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Daily October 28, 2014
Exclusive ORYZA E-Newsletter
DAILYCompiled EXCLUSIVE ORYZA E-NEWSLETTER & Edited by Riceplus Magazine October 28, 2014
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October 28, 2014
DAILY EXCLUSIVE ORYZA E-NEWSLETTER News Headlines… Bangladesh Plans to Procure 300,000 Tons of 201415 Aman Rice Global Rice Quotes Ghana Adopts Briquetting Technology to Boost Rice Production Guyana Rice Exports Sector Can Survive Even without Venezuela's PetroCaribe Deal, Says Agriculture Minister India, Pakistan Rice Sellers Decrease Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Regional Rice Program Planned for Africa Oryza Afternoon Recap - Chicago Rough Rice Futures Tumble despite Rally in Grain Markets Nigeria Steps up Efforts to Boost Rice Production Oryza U.S. Rough Rice Recap - Silent Market ahead of Nasty Weather; USDA Estimates 96%
of Crop Harvested Oryza Overnight Recap - Chicago Rough Rice Futures Little Changed despite Support from Rising Grains
Chinese COLOR SORTER as low as Pak Rs 22 Lakh Only A Time Limited Offer Cell: 0300 414 3493
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DAILY EXCLUSIVE ORYZA E-NEWSLETTER News Detail‌
Bangladesh Plans to Procure 300,000 Tons of 2014-15 Aman Rice Oct 27, 2014
The Bangladesh government has decided to procure around 300,000 tons of rice from the ongoing Aman crop (April December), according to local sources.The government has increased the procurement price to around Tk 32 per kilogram (around $412 per ton) from around Tk 30 per kilogram (around $387 per ton) last year due to increase in production costs. The government fixed the production costs for husked rice (milled rice) at around Tk 28 per kilogram (around $355 per ton), up about 10% from around Tk 25.42 per kilogram (around $322 per ton). Aman rice procurement will go on from November 15, 2014 to February 28, 2015. According to Bangladesh's Directorate General of Food (DGF), the government is planning to procure a total of 1.5 million tons of rice locally during FY 2014-15 (July - June). The government targets around 12.996 million tons of rice from the Aman crop.Meanwhile the Bangladesh government, which last week said that it was waiting for Sri Lank's consent over export price, today announced that the government will export 50,000 tons of rice to Sri Lanka at about $450 per ton following a meeting with the Food Planning and Monitoring Commission, according to local sources. The Minister told local reporters that the government will sign a government-to-government (G2G) contract with Sri Lanka over the next ten days. Bangladesh government, which extended a ban on its non-aromatic rice exports to FY 2014-15 (July - June) to ensure food security in the country, had agreed to export 50,000 tons of rice to Sri Lanka as its rice production this year is likely to be impacted by a severe drought. 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 1.145 million tons of rice stocks as on October 26, 2014, up about 50% from stocks of about 762,000 tons Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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during same pariod last year.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’s MY 2014-15 (July 2014 – June 2015) milled rice production to slightly increase to about 34.6 million tons from an estimated 34.39 million tons in MY 2013-14. It estimates Bangladesh to import 678,000 tons of rice in 2014 and around 500,000 tons of rice in 2015. Tags: Bangladesh rice procurement, Bangladesh rice stocks, Bangladesh rice exports
Global Rice Quotes October 27th, 2014 Long grain white rice - high quality Thailand 100% B grade 435-445 Vietnam 5% broken 440-450 ↔ India 5% broken 415-425 ↔ Pakistan 5% broken 390-400 ↓ Cambodia 5% broken 465-475 ↔ U.S. 4% broken 440-450 ↔ Uruguay 5% broken 595-605 ↔ Argentina 5% broken 595-605 ↔ Long grain white rice - low quality Thailand 25% broken NQ ↔ Vietnam 25% broken 400-410 ↔ Pakistan 25% broken 345-355 ↓ Cambodia 25% broken 450-460 India 25% broken 370-380 ↔ U.S. 15% broken 510-520 ↔
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Long grain parboiled rice Thailand parboiled 100% stxd 420-430 Pakistan parboiled 5% broken stxd 425-435 India parboiled 5% broken stxd 400-410 U.S. parboiled 4% broken 580-590 ↔ Brazil parboiled 5% broken 585-595 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 925-935 Vietnam Jasmine 575-585 ↔
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India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Malis 880-890 Brokens Thailand A1 Super 340-350 ↔ Vietnam 100% broken 335-345 Pakistan 100% broken stxd 320-330 Cambodia A1 Super 360-370 ↔ India 100% Broken stxd 320-330 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
Ghana Adopts Briquetting Technology to Boost Rice Production Oct 27, 2014
As part of its efforts to increase rice production and reduce dependence on imports, the Ghanaian government has adopted briquetting technology of fertilizer application, which helps farmers to provide adequate nutrients to rice plants and thereby increase yields, according to local sources.In the briquetting technology, periled urea/fertilizer is converted into pallets, which can be inserted among rice plants so that they receive the right amount of fertilizer. Usually one pallet is inserted between four rice plants. The briquetting technology has been introduced along with the deep placement technology to around 2,000 rice farmers in the Northern and upper East regions. The technology has been introduced to the Ghana rice farmers by the Feed the Futute United States Agency for International Development (USAID) under its Agriculture Technology Transfer project in collaboration with a private fertilizer supplying company in Ghana.The chief operator of technology at the private company told local sources that under traditional fertilizer application method, nearly 60% of the urea applied would be washed away or lost through
