 472,357 tons exported in March 2015, according to
provisional data from the Pakistan Bureau of Statistics (PBS). In terms of
value, Pakistan's rice export earnings declined about 16% to about $180 million
in April 2015 from about $215 million earned in March 2015. Separately,
Pakistan's Ministry of Commerce said that a decline in the average unit price
(AUP) of non-basmati rice, due to appreciation of Pakistan rupee against the
U.S. dollar and the euro, increased cost of production and lack of adequate
research and development in the country have all contributed to a decline in
Pakistan's rice exports so far in the FY 2014-15 (July - June). The Secretary
of a Pakistan rice farmers association has also expressed concern that last
year's low rice prices coupled with increasing power shortages may discourage
farmers from cultivating paddy in FY2015-16 (July - June).
Meanwhile,
Pakistan's Federal Committee on Agriculture (FCA) is targeting to produce 7
million tons, basis milled, (about 10.35 million tons, basis paddy) from an
area of about 2.8 million hectares in 2015.
The Ministry of
National Food Security and Research of Pakistan has proposed to increase the
import duty on basmati rice from the existing 10% to about 30% in FY 2015-16
(July - June) since import of basmati is expected to impact local production.
Cambodia
The FAO forecasted
Cambodia's 2014-15 rice exports to increase about 15% y/y to about 1.15 million
tons. The agency estimates Cambodia's total paddy rice production in 2015 at
about 9.3 million tons (about 5.76 million tons, basis milled). Planting of the
2015 main (wet) season paddy crop (June - February), which accounts for 80% of
Cambodia's total paddy rice production, is expected to start in June and
continue till October. The FAO estimates output from the 2015 main season rice
crop at about 7.2 million tons, up about 1% from last year.
Meanwhile, Cambodia
is hoping to increase its 2015-16 (May 2015 - April 2016) rice export quota to
China to about 200,000 tons from the current 100,000 tons, according to local
sources. Separately, the government of Cambodia is planning to increase checks
on 'unethical' rice tampering as part of efforts to ensure Cambodian rice,
slated for export, is not mixed with rice from neighboring countries, according
to local sources.
The Philippines
National Food Authority (NFA) has invited Cambodia along with Thailand and
Vietnam to participate in bidding for 250,000 tons rice tender that is
scheduled for June 5 this year. However, it is doubtful if Cambodia will take
part in the tender, according to local sources. The Philippines is seeking 25%
broken well-milled long-grain rice for delivery between July and August.
Cambodian rice
exporters are expressing concern that the country's rice exports to the
European Union (EU) under the Everything But Arms (EBA) agreement have been
facing a stiff competition from Myanmar, which also exports rice to the EU
under the EBA agreement. According to data from the European Commission (EC),
Cambodia's rice exports to the EU in the first eight months of the crop year
2014-15 (September - August) have declined about 1% to about 165,940 tons from
about 167,660 tons during the same period last year. On the other hand,
Myanmar's rice exports to the EU during the eight-month period increased about
81% to about 144,550 tons from about 79,940 tons last year.
Meanwhile, climate
experts are expecting the impending El Nino over the next two months to cause a
severe drought in Cambodia affecting the country's 2015 rice production.
Central & South America
Brazil
5% broken rice ended the month of May at about $550 per ton, unchanged from a
month ago and down about 17% per ton from a year ago.
Brazil’s
National Grains Supply Company (Conab) has forecasted the country's 2014-15
paddy rice production at about 12.399 million tons (about 8.43 million tons,
basis milled), up about 2% from about 12.121 million tons (about 8.24 million
tons, basis milled) in 2013-14, and slightly up from its March forecast of about
12.397 million tons. Meanwhile, Brazil rice stocks continued to decline for the
second consecutive month in April 2015, according to the Conab. Brazil rice
stocks stood at about 134,126 tons in April 2015, slightly down from about
134,255 tons in March 2015 and down about 76% from about 559,033 tons in April
2014.
Five percent broken
rice from Uruguay and Argentina at about $565 per ton in May 2015, unchanged from a
month ago, and down about 10% per ton from a year ago.
Argentina has exported about 42,161 tons of rice in February 2015,
up about 88% from about 22,467 tons exported during the same period in 2014,
according to data from the Ministry of Agriculture in Argentina.
