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Daily November 21, 2014
Exclusive ORYZA E-Newsletter
DAILYCompiled EXCLUSIVE ORYZA E-NEWSLETTER & Edited by Riceplus Magazine November 21,2014
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER News Headlines… Bangladesh Amends Regulations to Allow Cambodia Fragrant Rice Receives 'Best Rice' Award for Third Consecutive Year Global Rice Quotes Asia Rice Quotes Unchanged Today Iraq Buys 150,000 Tons of U.S. and Thailand Rice in Tender Liberian Rice Farmers Fight Food Insecurity by Consuming Rice Seeds Oryza Afternoon Recap - Chicago Rough Rice Futures Add to Gains as Iraq Officially Awards US 120,000 MT in Recent Tender Myanmar’s Quality Standardization Initiatives to Spur Rice Exports Oryza U.S. Rough Rice Recap - Prices Firm after IGB Agrees to Buy 120,000 MT from U.S. Oryza Overnight Recap - Chicago Rough Rice Futures Seen Little Changed as Market Awaits News of Iraqi Tender Oryza Weekly Global Weather Outlook Thailand Receives International Award for Using Nuclear Energy in Rice Development
News Detail
Bangladesh Amends Regulations to Allow Rice Exports to Sri Lanka Nov 20, 2014
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Bangladesh's Ministry of Commerce (MoC) had recently amended a Statutory Regulatory Order (SRO), according to which the government banned the export of non-fragrant rice exports until June 2015, according to local sources. The SRO was signed in June 2014. Though the Cabinet Committee on Economic Affairs approved the export proposal on September 18, 2014, the SRO had been a hurdle in the way of exports. Therefore the Ministry of Food (MoF) reportedly requested the MoC to amend the SRO to facilitate rice exports. An official from the MoC was quoted as saying that a provision to allow exports has been included in the SRO. He added that the Ministry of Law, Justice and Parliamentary Affairs had examined the export strategy before amending the SRO. Sources at the MoC stated that the government is ready to export 50,000 tons of rice to Sri Lanka any time and is waiting for Sri Lankan government's green signal for shipping. Both the governments had finalized the export price at around $450 per ton (cif).The government has assured that the current rice stocks are adequate to meet the country's consumption needs. According to the Ministry of Food, the country has around 1.11 million tons of rice stocks as on November 19, 2014, up about 59% from stocks of about 697,350 tons during same period last year. The government also decided to import around 200,000 tons of rice in FY 2014-15 to replenish falling stocks in the country, according to the Directorate of Food. Local traders also noted that the export would not affect supplies within the country. Bangladesh produced around 34.36 million tons of rice in 2013-14, up about 2% from around 33.76 million tons last year, according to data from Bangladesh Bureau of Statistics (BBS).USDA estimates Bangladesh MY 2014-15 (July - June) milled rice production at around 34.6 million tons, up slightly from around 33.82 million tons produced in MY 2013-14. It estimates Bangladesh to import around 678,000 tons of rice in 2014.
Cambodia Fragrant Rice Receives 'Best Rice' Award for Third Consecutive Year Nov 20, 2014
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Fragrant rice from Cambodia and Thailand has received the 'Best Rice' award for 2014 at the 6th World Rice Conference, according to local sources.About 25 samples from 15 countries, including Cambodia, Thailand, Vietnam, India, Myanmar and the U.S. were considered for the competition. Judgement was made on the basis of appearance and taste. Cambodia’s fragrant rice has received the award for the third consecutive year. The President of the Cambodia Rice Federation (CRF) to local sources that the award reflects the high quality of Cambodian rice and the government is keen on expanding their export horizons. He noted that Cambodia's Romduol rice variety won the award. Thailand's brown jasmine rice won the award, according to the Honorary President of the Thai Rice Exporters Association (TREA). Tags: Cambodia fragrant rice, 6th world rice conference, Thailand jasmine rice
Global Rice Quotes November 20th, 2014 Long grain white rice - high quality Thailand 100% B grade 420-430 Vietnam 5% broken 405-415 ↔ India 5% broken 410-420 ↔ Pakistan 5% broken 390-400 ↔ Cambodia 5% broken 455-465 ↔ U.S. 4% broken 540-550 ↔ Uruguay 5% broken 595-605 ↔ Argentina 5% broken 595-605 ↔
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Long grain white rice - low quality Thailand 25% broken NQ ↔ Vietnam 25% broken 375-385 ↔ Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Pakistan 25% broken 350-360 Cambodia 25% broken NQ India 25% broken 370-380 U.S. 15% broken 510-520
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Long grain parboiled rice Thailand parboiled 100% stxd 405-415 Pakistan parboiled 5% broken stxd 425-435 India parboiled 5% broken stxd 380-390 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% 850-860 Vietnam Jasmine 545-555 ↔ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Malis 835-845 Brokens Thailand A1 Super 330-340 ↔ Vietnam 100% broken 325-335 Pakistan 100% broken stxd 320-330 Cambodia A1 Super NQ ↔ India 100% Broken stxd 310-320 Egypt medium grain brokens NQ ↔ U.S. pet food 445-455 ↔ Brazil half grain NQ ↔
