Thai Rice Losses Estimated to Cross $21 Billion
Jan 22, 2015
The Finance Ministry had issued long-term
bonds with three to ten years maturity in the beginning of this year to clear
the debts associated with the rice pledging schemes.According to the rice stock
audit report, of the 17.8 million tons of rice with the government, only about
2.35 million tons are of standard quality, about 14.4 million tons are of
sub-standard quality, around 694,000 tons of rice are rotten and the remaining
390,000 tons of rice are missing.
The government is keen on selling the 17
million tons of rice stocks within the next two years. It already sold around
681,740 tons of rice in four tenders last year after the military government
took over on May 22, 2014. The Commerce Ministry is planning to sell around one
million tons of rice in a tender on January 29, 2015.Thailand exported around
10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons in
2013.
Thailand Government to Allow Bidders to Inspect Rice
Stocks Before Auctions
Jan 21, 2015
The Thai government currently holds around
17.8 million tons of rice in its stockpiles. The Commerce Ministry stated its
plans to sell around 10 million tons of stockpiled rice in 2015 and around 7
million tons in 2016 through tenders. Thailand sold around 681,740 tons of rice
in four tenders last year after the military government took over on May 22, 2014.
The government has also struck government-to-government deals for about
570,000 tons last year, according to Ministry sources.
Thai NACC and OAG Joint Panel Recommend Criminal Charges
Against Ex-Premier in Rice Pledging Case
Jan 21, 2015
It is likely to recommend to the Attorney
General to indict the former PM with the Supreme Court's Criminal Division for
Holders of Political Position. If found guilty, the ex-Premier may face jail
term up to ten years.
Separately, the Thai National Legislative
Assembly (NLA) is dealing with the former PM's impeachment hearing and the NLA
members will vote on January 23, 2015, whether she was guilty of dereliction of
duty. The vote requires a three-fifths majority to pass a judgement.The NACC
yesterday stated that it will charge former Commerce Minister, the former
Deputy Commerce Minister as well as 20 state officials and employees of private
firms for alleged corruption in rice export deals with two Chinese firms.Meanwhile,
the Thai Commerce Minister told local sources that Thailand exported around
10.8 million tons of rice in 2014, up about 64% from around 6.6 million tons
exported in 2013.
U.S. Treasury Announces New Trade Norms with Cuba
Jan 21, 2015
The regulatory changes were welcomed by
rice industry as Cuba is one of the closest export destinations to the U.S. and
imports about 50% of its annual rice consumption needs. Local sources say rice
farmers in the U.S. rice producing states of Arkansas and Louisiana would
benefit from the revised policy. "Up until now, U.S. government
restrictions have limited the ability of the U.S. industry to compete in Cuba,"
the President and CEO of the USA Rice was quoted as saying.
USDA
estimates Cuba to produce around 440,000 tons of milled rice and import around
450,000 tons of rice in MY 2014-15 (July - June) to meet a consumption demand
of around 890,000 tons. Cuba currently imports rice from Brazil, India and
Thailand.
Vietnam Rice Sellers Lower Most of Their Quotes; Other
Asia Rice Quotes Unchanged
Jan 21, 2015
Vietnam rice
sellers lowered most of their quotes by about $5 - $10 per ton today. Other
Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5%
rice is quoted at around $405 - $415 per ton, about $40 per ton premium on
Vietnam 5% rice shown at around $365 - $375 per ton, down about $10 per ton
from yesterday. India 5% rice is quoted at around $395 - $405 per ton, about
$35 per ton premium on Pakistan 5% rice quoted at around $360 - $370 per ton.
25% Broken Rice
Thailand 25%
rice was last quoted at around $350 - $360 per ton, about $10 per ton premium
on Vietnam 25% rice shown at around $340 - $350 per ton. India 25% rice is
quoted at around $360 - $370, about $40 per ton premium on Pakistan 25% rice
quoted at around $320 - $330 per ton.
Parboiled Rice
Thailand
parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is
quoted at around $390 - $400 per ton, about $10 per ton discount to Pakistan
parboiled rice quoted at around $400 - $410 per ton.
100% Broken Rice
Thailand
broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $5 per
ton premium on Vietnam 100% broken rice shown at around $315 - $325 per ton,
down about $5 per ton from yesterday. India's 100% broken rice is shown at
around $300 - $310 per ton, about $10 per ton premium on Pakistan broken
sortexed rice quoted at around $290 - $300 per ton.