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leaching or evaporation. The briquetting technlogy would prevent such fertilizer losses.Ghana produces only 35% of the required demand of around 975,000 tons and imports the rest. Ghana's annual rice import bill stood at $306 million in 2013 and the government is planning to increase rice production by about 20% per annum over the next four years to make Ghana self-sufficient in rice. It is targeting at least 13% surplus rice production by 2018. The government has also sought technical support from Turkey, India and the Dutch to increase rice production in the country. It also developed a national rice seed map (NRSRM) to ensure self-sufficiency in quality rice seed production by 2018.According to the USDA, Ghana’s rice production is estimated at about 330,000 tons (milled basis) in MY 2014-15 (October September). The U.S. agency expects Ghana to import 620,000 tons of rice during the year to meet consumption needs of around one million tons of rice. Tags: Ghana rice production, Ghana rice imports briquetting technology, fertilizer application
Guyana Rice Exports Sector Can Survive Even without Venezuela's PetroCaribe Deal, Says Agriculture Minister Oct 27, 2014 Guyana, which has been very dependent on Venezuela to enhance its rice exports till recently, is now confident of surviving in the international market without much dependence on its neighboring country, according to local sources.Guyana renewed the existing oilfor rice deal (also known as PetroCaribe Energy Cooperation Agreement) with Venezuela this year to supply around 110,000 tons of white rice and around 88,000 tons of paddy to the neighboring country this year. But owing to uncertain political conditions in Venezuela, experts have been expressing concerns whether the PetroCaribe deal would continue. Guyana has been searching for newer markets to export its surplus rice to reduce dependence on Venezuela. Along with traditional markets like Venezuela, Jamaica and Europe, the country Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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sealed new contracts with Panama, Guatemala and Nicaragua. According to the country's Agriculture Minister, the South American nation has exported around 401,000 tons of rice as of October 21, 2014 and still has export commitments of around 137,000 tons before the year-end. He noted that the country's exports are likely to cross 500,000 tons mark in 2014. He also expressed confidence that the country's rice production would be over 600,000 tons this year. With so much development on the export front, the Agriculture Minister told local sources that the country's rice exports are in a position to survive even if the PetroCaribe rice for oil agreement with Venezuela falls through. Venezuela's oil exports are expected to decline to around $20 billion from around $35 billion due to fall in oil prices from around $100 per barrel to the current $82.70 per barrel. In this background, experts say Venezuela may be forced to withdraw its PetroCaribe deal.The South American country exports about 70% of its annual rice production and has been in search of lucrative destinations for its rice exports. Last month, Guyana has signed a five-year rice export deal with Panama to supply 5,000 tons of rice per month beginning September to Panama. However, Guyana rice exporters and millers say Venezuela is a lucrative market for Guyanese rice and also pays comparatively higher prices that the European and Caribbean countries.Guyana produced around 535,000 tons of rice and exported around 395,000 tons in 2013, according to the Agriculture Minister.USDA estimates the country to produce 570,000 tons of milled rice in the MY 2014-15 (January 2014 - December 2014) and export about 450,000 tons. The country's consumption needs during the year are estimated at 145,000 tons. The UN's Food and Agriculture Organization (FAO) estimates Guyana to produce 570,000 tons of milled rice and export around 460,000 tons in 2014. Tags: Guyana Rice Sector, Guyana rice exports, Guyana rice production
India, Pakistan Rice Sellers Decrease Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Oct 27, 2014
