Monday, December 21, 2015

21st December 2015 Daily Global Rice E-Newsletter by Riceplus Magazine-Latest Rice News Updates

 News Headlines…

·        Malaysia shows interest to buy JF-17 from Pakistan

·        UAE rice imports total AED2.5 billion in 2014

·        Chinese firm to set up rice farms in Nigeria

·        Kerala should seek aid from climate fund: Swaminanthan

·        3 containers of rice sit at Big Creek port

·        Skewed paddy policies result in Rs 40k-cr loss

·        Rice exports may surpass 2015 target

·        Climate change to positively impact rice, tea in northeast'

·         Local heroes raise climate hopes
News Detail…

Malaysia shows interest to buy JF-17 from Pakistan

Dr Sani says CPEC will change Pakistan’s economy, beneficial for entire Asia
December 20, 2015, 5:52 pm
 SLAMABAD – Malaysia is considering as one of the option to purchase JF-17 Thunder fighter jets from Pakistan and a deal will be finalised between the two countries after completing required formalities.Malaysian High Commissioner to Pakistan Dr Hasrul Sani said his country wanted to purchase JF-17 Thunder from Pakistan. “Pakistan and Malaysia are enjoying excellent relations in defence as a result of a joint committee which played role as an active forum,” he said.He said that this jet fighter was considered an excellent production of Pakistan in the defence sector and a decision about numbers would be taken very soon by the Malaysian government. He expressed his satisfaction over Pakistan-Malaysia bilateral relations and said that both the countries were enjoying cordial and fraternal bilateral relations especially in trade, economy and defence.

 























He said that Pakistan was one of the largest trade partner of Malaysia with a total trade volume of more than two billion dollars and that could be enhanced further in future times. He said that Malaysian companies were keen to invest in different sectors in Pakistan.

He also said that Malaysian investors may keen to invest in Pakistan again as the security situation had improved owing to the efforts of the government especially after the success of the Zarb-e-Azb military operation against terrorists. He said that Malaysian companies were looking for joint ventures with Pakistani companies through chambers of commerce to invest in mining and energy sectors especially in hydro power projects.He said that the government of Pakistan should provide proper infrastructure, good banking system besides one window services to international companies to attract them for investment. He said that many Malaysian and other international companies were interested to invest in various projects in Gwadar but could not come due to non-availability of proper infrastructure and facilities.
He said that Pakistan was a blessed country with an important strategic position and it should take maximum advantage from this position for the development and betterment of the nation through economic revolution. “We are happy over the announcement of CPEC and this project will attract multi billion dollars investment to Pakistan as it is being considered one of the biggest indicators for the better economic future of Pakistan,” he said.

“CPEC will change the entire economy of Pakistan and it will be a huge project which will open many windows of development in Pakistan. It will not only beneficial for Pakistan and China but also for the entire region as well as whole Asia,” he said. The high commissioner also appreciated efforts of Pakistan for bringing peace in Afghanistan and lauded its role for holding Heart of Asia conference.

He hoped there would be a permanent peace and stability in Afghanistan due to the efforts of neighbouring countries. He said that Pakistan should also focus on enhancing its trade relations with the Association of Southeast Asian Nations (ASEAN) member states as there was a great scope of exporting Pakistani goods especially rice beside other items to ASEAN countries. Malaysia was the largest importer of rice and mangoes from Pakistan and was focusing meat and other halal foods, he said.


He also said that the High Commission of Malaysia would very soon extend the invitation to President Mamnoon Hussain to visit Malaysia. He said that more than 4,000 Pakistani students were studying in various Malaysian educational institutions and he expected more in the coming years. He said that about 80,000 Pakistani tourists were visiting Malaysia annually and there were numerous scope of more tourists in future years.
UAE rice imports total AED2.5 billion in 2014
Demand in the Emirates is projected to grow by 6.3 per cent a year in average in the coming few years
20/12/2015 10:32 am EDT

