27th april,2016 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA

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Rice E-Newsletter

April 27,2016 Vol 7,Issue IV

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Australian Food Company Fixes 2017 Rice Forward Price at $400 per Ton Apr 26, 2016

The Australian food processing and exporting company SunRice has fixed 2017 rice forward price at $400 per ton for medium grain Reiziq rice crop, according to adf.farmonline.com.au.

Reiziq is a semi-dwarf medium grain variety.

It has also fixed the next year's forward price for Sherpa rice variety at $380 per ton. Sherpa is a cold-tolerant, less water-requiring and high-yielding rice variety, which was introduced in 2011.

Local sources say the company locked in next year's prices much earlier while the harvest in the New South Wales (NSW) region for the 2016 rice crop is still underway. “Rice continues to maintain strong returns while other crops have experienced significant volatility in recent times. We have significant demand for Australian rice and this contract is designed to ensure growers are able to make commercial decisions now to grow rice for harvest in 2017 and participate in premium markets,� said the company's Chairman.

The contracts will open on May 2 on a first come first serve basis and will close when an undisclosed tonnage is reached.

The development is likely to impact medium grain prices globally. California is another major medium grain rice growing region.

In its February 2016 crop report, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) forecasts Australia's MY 2015-16 (April 2015 - March 2016) paddy rice production 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 from an estimated 71,000 hectares in MY 2014-15, reflecting a significant reduction in supply of irrigation water available to rice growers in the main rice growing region New South Wales.

Drought, Salinity Damage 240,215 Hectares of Rice Fields in Vietnam, Says Agriculture Ministry Apr 26, 2016

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Drought and salinity have damaged about 240,215 hectares of rice fields in Vietnam's central southern provinces, according to Bloomberg citing local newspaper reports.

About 4,641 hectares of seafood farms, 55,651 hectares of fruit trees, and 104,106 hectares of industrial trees are also severely damaged, according to local sources.

Total damages from the drought have reached around 5.57 trillion dong (around $250 million) as of April 25, 2016.

Local rice prices in Vietnam are increasing due to likely lower production and higher export demand.

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Continue Trend of Higher Prices along with other U.S. Grains Apr 26, 2016

Chicago rough rice futures for Jul delivery settled 11 cents were cwt (about $2 per ton) higher at $11.200 per cwt (about $247 per ton). The other grains finished the day higher again; Soybeans closed about 1.4% higher at $10.2725 per bushel; wheat finished about 2.1% higher at $4.8775 per bushel, and corn finished the day about 1.4% higher at $3.8725 per bushel.

U.S. stocks traded in a range Tuesday, with energy leading as oil climbed, ahead of major central bank meetings and earnings. The Federal Open Market Committee kicked off its two-day meeting Tuesday and is scheduled to release its statement on monetary policy Wednesday afternoon. No move on rates is expected, but investors will parse the statement for clues on the timing of the next hike. The Bank of Japan is due to release its statement on monetary policy Thursday. In economic news, durable goods orders rose a less-than-expected 0.8% in March after a downwardly revised 3.1% decline in February. European stocks closed mixed, with bank stocks outperforming. Asian stocks closed mostly higher, with the Shanghai composite up about 0.6%. The Nikkei 225 closed about half a percent lower. In midday trade, the Dow Jones industrial average traded up 16 points, or 0.09%, to 17,994. The S&P 500 rose 4 points, or 0.21%, to 2,092, with energy leading six sectors higher and health care the greatest decliner. The Nasdaq composite declined 1 point, or 0.02%, to 4,894. Gold is seen trading about 0.9% higher, crude oil is seen trading about 1.8% lower, and the U.S. dollar is seen trading about 0.4% lower at about 1:00pm Chicago time.

Monday, there were 3,666 contracts traded, up from 3,499 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday decreased by 99 contracts to 10,952.

New Technologies Help Ghana Rice Farmers to Boost Production www.ricepluss.com

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Apr 26, 2016

Ghana rice farmers are introduced to newer technologies to help boost rice production, according to www.newsghana.com.gh.

Rice farmers in Ghana's Upper West Region are reportedly using technologies such as Urea Deep Placement (UDP) for fertilizer application and other rice transplanting technologies for increasing their yields and production. They have been trained in these technologies under a project by the International Fertilizer Development Centre (IFDC) and Agriculture Technology Transfer (ATT).

