23rd October , 2013
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Trinidad and Tobago Targets 50% Rice Self Sufficiency in 2013 Sierra Leone Tries to Popularize Locally Grown Rice to Curb Imports Vietnam Rice Sellers Lower Their Quotes; Other Asia Rice Quotes Unchanged Thailand Rice Mortgage Program Losses Estimated at Over $15 Billion Oryza Rice Currency Analysis for Today – Mexico Peso Rallies 1.1% Oryza Afternoon Recap – Chicago Rough Rice Futures Finish Mixed as Funds Continue to Roll Shorts Forward China Develops Taste for GMO Rice? Oryza U.S. Rough Rice Recap – Trade Activity Light as Concern About Demand Mounts Thailand Rice Farmers Look to Organic to Salvage Premium Quality, Price Brazil Paddy Rice Index Declines Slightly in Last Week Oryza Global Rice Quotes
Trinidad and Tobago Targets 50% Rice Self Sufficiency in 2013 Oct 22, 2013
Trinidad and Tobago’s (T&T) Food Production Minister claims that rice production in the country will be enough to meet 50% of consumption demand by the year-end mainly due to increase in rice area.According to the USDA, T&T produces around 3,000 tons of rice which is much lower compared to the annual consumption of around 48,000 tons. However, the T&T Food Production minister says that rice production is expected to increase by around 17,000 tons by the year-end and area under rice production is expected to increase from around 500 acres (about 200 hectares) to around 4,750 acres (about 1,920 hectares) as per targets under the National Food Production Action Plan 2012-2015.The minister also says that the government will provide water supply to rice producing regions and build milling facilities with a capacity to mill 40,000 tons of paddy per year. Contract farming system will also be introduced in the country next year to boost rice production, the minister says. Tags: Global rice imports
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Sierra Leone Tries to Popularize Locally Grown Rice to Curb Imports Oct 22, 2013
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The Sierra Leone government has allocated funds to procure rice from farmers at competitive prices and for packaging locally grown rice to help farmers compete with imported rice, according to the chief of the Sierra Leone Produce Marketing Company (SLPMC).The Managing Director of SLPMC says that rice imports by the nation are growing sharply despite the availability of more nutritious and fresh locally grown rice. SLPMC has started adding value to local products and packaging rice is one of such activity of SLPMC, the MD told local sources. To help popularize locally grown rice, SLPMC is procuring rice at competitive prices during harvest and packaging and selling it in super markets and other stores with funds provided by the Ministry of Agriculture.Rice imports are increasing in Sierra Leone. In 2008-09, the country imported around 70,000 tons of rice, but imports are expected to increase to around 325,000 tons in 2013-14. According to the USDA, rice production in the country is estimated at around 700,000 tons in 2013-14 against an estimated consumption of around one million tons. Tags: Africa rice
Vietnam Rice Sellers Lower Their Quotes; Other Asia Rice Quotes Unchanged Oct 22, 2013
Vietnam rice sellers lowered most of their quotes by $5 - $15 per ton today. Other Asia rice quotes are mostly unchanged. 5% Broken Rice Thai 5% rice is quoted around $405 - $415 per ton, about a $10 per ton premium over Viet 5% rice (of summerautumn crop 2013) shown around $395 - $405 per ton, down about $5 per ton from yesterday. Indian 5% rice is quoted around $410 - $420 per ton, and about a $35 per ton premium over Pak 5% rice (of new crop) quoted around $375 - $385 per ton. 25% Broken Rice Thai 25% rice is quoted about $390 - $400 per ton, about a $25 per ton premium over Viet 25% rice (of summer-autumn crop 2013) shown around $365 - $375 per ton, down about $5 per ton from yesterday. Indian 25% rice is quoted about $370 - $380 per ton, about a $35 per ton premium over Pak 25% rice (of new crop) quoted around $335 - $345 per ton. Parboiled Rice Thai parboiled rice is quoted around $435 - $445 per ton. Indian parboiled rice is quoted around $390 - $400 per ton, down about $15 per ton from Friday and about a $30 per ton discount to Pak parboiled rice (of new crop) last quoted around $420 - $430 per ton. 100% Broken Rice Thai broken rice, A1 Super, is quoted around $370 - $380 per ton, about a $25 per ton premium over Viet broken rice (of summer-autumn crop 2013) shown around $345 - $355 per ton, down about $15 per ton from yesterday. Indian broken sortexed rice is quoted about $310 - $320 per ton, about a $15 per ton discount to Pak broken sortexed rice (of new crop) quoted around $325 - $335 per ton. Tags: Asia rice quotes, Thailand rice quotes, Vietnam rice quotes, Pakistan rice quotes, India rice quotes
