30th July, 2014
Daily Exclusive ORYZA E-Newsletter by Riceplus Magazine
Asia Rice Quotes Unchanged Today Jul 29, 2014
Asia rice sellers kept their quotes mostly unchanged today. 5% Broken Rice Thailand 5% rice (of new crop) is quoted at around $430 - $440 per ton, about $30 per ton discount to Vietnam 5% rice quoted at around $460 - $470 per ton. India 5% rice is quoted at around $435 - $445 per ton, on par with Pakistan 5% rice quoted at around $435 - $445 per ton. 25% Broken Rice Thailand 25% rice (of the old crop) was last quoted at around $350 - $360 per ton, about $55 per ton discount to Vietnam 25% rice quoted at around $405 - $415 per ton. India 25% rice is quoted at around $390 - $400 per ton, about $15 per ton premium on Pakistan 25% quoted at around $375 - $385 per ton. Parboiled Rice Thailand parboiled rice (of the old crop) is quoted at around $440 - $450 per ton. India parboiled rice is quoted at around $420 - $430 per ton, about $30 per ton discount to Pakistan parboiled rice quoted at around $450 $460 per ton. 100% Broken Rice Thailand broken rice, A1 Super, (of the old crop) was last quoted at around $310 - $320 per ton, about $45 per ton discount to Vietnam broken rice quoted at around $355 - $365 per ton. India broken sortexed rice is quoted at around $315 - $325 per ton, about $10 per ton discount to Pakistan broken sortexed rice quoted at around $325 - $335 per ton.
Iran Increases Import Duty on Basmati Rice to 40% Jul 29, 2014
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
Iran has increased the import duty on basmati rice to 40% from 22% on July 23, 2014, a move that could severely impact India's basmati rice exports to Iran, according to local sources.A senior official at the All India Rice Exporters Association (AIREA) told local media sources that the move is part of Iran's attempts to gradually discourage imports and become self-sufficient in rice production. But it would be a major blow to Indian basmati rice exports to Iran, he added. Indian basmati rice exports to the Middle East nation have temporarily slowed down since March this year following its revision of accepted level of arsenic in basmati rice from 150 parts per million (ppm) to 120 ppm. Iranian authorities have been asking Indian exporters to specify the level of arsenic on each pack for each traceability. They have also been seeking certifications from multiple global agencies regarding exact level of arsenic in Indian basmati rice. Indian authorities have been trying to adhere to their requirements, but getting certifications from various organizations is delaying thins, said the Commerce Ministry officials.
Iran is an important destination for India's basmati rice and constitutes about 30% of India's total basmati rice exports. Local sources say it is uncertain as to when India' basmati exports to Iran would pick up. Pakistan is another supplier of basmati rice apart from India. Pakistan's plans to sell basmati rice to Iran in exchange of electricity under barter system are still not finalized under a formal agreement with Iran. Indian exporters say the agreement even if formalized may not impact India's basmati rice exports to Iran as Pakistan has lower stocks. India exported around 1.44 million tons to Iran in FY 2013-14 (April - March), which is around 36% of India's total basmati rice exports of around 4 million tons during the period, according to data from Agricultural and Processed Food Products Export Development Authority (APEDA). India's total rice exports, including nonbasmati exports, stand at around 10.5 million tons in FY 2013-14, up about 3% from around 10.2 million tons exported in FY 2012-13, according to APEDA.
Brazil Paddy Rice Index Slightly Down From Last Week Jul 29, 2014
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
The Brazilian paddy rice index maintained by CEPEA reached at about 35.76 real per 50 kilograms as of July 28, 2014, down about 0.5% from about 35.93 real per 50 kilograms recorded on July 21, 2014. In terms of USD per ton, the index reached at about $322 per ton on July 28, 2014, down about 0.4% from about $323 per ton recorded on July 21, 2014.