The United Arab Emirates̢۪ imports of rice totalled AED2.5 billion in 2014; a large proportion of which was re-exported to African countries at value of AED338 million.Demand for rice in the UAE is projected to grow by 6.3 per cent a year in average in the coming few years, driven by rising population and higher income, according to a report by the Dubai Chamber of Commerce and Industry.The report indicates that the UAE imports rice from India, Pakistan, Thailand and the United States, pointing out that the main markets for the UAE̢۪s rice re-exports are Benin, Oman, Mozambique and Zimbabwe.UAE exporters have managed to reach and send exports to new growing rice-consuming markets in sub-Saharan Africa.
Most of the world̢۪s rice production comes from Asian countries, with India, Pakistan, Thailand and Vietnam topping the list as the largest producers. Saudi Arabia, China, the United States and the UAE are among the world̢۪s top importers and consumers of rice.Noteworthy, Abu Dhabi Ports and Al Dahra Agriculture LLC, a leading international agribusiness company, have recently celebrated the breaking ground on their rice milling, storage and distribution plant̢۪s silos at Khalifa Industrial Zone Abu Dhabi (Kizad).This AED140m facility will produce up to 80,000 metric tonnes of rice per annum.-
http://ameinfo.com/finance-and-economy/economy/wholesale/uae-rice-imports-total-aed2-5-billion-in-2014/#sthash.CgP5rKQO.dpuf

Chinese firm to set up rice farms in Nigeria

By Abdullateef Salau | Publish Date: Dec 18 2015 10:47PM | Updated Date: Dec 18 2015 10:49PM
image: http://cms.dailytrust.com.ng/cms/gall_content/2015/12/2015_12$largeimg118_Dec_2015_224851883.jpg
A Chinese firm, Sanya Twin Rice Industry, Research and Development Company, has expressed its readiness to establish a rice factory in Nigeria.
The firm’s chief executive officer, Mr. Wang Jingxin, stated this during a courtesy visit to the Permanent Secretary, Ministry of Foreign Affairs, Ambassador Bulus Lolo.
He said the firm’s desire to establish rice factory in the country was not only to make profit but also to boost Nigeria’s agriculture through rice production.
Jingxin said through the establishment of a research centre, the firm would also engage local farmers in different trainings to boost their capacity in rice production.
“Our desire now is to acquire 500 hectares of land for experiment.
After four months, if the land is suitable, we would ask for larger hectares of land,” he said, adding that of the 36 states the firm wished to partner with, three states of Akwa Ibom, Rivers and Imo have shown interest.
 The permanent secretary, represented by a senior official of the ministry, Ambassador Ozo Nwobu, told the 8-man delegation that their visit reaffirmed China’s commitment to engage Africa in a strategic partnership for economic development and growth.
Nwobu, who said the federal government spends over $20 billion annually on rice importation, noted that Nigeria has all the conditions for rice cultivatio
http://dailytrust.com.ng/news/business/chinese-firm-to-set-up-rice-farms-in-nigeria/125028.html#IlJ71vvp0tH8DpLr.99