The IFDC-ATT provided rice seeds, free fertilizers and technical -know -how to the farmers under the project to increase rice yields.

The Regional Agronomist under the project told reporters that the project aims to provide farmers with appropriate and affordable technologies to improve the competitiveness of the rice and other crops. The project primarily focuses on integrated soil fertility management, seed sector promotion and up scaling of high quality seeds, capacity building in research, he said.

He also noted that the farmers already implementing the new technologies have obtained good results. “Farmers implementing the technology have been realising rice yields between 24 and 28 bags per an acre of land as compared to the traditional system of broadcasting, which, gave them between three and five bags,� he said. The agronomist also noted that farmers are now using only 2.5 kilograms of fertilizer for an acre of land instead of 50 kilograms with the traditional methods.

The project is funded by the US Agency for International Department’s (USAID) Ghana Mission.

Oryza U.S. Rough Rice Recap - Old Crop Offers Continue to Firm with Futures; Bids Not Keeping Pace Apr 26, 2016

The U.S. cash market was slightly firmer again today with old cash offers continuing to firm as the future market rallies, however most bids have not kept pace with the steep jump in offers and as a result the old crop trade as remained quiet.

Analysts note that farmers are now hoping to sell old crop around $5.00 per bu fob farm which is not getting much attention from buyers however analysts have seen some new crop trade near those levels since the futures have rallied this month In the meantime, the USDA estimates that as of April 24th, 62% of the crop had been planted which was 25% ahead of this time last year and 17% ahead of the previous 5-year average. As of now, the USDA estimates that 75% of the rice crop in Arkansas had been planted compared to, 3% in California, 79% in Louisiana, 53% in Mississippi, 86% in Missouri, and 76% in Texas.

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The USDA estimates that 38% of the crop has emerged which was 15% ahead of this time last year and 9% ahead of the previous 5-year average. As of now, the USDA estimates that 40% of the rice crop in Arkansas has emerged compared to 0% in California, 66% in Louisiana, 30% in Mississippi, 35% in Missouri, and 68% in Texas.

Pakistan Rice Sellers Increased Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Apr 26, 2016

Pakistan rice sellers increased their quotes for 5% broken rice by about $5 per ton to around $355-$365 per ton. Other Asia rice sellers kept their quotes unchanged.

5% Broken Rice Thailand 5% rice is indicated at around $380 - $390 per ton, about $10 per ton premium on Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $365 - $375 per ton, about $10 per ton premium on Pakistan 5% rice shown at around $355 - $365per ton.

25% Broken Rice Thailand 25% rice is indicated at around $365 - $375 per ton, about $10 per ton premium on Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $335- $345 per ton, about $15 per ton premium on Pakistan 25% rice shown at around $320 $330 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $390 - $400 per ton. India parboiled rice is indicated at around $340 - $350 per ton, about $65 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 $340 - $350 per ton, on par with Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100% broken rice is shown at around $275 - $285 per ton, about $15 per ton discount to Pakistan broken sortexed rice shown at around $290 - $300 per ton.

Drought, Salinity Damage 240,215 Hectares of Rice Fields in Vietnam, Says Agriculture Ministry www.ricepluss.com

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Apr 26, 2016

Drought and salinity have damaged about 240,215 hectares of rice fields in Vietnam's central southern provinces, according to Bloomberg citing local newspaper reports.

About 4,641 hectares of seafood farms, 55,651 hectares of fruit trees, and 104,106 hectares of industrial trees are also severely damaged, according to local sources.

Total damages from the drought have reached around 5.57 trillion dong (around $250 million) as of April 25, 2016.

Local rice prices in Vietnam are increasing due to likely lower production and higher export demand.

Post Forecasts Indonesia MY 2015-16 Rice Imports to Increase Sharply on Lower Production, Stocks Apr 26, 2016

The USDA Post forecasts Indonesia's MY 2015-16 (January - December 2016) rice imports to reach around 2 million tons, up about 48% from an estimated 1.35 million tons due to expected lower rice production and carry over imports from last year as well as higher demand for specialty rice. This year's imports are on par with the USDA's official estimates. The Post

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forecasts MY 2016-17 rice imports to decline to 1.25 million tons due to an expected increase in production.