Month-on-month, Argentina's rice exports increased over three fold from about
12,762 tons exported in January 2015.
The FAO estimates
2015 paddy production in Cuba
stand at about 632,000 tons (about 425,000 tons basis milled), nearly unchanged
from 2014. This is below the USDA’s paddy production estimate of about
700,000 tons (about 455,000 tons basis milled).
U.S.
U.S. 4% broken rice
ended the month of May at about $470 per ton, down about 3% per ton from a
month ago and down about 20% per ton from a year ago.
The USDA has
forecasts U.S. 2015-16 all rice supplies to increase 3% y/y to about 12.99
million tons and accordingly forecasts U.S. 2015-16 all rice ending stocks to
increase about 11% y/y to about 2.15 million tons. It estimates U.S. 2015-16
all rice production to decline slightly about 9.93 million tons. U.S. 2015-16
all rice exports are expected to increase about 3% y/y to about 4.9 million
tons.
The U.S. southern
states such as Arkansas and Louisiana, which typically grow long-grain rice,
are looking to increase medium-grain production, in which California tops, in
order to compensate for tighter supplies from the western state, according to
AgAlert. While California rice growers are forced to reduce their acreage this
year due to water restrictions and drought. Meanwhile, experts are suggesting
some water saving technologies to California rice farmers, which may be helpful
to them in reducing the impact of drought on their rice crops to some extent.
Africa
Rice production in
2014-15 for ten nations in West Africa (Burkina Faso, Cote d'Ivoire, Gambia, Guinea-Conarkry,
Mali, Mauritania, Niger, Senegal, and Togo) is expected to reach 5.1 million
tons, up 4.3% from the previous year, the USDA said. However, imports are
expected to remain stable at about 3.6 million tons in 2014-15.
Tanzania is capable of fulfilling the rice needs of entire East African
Community (EAC) region but the government, rice growers and exporters do not
recognize the country's export potential, the Secretary General of the EAC
said. He also noted that the rice production in the country is characterized by
small and medium sized farmers with an average yield of 1.8 tons per hectares.
He said while the potential rice area is estimated at about 2-3 million
hectares, only 720,000 hectares is under use currently. The government has been
providing a number of large scale mechanized rice schemes especially for export
but are not properly utilized, he adds.
China
The USDA has
estimated Chin's rice import in MY 2015-16 (July - June) at about 4.3 million
tons, unchanged from MY 2013-14, due to a slight increase in production. The
Post reports that Chinese preference for imported rice is increasing due to
reports in response to reports of heavy metals and high pesticide residues in
some locally produced rice. The agency estimates China's MY 2015-16 milled rice
production at about 146.3 million tons, up about 1% from an estimated 144.5
million tons due to government's continued support to the rice sector as part
of its food security strategy. The USDA estimates China's MY 2015-16 rice
exports to decline to about 350,000 tons, down about 12.5% from an estimated
400,000 tons in the previous year. It estimates rice ending stocks to decline
to about 46.35 million tons in MY 2015- 16 down about 1.6% from an estimated
47.1 million tons last year due to an estimated increase in consumption by
about 2% to about 151 million tons.
Philippines
The Philippines 2015
first quarter (January - March) paddy output has reached about 4.37 million
tons, up about 1.41% from about 4.31 million tons during the same period in
2014, according to a report released by the Philippine Statistics Authority
(PSA).The PSA expects paddy production in the first half of 2015 (January -
June) at about 8.27 million tons, down about 1.32% from about 8.38 million tons
last year. Meanwhile, the FAO forecasts Philippines 2015 paddy rice production
at about 19.76 million tons (about 12.39 million tons, basis milled), up about
4% from an estimated 19 million tons (about 11.91 million tons, basis
milled). The agency has forecasted the Philippines 2015 rice imports to
remain at last year's level of about 1.8 million tons reflecting the government's
efforts to stabilize domestic rice prices and restore public stocks.
Separately, the Philippines is expected to reach the 20.08 million tons paddy
(about 12.65 million tons, basis milled) production target by the end of 2015
despite fears of an impending El Nino as the Department of Agriculture (DA) is
planning for necessary interventions, the DA Assistant Secretary for Field
Operations said.