Kerala should seek aid from climate fund: Swaminanthan

by Our Correspondent


Alappuzha: Kerala should make efforts to receive assistance from the $100-billion Green Climate Fund (GCF) to study the change in climate patterns in the State, renowned agricultural scientist M. S. Swaminathan has said.Speaking at the first meeting of the executive committee constituted to oversee the upcoming sea-level farming research centre in Kuttanad on Thursday, he said that the fund could also be utilised for the operations of the centre.
“The Green Climate Fund is being created to support developing countries to reduce their emissions and adapt to climate change. As there is a steady rise in the sea water levels across the globe due to climate change, the technique of below sea-level farming gains importance. The Kuttanad model got the heritage status because of its uniqueness and efficiency in dealing with soil and pest-related problems. So, the authorities should take measures to ensure that the centre is benefitted from the GCF,” Swaminanthan, who is also the vice-chairman of the training and research institute, said.
An initial allocation of Rs 5 crore was made to set up the centre, said Chief Minister Oommen Chandy who presided over the function.The centre which would also benefit coastal regions like Lakshwadeep, the Maldives, the Sunderbans and a number of SAARC countries, would be inaugurated by the Chief Minister at a function to be held at the Rice Research Station (RRS) at Mankombu on February 2.
The research institute would temporarily function at the RRS and the Regional Agriculture Research Station (RARS), Kumarkom.The inauguration of the Sustainable Agriculture course, offered by the Government Higher Secondary School, Mankombu, will also be taken place on the same day.The government would allot 200 acres under the Smritivanam programme to set up a sea-level farming research centre at Purakkad, said Forest Minister Thiruvanchoor Radhakrishnan.Ministers K. P. Mohanan, P. J. Joseph, K. Babu, Agriculture University vice-chancellor Dr, K. P. Rajendran, Fisheries University vice-chancellor Dr. B, Madhusoodana Kurup also attended the meeting.
3 containers of rice sit at Big Creek port
Headline— 19 December 2015— by Johnelle McKenzie
BELIZE CITY, Thurs. Dec. 17, 2015–Gustavo Carrillo of Port of Big Creek told Amandala that three 24-foot containers of rice arrived in the country today, but these containers are still sitting at the port in Big Creek.Sergio Garcia, the consultant for businessman Jitendra Chawla (also known as Jack Charles), who has embarked on a commercial effort to import rice into Belize from Guyana, which he intends to sell at much lower prices than locally produced rice, told Amandala that they went to collect the rice, but were told by Port of Big Creek authorities that the port’s management had been given instructions not to release the rice.
For some time now, Chawla has been promoting his rice on the radio, frustrating local producers who fear that they will lose business due to the presence of this cheaper rice from Guyana on the local market.“The matter is more than just about the price of rice,” the Belize Chamber of Commerce stated in a press release dated December 16, 2015.The Chamber of Commerce release continued by stating that the measure the importer is taking will cause at least 20% of our local farmers to lose business. The release also cautioned that the importer must ensure that he follows proper procedures in order to protect the consumer.In its conclusion, the release remarked that the importer must prove that the quality and standard of the rice he is importing justify the losses that will be suffered by our local farmers and the negative impact of such importation on the Belizean economy.
Amandala contacted Customs officials in Big Creek and was told that missing from the Customs documentation for Chawla is the import permit from Belize Agriculture Health Authority (BAHA), which still needs to give their stamp of approval that the imported product is satisfactory for consumers’ consumption.Garcia told us, however, that, “Under the Treaty of Chaguaramas, CARICOM products don’t need an import permit to enter the country. Garcia pointed to section 79 – General Provisions on Trade Liberalisation.
1. “The member states shall establish and maintain a regime for the free trade movement of goods and services within the CSME (CARICOM Single Market Economy).
2. “Each Member State shall refrain from trade policies and practices…which is to distort competition, frustrate free movement of goods and services or otherwise nullify or impair benefits to which other Member States are entitled under the treaty.
3. “The Member States shall not introduce in their territories any… restrictions on imports or exports of Community origin save as otherwise provided in the Treaty.”
Garcia told Amandala that Chawla had attempted to import the rice earlier this year in March; however, Government had promised to lower the local price of rice in order to make it more affordable for consumers.
As a result, Chawla reconsidered importing rice, but after eight months had passed without Government lowering the price, he proceeded with his plans to import rice from Guyana. Chawla’s imported rice will cost approximately 50 cents less than our local rice.
Stanley Rempel, CEO of Circle R products, explained how the local price of rice is determined: Paddy rice which is received from the farmers is milled. After milling, one pound of white rice is reduced to half a pound of white rice. At this point .30 cents is added on for the conversion of the rice, which brings the cost to .60 cents. Added onto that are .10 cents for milling, .8 cents for packaging, another .10 cents for distribution, then 20% retail markup, which brings the retail price of price to $1.05 per pound.
Garcia said that they feel secure in importing this rice, since the Treaty of Chaguaramas supersedes the “national legislation’.
Garcia also added that it is the Caribbean Court of Justice that makes the final decision on anything that is related to the CSME.