The Post forecasts Indonesia's MY 2015-16 paddy rice production at around 56.063 million tons, slightly up from an estimated 56 million tons last year and up from USDA's official estimates of around 55.591 million tons. The increase is attributed to growing demand for high-yielding seed varieties and expected higher yields due to an expected dryer-than-normal harvest period. It forecasts MY 2016-17 production to further increase to 57.638 million due to additional carry over from MY 2015-16 third crops.

The Post reports that planting for the MY 2015-16 paddy first crop (October – February) was delayed till the end of December of January in most of the rice growing areas. Therefore, the Post estimates MY 2015-16 rice harvested areas at 11.8 million hectares compared to an estimated 11.83 million hectares in MY 2014-15. It forecasts the area to increase to 12.16 million hectares in MY 2016-17.

Indonesia's Bulog is targeting to procure 3.9 million tons of milled rice equivalent in MY 201516 compared to the target of 3.2 million tons in MY 2014-15. According to the Post, on February 17, 2016, the government decided to maintain the government purchasing price (Harga Pembelian Pemerintah, HPP) for paddy and rice at the same level as stated in Presidential Instruction No. 5/2015 stipulated on March 17, 2015. BULOG buys paddy or rice from farmers when the market price is lower than or equal to the HPP. Usually Bulog procures 60% of its target from the first crop. However, with the delay in first crop planting, it procured only 18,616 tons as of March 11, 2016. This is below the 30,000 tons procured during the same period last year.

The Post estimates Indonesia rice consumption to decline slightly to 38.2 million tons in MY 2015-16 due to some switching to wheat flour-based foods such as instant noodle and bread. It forecasts consumption to remain stable in MY 2016-17.

The USDA Post estimates MY 2015-16 rice ending stocks at 3.211 million tons, down from last year's 3.911 million tons due to estimated production declines. It expects Indonesia’s rice ending stocks to further decline to 2.761 million tons in MY 2016-17 , based on lower imports and stagnant consumption.

The Post reports that prices of wet paddy and rice remain above the HPP, despite the on-going harvest.

Rice Output in Indian Southern State Telangana to Decline Sharply in 2015-16 Due to Drought Apr 26, 2016 www.ricepluss.com

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Rice output in India's southern state Telangana is expected to decline about 35% y/y to around 2.93 million tons in 2015-16 from around 4.54 million tons in 2014-15 due to drought, according to the Hindu.

The 2015-16 Kharif rice (June - December) production in the state stood at around 2.213 million tons from around 749,000 hectares compared to around 2.855 million tons from around 920,000 hectares in 2014-15. The government is estimating 2015-16 rabi rice crop (November - May) production at around 721,000 tons from around 252,000 hectares compared to around 1.69 million tons from around 495,000 hectares in 2014-15.

The state Agriculture Production Commissioner was quoted as saying that most of the irrigation projects and bore wells have dried up due to drought leading to a significant decline in production.

Telangana is an important rice producing state in the country and accounted for about 4% of India's total rice production in 2013-14, according to data from the Directorate of Economics and Statistics.

The Indian government in its second advance estimates for major crops estimates output from the kharif rice crop at around 90.59 million tons, down about 1% from last year's 91.39 million tons.

Output from the smaller rabi rice crop (November - May) is estimated to decline about 7.5% to around 13.02 million tons in 2015-16 from around 14.09 million tons last year.

Tanzanian Scientists Develop High-Yielding Rice Varieties to Help Boost Production Apr 26, 2016

Tanzanian scientists have developed three salt-resistant and high-yielding rice varieties, SATO1, SATO6 and SATO9, under the AGRA-PASS breeding program to help boost rice production in the country, according to local sources. The program in Africa's Seed Systems (PASS) is supported by the Alliance for a Green Revolution in Africa (AGRA).

The scientists released the varieties in March this year after ten years of research.

One of the researchers working on the project at the Morogoro-based Sokoine University of Agriculture said the new varieties could resist increased salt in the soil and yield about six tons per hectares even in salty ground. “Rice growers can harvest six tonnes per hectare, the highest yield ever recorded in the entire eastern and southern African region,” he said.