Vietnam Scales Down Rice Export Expectations for First
Quarter of 2015
Jan 21, 2015
The VFA lowered its expectations for first
quarter exports based on increasing supplies from Thailand and India as well as
declining export demand from African countries. The VFA expects Vietnam to
export over 7 million tons of rice (including official and unofficial exports
to China) in 2015. In 2014, Vietnam exported around 6.32 million tons of rice
through official channels and around 2 million tons of rice through unofficial
channels, according to the VFA. This year, unofficial rice exports are expected
to come down due to strict controls being imposed by Chinese authorities on the
borders.
The VFA Chairman told local sources that
Vietnamese rice exporters have already signed contracts for exporting around
500,000 tons and have to find markets for the around 400,000 tons to meet the
expected export level in the first quarter of the year.
Experts have been warning that the
Vietnamese rice sector is plagued by financial difficulties, poor cultivation
planning and outdated technology. They have been urging the government to
increase production of higher quality rice and focus on attracting high-end
markets in order to increase competitiveness of the Vietnamese rice as well
raise farmers and exporters' incomes. VFA's Secretary General told local
sources that exporters have been improving coordination with farmers as well as
enhancing the quality and value of rice. He also noted that the government is
stepping up efforts to create a national brand for the country's rice to
enhance export competitiveness of Vietnamese rice.Currently, export price of
Vietnam 5% rice stands at around $370 per ton while that of India 5%, Pakistan
5% and Thai 5% rice stand at around $400 per ton, $365 per ton and $410 per ton
respectively
Thai Ex-Premier Delivers Closing Statement in Rice
Pledging Case Before NLA
Jan 22, 2015
The National
Anti-Corruption Commission (NACC) reiterated that the rice pledging scheme was
purely a political tactic by the Yingluck's Party to win elections. The NACC
Commissioner noted that the scheme led to policy-based corruption as the rice
in the government's stockpiles was offered at lower prices to associates who
made windfall gains by selling the same at high prices. He said the so-called
government-to-government (G2G) deals claimed to be struck by the Yingluck
government had not existed at all. He added that the former PM has not honoured
the suggestions of the NACC and the Office of the Attorney General (OAG) to
stop the scheme as it would cause billions of losses to the state.
The NLA members
will vote on Friday, January 23, 2014 deciding whether the former PM was guilty
of dereliction of duty. The vote requires a three-fifths majority to pass a
judgement. If impeached, the ex-PM would be the first female PM to be impeached
and could face a political ban for five years.
Separately, the joint panel comprising members of the NACC and the OAG has agreed to recommend criminal charges against the former Prime Minister under the criminal Code's Section 157 for her alleged dereliction of duty in managing the controversial rice pledging scheme, which brought losses of over 500 billion baht (around $15.6 billion) to the exchequer.
Separately, the joint panel comprising members of the NACC and the OAG has agreed to recommend criminal charges against the former Prime Minister under the criminal Code's Section 157 for her alleged dereliction of duty in managing the controversial rice pledging scheme, which brought losses of over 500 billion baht (around $15.6 billion) to the exchequer.
GM Rice Can Protect Farmers from Hazards of Pesticide
Exposure, Finds Study
Jan 21, 2015
A study by Chinese researchers has found
that growing of genetically modified (GM) rice can reduce pesticide usage to a
larger extent and thereby protect farmers from adverse effects of being exposed
to pesticides and fertilizers.The authors of the study found that GM rice can
reduce pesticide use by nearly 66%. In number terms, pesticide use can be
reduced by nearly 196,000 tons annually.
An analysis of data collected from the
physical examination of nearly 109 rice farmers in the Fujian province showed
that GM rice can significantly reduce adverse effects of pesticides on farmers'
neurological, haematological, and electrolyte system. However, the results
showed that 8% of sample farmers still suffered from pesticide-related
poisoning. The authors have estimated nearly 16 million rice farmers suffer
from pesticide-related illness every year.The study concludes that
commercialization of GM rice can improve the health of farmers in developing
countries, where pesticides and fertilizers are used heftily to increase yields
and mitigate crop losses.
The study was conducted by the Center for
Chinese Agricultural Policy; Institute of Geographical Sciences and Natural
Resource Research; Chinese Academy of Sciences; School of Management and
Economics, Beijing Institute of Technology; China Economics and Management
Academy; Central University of Finance and Economics; and Department of
Neurology, Chinese PLA General Hospital.