India rice sellers decreased their quotes for parboiled rice by about $5 per ton to around $400 $405 per ton from Friday. Pakistan rice sellers decreased their quotes for 5%, 25% and 100% broken rice by about $5 per ton each to around $390 - $400 per ton, around $345 - $355 per ton Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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and around $320 - $330 respectively. Other Asia rice sellers kept their quotes mostly unchanged today. 5% Broken Rice Thailand 5% rice is quoted at around $420 - $430 per ton, about $20 per ton discount to Vietnam 5% rice shown at around $440 - $450 per ton. India 5% rice is quoted at around $415 - $425 per ton, about $25 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 $50 per ton discount to Vietnam 25% rice shown at around $400 - $410 per ton. India 25% rice is quoted at around $370 - $380 and about $25 per ton premium on Pakistan 25% rice quoted at around $345 - $355 per ton. Parboiled Rice Thailand parboiled rice is quoted at around $420 - $430 per ton. India parboiled rice is quoted at around $400 - $410 per ton about $25 per ton discount to Pakistan parboiled rice quoted at around $425 - $435 per ton. 100% Broken Rice Thailand broken rice, A1 Super, was last quoted about $340 - $350 per ton, about $5 per ton premium on Vietnam 100% broken rice shown at around $335 - $345 per ton. India's 100% broken rice is shown at around $320 - $330 per ton on par with Pakistan broken sortexed rice. Tags: India rice prices, pakistan rice prices, Thailand rice prices, Vietnam rice prices
Regional Rice Program Planned for Africa Oct 27, 2014
The UN's Food and Agriculture Organization (FAO) and Africa Rice Center (AfricaRice) are planning to develop a regional rice program for Africa with the support of the Coalition of African Rice Development (CARD), according to a news release on the AfricaRice website.The program will seek to synergize efforts of the FAO and AfricaRice to build a broad partnership Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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with governments, the private sector, research institutions, producer organizations and donors to develop an vibrant rice-growing sector in the continent. The Deputy Director of AfricaRice explained the modalities of the expected regional rice program to the delegates of the FAO. He noted the AfricaRice, a pan-African organization of 25 member o has "tremendous leveraging capacity for rice research, development and training." AfricaRice Director of Partnership and Capacity added that the program will help to build more coherent rice development efforts in Africa. AfricaRice has been instrumental in developing and launching several high-yielding rice varieties under the 'ARICA' brand as well as providing small-scale, locally adapted postharvest machinery and processing equipment to African rice farmers. The FAO Assistant Director-General and Regional Representative for Africa said, “AfricaRice has excellent research findings and innovation to out-scale and replicate in countries across Africa.” He added that the FAO seeks to support AfricaRice in stimulating national, regional and global partnerships to develop Africa’s rice sector, as part of the efforts of CARD and under the overall framework of the Comprehensive Africa Agriculture Development Programme (CAADP) according to a Declaration of the Third Africa Rice Congress held last October. Most of the African countries are net importers of rice and are keen on increasing local rice production and cut down on imports. The new regional rice development program may be a milestone in that regard. Tags: AfricaRica, FAO, Regional Rice Program
Oryza Afternoon Recap - Chicago Rough Rice Futures Tumble despite Rally in Grain Markets Oct 27, 2014
Chicago rough rice futures for Nov delivery settled 17 cents per cwt (about $4 per ton) lower at $12.235 per cwt (about $270 per ton). Rough rice futures tumbled today despite rallying grains Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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in neighboring pits. The market was unable to capture any spillover support and continued lower as the technical outlook remains bearish. The other grains shot higher today, led by huge gains for soy products with meal rocketing over 7.5% higher today; Soybeans closed about 2.9% higher at $10.0600 per bushel; wheat finished about 1% higher at $5.2375 per bushel, and corn finished the day about 2.8% higher at $3.6300 per bushel. U.S. stocks drifted lower on Monday, retreating after the market's best week of the year, after the cost of crude fell to a two-year low and investors sorted through quarterly earnings and globalgrowth concerns. The European Central Bank on Sunday said about one in five of the euro-area major lenders failed stress tests at the end of 2013, but most have since fixed their finances. After a 75-point drop and 31-point gain, the Dow Jones Industrial Average was lately off 3.43 points to 16,801.98. The S&P 500 declined 4.61 points, or 0.2%, to 1,959.97, with energy the weakest sector and telecommunications faring best among its 10 major industries. The Nasdaq shed 5.34 points, or 0.1%, to 4,478.19. Gold is trading about 0.2% lower, crude oil is seen trading about 0.2% lower, and the U.S. dollar is seen trading about 0.3% lower at about 1:50pm Chicago time. Friday, there were 2,164 contracts traded, up from 1,722 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 82 contracts to 10,371. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market
Nigeria Steps up Efforts to Boost Rice Production Oct 27, 2014 The Nigerian government, which is keen on increasing local rice production and ban imports by the end of 2015, is stepping up efforts in that direction, according to local sources.In a latest development, the Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with the Bank of Industry (BOI) to enhance rice milling capacity in the country. According to the MoU, the BOI will provide funds of about N13.6 billion (around $82.3 million) to the government to invest in nearly ten medium sized rice mills and six high quality cassava mills across the country.