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Thailand Rice Mortgage Program Losses Estimated at Over $15 Billion Oct 22, 2013
Total losses under the Thailand government rice mortgage program could be higher than the Finance Ministry audit estimates of around 200 billion baht (about $6.4 billion using current exchange rates) per year or about 400 billion baht in the last two years, according to Thailand’s former deputy prime minister. The former deputy PM says that losses could increase to over 466 billion baht (about $15 billion) if the government delays sales. He says the government has spent around 767 billion baht (about $24.6 billion) to procure around 26.75 million tons of rice under the rice mortgage program in 2011-12 and 2012-13 at an average cost of around 28,673 baht (about $920) per ton. Total spending includes about 678 billion baht (about $21.7 billion) paid to farmers and about 89 billion baht (about $2.8 billion) in operating costs. However, the government has sold about 12 million tons so far at an average selling price of around 10,750 baht (about $345) per ton, according to the former deputy PM. This suggests total earnings of around 129 billion baht (about $4.1 billion) and a loss of around 215 billion baht (about $6.9 billion). If the remaining 14 million tons of rice is sold at the same average price, earnings from the sales will stand at around 150.5 billion baht (about $4.8 billion) and a loss of around 251 billion baht (about $8 billion). Total losses could increase to around 466 billion baht (about $15 billion) or about 4% of the country's GDP, according to the former deputy PM.Earlier this year, the Deputy Commerce Minister had estimated losses under the rice mortgage program at around 216 billion baht (about $6.8 billion) as of January 31, 2013. Tags: Thailand rice mortgage scheme
Oryza Rice Currency Analysis for Today – Mexico Peso Rallies 1.1% Oct 22, 2013
U.S. dollar index was down -0.57% from the open today, when it traded at 79.237 at the close. Euro was +0.75% higher today by the close, trading around 1.3784 by end of day, after trading between an intraday high of 1.3792 and low of 1.3663. The U.S. dollar dropped today as the market sees QE continuing longer than previously expected. Thai baht was stronger +0.32%, trading at 31.040 at the close of business. Indian rupee was weaker -0.21% trading at 61.6500. Brazilian real was +0.11% stronger than the open at today’s close, when it ended at 2.1728 reais per dollar. Pakistan rupee was -0.02% weaker at the close, trading at 106.3517.
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Vietnamese dong was +0.01% stronger at 21105. Mexican peso was +1.11% stronger today, when it traded at 12.8475 pesos per dollar by the close of business today. Chinese yuan was stronger +0.02% at 6.0933. Argentine peso was +0.08% stronger at 5.8533 pesos per dollar.
Tags: foreign exchange rates
Oryza Afternoon Recap – Chicago Rough Rice Futures Finish Mixed as Funds Continue to Roll Shorts Forward Oct 22, 2013
Chicago rough rice futures for November delivery settled 2.5 cents per cwt (about $1 per ton) higher at $15.285 per cwt (about $337 per ton). Rough rice futures closed mixed, with the nearby November contract closing slightly higher while differed contracts slipped. The majority of the action continues to be focused on the November/January spread which has narrowed into 8 cents per cwt (about $2 per ton) by the end of the day. It is likely that this trend will continue for the next few days as the funds roll positions forward ahead of first notice day next week. The other grains finished mostly lower today; soybeans finished the day about 0.1% lower at $13.0225 per bushel; wheat finished about 0.1% higher at $7.0175 per bushel; and corn finished the day about 1.3% lower at $4.3825 per bushel.U.S. stocks eased off their highs Tuesday, dragged by weakness in technology, but held some gains as investors bet that the Federal Reserve will continue to support the economy at the current pace following a weaker-than-expected jobs report. The Dow Jones Industrial Average halved its gains after jumping more than 100 points. The S&P 500 broke above 1,750 for the first time, while the Nasdaq hit a fresh 13-year high before flirting with the flatline. Among key S&P sectors opened higher, utilities and consumer staples gained, while techs lagged. U.S. stock markets are currently trading up about 0.4%, gold is trading about 2% higher, crude oil is seen trading about 1.3% lower, and the U.S. dollar is seen trading about 0.6% lower at about 2:00pm Chicago time.Turning to the daily continuation chart of Chicago rough rice futures for November delivery, the market was little changed for the second session in a row as nearby technical support from the 20-day moving average, noted today at $15.175 per cwt (about $335 per ton), limits downward potential.