Separately, the
National Food Authority (NFA) of Philippines will import 250,000 tons of rice
to boost buffer stocks during the lean season (July - September), according to
Reuters. The NFA has already called for tenders from Vietnam, Thailand and
Cambodia for the 250,000 tons import, according to Reuters. The bidding is set
for June 5, 2015, according to a NFA spokesman.
The DA in the
Philippines is seeking to increase budget for the rice sector development to
about P11 billion (about $246 million) from next year from the current P6.6
billion (about $148 million), according to local sources.
Myanmar
The FAO forecasts
Myanmar rice exports at about 760,000 tons in 2014-15 (July - June), up about
9% from about 697,248 tons in 2013-14. It estimates Myanmar's 2014-15 total
cereal exports at about 1.4 million tons. The agency estimates Myanmar's 2015
aggregate paddy production at about 29.2 million tons (18.69 million tons,
basis milled), up about 1% from about 28.9 million tons (18.5 million tons,
basis milled) in 2014.
Separately, the USDA
estimates Myanmar's rice exports to increase about 10% to about 1.85 million
tons in 2015 from an estimated 1.688 million tons in 2014, and about 16% from
USDA's official estimates of about 1.6 million tons. The agency estimates
Myanmar's milled rice production to increase about 5% to about 12.6 million
tons in MY 2014-15 (January 2015 - December 2015) from an estimated 11.957
million tons last year, and about 4% from USDA's official estimates of about
12.15 million tons.
Meanwhile, the he
Myanmar Rice Federation (MRF) has expressed confidence that the country would
export about 2 million tons of rice in the fiscal year 2015-16 (April - March)
due to increasing demand from China, Africa and Europe, according to local
sources. Meanwhile, Myanmar is likely to begin legal rice exports to China
shortly, according to local sources. The Myanmar Agribusiness Public Company
Limited (MAPCO) has agreed to ship about 3,000 tons of rice according to the
recently signed Memorandum of Understanding (MOU) between the Myanmar Rice
Federation (MRF) and China's state-owned China National Cereals, Oils and
Foodstuffs Corporation (COFCO) to export 100,000 tons of rice this year, local
sources quoted the MRF.
The government of
Myanmar has launched a national strategic plan to increase rice acreage and
production across the country, according to local sources. According to the
plan, the government is aiming to increase paddy rice acreage to about 7.7
million hectares and increase yield to about 4.1 tons per hectare. It is aiming
to increase milled rice production to about 15.9 million tons and export about
6 million tons by 2030.
Indonesia
The FAO estimates
Indonesia to import about 900,000 tons of rice in 2015-16 (April - March), down
about 25% from about 1.2 million tons last year due to a favorable outlook for
2015 aggregate rice production. It estimates Indonesia's total cereal imports
in 2015-16 at about 11.5 million tons, down about 3% from about 11.15 million
tons last year. The FAO estimates Indonesia's 2015 aggregate paddy rice
production at about 73 million tons (about 46.72 million tons of rice, basis
milled), up about 3% from an estimated 70.61 million tons (about 45.2 million
tons of rice, basis milled) in 2014.
Separately, the
Indonesian Trade Minister has ruled out rice imports until July this year as
the rice supply with the state logistics agency Bulog is sufficient to meet
demand until then with an additional 7.1 million tons of rice expected from the
ongoing harvest, according to local sources.
Indonesia's state
logistics agency Bulog is aiming to procure 2.75 million tons of rice this
year, about 14% below the initially targeted 3.2 million tons, despite an
increase in the government purchase price (Harga pokok penjualan, HPP),
according to local sources. Though the government increased the HPP by about
10% to about Rp7,260 per kilogram (about $577 per ton) from the existing
Rp6,600 per kilogram (about $524 per ton) to encourage farmers to sell their
paddy to Bulog. However, the decision failed to have a positive effect on
government rice procurement. Recently, the State-owned Enterprises Minister
slammed the Bulog for its slow and inefficient procurement process during the
ongoing harvest.
Bangladesh
The USDA has
estimated Bangladesh to import about 600,000 tons of rice in MY 2015-16 (May -
April), down about 45% from an estimated 1.1 million tons imported in MY
2014-15. Imports in 2014-15 (mostly by private sector) are said to have
increased due to competitive Indian as well as global rice prices. The
agency has estimated Bangladesh's 2015-16 milled rice production at about 34.8
million tons, slightly up from an estimated 34.5 million tons last year. It
also reports that the government of Bangladesh is planning to procure 100,000
of Boro paddy and milled rice from May 1, 2015 to August 31, 2015.