Vietnam Scales Down Rice Export Expectations for First
Quarter of 2015
Jan 21, 2015
The VFA lowered its expectations for first
quarter exports based on increasing supplies from Thailand and India as well as
declining export demand from African countries. The VFA expects Vietnam to
export over 7 million tons of rice (including official and unofficial exports
to China) in 2015. In 2014, Vietnam exported around 6.32 million tons of rice
through official channels and around 2 million tons of rice through unofficial
channels, according to the VFA. This year, unofficial rice exports are expected
to come down due to strict controls being imposed by Chinese authorities on the
borders.
The VFA Chairman told local sources that
Vietnamese rice exporters have already signed contracts for exporting around
500,000 tons and have to find markets for the around 400,000 tons to meet the
expected export level in the first quarter of the year.Experts have been
warning that the Vietnamese rice sector is plagued by financial difficulties,
poor cultivation planning and outdated technology. They have been urging the
government to increase production of higher quality rice and focus on
attracting high-end markets in order to increase competitiveness of the
Vietnamese rice as well raise farmers and exporters' incomes.
VFA's Secretary General told local sources
that exporters have been improving coordination with farmers as well as enhancing
the quality and value of rice. He also noted that the government is stepping up
efforts to create a national brand for the country's rice to enhance export
competitiveness of Vietnamese rice.Currently, export price of Vietnam 5% rice
stands at around $370 per ton while that of India 5%, Pakistan 5% and Thai 5%
rice stand at around $400 per ton, $365 per ton and $410 per ton respectively.
Global Rice Quotes
January 21st, 2015
Long grain white rice - high quality
Thailand 100% B grade 415-425 ↔
Vietnam 5% broken 365-375 ↓
India 5% broken 395-405 ↔
Pakistan 5% broken 360-370 ↔
Cambodia 5% broken 440-450 ↔
U.S. 4% broken 510-520
↔
Uruguay 5% broken NQ ↔
Argentina 5% broken NQ ↔
Long grain white rice - low quality
Thailand 25% broken NQ ↔
Vietnam 25% broken 340-350 ↔
Pakistan 25% broken 320-330 ↔
Cambodia 25% broken 430-440 ↔
India 25% broken 360-370 ↔
U.S. 15% broken 495-505 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 405-415 ↔
Pakistan parboiled 5% broken stxd 400-410 ↔
India parboiled 5% broken stxd 390-400 ↔
U.S. parboiled 4% broken 580-590 ↔
Brazil parboiled 5% broken 570-580 ↔
Uruguay parboiled 5% broken NQ ↔
Long grain fragrant rice
Thailand Hommali 92% 920-930 ↔
Vietnam Jasmine 500-510 ↓
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Mails 805-815 ↔
Brokens
Thailand A1 Super 320-330 ↔
Vietnam 100% broken 315-325 ↓
Pakistan 100% broken stxd 290-300 ↔
Cambodia A1 Super 355-365 ↔
India 100% broken stxd 300-310 ↔
Egypt medium grain brokens NQ ↔
U.S. pet food 405-415
↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon Recap - Chicago Rough Rice Futures Find
Late Session Buying Interest and Shoot to Double Digit Gains
Jan 21, 2015
Chicago rough rice futures for Mar delivery
settled 10.5 cents per cwt (about $2 per ton) higher at $11.370 per cwt (about
$251 per ton). Rough rice futures found afternoon buying interest to close with
double digit gains on support from a softer dollar and firming crude prices
today. The other grains finished with mixed results today; Soybeans
closed about 0.1% higher at $9.8350 per bushel; wheat finished about 0.1% lower
at $5.3775 per bushel, and corn finished the day about 0.6% lower at $3.8800 per
bushel.
U.S. stocks were little changed Wednesday,
with International Business Machines weighing on the Dow Jones Industrial
Average, as investors considered whether the European Central Bank would
implement a large-scale bond-purchasing program. Multiple news outlets quoted
sources in reporting the ECB's executive board had proposed monthly bond
purchases of roughly 50 billion euros in a quantitative easing program that
would last at least a year. Ahead of Wednesday's open, stock futures maintained
losses after data showing U.S. housing starts climbed more than expected in
December in a hopeful sign for the sluggish housing-market recovery. After
sliding 119 points, the Dow Jones Industrial Average rose as much as 84 points,
and was lately up 33.33 points, or 0.2%, at 17,551.56.