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Additional support comes from bear spreading activity as specs look to move positions forward ahead of the ever nearing delivery period later this month. Technically today’s price action provides little in the way of an indication for tomorrow’s trade direction. Overhead resistance is noted at $15.420 per cwt (about $340 per ton) provided by the 50-day moving average. Today’s trading range is noted as $15.230-$15.340 per cwt (about $336-$338 per ton).Monday, there were 3,028 contracts traded, up from 700 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday decreased by 268 contracts to 10,432. Tags: chicago rough rice futures
China Develops Taste for GMO Rice? Oct 22, 2013
While China is one of the largest consumers of genetically-modified products, cotton is the only GMO staple crop that China allows its farmers to grow commercially and sell on a large scale – this despite the fact that three-quarters of soya in China is imported because even with high subsidies farmers in China can only produce about 12m tons of soya every year due to the government requirement that soya be non-GMO. Many in China find this problematic. First, it appears to favor imported produce over the produce grown by its own citizens. Local farmers using non-GMO crops can’t financially compete with the global industry, which is already using GM crops and therefore producing more produce for less money. Second, it seems irrational to allow genetically-modified foods to be imported but to prevent Chinese farmers from planting them. What is the justification? If they are safe to eat, they should be safe to grow. Third, it is setting China up for a serious food security problem, making them powerless against increasing international food prices, says Zhang Qifa, a professor at Huazhong Agricultural University and member of the Chinese Academy of Sciences. Not only will the Chinese be unable to grow enough food to feed themselves, but they will be at the mercy of the global market prices. Zhang Qifa is one of 61 academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering who signed a petition in July requesting the Chinese government approve the commercial production of genetically modified rice, due partially to the reasons listed above. China’s Ministry of Agriculture requires two different certifications in order for a GMO crop to be commercialized. First, the crop must be certified as safe. Zhang Qifa’s university has developed two different kinds of GM rice that received their safety certification in 2009, but the certificates will expire on August 17, 2014. Second, the crop must be labeled by the agricultural authorities as profitable and ok for use on farms. This second certification is the one Zhang Qifa’s two rice varieties are still waiting for. Zhang Qifa blames the Ministry of Agriculture’s delay on “public objections to GM products.” Specifically, the
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Ministry’s stalling seems to be caused by media attention surrounding a two-year study by French scientist Gilles-Eric Seralini claiming that GM foods has negative effects on consumers’ health, even causing tumors or death. The 2012 study has since been renounced by the European Food Safety Authority due to unreliability. The Ministry does seem to be coming around to the idea of GMO foods, recently publishing an interview with expert Lin Min on its website that affirms the safety of GMO food. The petition, signed in July, has received new attention after the recent GM rice promotional campaign initiated by Zhang Qifa’s university. Saturday, about 260 volunteers taste-tested various dishes with GM rice, including the (in)famous Golden Rice that has been in the media spotlight lately. This campaign isn’t the first of its kind: similar taste tests have been occurring all over the country, with over 1,000 participants so far, in an effort to dispel consumer skepticism and increase its public acceptance. Tags: China rice production
Oryza U.S. Rough Rice Recap – Trade Activity Light as Concern About Demand Mounts Oct 22, 2013
The U.S. cash market saw some light trade activity today at levels lower than what had traded over the last few weeks. Analysts contend that part of this is due to the increased availability of rice as the harvest progresses it way north while others believe that some sellers are getting nervous that there is little demand at the levels most sellers are hoping to lock in.Offers remain firm around $15.56-$16.66 per fob farm (about $343-$367 per ton), depending on where they are located in the U.S. mid-South, for October through December shipment, while bids from most larger mills and exporters could still be found around $14.60 per cwt (about $322 per ton) and $15.25 per cwt (about $326 per ton), respectively, for October through December delivery, although rice reportedly traded around $15.65 per cwt (about $345 per ton) delivered for prompt shipment. Tags: U.S. rice prices