http://amandala.com.bz/news/3-containers-rice-sit-big-creek-port/

Skewed paddy policies result in Rs 40k-cr loss

New Delhi: Dec 21, 2015, DHNS
The Comptroller and Auditor General (CAG) has detected irregularities in paddy procurement payments made by the Centre which have resulted in losses to the tune of Rs 40,564 crore to the exchequer.
The government auditor found that rice millers across four states had received “undue benefit” to the tune of Rs 3,743 crore between 2009-10 and 2013-14, largely due to the skewed pricing policies of both the Central and state governments.Both the Central and state government agencies supply paddy to rice mills after procuring it from farmers. As per the government policy, a miller has to return 67 kg of raw rice or 68 kg of parboiled rice for every quintal of paddy supplied to him by a state agency.
The miller gets to keep the by-products — rice husk, rice bran and broken rice which find applications in a variety of sectors such as power generation, pharmaceutical and solvent plants.The CAG audit, which for the first time looked at the Central expenditure on paddy milling charges, found that the actual value of by-products left was much more than the Rs 33 per quintal discounted by the government. This indicates that an excess amount of Rs 3,743 crore was realised by the paddy millers of Andhra Pradesh, Chhattisgarh, Telangana and Uttar Pradesh from sale of these by-products.
The government recovers market value of these by-products at rates fixed in 2005. “These milling charges as well as deductible value of by-products have not been revised since 2005 despite significant increase in realisable value of by-products extracted out of convertible paddy into rice,” the CAG said in its report presented to Parliament recently.
Rice exports may surpass 2015 target
HA NOI (VNS) — Viet Nam's rice exports are likely to exceed the target set for 2015 by 200,000 tonnes to 300,000 tonnes, hitting around 6.5 million tonnes for the year.A strong end to the year has been attributed to the sector's success.According to the Viet Nam Food Association, the country had shipped 5.807 million tonnes of rice as of November this year, and the figure for December is forecast to reach about 700,000 tonnes.
Additionally, rice exported through unofficial channels across the borders is estimated to be between 1.6 million tonnes to 1.8 million tonnes, which is expected to lift the yearly exports through both official and unofficial channels to about 8 million tonnes.Vietnamese rice exporters have recently won bids to supply 450,000 tonnes of rice to the Philippines and one million tonnes of rice to Indonesia, helping raise the price of rice in the domestic market.
Viet Nam has around 4.1 million ha of paddy fields, 53 per cent of which are concentrated across the Cuu Long (Mekong) Delta.In 2014, the country exported 6.3 million tonnes of the 45 million tonnes it produced, making it the world's third largest rice exporter after India and Thailand.In the first ten months of this year, Asia maintained its position as Viet Nam's biggest rice importer, despite an annual decline of 11.2 per cent in the market share to 71.58 per cent. Africa, Australia, and Europe showed greater demand for Vietnamese rice with higher imports recorded during the period. — VNS
Viet Nam had shipped 5.807 million tonnes of rice as of November this year. — Photo xaluan.com
http://vietnamnews.vn/economy/280117/rice-exports-may-surpass-2015-target.html
Climate change to positively impact rice, tea in northeast'
IANS
Kolkata, | 19 December, 2015
Climate change is going to "positively" impact rice and tea crops in northeast, a scientist said on Friday.According to Chandan Mahanta of the IIT-Guwahati, a modelling study carried out by the institute showed in the next 15 years (till 2030), rice and tea can actually have an advantage from climate change."Climate change is going to positively impact rice and tea in at least coming 15 years in the northeast. We have modelled that," Mahanta said here at the South Asia Water Dialogue, adding that scientists looked at climate data, such as temperature, humidity and precipitation in the region to study the changes on the two important crops.
Explaining the variation, he said: "Sometimes it's not just the temperature alone but also the rate of change of temperature or the rate of change of precipitation so it is not always very simple to say."In addition, the difference in growing times also has an influence."Tea is grown at three different times. Even rice is grown at different times. Maybe one particular rice variety may be less affected, others may be more affected," said Mahanta, a professor of the department of civil engineering.The Dialogue was organised by Observer Research Foundation in collaboration with the German Embassy.
http://www.thestatesman.com/news/northeast/-climate-change-to-positively-impact-rice-tea-in-northeast/111544.html#1huwme0i388UPJym.99

Local heroes raise climate hopes 
Abu Bakar Siddique, Rajib Bhowmick

Farida Parvin (left) distributes seeds of salinity-tolerant paddy, which she developed, to fellow farmers in her village of Shyamnagar in Satkhira. Like her, a local farmer in Chapainawabganj has revived Magurshail (right), a nearly extinct local variety of drought-tolerant rice. Both farmers used organic methods to develop these rice varieties   