Separately, the
government of Bangladesh has imposed a duty of 10% on rice imports, with effect
from May 10, 2015, local sources quoted the Finance Minister. This decision is
aimed at ensuring fair price to rice farmers during the ongoing Boro crop
season (January - May). Meanwhile, Bangladesh rice farmers are expressing
concern that the imposition of import duty of 10% on rice imports has increased
Boro (January - May) paddy prices by about 20% since its imposition last week
but the increase has not benefited them apparently, according to local sources.
Paddy prices are said to have increased to about Tk 600 - Tk 650 per 40
kilograms (about $193 - $209 per ton) from last week's Tk 500 - Tk 550 per 40
kilograms (about $161 - $177 per ton). They say the government's decision will
only benefit big millers who have stocked enough paddy from the ongoing Boro
harvest. Because the farmers had sold their output from the ongoing Boro
harvest season even before the duty imposition and are now not left with any
stocks to take advantage of the increased prices.
The government of Bangladesh
is also planning to increase Boro (January – May) rice procurement quantity as
part of efforts to increase selling prices, local sources quoted the
Agriculture Minister as saying following the meeting of the Food Planning
Committee on Thursday. The government has already started the procurement of
one million tons of 2015 Boro paddy and 100,000 tons of Boro rice from May 1,
2015. The procurement drive will continue till August 31, 2015. It has fixed
the procurement price for paddy at Tk 22 per kilogram (about $283 per ton) and
that for rice at Tk 32 per kilogram (about $412 per ton).
Europe
The European Union's
(EU) rice imports, including milled rice and semi-milled rice, from the Least
Developed Countries (LDCs) of Asia such as Cambodia and Myanmar under the
Everything But Arms (EBA) Agreement have reached about 204,512 tons in the
first eight months of the crop year 2014-15 (September 2014 - August 2015), up
about 12% from about 182,600 tons imported during the same period last year,
according to data from the European Commission (EC).
Italian rice growers
are urged to shift to dry seeding technique of rice transplantation in this
crop season due to fears of lower irrigation water this year due to dry weather
conditions.
Other Markets
The USDA estimates Jordan's 2015 rice imports at about 196,000 tons, up about 30%
from an estimated 151,000 tons last year and down about 2% from USDA's official
estimates of about 200,000 tons. Rice is a staple food in Jordan but the
country does not produce any rice due to water scarcity. The U.S.
accounts for over half of Jordan's annual rice imports and the remaining is
filled by Thailand, India and Turkey. It estimates Jordan’s rice imports to
decline to about 190,000 tons in 2016.
The FAO estimates Sri
Lanka's 2015 rice imports at about 150,000
tons, down about 75% from last year's high level. The agency has forecasted Sri
Lanka's total paddy at about 4.1 million tons in 2015 (about 2.7 million tons,
basis milled), up about 21% from an estimated 3.4 million tons (about 2.3
million tons, basis milled) in 2014.
The FAO forecasts Laos 2015 paddy rice production at about 3.4 million tons
(about 2.1 million tons, basis milled), up about 3% from last year's average
level of about 3.3 million tons (about 2 million tons, basis milled) last year.
Laos is in fact aiming to increase rice production by about one million tons
and become an exporter of rice by 2015.
The FAO estimates Japan's 2015 aggregate paddy production at about 10.5 million
tons (about 7.67 million tons, basis milled), down about 1% from about 10.6
million tons (about 7.74 million tons, basis milled) in 2014 due to a slight
decline in planting area. The agency estimates Japan's 2015-16 (April-March)
rice imports at about 700,000 tons. It estimates total cereal imports during
the year at about 25.4 million tons, slightly down from about 25.52 million
tons last year.
The FAO estimates South
Korea to import 460,000 tons in the
marketing year 2014-15 (October - September). It estimates South Korea's total
cereal rice imports in 2014-15 at about 14.1 million tons, down about 5% from
about 14.84 million tons last year. The agency forecasts 2015 paddy rice (April
- October) production at about 5.5 million tons (about 4.125 million tons,
basis milled), down about 3% from last year. Planting of the 2015 rice crop has
begun and will continue till the end of June.