Oryza Afternoon Recap - Chicago Rough Rice Futures Bounce Higher to Close above $13.000 despite Negativity in Other Grains 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
Jul 29, 2014
Chicago rough rice futures for Sep delivery settled 20.5 cents per cwt (about $5 per ton) higher at $13.130 per cwt (about $289 per ton). Rough rice futures bounced higher today after trading below $13.000 per cwt (about $287 per ton) over the past few sessions. Today’s move is viewed as a positive development and is seen as a confirmation of yesterday’s reversal signal. Look for a continuation higher as further confirmation and a sign that the market is looking to recover from recent losses. The other grains finished the day sharply lower, led by an over 2.75% slide in wheat; soybeans closed about 1.2% lower at $10.9500 per bushel; wheat finished about 2.8% lower at $5.2000 per bushel, and corn finished the day about 1.5% lower at $3.7100 per bushel. U.S. stocks resumed their advance on Tuesday, lifting the Dow back above 17,000, as upbeat earnings from corporations and a report on consumer confidence overcame geopolitical concerns. The Conference Board's measure of consumer confidence came in at 90.9 in July, the highest reading since October 2007. U.S. singlefamily home prices climbed more than expected in May, although the pace of monthly increases showed signs of slowing, according to the S&P/Case-Shiller composite index of 20 metropolitan cities. Stocks had turned negative after European Union governments reached agreement on economic sanctions against Russia in what one strategist called a "knee-jerk" reaction to headlines related to the crisis in the Ukraine. The EU moved to reduce Russia's ability to tap into bank financing and advanced technology in the most expansive sanction so far over Russia's support of rebels fighting in Eastern Ukraine. After a nearly 74-point climb that lifted it above 17,000, the Dow Jones Industrial Average fell as much as 26 points before reverting back to gains, lately up 17.79 points, or 0.1%, at 17,000.38. The S&P 500 climbed nearly a point to 1,979.67, with utilities hardest hit and telecommunications pacing sector gains among its 10 major industry groups. The Nasdaq rose 15.13 points, or 0.3%, to 4,460.04. Gold is trading 0.4% lower, crude oil is seen trading about 0.9% lower, and the U.S. dollar is seen trading about 0.2% higher at about 1:00pm Chicago time.Monday, there were 376 contracts traded, down from 637 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday increased by 91 contracts to 8,721.
Oryza Rice Currency Analysis for Today – Mexico Peso Drops 0.5% Jul 29, 2014
U.S. dollar index was stronger +0.23% from the open today, when it traded at 81.208 at the close. Euro was weaker -0.22% by the close, trading around 1.3410 by end of day, after trading between an intraday high of 1.3444 and low of 1.3404. Thai baht was -0.13% weaker, trading at 31.850 at the close of business. Indian rupee was unchanged at 60.1375. Brazilian real was weaker -0.37% at 2.2307 reais per dollar. Pakistan rupee was -0.05% weaker at 98.8380.
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
Vietnamese dong was weaker -0.01% at 21230. Mexican peso was weaker -0.49% today, when it traded at 13.0683 pesos per dollar by the close of business. Chinese yuan was stronger +0.09% at 6.1816. Argentine peso was weaker -0.09% at 8.1910 pesos per dollar.