Farida Parvin is not your regular paddy farmer from one of the worst salinity-hit districts of Bangladesh.
While other paddy growers have given up hope in the face of extreme salinity in the soil, this woman from Shyamnagar of Satkhira district took the climate change-induced phenomenon right on the face.Using entirely traditional indigenous technology, she has so far developed at least 14 hybrid varieties of paddy that can tolerate salinity of up to 3ppt (parts per thousand).“I am now working to make at least one of these varieties tolerant to up to 20ppt salinity,” Farida, who has studied up to higher secondary level, said at a national dialogue titled Contribution of Local Paddy Varieties in Combating Climate Disaster in Dhaka yesterday.
Bangladeshi researchers have already thrown their hands in the air and said that with the existing knowledge they can make paddy tolerant to 12ppt salinity at best.“How did you do the cross-breeding?” “How did you sort the samples?” “How many trials have you run before releasing the breeds?” “What is the lifespan of the breeds that you have developed?” – these were the questions shot at Farida by some of the leading agricultural scientists of the country.
The confidence with which the female paddy grower from a remote village answered all the questions was amazing.She did not even stutter once – which shows she knows very well what she does.Farida said: “In our country, farmers do not have control over the supply of seeds. Things become particularly difficult after natural calamities. So I took this initiative to make sure that farmers always have their own stock of seeds, which will also suit the salty soil of our region.”
The panel of highly educated scientists from Bangladesh Rice Research Institute (BRRI) and Bangladesh Agricultural Research Institute (Bari), who have spent decades in their state-of-the-art laboratories trying to develop climate tolerant breeds of paddy, was listening with a sense of disbelief to what Farida has achieved.BRRI Director General Jibon Krishna Biswas later told the Dhaka Tribune: “What they are doing is praiseworthy no doubt. But it is also true that they have some shortcomings because they do not have the facilities that we have in our well-equipped laboratories.
“In our laboratories, we cross-match among several hundred samples at a time to develop one new variety. But the farmers cross-match among only a few. So, it would be too early to predict the long-term success of their endeavours.“Then again, I believe they will be able to overcome their shortcomings as they gain more experience working with various breeds of paddy.”The programme was jointly organised by Bangladesh Resource Council for Indigenous Knowledge (BARCIK) and the Christian Commission for Development in Bangladesh (CCDB).
While talking to the Dhaka Tribune, Farida said she took a two-day training from BARCIK on traditional techniques of cross-breeding back in 2011. Following five-year trials of each of her 14 breeds, she has recently released six of those to her fellow local farmers, who are cultivating them now.Farida was not the only local hero who came to the Chhayanaut at Dhanmondi yesterday to attend the dialogue.Take, for example, Yusuf Molla from the northern drought-prone district of Chapainawabganj.
He already has a collection of around 300 indigenous varieties of Aman, Aush and Boro paddy and he has been cultivating around 100 of these rare varieties – including Dadkhani, Raghushail and Magurshail – for many years to keep them alive.Yusuf brought gifts of 1kg of Magurshail rice – a nearly extinct low-irrigation variety – for everyone attending the programme yesterday.In his area, underground water level has gone down alarmingly, making irrigation  expensive and challenging. So, he has been trying to popularise these low irrigation varieties among the local farmers.
Nuaj Ali Fakir, not as educated as Farida or Yusuf but no less knowledgeable, from the marshland-dominated Habiganj district has discovered a new variety of paddy that can tolerate stagnant water and flash flood. He named the variety “Churak.”He told the Dhaka Tribune that he found this rice, which stands taller than an average human being, from among a collection of unnamed paddy.Nur Mohammad, from Rajshahi, is now awaiting approval from the Seed Certification Agency (SCA) for one of his cross-matched fine grain aromatic drought-resistant rice variety.At yesterday’s programme, Jibon Krishna Biswas, DG of BRRI, asked Nur Mohammad to send all his cross-matched breeds to his organisation and promised to get them approved by the SCA upon scrutiny.In his speech, Jibon said indigenous varieties and local inventions can play an important role in coping up with the changing pattern of climate.At present, BRRI has a total of 8,044 paddy samples in its germplasm centre and 4,600 of these are indigenous.
BRRI has developed seven salinity-tolerant, four drought-tolerant and two submergence-resistant breeds of paddy. The DG said that the term “high yielding variety” has now become obsolete; they now call these “modern varieties.”Earlier, the programme began with a lively presentation by BARCIK coordinator Pavel Partha, who showed some of the most interesting and unique but traditional usage of paddy.For example, Binni rice is an indispensable part of wedding among the Garo. The stickiness of the rice is symbolic of the bonding in marriage.
Farida Akhter, executive director of Policy Research for Development Alternative (Ubinig), discussed why thousands of local varieties of paddy have become practically extinct.She said this began during the Ayub Khan-era Green Revolution in the 1960s when the then government promoted high yielding dwarf varieties of paddy instead of the local breeds. 

http://www.dhakatribune.com/bangladesh/2015/dec/21/local-heroes-raise-climate-hopes#sthash.tmk763z8.dpuf 

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21st December,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

EU Rice Imports Increase Sharply in September 1 - December 15, 2015

Dec 21, 2015
According to the latest data issued by the European Union (EU), rice imports, basis milled, by the EU increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31, 2016).
The EU imported about 332,850 tons, basis milled, of rice during the period September 1 - December 15, 2015, up about 27% from around 262,487 tons imported during the same period last year.
Japonica rice imports increased about 14% to around 23,846 tons in September 1 - December 15, 2015 period from around 20,872 tons during the same period last year. Indica rice imports increased about 18% to around 309,004 tons during the said period from around 262,487 tons last year.
The UK remained the largest importer in September 1 - December 15, 2015 period with around 86,080 tons followed by France (58,855 tons), Netherlands (37,417 tons), Germany (23,256 tons), Italy (23,201 tons), Poland (21,985 tons),  and Portugal (16827 tons). Other EU countries imported 65,228 tons.
During the week ended December 15, 2015, the EU imported around 29,140 tons of rice, up about 37% from around 21,275 tons imported during the week ended December 8, 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.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Close Slightly Lower as Market Unable to Capture Support from Gains in Other Grains