The FAO estimates Malaysia 2014-15 (July - June) rice imports to increase to over
1.1 million tons and increase to average level from last year's low level due
to strong consumption demand and the government's efforts to replenish stocks.
In 2014, Malaysia's rice imports increased about 24% y/y from their
below-average level in 2013. It estimates Malaysia's 2015 paddy rice production
at a record 2.6 million tons (about 1.69 million tons, basis milled), slightly
above last year's production of about 2.5 million tons (about 1.62 million
tons, basis milled) due to favorable weather conditions and continued
government support to the rice sector, including subsidies for agricultural
inputs. Separately, the government of Malaysia is targeting to achieve 100%
self-sufficiency in rice production by 2020, local sources quoted the country’s
Minister of Agriculture and Agro-Based Industry.
Research and Scientific Development:
Genome editing may
allow scientists to improve rice crops, according to an article on phys.org.
The Rice Research
Institute of the Guangdong Academy of Agricultural Sciences (GDRRI) said the
"three controls technology (3CT)" can enhance rice yields by about
10%.
A researcher at the
Philippine Rice Research Institute (PhilRice) has developed the continuous rice
hull carbonizer which can process rice hull into biochar (commonly known as
charcoal) in an environmentally friendly manner and at a lesser cost.
May Tenders:
South Korea issued a tender to buy about 75,378 tons of rice and
bought about 55,378 tons rice. South Korea's has bought another 10,000 tons of
non-glutinous brown rice from China.
Iraq
has not purchased any rice in international tender that closed on April 26,
2015 with offers remaining valid till April 30, 2015.
Indonesia Replaces Bulog Chief for Missing Rice Procurement Target
Jun 08, 2015
The government of
Indonesia has replaced the state logistics agency Chief Lenny Sugihat, a former
banker, with the former Bank Rakyat Indonesia Director Djarot Kusumayakti, for
not being able to meet the government rice procurement target of about 3.2 million
tons, Reuters quoted the Deputy State-owned Enterprises Minister.
Last week, local
sources reported that Bulog is aiming to procure 2.75 million tons of rice this
year, about 14% below the initially targeted 3.2 million tons. The procurement,
which has been slow since the beginning of the hervest season has not picked up
despite an increase in the government purchase price (Harga pokok penjualan,
HPP), according to local sources.
The government
increased the HPP by about 10% to around Rp 7,260 per kilogram (around $577 per
ton) from the existing Rp 6,600 per kilogram (around $524 per ton) to encourage
farmers to sell their paddy to Bulog. However, the decision failed to have a
positive effect on government rice procurement. Recently, the State-owned Enterprises
Minister slammed the Bulog for its slow and inefficient procurement process
during the ongoing harvest.
The government has
been aiming to achieve self-sufficiency in rice production and avoid imports
this year, and accordingly has been providing support to the sector.
However, the government sources told local sources that a decision on rice
imports would be taken after Ramzan festive season in July.
Average rice prices
have been increasing since September 2014 and have reached record levels in March
2015. However, since April, prices reversed direction due to the government
intervention as well as increased supplies from the 2015 main season rice crop.
Currently, prices stand at around 9.875 million Rupiah (around $751) per ton,
down from around 10 million Rupiah (around $770) per ton in April 2015.
USDA estimates
Indonesia to produce around 36.65 million tons of rice, basis milled (around
57.717 million tons, basis paddy), and import around 1.1 million tons of rice
in MY 2014-15 (October - September).
Cambodia Rice Exports Increase Sharply in First Five Months of 2015
Jun 08, 2015
Cambodia
exported about 243,025 tons of rice in the first five months of 2015 (January -
May 2015), up about 64% from about 148,262 tons rice exported in the same
period last year, local sources quoted a report by the Secretariat of One
Window Service for Rice Export.Cambodia exported about 41,842 tons in May 2015,
down about 19% from around 51,719 tons exported in April 2015, and up about 50%
from around 27,971 tons in May 2014.According to the report, Cambodia exported
rice to about 46 countries across the world, including to 25 European Union
(EU) member countries and two ASEAN members of Malaysia and Singapore. China
remained the top export destination for Cambodian rice with around 68,437 tons,
says the report.Cambodia aimed to reach an export target of one million tons by
the end of 2015. However, the government is concerned that the target may not
be reached due to lack of sufficient milling and storage facilities as well as
financing options for exporters.