Oryza Overnight Recap - Chicago Rough Rice Futures Attempt to Recover after Dip below $13.000; Grains Remain on the Defensive as Growing Conditions Look Positive Jul 29, 2014
Chicago rough rice futures for Sep delivery were noted 5 cents per cwt (about $1 per ton) higher at $12.975 per cwt (about $286 per ton) during early trading in Chicago. The other grains are seen lower this morning ahead of floor trading in Chicago: soybeans are currently seen about 0.9% lower, wheat is listed about 0.4% lower and corn is noted about 0.7% lower. U.S. stock-index futures rose on Tuesday after a gauge of home prices came in better than expected, as investors reacted to positive earnings a day ahead of a U.S. Federal Reserve policy decision. The Fed's regular monetary policy announcement is due on Wednesday, with the central bank expected to cut monthly asset purchases by another $10 billion to $25 billion. U.S. second-quarter gross domestic product figures will also be announced during the day. Tuesday will be a big day for both U.S. and European second-quarter earnings, with around 45 S&P 500 companies due to report. Russia-Ukraine turmoil remains in focus, after President Barack Obama and European leaders on Monday announced another round of sanctions against Moscow, with the penalties targeting the country's financial, defense and energy sectors. Asian stocks rose for a second session on Tuesday on hopes that growth in the world's second-biggest economy has stabilized. Investors have turned increasingly optimistic on China in recent sessions on improving economic data such as HSBC's July factory activity report. With that in mind, they will eye China's official purchasing manager's index, due later this week. US stock index futures are currently seen about 0.1% higher, gold is currently trading about 0.5% higher, crude oil is seen trading marginally 0.9% lower, and the U.S. dollar is currently trading about 0.1% higher at 9:30am Chicago time.
Japan Issues Tender to Buy 9,703 Tons of Rice from Thailand Jul 29, 2014
Japan has issued a tender today to buy 9,703 tons of long-grain rice from Thailand, according to official sources.
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
Japan seeks to buy 6,700 tons of non-glutinous milled (long-grain) rice and 3,003 tons of glutinous milled (long-grain) rice from Thailand for delivery between October 1, 2014 to November 10, 2014.
One EU Company Views Cambodia as an Opportunity in Rice Trade, Not a Competitor Jul 29, 2014
Cambodia’s recent rise on the global rice export market is viewed as a problem for European rice growing sector by many European firms; however, some consider it a good opportunity. This is the opinion of Alesie Food, a Dutch company operating in many rice growing countries worldwide. In June they have signed an agreement with a local company, Signature of Asia Co Ltd. for building a milling plant there under the name of Asia Parboiled Rice Producers Co. Ltd. We put some questions to Mr Bart Rouwers, Managing Director of Alesie Food: Oryza: Which kind of opportunity you see in Cambodia? Mr. Rouwers: Cambodia has good opportunities in producing and exporting rice. Due to duty free access to the EU Cambodia became competitive against other countries that before were exporting to the EU. For example, Guyana and Surinam normally exported 50% of their production to the EU; now it is only 10%: the rest of the market share was lost to Cambodia. Oryza: Which kind of plant are you going to build there? Mr. Rouwers: We are building a parboiled rice plant. Oryza: I noticed that as Alesie is already operating in the most important rice producing countries in the world; your joint venture means that Cambodia is becoming one of the big players, in international rice trade? Do you see any possibility to enter other important markets? Mr. Rouwers: Cambodia is not a big player in the world market of rice. EU is only importing 600,000 metric tons of long grain rice per year. The total worldwide trade (import/export) is 35 million tons. But Cambodia will become more important in exporting rice for itself. Prior to this agreement Cambodia exported mainly paddy rice to neighbouring countries who would than re-export. Other important new markets for Cambodia will be other Asian countries; some export of jasmine rice to African countries will also be possible. At the moment, the EU is one of the most important customers of Cambodian rice. Oryza: Do you think your help will improve current situation of Cambodian sector, which at the moment is lacking in technologies and organization?
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
Mr. Rouwers: For sure our help and investment will improve the current situation in Cambodia who has no or very limited experience in parboiling of rice.
Philippines Uses Old Practice of Rice Terraces in Hopes of Future Self-Sufficiency Jul 29, 2014
Agricultural officials in the Philippines are exploring novel means to increase rice production in the country and achieve self-sufficiency in rice. Lately, they are planning to build rockwall rice terraces in various mountain areas, which receive flowing water from springs abundantly, with the help of respective communities of indigenous people living in those areas. The Department of Agriculture (DA) have tried the concept of rice terraces in North Cotabato region last year. The DA-12 Regional Executive Director (ED) noted that the project has been started with the intention to provide permanent source of staple food that would encourage them to stay at one place and cultivate rice rather than moving elsewhere in search of root crops. She noted that these indigenous people need not have to travel down to plains to buy rice any more. The DA-12 ED added that some private companies are coming forward to help the farmers marketing their paddy.The Agricultural Secretary noted that the DA is planning to replicate these rice terraces in various other parts of the country, adding that the project would significantly contribute to the country's rice production and help it achieve rice self-sufficiency in three years. Work on the rice terraces is likely to be completed this year or early next year, according to the DA officials.