Dec 19, 2015
Chicago rough rice futures for Jan delivery settled 3 cents per cwt (about $1 per ton) lower at $11.080 per cwt (about $244 per ton). The other grains finished the day higher; Soybeans closed about 1.7% higher at $8.8975 per bushel; wheat finished about 0.6% higher at $4.8675 per bushel, and corn finished the day about 0.1% higher at $3.7450 per bushel.
U.S. stocks traded lower Friday, amid options expiration, as investors eyed oil and economic data in the aftermath of the Federal Reserve's rate hike Wednesday. Richmond Fed President Jeffrey Lacker said in an early afternoon Reuters report that the Fed rate hike shows how much the U.S. economy has improved. He added the divergence of central bank policies is not necessarily a matter of concern. With Friday afternoon's decline in stocks, the major U.S. averages are on track to end the week flat to slightly higher. In early afternoon trade, the Dow Jones industrial average traded down 291 points, or 1.67%, to 17,203. The S&P 500 traded down 27 points, or 1.34%, at 2.014, with financials leading all 10 sectors lower. The Nasdaq composite traded down 60 points, or 1.2%, to 4,942. Gold is seen trading about 1.4% higher, crude oil is seen trading about 1% lower, and the U.S. dollar is seen trading about 0.4% lower at about  1:00pm Chicago time.
Thursday, there were 1,681 contracts traded, down from 2,088 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday increased by 31 contracts to 15,666.

Lifting of Currency Controls by Argentina May Exert Downward Pressure on Rice Export Prices

Dec 18, 2015
The Argentina government's lifting of currency controls has led to a sharp depreciation of the country’s currency, according to local sources.
The decision has ended a four-year policy of strict limits on the sale of U.S. dollars, which restricted imports, hurt economic growth and created a thriving black market.
Following the announcement, the value of Argentine peso fell to 13.9 per dollar from 9.8 per dollar before the announcement. The Central Bank has already raised the benchmark rate to 38% to attract investment and control inflation. Experts have expressed anxiety over the upcoming move by the Central Bank in preventing the currency from sliding further.
The move is expected to lower the value of Argentine rice exports in terms of dollars. Argentine 5% rice is currently quoted at around $505 per ton, down about 3% from around $520 per ton last week and about 26% from its year-ago level of around $600 per ton.