Cambodia
has exported about 387,100 tons of rice in 2014, up about 2% from around
378,856 tons exported in 2013USDA estimates Cambodia to export 1.2 million tons
of rice (including official and unofficial exports to Vietnam and Thailand
through borders) in 2015, up about 9% from an estimated 1.1 million tons in
2014.
Philippines May Consider Private Rice Imports This Month After Failing to
Strike G2G Deals
Jun 08, 2015
The
government of the Philippines is likely to consider rice imports by the private
sector under the WTO minimum access volume (MAV) rule, after failing to secure
government-to-government (G2G) contracts for the requisite 250,000 tons of rice
last week, according to local sources. Usually, rice imports
under the MAV quota are considered in the third quarter.The National Food
Authority (NFA) decided to buy 150,000 tons 25% broken long-grain white rice
from Vietnam for delivery between July and August, to replenish stocks during
the lean season (July - September) as well as prevent commercial rice price
hikes.
After
failing to secure contract for the remaining 100,000 tons, the NFA is
reportedly considering to import 805,200 tons of rice through private
traders at 35% tariff under the WTO MAV. Imports over and above this quota
attract a tariff of 50%. According to the WTO MAV rule, the Philippines
has to import 755,000 tons from the Thailand and Vietnam suppliers in the
country-specific-quota (CSQ). The remaining can be bought from other countries
in the omnibus quota.
“The
private sector importation will come as the next importation activity. The
government is ahead in importing because we need to have the stocks before July
1 for the lean month period,” local sources quoted the NFA Deputy Administrator
as saying. “We will open it anytime this month and may be the implementation would
be July to October,” he added. For the remaining 100,000 tons of imports,
for which the NFA failed to secure contract, the NFA Council may consider
placing them under MAV importation or conduct another G2G auction or open an
international tender to fill up its buffer stocks, the NFA Deputy
Aministrator said. “It is the NFA Council that decides on the mode of
procurement. It depends since international tenders may take a longer duration
before delivery, while G2G is less than a month,” he said.
Earlier
this year, the Philippines imported 300,000 tons of rice from Vietnam and
200,000 tons from Thailand. The NFA is authorized to import another 350,000
tons of rice, including 100,000 tons not allocated in last week's tender and
250,000 tons more in case the El Nino pattern intensifies impacting the
harvest. Last year, the South-east Asian nation imported more than 1.8
million tons of rice (including 1.5 million tons of 2014 imports and 300,000
tons of 2013 residual imports) to replenish rice stocks and control price
hikes.
The
demand from the Philippines is expected to support continuously falling rice
export prices in Asia. Export prices of Thai 5% broken rice, Vietnam 5% broken
rice and India 5% broken rice currently stand at around $365 per ton, $355 per
ton and $380 per ton respectively compared to $410 per ton, $380 per ton and
$390 per ton respectively at the beginning of the year.
Spanish Research Institute and UcDavis to Launch Five-Day International
Course on Irrigation
Jun 08, 2015
Spanish
research institute IRTA and University of California Davis (UCDavis) will
launch a five-day international course on irrigation from October 5-9, 205 in
Lleida of Spain, according to a news release on the IRTA website.The course is
aimed at addressing irrigation managers and highly specialized irrigation
management technicians about the achieving efficiency of plant water use and
maximizing water delivery to plants considering the conditions of soil, weather
and growing environment. It will also provide insights on dealing with the
changing environmental factors.Highly experienced international scientists with
extensive careers in the field of irrigation management, including Joaquim
Bellvert, Jaume Casadesus, Joan Girona, Jordi Marsal and Josep Rufat, from
IRTA; Ted M. DeJong, Steve Grattan, Bruce D.Lampinen and Ken A. Shackel, from
UC Davis; and Elias Fereres, from University of Cordoba will share their views
and experiences with the course participants.
The
course will consists of five different types of lectures - short theoretical
sessions of 30-45 minutes covering a total of 24 different topics; workshop
exercises of 60 minutes each covering a total of 6 different topics;
demonstrative laboratory training sessions covering 5 different topics;
afternoon field trip; discussion sessions between the instructors and the
students at the end of each day.