Oryza Global Rice Quotes July 29th, 2014 Long grain white rice - high quality Thailand 100% B grade 445-455 Vietnam 5% broken 460-470 India 5% broken 435-445 Pakistan 5% broken 435-445 Cambodia 5% broken 450-460 U.S. 4% broken 550-560 Uruguay 5% broken 625-635 Argentina 5% broken 620-630
↔ ↔ ↔ ↔ ↔ ↔ ↔ ↔
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
Long grain white rice - low quality Thailand 25% broken NQ ↔ Vietnam 25% broken 405-415 Pakistan 25% broken 375-385 Cambodia 25% broken 425-435 India 25% broken 390-400 U.S. 15% broken 530-540
↔ ↔ ↔ ↔ ↔
Long grain parboiled rice Thailand parboiled 100% stxd 440-450 ↔ Pakistan parboiled 5% broken stxd 450-460 India parboiled 5% broken stxd 420-430 ↔ U.S. parboiled 4% broken 630-640 ↔ Brazil parboiled 5% broken NQ ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 1000-1010 Vietnam Jasmine 615-625 ↔ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Malis 835-845 ↔ Brokens Thailand A1 Super NQ ↔ Vietnam 100% broken 355-365 ↔ Pakistan 100% broken stxd 325-335 Cambodia A1 Super 350-360 ↔ India 100% Broken stxd 315-325 Egypt medium grain brokens NQ ↔ U.S. pet food 470-480 ↔ Brazil half grain NQ ↔
↔
↔
↔ ↔
All prices USD per ton, FOB vessel, oryza.com
Oryza U.S. Rough Rice Recap - Price Ideas Little Changed as Harvesting Gets Underway 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
Jul 29, 2014
As of today, old crop offers were unchanged near $15.25 per cwt fob farm (about $336 per ton) for August shipment while others have ideas closer to $16.00 per cwt fob farm (about $355 per ton) in mind.Bids from exporters held steady around $14.25 per cwt (about $314 per ton) for August delivery while some smaller mills are reportedly paying around $16.00 per cwt (about $353 per ton) for the same delivery period; however, no trades were reported.As for new crop, trade activity remains very thin as sellers are looking to net around $13.33 per cwt fob farm (about $294 per ton) while buying interest is closer to $12.85-$13.25 per cwt (about $282-$292 per ton) for September-October shipment. Tags: U.S. rice prices; U.S. rice market
Philippine President Backs NFA Rice Import Plans Jul 29, 2014
Supporting the recent rice importation plans by the state-run National Food Authority (NFA), the Philippine President Benigno Aquino yesterday declared that the NFA has been authorized to import rice in times of need, according to Bloomberg.In his annual 'State of the Nation' address, the President noted that the NFA has "standby authority" to import rice for maintaining adequate stocks as well as controlling unnecessary price hikes. He clarified that the NFA can import rice in preparation for possible calamities. The President's declaration comes ahead of the NFA's likely open bidding for around 500,000 ton rice imports on August 12, 2014. He noted that the government is keen on importing sufficient amounts of rice to curb surging retail rice prices. Imports will help controlling hoarding by some traders as well as releasing more stocks into the domestic market, he added. The imports are to boost declining stockpiles after Typhoon Glenda damaged several hectares of rice area in the country, according to the Presidential Assistant for Food Security. He noted that as of last week, rice inventories held by the NFA, private sector and households were enough for 83 days of national consumption, which is below the norm of 90-day buffer stock. Average domestic rice prices in the Philippines have also reached record high during the first six-month period of 2014, highest since January 2011. The average wholesale price of well-milled rice in the Philippines increased to about P38.64 per kilogram (around $871 per ton) in January June 2014, up about 18% from about P32.83 per kilogram (around $797 per ton) during the same period in 2013, according to the Philippines Bureau of Agricultural Statistics (BAS). Average wholesale price of regularmilled rice increased to about P35.90 per kilogram (around $809 per ton) in January - June 2014, up about 20% from about P29.86 per kilogram (around $725 per ton) during the same period in 2013. With the current importation plan, the Philippines rice imports will reach around 1.3 million tons in this year and are expected to cross 2 million tons including some 300,000 tons from last year’s imports. The next month tender is open to rice exporters in other countries including Vietnam, Thailand and Cambodia.USDA estimates the Philippines to import around 1.45 million tons of rice in 2014, including 250,000 tons of unofficial imports.