Erasing early losses, the S&P 500 rose
8.45 points, or 0.4%, to 2,031.00, with energy the best performing and all 10
of its major industry groups rising. The Nasdaq added 19.53 points, or 0.4%, to
4,674.37. Gold is trading about 0.1% lower, crude oil is seen trading about
1.9% higher, and the U.S. dollar is seen trading about 0.1% lower at
about 1:00pm Chicago time.Tuesday, there were 312 contracts traded, up
from 138 contracts traded on Thursday. Open interest – the number of contracts
outstanding – on Tuesday increased by 131 contracts to 8,707.
Iraq Issues a Tender to Buy at Least 30,000 Tons of Rice
Dec 14, 2014
The Iraq
Trade Ministry issued a tender to buy a minimum of 30,000 tons of rice from the
U.S., Uruguay, Argentina, Vietnam, Brazil and Thailand, local sources said.The
closing date for the tender is December 22, 2014 and offers must be valid until
December 26, 2014. The ministry added that Thai white rice will be accepted in
this tender
Nepal Considers Rice Exports to China Despite Likely
Lower Production in 2014-15
Jan 21, 2015
However, the
government is planning to reconsider ban and open exports this year despite a
likely reduction in paddy production. The Ministry of Agricultural Development
(MAD) estimates the country's 2014-15 paddy rice production likely to decline
about 5.1% to around 4.78 million tons due to a late monsoon and untimely
rainfall. The government is planning to export 10,000 tons of rice to
China, according to the MoCS sources. They noted that the government would
allow exports to China through the two routes - Tatopani and Rasuwagadhi.
Exporters can supply 5,000 tons of rice through each of the two routes.
The NRB statistics show that the south
Asian nation imported rice worth Rs.12.37 billion (around $121.45 million) in
2013-14, up about 46% from around Rs.8.47 billion (around $83.16 million)
despite surplus rice stocks of around 800,000 tons from the previous fiscal due
to rising disposable incomes and the Nepalese preference for better quality
rice. The government imported rice worth Rs.5.51 billion (around $56 million)
in the first five months of the fiscal 2014-15.
USDA estimates Nepal’s MY 2014-15 (October
2014 – September 2015) milled rice production to slightly decline to about 3.1
million tons (around 4.65 million tons, basis paddy) from an estimated 3.36
million tons (around 5.05 million tons, basis paddy) in MY 2013-14. It
estimates Nepal to import around 350,000 tons of rice in 2015.
USDA Post Estimates Mexico MY 2014-15 Rice Imports at
775,000 Tons, Up 11% from Last Year
USDA Post
estimates Mexico's rice imports at around 775,000 tons in MY 2014-15 (October
2014 - September 2015), up about 10.7% from an estimated 700,000 ton in MY
2013-14, and unchanged from USDA's official estimates of 775,000 tons, based on
information from the Secretariat of Agriculture, Livestock, Rural Development,
Fisheries and Foodstuffs (SAGARPA).
Last month,
Mexico has announced reinstatement of 9% tariff on imported paddy rice and 20%
tariff on husked, long grain and other imported rice from all the countries
that do not have free trade agreements (FTAs). However, the U.S. is exempted
from the tariff because of its inclusion in the North America Free Trade Agreement
(NAFTA). The tariff rates have been effective from January 9, 2015.The Mexican
government has announced the reinstatement of tariffs in a decree that was
published in the Diario Official (Mexico's Federal Register) on December 10,
2014. Last month, the Post reported that the government decided to modify the
import Law based on requests from the Mexican Rice Council (MRC) for the
re-establishment of import tariffs, which were discontinued in 2008 to reduce
rice prices in the country.
The Post
estimates total paddy rice production for MY 2014-15 at around 226,000 tons
(around 155,000, basis milled), up about 18% from an estimated 191,000 tons
(around 131,000, basis milled) in MY 2013-14 and up about 6% from USDA's
official estimates of around 214,000 tons (around 147,000 tons, basis milled).
The likely increase in production is attributed to favorable weather conditions
and increase in yields.
The Post
estimates Mexico's MY 2014-15 milled rice ending stocks at around 195,000 tons,
up about 23% from an estimated 158,000 tons in MY 2013-14 and up about 4% from
USDA's official estimates of around 187,000 tons.