Thailand Rice Sellers Lower Some of Their Quotes; Vietnam Rice Sellers
Increase Some of Their Quotes
Jun 08, 2015
Thailand rice
sellers lowered their quotes for 5% broken rice by about a $5 per ton to about
$355 - $365 per ton today. Vietnam rice sellers increased their quotes for
Jasmine rice and 100% broken rice by about a $10 per ton and $5 per ton
to about $480 - $490 per ton and $315 - $325 per ton, respectively. Other Asia
rice sellers kept their quotes mostly unchanged.
5% Broken Rice
5% Broken Rice
Thailand 5% rice is
indicated at around $355 - $365 per ton, down about a $5 per ton from Friday and
about a $5 per ton premium on Vietnam 5% rice shown at around $350 - $360
per ton.
India 5% rice is
indicated at around $375 - $385 per ton, about a $20 per ton discount to
Pakistan 5% rice shown at around $395 - $405 per ton.
25% Broken Rice
Thailand 25% rice is
shown at around $340 - $350 per ton, about a $10 per ton premium on Vietnam 25%
rice shown at around $330- $340 per ton.
India 25% rice is
indicated at around $360 - $370, about $10 per ton premium on Pakistan 25% rice
shown at around $350 - $360 per ton.
Parboiled Rice
Thailand parboiled
rice is indicated at around $365 - $375 per ton.
India parboiled rice
is indicated at around $355 - $365 per ton, about a $55 per ton discount to
Pakistan parboiled rice shown at around $410 - $420 per ton.
100% Broken Rice
Thailand broken
rice, A1 Super, is indicated at around $315 - $325 per ton, on par with Vietnam
100% broken rice shown at around $315 - $325 per ton, up about a $5 per ton
from Friday.
India's 100% broken
rice is shown at around $280 - $290 per ton, about a $15 per ton discount
to Pakistan broken sortexed rice shown at around $295 - $305 per ton.
Oryza U.S. Rough Rice Recap - Seller Price Ideas Firm with Futures; Bids
Lag Behind
Jun 08, 2015
The U.S. cash market
was slightly firmer today with seller prices ideas firming with the futures
market however the trade was quiet as many farmers were busy in their fields
planting soybeans.
Analysts note that
although the futures market has been firming cash prices have not kept pace as
the demand has not warranted higher prices, as of yet.
In the meantime, the
USDA estimates that as of June 7th, 95% of the crop has
emerged which was 3% ahead of this time last year and 3% ahead of the previous
5-year average. As of now, the USDA estimates that 96% of the rice crop in
Arkansas has emerged compared to , 95% in California, 99% in Louisiana, 91% in
Mississippi, 86% in Missouri, and 83% in Texas.
The USDA estimates
that 68% percent of the crop in good to excellent condition, which was
unchanged from last week and 1% behind this time last year. As of now, the USDA
estimates that 63% of the crop in Arkansas is in good to excellent condition
compared to, 85% in California, 71% in Louisiana, 77% in Mississippi, 52% in
Missouri, and 51% in Texas.
Oryza Afternoon Recap - Chicago Rough Rice Futures Bounce Higher on Support
from Weaker US Dollar and Bullish Move in Neighboring Grain Pits
Jun 08, 2015
Chicago
rough rice futures for Jul delivery settled 14 cents per cwt (about $3 per ton)
higher at $9.945 per cwt (about $219 per ton). The other grains finished the
day higher as well; Soybeans closed about 0.7% higher at $9.4425 per bushel;
wheat finished about 2.1% higher at $5.2800 per bushel, and corn finished the
day about 1.3% higher at $3.6525 per bushel.U.S. stocks traded mostly lower on
Monday as investors eyed a calmer bond market and weighed greater expectations
of tightening following Friday's strong jobs report. The Dow transports, led by
a decline in airlines, traded nearly 2 percent lower on Monday after posting
its first positive week in four last Friday.
The
Dow Jones industrial average continued to trade below the psychologically key
level of 18,000, which it closed under on Thursday and Friday. On Friday,
nonfarm payrolls for May beat expectations with the addition of 280,000 jobs.