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
Thailand Steps Up Efforts to Regain Market Share in Major Markets Jul 29, 2014
Thai Commerce Ministry and rice exporters are charting out plans to regain market share in major rice importing countries such as China, Malaysia, Indonesia and the Philippines, according to local sources. The Thai Rice Exporters Association (TREA) and the Foreign Trade Department are holding discussions over handling sales of rice from 2014-15 main crop. They are reportedly focusing on increasing sales to China, Malaysia, Indonesia and the Philippines. The Honorary President of the TREA told local media sources that the Commerce Ministry would focus on government-to-government (G2G) sales and would support the private sector to supply the requisite amount of rice. He added that the private sector would also be involved in leading negotiations with Indonesia and the Philippines.The Director-General of Foreign Trade Department (DG-FTD) said a Thai delegation would visit China this week to discuss over the completion of one million-ton contract. Thailand has so far exported only 100,000 tons of rice to China under the contract.The National Council for Peace and Order (NCPO) Chief has instructed Commerce Ministry officials to plan for substantial release of rice stocks in the government warehouses for domestic sales as well as exports. Meanwhile, the Deputy leader in charge of economic affairs of the NCPO, who was overseeing the inspection process of rice stocks, said inspection of about 72% of the total 1,787 warehouses in the country has been complete and nearly 80% of rice met the quantity and quality figures stated in official records. The NCPO is keen on recommencing rice sales from August.According to data from the TREA, Thailand exported around 2.94 million tons of rice in the first four months of 2014, up about 48% from around 1.985 million tons exported during the same period last year. TREA estimates Thailand to export around 9 million tons of rice in 2014, up about 34% from around 6.7 million tons exported in 2013.
Vietnam Increases Floor Price of Low Grade Rice Exports to $410 per Ton Jul 29, 2014
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
The Vietnam Food Authority (VFA) has increased the minimum support price (MEP) of its low grade or 25% broken rice exports to $410 per ton (Free-On-Board basis), up about 9% from the current $375 per ton, according to local sources.The new MEP is effective from July 28, 2014, according to sources at the VFA.The move coupled with increasing demand for rice from the Philippines, Indonesia and China is likely to push up global rice export prices. It comes ahead of the Philippines open tender for 500,000 tons of rice on August 12, 2014.Already, local rice prices in Vietnam have been increasing due to increased demand from exporters to fulfil export contracts with the Philippines, Indonesia and Malaysia between August and December this year. Vietnam exported around 3.345 million tons of rice during January 1 - July 22, 2014, down about 18% from about 4.1 million tons of rice exported in first seven months of last year, according to data from the VFA. Average rice export price so far in this year stands at about $432 per ton (FOB), up about 1% per ton from about $429 per ton recorded during same time in last year.Vietnam targets to export around 6.2 million tons of rice in 2014. USDA estimates Vietnam to export around 6.5 million tons of rice in 2014, down about 3% from around 6.7 million tons exported in 2013.
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