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All prices USD per ton, FOB vessel, oryza.com
Asia Rice Quotes Unchanged Today Nov 20, 2014
Asia rice sellers kept their quotes mostly unchanged today. 5% Broken Rice Thailand 5% rice is quoted at around $405 - $415 per ton, on par with Vietnam 5% rice shown at Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
around $405 - $415 per ton. India 5% rice is quoted at around $410 - $420 per ton, about $20 per ton premium on Pakistan 5% rice quoted at around $390 - $400 per ton. 25% Broken Rice
Thailand 25% rice was last quoted at around $350 - $360 per ton, about $25 per ton discount to Vietnam 25% rice shown at around $375 - $385 per ton. India 25% rice is quoted at around $370 - $380, about $20 per ton premium on Pakistan 25% rice quoted at around $350 - $360 per ton. Parboiled Rice Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $380 - $390 per ton, about $45 per ton discount to Pakistan parboiled rice quoted at around $425 - $435 per ton. 100% Broken Rice Thailand broken rice, A1 Super, is quoted at around $330 - $340 per ton, about $5 per ton premium on Vietnam 100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown at around $310 - $320 per ton, about $10 per ton discount to Pakistan broken sortexed rice quoted at around $320 - $330 per ton. Tags: Vietnam rice prices, India rice prices, pakistan rice prices, Thailand rice prices
Iraq Buys 150,000 Tons of U.S. and Thailand Rice in Tender Nov 20, 2014
Iraq has purchased 150,000 tons of rice of U.S. and Thailand origins in a tender, according to Bloomberg. A statement from the Iraq Ministry of Trade is quoted to have stated that Iraq bought 120,000 tons of rice from the U.S. and 30,000 tons of rice from Thailand.
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Iraq actually sought to buy minimum 30,000 tons of rice from Uruguay, Argentina, Brazil, Vietnam, Thailand and the U.S. Iraq purchased 170,000 tons of rice from Brazil and Uruguay, and rejected tenders from the U.S. in the tender that closed on November 6, 2014 despite quotes from the U.S. exporters at $646 per ton being lesser than those of quotes from Brazil at $663 per ton and those from Uruguay at $661 per ton. Tags: Iraq rice tender, Iraq grain board, Iraq Trade Ministry
Liberian Rice Farmers Fight Food Insecurity by Consuming Rice Seeds Nov 20, 2014
Ebola outbreak has led to severe food shortages in the three West African countries - Liberia, Sierra Leone and Guinea. Governments' measures to check the virus outbreak has led to labor shortages further leading to production shortages, food insecurity and malnutrition, according to Bloomberg.Liberia, already a undernourished nation is feeling the heat of production shortages and less imports. Rice imports are significantly affected as many shipping vessels have been refusing to deliver rice in the three Ebola struck countries. Leave alone the imports, local production is severely impacted. Normally, in Liberia farmers plant new rice crops in April - July and harvest in September December. This year, the country has been facing the Ebola outbreak since beginning of harvest season. Due to governments' quarantine measures, most of the labor have been fearing going outdoors. Due to this, yields are expected to decline by about 10-25% in Liberia according to a report by a private Development Organization. Farmers are consuming rice seeds that they usually store for planting next year to feed themselves, according to the country's Deputy Agriculture Minister. Last year, Liberia produced about 238,000 tons of paddy rice (around 150,000 tons, basis milled) Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
and imported around 300,000 tons of rice to meet a consumption demand of 460,000 tons, according to USDA. This year, consumption is estimated to increase to around 480,000 tons but the production was expected to increase about 26% to around 189,000 tons, basis milled, but the Ebola outbreak has reversed all the estimations. Nearly 2,964 Liberians died of the deadly virus so far, according to the country's Health Ministry. Though the virus outbreak is receding, it is feared that the Ebola incidence would leave a lasting impact of malnutrition and undernourishment on the country's people. Tags: Ebola, Liberia rice farmers, malnutrition, undernourishment, food insecurity
Oryza Afternoon Recap - Chicago Rough Rice Futures Add to Gains as Iraq Officially Awards US 120,000 MT in Recent Tender Nov 20, 2014