The scientists are planning to produce 500 tons of the new varieties to satisfy the local market by the next cropping season. In Tanzania, rice is a Msimu/unimodal crop and is grown between November – June every year.

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Tanzanian farmers usually grow traditional rice varieties with low yield potential. Most of the Tanzanian rice depends on rainfall. Upland systems in the country are prone to drought, weed infestation, and attacks by pests and diseases. Rain fed lowland systems suffer from floods during heavy rains, and also face drought occasionally. Experts say many irrigations schemes in Tanzania need urgent rehabilitation to support rice and other crops' production. Apart from these, inadequate postharvest technologies and low market prices have been impacting the Tanzanian rice sector.

USDA estimates Tanzania to produce around 1.75 million tons of rice, basis milled (around 2.652 million tons, basis paddy), and import around 200,000 tons in MY 2015-16 (June 2015 May 2016). Tanzania is expected to export around 40,000 tons in MY 2015-16.

Rice and Rice Products May Expose Infants to Ill Effects of Arsenic, Says Study Apr 26, 2016

A study by the Geisel School of Medicine at Dartmouth College in Hanover, New Hampshire, U.S., says that infant rice cereal and rice snacks contain some arsenic and babies who take these products may be exposed to the ill effects of arsenic over a period of time, according to Reuters.

The study shows that babies who take these products have higher levels of arsenic in their urine, but the researchers are studying whether the arsenic will affect their health over a period of time.

Rice is understood to absorb arsenic from the environment, and the U.S. rice is said to have some of the highest arsenic concentrations in the world, according to the lead author of the study. She told reporters that arsenic has carcinogenic properties and can influence risk of cardiovascular, immune and other diseases. It can also have adverse impacts on the growth, immunity and neurodevelopment of young children. She and her team are investigating the impact of arsenic exposure on children, she said.

As part of her investigation, she and her team studied 759 infants born to mother of age 18 to 45.

They also collected infant urine samples to test the arsenic levels. They found that urinary arsenic concentrations were higher for children who ate infant rice cereal or snacks than for those who did not.

She also noted that the researchers tested for arsenic levels in some of the more commonly reported rice snacks and found most of them contained higher levels of inorganic arsenic.

"Inorganic arsenic exposure has been linked to cancer as well as other health problems such as neurological, cardiovascular, respiratory and metabolic diseases," said one of the doctors from the Institute for Global Food Security at Queen’s University Belfast in Northern Ireland. “This is of particular concern for young children, who are more sensitive to adverse health effects of inorganic arsenic and consume higher amount of inorganic arsenic from food

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compared to adults per kilogram of body weight,� said another expert. He, therefore, urged to reduce exposure by establishing maximum limits of inorganic arsenic in rice and rice-based products.

The EU currently limits the maximum limit of inorganic arsenic in infant cereal to 100 parts per billion. The U.S. Food and Drug Administration (FDA) is also proposing for establishing the limit of 100 parts per billion.

Thai Irrigation Department Advises Farmers to Delay Planting for 2016 Main Rice Crop Until July Apr 26, 2016

The Thai Department of Royal Irrigation (RID) has advised farmers to delay planting for the 2016 main rice crop until July as the water in the Chao Phraya River basin is insufficient to feed the rice farms in the early rainy season next month, according to Bangkok Post.

The RID Director-General told reporters that water levels are low in the four dams in the Chao Phraya River basin. He said farmers should begin planting when the rainy season is in full swing in July. "The Meteorological Department will make an announcement when it is time for rice planting," he said.

He noted that though the Department is confident that there will be sufficient water reserves in the irrigation zone during the rainy season, it is assessing whether the water collected will be sufficient til the second crop.

The RID has urged farmers to suspend rice planting if their land is not served by irrigated water and switch to drought-resistant crops.

The Agriculture Ministry is expecting the country to produce 27 million tons of paddy from 62 million rai (around 9.92 million hectares), including 3.16 million tons from the second crop.

The Agriculture Minister noted that the Ministry is planning to propose to the Cabinet for reducing the fertiliser prices, offering quality rice seeds and providing low-interest loans to farmers.

ORYZA News have been published with permission of ORYZA.com with thanks

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