Oryza Weekly: Global Rice Prices Soften, Despite Tightening Supplies

Dec 19, 2015
The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $389 per ton, down about $2 per ton from a week ago, down about $4 per ton from  a month ago and down about $42 per ton from a year ago.
In its December 2015 Rice Outlook report, the USDA forecasts 2015-16 global rice production at around 469.3 million tons, down about 2% from last year due to an anticipated decline in acreages and average yields, which are likely to be affected by adverse weather conditions.  In the same report, the USDA estimates 2015 global rice trade at around 42.4 million tons, about 100,000 tons less than the earlier forecast.
In its December 2015 Rice Market Monitor (RMM) report, the UN's Food and Agricultural Organization forecasts 2015-16 global rice production at around 491.5 million tons, slightly down from an estimated 494.2 million tons in 2014-15. The FAO estimates 2016 global rice trade at around 45.3 million tons, up about 1.4% from an estimated 44.7 million tons last year.
The U.S. Federal Reserve has raised the short-term target interest rate to the range of 0.25-0.50%, up from the near-zero target rate prevailing since December 2008. The move is expected to strengthen the US dollar against global currencies, which could put downward pressure on rice prices outside the U.S.
Thailand
Thailand 5% broken rice is today shown at about $355 per ton, down about $5 per ton from a week ago, down about $10 per ton from a month ago and down about $55 per ton from a year ago.
The Thai Commerce Ministry expects the country to export about 9 million tons of rice in 2016, down from an estimated 10 million tons in 2015.  The decrease is attributed to drought conditions, which impacted several rice-growing regions this year.
The National Rice Policy Committee has approved the sale of around 37,000 tons of rotten rice from the stockpiles to fertilizer and power producers.
Thailand’s Commerce Minister expects earnings from 2015 rice exports to decline to about $4.85 billion, compared to the targeted $5.1 billion.
Vietnam
Vietnam 5% broken rice is today shown at about $370 per ton, down about $5 per ton from a week  and a month ago and down about $20 per ton from a year ago.
The Vietnam Food Association (VFA) is estimating Vietnam's 2015 rice exports to reach around 6.55 million tons, based on the contracts secured in the last quarter of this year
Cambodia & Myanmar
Cambodia 5% broken rice is today shown at about $430 per ton, up about $10 per ton from a week and a month ago, and down about $35 per ton from a year ago.
Myanmar 5% rice is quoted today at around $415 per ton, unchanged from a week ago and up about $5 per ton from a month ago.   Myanmar rice prices are firm amid low domestic yields, and high Chinese demand.
India
India 5% broken rice is today shown at about $360 per ton, up about $10 per ton from a week ago and a month ago, and down about $30 per ton from a year ago.
India’s total rice export earnings have declined to around $3.57 billion in the first seven months of FY 2015-16, a decrease of about 20% from the same period in FY 2014-15.
India 2015-16 winter/rabi rice (November - May) planting area has reached around 0.1179 million tons as of December 18, 2015, down about 12.5% from around 0.1347 million tons planted during the same period in 2014-15
Pakistan
Pakistan 5% broken rice is today shown at about $335 per ton, unchanged from a week ago, up about $15 per ton from a month ago and down about $40 per ton from a year ago.
Central & South America
Brazil 5% broken rice is today shown at about $500 per ton, unchanged from a week and a month ago and down about $50 per ton from a year ago. In the first eleven months of 2015, Brazil exported about 1.16 tons of rice.  In November, Brazil exported about 184,882 tons of rice, an increase of about 46% from September’s export tonnage. Meanwhile, the Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied Economics (CEPEA) reached around 40.85 real per 50 kilograms as of December 13, 2015, slightly down from around 41.11 real per 50 kilograms recorded on December 2, 2015.  In terms of USD per ton, the index reached around $210.93 per ton on December 13, 2015, down about 3% from around $217.93 per ton recorded on December 2, 2015.  Month-on-month, the index has increased about 0.8% from around 41.18 real per 50 kilograms. In terms of USD, the index increased about 1.4% during the month.  In its December forecasts for rice production, Conab estimates the country’s 2015-16 paddy rice production at around 11.921 million tons, down about 4% from in 2014-15, due to an anticipated reduction in acreage.
Five percent broken rice from Uruguay and Argentina is today shown at about $505 per ton, down about $15 per ton from a week ago, down about $30 per ton from a month ago, and down about $95 per ton from a year ago. During the first nine months of 2015, Argentina has exported about 931,535 tons of rice, about twice as much as during the same period in 2014.This week, Argentina’s president removed export taxes on some agricultural products, including the 5% export tax on rice. Meanwhile, the Argentina government's lifting of currency controls has led to a sharp depreciation of the country’s currency. The move is expected to lower the value of Argentine rice exports in terms of dollars.
U.S.
U.S. 4% broken rice is today shown at about $480 per ton, down about $5 per ton from a week ago, down about $20 per ton from a month ago and down about $35 per ton from a year ago.
Chicago rough rice futures for January delivery dipped midweek, reaching a low of $10.860 per cwt (about $239 per ton) on Tuesday and Wednesday both, before regaining some ground to close at $11.080 per cwt (about $244 per ton) on Friday afternoon.
The U.S. cash market was weaker midweek and then firmed up in conjunction with the futures market, but most farmers stayed on the sidelines, waiting for prices to further improve.
Other Markets
Rice imports, basis milled, by the European Union have increased sharply since the beginning of crop year 2015-16.  The EU imported about 302,125 tons of rice during the period September 1 – December 8, up about 21% from the same period last year.
The Italian Parliament is planning to introduce an "identity card" or a "unique code" to rice grown and marketed in Italy in order to help consumers recognize the origin of the product.
The Philippines National Food Authority plans to finalize the volume and timing of the additional rice imports before the end of the year. Rice stocks in the Philippines continued to increase in November for the second consecutive month after declining for four months.  The increase is attributed to increasing imports. The typhoon “Melor” (Nona) damaged about 29,481 tons of paddy worth P255.87 million (around $5.42 million), according to local sources.
Laos, which officially exported its first batch of rice exports to China last week, is planning to increase its rice exports to China to over 10,000 tons a year.
The government of Turkey has announced the paddy purchasing price for 2015-16 at around TL 1,580 (around $534) per ton.
Paddy rice production in 2015-16 in Mali reached about 2.45 million tons, up about 13% from last year’s tonnage, but short of an earlier forecast.