The CEO of the BOI told local sources that the funds will aid the government to successfully take forward the agricultural transformation agenda (ATA), under which it aims to become selfRiceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874
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sufficient in rice production by 2015. He noted that the government has been taking several initiatives to increase rice production in the country and there has been significant increase in production this year. However, the set up of ten medium-sized rice mills would strengthen the rice processing industry in the country. Under the MoU, the government plans to set up rice mills each with a rice milling capacity of 36,000 tons and sell them to private parties who can run them efficiently. These mills are likely to be located in the states of kebbi, Zamfara, Kaduna, Kano, Benue, Kogi, Bayelsa, Bauchi, Ogun and Anambra. The Agriculture Minister added that the government has been effectively dealing with the private sector to boost rice production in the country. He noted that the government could attract nearly $1.6 billion investment into the rice sector over the last three months. With the current investment, the government would be able to achieve its rice-sufficiency target and even be able to export rice within the next three years. Nigeria is a net importer of rice and imports over 50% of its annual rice consumption needs. USDA estimates the country to produce 2.55 million tons of milled rice in the MY 2014-15 (October 2014 - September 2014) and import about 3.5 million tons. The country's consumption needs during the year are estimated at around 6.1 million tons. Tags: Nigeria rice production, nigeria rice imports
Oryza U.S. Rough Rice Recap - Silent Market ahead of Nasty Weather; USDA Estimates 96% of Crop Harvested Oct 27, 2014
The U.S. cash market was silent today as many farmers in the Arkansas were busy in their fields either working ground or harvesting their crops ahead of a big storm in the forecast tomorrow. As of today, offers remain firm near $12.50-$12.75 per cwt fob farm (about $276-$281 per ton) while bids were unchanged near $12.15-$12.45 per cwt (about $268-$274 per ton) for November delivery; however, there was limited selling interest at these levels.
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In the meantime, the USDA estimates that as of Oct 26, 96% of the U.S. rice crop has been harvested which was 5% greater than the previous 5-year average. As of now, the USDA estimates that 95% of the rice crop in Arkansas has been harvested compared to 95% in California, 100% in Louisiana, 96% in Mississippi, 91% in Missouri, and 100% in Texas. Tags: U.S. rice prices, U.S. rice market
Oryza Overnight Recap - Chicago Rough Rice Futures Little Changed despite Support from Rising Grains Oct 27, 2014
Chicago rough rice futures for Nov delivery are currently noted 1 cent per cwt (about $0.22 per ton) lower at $12.395 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 0.7% higher, wheat is listed about 0.6% higher and corn is noted about 1.2% higher. U.S. stocks moderated Monday losses, with the Dow Jones Industrial Average rising, after the cost of crude fell to a two-year low and investors sorted through quarterly earnings that included Merck & Co. narrowing its outlook for the full year. In a report released late Sunday, Goldman Sachs cut its 2015 outlook for oil prices, saying it expects U.S. benchmark West Texas Intermediate crude to drop to $75 a barrel and Brent to $85 a barrel in the first quarter of 2015. A read of existinghome sales had them holding virtually flat in September. The National Association of Realtors reporting signed contracts to buy existing home rose only 0.3% last month from August. German business sentiment declined in October for a sixth consecutive month, increasing worries about Europe's biggest economy. Bouncing back from a 75-point deficit, the Dow Jones Industrial Average was lately up 19.30 points, or 0.1%, at 16,824.71. The S&P 500 declined 1.70 point, or 0.1%, to 1,962.88, with energy the weakest sector and telecommunications faring best among its 10 major industries. The Nasdaq shed 1.19 point to 4,482.58. Gold is currently trading about 0.3% lower, crude oil is seen trading about 0.8% lower, and the U.S. dollar is currently trading about 0.3% lower at 9:45am Chicago time. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market
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