Analysts also cheered a greater-than-forecast 8 cent increase in hourly wages
and a 5.5% unemployment rate. Signs of continued strength in the labor market
strengthened the case for the Federal Reserve to begin raising short-term
interest rates in September. In the absence of major U.S. news and data
releases on Monday, traders also kept an eye on overseas developments. The Dow
Jones Industrial Average traded down 61 points, or 0.34%, at 17,788. The
S&P 500 traded down 10 points, or 0.49%, at 2,082, with information
technology leading eight sectors lower and telecommunications and consumer
staples leading advancers. The Nasdaq traded down 46 points, or 0.91%, at
5,022. Gold is trading about 0.5% higher, crude oil is seen trading about 1.7%
lower, and the U.S. dollar is seen trading about 0.9% lower at about
1:00pm Chicago time.Friday, there were 720 contracts traded, up from 444
contracts traded on Thursday. Open interest – the number of contracts
outstanding – on Friday decreased by 124 contracts to 11,777.
Former Minister Urges Pakistan Government to Bail Out Sinking Rice Sector
Jun 08, 2015
The
President of the Pakistan Businessmen and Intellectuals Forum (PBIF), who is
also a former Provincial Minister, has urged the Pakistan government to bail
out the sinking rice sector, which is facing losses due to higher production
costs as well reduced export demand, according to local sources.Together with
the President of the Pakistan Rice Mills Association, he noted that the country
was losing its export share to India due to severe problems faced by the rice
millers in the country. Nearly 1,000 rice mills in the country had closed down
in the last two years due to power shortages and lack of financing, they said.
Millers are not even in a position to repay bank loans, they added. Lack of
export demand has also added to the rice millers' woes. Huge quantities of rice
are lying in the warehouses and millers have not been able sell them, they
said.
The
former Minister warned that the rice sector is very critical as it provides
employment to millions of people and its downfall may be disastrous to the economy.
He noted that the policy makers should pay requisite attention to the rice
sector and the issues surrounding it. He reminded that farmers are already
losing interest in sowing rice for next year due to increasing production
costs, lack of research and government's lackluster attitude towards the rice
sector. USDA estimates Pakistan's MY 2015-16 (November - October) at
around 6.9 million tons (around 10.35 million tons, basis paddy). It estimates
Pakistan to export around 3.8 million tons of rice in 2015.
Government of Thailand to Allow Potential Bidders to Inspect Stockpiled
Rice Ahead of Third Auction
Jun 08, 2015
Thailand's
Ministry of Commerce will reportedly allow potential bidders to examine the
stockpiled rice quality this week ahead of the third auction scheduled on June
16, according to local sources. The government rice stocks are stored in
around 153 warehouses in about 35 provinces. Interested bidders are required to
submit an application form on June 15 and check whether they are adhering to
all the requirements sought by the Ministry. The names of all interested
bidders will be sent the the National Rice Policy Committee for further
consideration, according to local sources.
The Ministry sources
told local sources that the stock would be released into the market only after
ensuring that prices of new crop are not affected.
Export prices of
Thai 5% rice currently stands at around $365 per ton, down about 11% from
around $410 per ton in the beginning of this year. Thailand exported around 2.8
million tons of rice, including 2.02 million tons for government stocks, in the
first four months of 2015, down about 4% from last year.
Last week, the
Ministry disclosed that of the total stockpiled rice of about 16 million tons,
only 2 million are of standard quality, 14 million tons are below standard and
around 690,000 tons are spoilt.
It had sold about 1.88 million
tons of rice from six auctions raising around 25.58 billion baht (around $785.2
million) since it seized power in May 2014. It also reportedly sold one million
tons of rice under government-to-government contracts. It aims to sell about 10
million tons of stockpiled rice this year and about 7 million tons next year
Vietnam Exports About 2.081 Million Tons of Rice in First Five Months of
2015
Jun 08, 2015
Vietnam
exported about 2.081 million tons of rice in first five months of calendar year
2015, down about 11% from about 2.34 million tons of rice exported during same
time in last year, according to data from the Vietnam Food Association (VFA).
Average rice export price so far in this year stands at about $420 per ton
(FOB), down about 3% per ton from about $433 per ton recorded during same last
year.
In
May 2015, Vietnam exported about 525,742 tons of rice, down about 19% from about
650,507 tons rice exported in April 2015, and down about 11% from about 585,536
tons rice exported in May 2014. Average export prices in May 2015 stands
at about $425 per ton, almost unchanged from a year ago, and up about 3% per
ton from a month ago.
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