Vietnam Exports About 6 Million Tons of Rice in January 1 - December 17, 2015, Down 5% from Previous Year

Dec 21, 2015
Vietnam exported about 6.007 million tons of rice in January 1 - December 17, 2015, down about 5% from about 6.33 million tons of rice exported in all the twelve 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 $410.56 per ton (FOB), down about 7% per ton from about $441.38 per ton recorded during same last year.
According to the data from the VFA, Vietnam exported about 200,053 tons of rice from December 1-17, 2015, down about 74% from about 771,312 tons of rice exported in November 2015, and down about 58% from about 472,575 tons of rice exported in December 2014. The average export price so far in October stands at about $370.26 per ton, down about 2% per ton from a month ago and down about 22% from a year ago.
 Global Rice Quotes
December 21st, 2015
Long grain white rice - high quality
Thailand 100% B grade          350-360           ↔
Vietnam 5% broken    365-375           ↔
India 5% broken         355-365           ↔
Pakistan 5% broken    330-340           ↔
Myanmar 5% broken   410-420           ↔
Cambodia 5% broken             425-435           ↔
U.S. 4% broken           475-485           ↔
Uruguay 5% broken    505-515           ↔
Argentina 5% broken 500-510           ↔
Long grain white rice - low quality
Thailand 25% broken 335-345           ↔
Vietnam 25% broken 355-365           ↔
Pakistan 25% broken 300-310           ↔
Cambodia 25% broken           400-410           ↔
India 25% broken       325-335           ↔
U.S. 15% broken         500-510           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            345-355           ↔
Pakistan parboiled 5% broken stxd    405-415           ↔
India parboiled 5% broken stxd         350-360           ↔
U.S. parboiled 4% broken       500-510           ↔
Brazil parboiled 5% broken    545-555           ↔
Uruguay parboiled 5% broken            NQ      ↔
Long grain fragrant rice
Thailand Hommali 92%          685-695           ↔
Vietnam Jasmine         435-445           ↓
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             830-840           ↔
Brokens
Thailand A1 Super      320-330           ↔
Vietnam 100% broken            335-345           ↔
Pakistan 100% broken stxd    285-295           ↔
Cambodia A1 Super   355-365           ↔
India 100% broken stxd         280-290           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 280-290           ↔
Brazil half grain          NQ      ↔
All prices USD per ton, FOB vessel, oryza.com

Vietnam Rice Sellers Lower Some of Their Quotes Today; Other Asian Rice Quotes Remain Unchanged

Dec 21, 2015

Vietnam rice sellers lowered their quotes for jasmine rice variety by about $15 per ton each to around $435 - $445 per ton today. Other Asian rice sellers have kept their quotes unchanged today from yesterday.                                 
5% Broken Rice
Thailand 5% rice is indicated at around $340 - $350 per ton about $25 per ton discount on Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $355 - $365 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $330 - $340 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $335 - $345 per ton, about $20 per ton discount on Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $25 per ton premium on Pakistan 25% rice shown at around $300 - $310 per ton.
Parboiled Rice            
Thailand parboiled rice is indicated at around $345 - $355 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 $320 - $330 per ton, about $15 per ton discount to Vietnam 100% broken rice shown at around $335 - $345 per ton. India's 100% broken rice is shown at around $280 - $290 per ton, about $5 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

ABARES Estimates Australia 2015-16 Paddy Rice Production to Decline Sharply on Low Acreage, Yields

Dec 21, 2015
In its December crop report, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasts Australia's paddy rice production in MY 2015-16 (April 2015 - March 2016) to decline to around 305,000 tons (around 240,950 tons, basis milled), down about 58% from an estimated 724,000 tons (around 570,380 tons, basis milled) in MY 2014-15.
The ABARES attributes the decline in paddy rice production to a 56% y/y decline in planting area to around 31,000 hectares as well as a decline in average yield.
Total summer crop production is forecast to decline by 4% y/y in 2015–16 to 3.87 million tons, due to decline in production of all summer crops, including rice. The area planted to summer crops in 2015-16 is expected to decline by 12% y/y to around 1.18 million hectares due to a relatively low irrigation water availability in rice growing regions.
The start to the 2015–16 summer crop season is promising, according to the ABARES. Favourable planting conditions in the major summer cropping regions of Queensland and northern New South Wales were possible due to a widespread rainfall in late October and early November. In its latest three-month rainfall outlook (December 2015 to February 2016), issued on 19 November 2015, the Bureau of Meteorology (BoM) forecasts the major rice-growing regions to receive above-average summer rainfall.
The latest ENSO Wrap-Up, released by the BoM on 10 November 2015, indicates that El Niño sea surface temperatures are likely to peak before the end of the year and then gradually ease in the first quarter of 2016. As a result, the BOM expects an above average rainfall outlook in the short term.

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