Chicago rough rice futures for Jan delivery settled 17.5 cents per cwt (about $4 per ton) higher at $12.580 per cwt (about $277 per ton). Rough rice futures continued their bullish move today adding nearly 20 cents per cwt (about $4 per ton) to yesterday’s huge gain. Today’s move brings the markets advance for the week so far to an impressive 64.5 cents per cwt (about $14 per ton). The market has now approached the 50 day moving average, which is noted at $12.610 per cwt (about $278 per ton), and will likely provide some technical resistance to further gains tomorrow. However; the outlook for tomorrow’s trade direction is positive as the recent chart formation indications a continuation to the upside in coming trading sessions. Although tomorrows commitment of traders report will only reflect positions as of Tuesday, traders will likely keep a close eye on it as an indication of the size of speculative shorts in the market and as an indication of future rallies as these positions are covered. The other grains also closed higher today; Soybeans closed about 1.6% higher at $10.2050 per bushel; wheat finished about 1.8% higher at $5.4725 per bushel, and corn finished the day about 2.8% higher at $3.7325 per bushel.U.S. stocks traded higher on strong domestic data that alleviated concerns over continued signs of slowing growth in Europe. The Philly Fed Index posted 40.8 for November, more than double the expected 18.3 and its highest since December 1993. Any reading above zero indicates expansion in the region's manufacturing. The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware.
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
The Philly Fed Index posted 40.8 for November, more than double the expected 18.3 and its highest since December 1993. Any reading above zero indicates expansion in the region's manufacturing. The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware. The Dow Jones Industrial Average gained more than 9 points, or 0.06%, at 17,695. The S&P 500 turned positive to gain 3 points, or 0.15%, at 2,051, with telecoms the greatest decliner and energy leading 5 gainers among the 10 sectors. The Nasdaq rose more than 24 points, or 0.52%, at 4,699. Gold is trading about 0.2% lower, crude oil is seen trading about 1.2% higher, and the U.S. dollar is seen trading about 0.1% lower at about 1:00pm Chicago time.Wednesday, there were 1,044 contracts traded, up from 439 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 73 contracts to 9,978. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market
Myanmar’s Quality Standardization Initiatives to Spur Rice Exports Nov 20, 2014
Myanmar is planning to set up National Standardization Council to comply with the Standardization Law passed this summer with a goal to standardize several products, including rice, production technologies and services. A draft framework of the council is waiting for approval at the Ministry of Science and Technology. Myanmar lacks formal standardization mechanisms that incorporate international benchmarks. So far, International Organization for Standardization (ISO) has created around 19,000 international standards and the country is yet to experience any standards. A technical subcommittee was created to work on standardization in order to standardize basic products. There are around 67 products waiting for standardization. Researchers are optimistic that standardization efforts will have positive impact on exports quality and on trade volume. Rice being an important foreign exchange earning agriculture product, its quality standardization is expected to gain good results. Quality standardization is particularly relevant in the light of China demanding phyto-sanitary standards for rice exports from China. Both the coutnries are on the verge of finalizing an export agreement this year. China is a huge market for Myanmar's rice exports. Recently, China banned rice exports from Myanmar's nothern borders citing them as Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
illegal due to absence of an official agreement. According to rice producers and traders, if the paddy rice meets with official standards, the country will be better equipped to bargain higher prices in the global market and boost the current exports, especially to China. Due to strained relationship with Vietnam over the South China Sea in recent months, Myanmar rice traders hope to capitalize on growing demand in China. Tags: Myanmar quality standards, myanmar rice exports, phyto-sanitary standards
Oryza U.S. Rough Rice Recap - Prices Firm after IGB Agrees to Buy 120,000 MT from U.S. Nov 20, 2014
The U.S. cash market was firmer today after it was announced that the Iraqi Grain Board agreed to buy 150,000 tons of long grain milled rice with 120,000 tons being awarded to the U.S. and the rest awarded to Thailand.In the meantime, the USDA reported that cumulative net export sales for the week ending on November 13 totaled 25,100 tons which was 62% lower than last week and 67% lower than the prior 4-week average.Increases reported for the following destinations: 10,000 tons to Costa Rica, 7,100 tons to Mexico, 2,800 tons to Venezuela, 2,200 tons Saudi Arabia, and 1,900 tons to Canada while decreases of 3,600 tons were reported for unknown destinations. U.S. rice exporters shipped 70,000 tons which was 33% lower than last week but 4% higher than the prior 4-week average. The primary destinations included 32,800 tons to Venezuela, 12,000 tons to Japan, 9,100 tons to the United Kingdom, 5,800 tons to Mexico, and 2,900 tons to South Korea. Tags: U.S. rice prices, U.S. rice market