Thailand Rice Farmers Look to Organic to Salvage Premium Quality, Price Oct 22, 2013
While the Thai politicians have been arguing about the rice scheme and frantically searching for ways to make it successful – or at least less of a disaster – some farmers have taken matters into their own hands. Farmers’ cooperatives such as the one in Khon Kaen’s Muang district are helping interested farmers turn to a more reliable and less controversial customer than the government – the affluent health-conscious consumer who is willing to pay more for rice that is free from chemical fertilizers and pesticides.Bunthiang Pholthongsathit is the head of a farmers’ cooperative in the Muang district, and he himself turned to organic farming after an
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unsuccessful cow-breeding venture left him in debt. He quickly found that organic strains of rice – excluded from the pledging quota because of their categorization as a “premium” product – yielded higher profit returns. Organic foods have grown in popularity in recent years, making organic rice a viable option for these farmers. While much of the growth has been in the United States, Germany, and France, sales of organic foods and beverages increased 9.5% globally from 2006 to 2011 and are projected to increase by that much again by 2012, according to the Global Organic Food and Beverages Industry Outlook. The trend is catching on in the Eastern Hemisphere, where customers in China and Singapore have begun buying organic rice from Thailand.Farmers like Bunthiang Pholthongsathit are taking advantage of this trend in order to have more control over their crops and, consequently, their livelihood. “Relying on selling rice to millers, or pledging it under the government scheme does not guarantee long-term self-sufficiency,” he said. He’s referring to the challenge rice farmers face under the pledging scheme: while it does provide them with easy profits, it also increases their costs and requires them to increase their yields. Not to mention the instability these farmers face – the government has already changed the terms of the arrangement several times, and the farmers are at the mercy of a new government should one take power.Bunthiang Pholthongsathit, who earned a bachelor’s degree through an adult-education course three years ago, is confident that organic rice is the way to go. He has worked to develop new strains of highly nutritious rice and a nutritious rice drink, in addition to extending the organic cooperative to three more provinces. Bunthiang Pholthongsathit hopes that 2,000+ members of the network will help teach other farmers to be independent from the government so they are less manipulated by the pledging scheme. Tags: Thailand rice production
Brazil Paddy Rice Index Declines Slightly in Last Week Oct 22, 2013
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The Brazilian paddy rice index maintained by CEPEA declined to around 33.60 real per 50 kilograms as of October 21, 2013, down about 0.5% from around 33.78 real per 50 kilograms recorded on October 14, 2013. In terms of USD per ton, the index declined from around 311.9 per ton on October 14, 2013 to around 309.2 per ton on October 21, 2013. Read related Oryza story: Brazil’s Conab Increases 2012-13 Paddy Rice Production Forecast to 11.97 Million Tons Tags: Brazil CEPEA rice price index
Oryza Global Rice Quotes October 22nd, 2013 Long grain white rice - high quality Thailand 100% B grade 415-425 Vietnam 5% broken 395-405 ↓ India 5% broken 410-420 ↔ Pakistan 5% broken 375-385 ↔ Cambodia 5% broken 445-455 ↔ U.S. 4% broken 595-605 ↔ Uruguay 5% broken 615-625 ↔ Argentina 5% broken 615-625 ↔ Long grain white rice - low quality Thailand 25% broken 390-400 ↔ Vietnam 25% broken 365-375 ↓ Pakistan 25% broken 335-345 ↔ Cambodia 25% broken 415-425 India 25% broken 370-380 ↔ U.S. 15% broken 575-585 ↔
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Long grain parboiled rice Thailand parboiled 100% stxd 435-445 Pakistan parboiled 5% broken stxd 420-430 India parboiled 5% broken stxd 390-400 U.S. parboiled 4% broken 660-670 ↔ Brazil parboiled 5% broken 580-590 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92%
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Vietnam Jasmine 535-545 ↓ India basmati 2% broken 1515 -1525 Pakistan basmati 2% broken NQ ↔ Cambodia Pkha Malis 925-935 ↔ Brokens Thailand A1 Super 370-380 ↔ Vietnam 100% broken 345-355 Pakistan 100% broken stxd 325-335 Cambodia A1 Super 370-380 ↔ India 100% Broken stxd 310-320 Egypt medium grain brokens NQ ↔ U.S. pet food 370-380 ↔ Brazil half grain 345-355 ↔ Medium grain milled U.S. Calrose 4% broken 620-630 Egypt medium grain 6% NQ ↔
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↔ All prices USD per ton, FOB vessel, oryza.com
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Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874