Oryza Overnight Recap - Chicago Rough Rice Futures Seen Little Changed as Market Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Awaits News of Iraqi Tender Nov 20, 2014
Chicago rough rice futures for Jan delivery are currently trading 0.5 cents per cwt (about $0.11 per ton) lower at $12.400 per cwt (about $273 per ton) during early morning floor trading in Chicago. The other grains are seen trading higher: soybeans are currently seen about 0.6% higher, wheat is listed about 0.8% higher and corn is noted about 1% higher. U.S. stocks shaved losses after opening lower as lackluster domestic data failed to outweigh signs of a continuing negative trend overseas. Existing home sales hit 5.26 million beat expectations in October. The Philly Fed Index posted 40.8, better than expected. Leading indicators gained 0.9% in October, above expectations. Futures held earlier losses as U.S. weekly jobless claims came in the lowest in 14 years, slightly above estimates at 291,000, and the Consumer Price Index for October was unchanged. Overnight, the Euro zone November flash composite purchasing manager's index (PMI) from Markit came in at 51.4, below estimates and October's final reading of 52.1. China's flash PMI from HSBC fell to 50.0, the breakeven level that separates expansion from contraction. In the United States, preliminary PMI data from Markit also posted a slowdown, with a fall to 54.7 from October's final reading of 55.9. Analysts had expected a rise. The Dow Jones Industrial Average opened down 60 points, or 0.34%, at 17,624.80. The S&P 500 fell more than 6 points in the open, or 0.31%, at 2,042.01, with telecoms leading declines across all sectors except energy. The Nasdaq fell 20 points to 4,654,43. Gold is currently trading about 0.4% lower, crude oil is seen trading about 0.9% higher, and the U.S. dollar is currently trading a touch higher at 9:00am Chicago time. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market
Oryza Weekly Global Weather Outlook Nov 20, 2014
Weather is expected to remain dry across eastern China on Thursday and Friday. However some rain is expected from southern Shaanxi southward to the Vietnam border on Thursday and Friday. In India, light rain is expected across southern Tamil Nadu and Kerala on Thursday and Friday. Weather is expected to remain dry across the rest of India on Thursday and Friday. Weather is expected to remain dry in Pakistan for the next three days. In Indonesia, scattered showers are expected across Borneo and Sumatra on Thursday and Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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November 21, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Friday. Across the rest of Indonesia spotty showers are expected today and tomorrow. The rainy season continued to be delayed in central rice areas of Java. However last week’s light rainfall in western Java improved moisture conditions for main-season rice there. Weather is likely to remain dry in Bangladesh for the next two days. Dry weather in Thailand supported main-season rice harvesting, while below-average reservoir levels threatened to reduce dry-season rice prospects. Scattered showers are expected across the coast of Vietnam on Thursday and Friday. The rest of Vietnam will be mainly dry each day. Dry weather aided harvesting of the relatively small winter rice crop there. In the U.S. , a few light showers are expected in southeast TX on Thursday. Weather is expected to remain dry elsewhere over the Plains and Midwest on Thursday. A developing storm will spread rain, possibly mixed with snow, from central and eastern TX north-eastward to the Great Lakes, Ohio Valley, and eventually the East from Friday through Sunday. Tags: Rice, weather, Storm, Asia, global, Oryza, US, rain
Thailand Receives International Award for Using Nuclear Energy in Rice Development Nov 20, 2014
Thailand's Rice Department has been awarded by the International Atomic Energy Agency (IAEA) and the UN's Food and Agriculture Organization (FAO) for developing two rice varieties - Gor Kor 6 and Gor Kor 15 - using nuclear energy, according to local sources.According to the Thai Rice Department Director-General, awards were given off to nearly 12 countries to mark the 50th anniversary of cooperation between IAEA and FAO. He noted that many countries participated in the contest. The Thai Rice Department was recognized for developing the two rice varieties using gamma ray technology for the Mali 105, Thailand's premier rice variety.Gor Kor 6 is a glutinous rice variety and is said to soft, fragrant and highly resistant to brown spot disease. Gor Kor 15 is a white rice variety and its properties are close to Mali 105.Both the varieties are popular among foreign consumers for last three decades. Last year, Gor Kor 6 earned about $60 million and Gor Kor 15 earned about $400 million in exports. Tags: Thai rice varieties, Mali 105, Gor Kor 6, Gor Kor 15
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