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TOP Contents - Tailored for YOU 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
Latest News Headlines…
Did Thailand Become the World's Leading Rice Exporter through following a Free Trade policy? European Rice Sector Will Shrink without Trade Barriers, Says Head of Farmers Union Oryza Afternoon Recap - Chicago Rough Rice Futures Unable to Capture Support from Rising Grains Oryza U.S. Rough Rice Recap - Uneventful Market amid Limited Trade; USDA Reports Export Sales up 62% from Prior 4-week Average Asia Rice Quotes Unchanged Today Global Rice Quotes Better Rice Apps Mean Better Insights, Better Yields Thailand Rice Production Declining amid Low Prices, Insufficient Water Rice Acreage, Production, and Consumption are Declining in Spain
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Did Thailand Become the World's Leading Rice Exporter through following a Free Trade Policy? Oct 02, 2014
There is a myth which exists that up until the end of the 20th century, before the Thaksin administration came into power, that Thailand was a pillar of free trade in international rice markets, and that this explains Thailand’s dominance as the world’s leading rice exporter since the Second World War. This is simply not correct.It is true that Thailand went through a long period of following free trade policies, but this was before Thailand became a leading rice exporter. In fact, Thailand only became the leading rice exporter once it abandoned free trade policies. Thailand’s free trade policy goes back to more than 150 years ago to 1855 when the King of Thailand had little choice but to sign the Bowring Treaty with the British Empire if it wanted to avoid the fate of colonization. The treaty forced Thailand to open up to trading with the British and put a 3% duty ceiling on all Thai exportable goods including rice. The treaty lasted for over 70 years and it was two decades after the treaty had ended when Thailand became the world’s leading rice exporter. Thailand’s rise to the top spot was determined by the situation outside of the country rather than domestic or trade policy. Burma, the traditional leading rice exporter had suffered huge damage to its infrastructure duringJapanese occupation of Burma during World War Two, between 1942 and 1945, and was in no position to satisfy the growing demand for rice on the international market. On the other hand, Thailand’s infrastructure was left largely intact. Also, because of Thailand’s allegiance to Japan during the War, Thailand was forced to pay reparations which came in the form of rice shipments so the government became involved in intervening in the rice sector in order to allocate the rice supplies. When reparations ended in 1949, the Thai government had the choice to withdraw itself from intervening in the rice sector. Instead, the government saw an opportunity to make huge revenues from taxing rice exports which would also keep domestic rice prices lower than international market prices. The government was able to do this by requiring rice exporters to apply for an export license for a fee. Since demand for rice on the international
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market was so high, the Thai government could charge a sizable fee for the export license. At its peak in 1953, government revenues from rice exports represented 32% of the government’s total revenues. Instead of adjusting the fee or premium paid by exporters for the export license, the government used quantitative restrictions on rice exports in order to control domestic rice prices. Once domestic prices reached a level seen as too high by the government, the issuing of export licenses were temporarily stopped. These practices continued throughout the 1950s, 60s and 70s when Thailand dominated the international rice market. In time, the fee of the export license reduced and was eventually scrapped in 1986, but this was more due to government revenues from rice exports becoming much less significant compared to other sources of revenues rather than the government deciding that a free trade non-price distortive policy in the rice market was desirable to maintain its dominance in the world market. The early 1980s saw the policy shift to supporting farmers instead of consumers as rice prices had been dropping in real terms for the last decade. This is when the rice pledging scheme was first introduced. It is true that farmers only started receiving above market rice prices through the pledging scheme once the Thaksin administration came into power and was continued under the Yingluck administration. Furthermore, ultimately the large differential between the pledging price and market price which was conducted on such a huge scale resulted in significant price intervention affecting international prices as well as the continuing fiscal imbalance of the scheme. However, even one of the most informed Thai experts on the scheme does not see the price intervention mechanisms of the scheme as a problem in itself, but that no clear budget was set out for financing the scheme. Compared to other countries, Thailand may seem to have freer trade policies towards rice. For instance, it has rarely put an outright ban on rice exports unlike many other rice exporting countries. However, its policies ever since the beginning of its dominance in the world market have been far from resembling free trade policy prescriptions. Adam John Tags: Free trade policy, Thailand, government intervention, Adam John, Thailand rice mortgage scheme
European Rice Sector Will Shrink without Trade Barriers, Says Head of Farmers Union Oct 02, 2014
About 100,000 hectares of European rice growing area could be abandoned for other cultivations if the European Union (EU) does not stop zero duty imports from Cambodia, says Paola Battioli, head of farmers union Confagricoltura Novara.He sounds the alarm not only for Italian acreage, but for the whole European rice sector."There is no way a European farmer can face competition with incoming price of Cambodian Indica,” says Battioli, “Italian Long B milled rice has a production cost of 550 euro (about $ 693) per ton; to be competitive, it should cost no more than 430 euro (about $ 542) per ton, and this means bankruptcy for farmers. We should sell [paddy] to millers at a price of 190 euro (about $ 239) per ton, while we spend 320 euros (about $ 403) to produce it. ” According to data supplied by European Commission, adds Confagricoltura, in the year September 1, 2013 to August 31 2014, zero duty rice imports from Cambodia increased 60% from the previous year, reaching 245,000 tons. In the last ten years, the zero duty rice imports have increased ten times. He says that even worse for European rice farmers, is data coming from Myanmar; in two years' time the imported rice has grown from 16,000 to 139,000 tons.Cambodia and Myanmar are both Least Developed Countries (LDCs) and are therefore
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eligible for zero import duties on all goods (including rice) except arms, under the Everything but Arms (EBA) agreement. Tags: italian rice farming, european rice farmering, trade barriers, zero duty rice imports
Oryza Afternoon Recap - Chicago Rough Rice Futures Unable to Capture Support from Rising Grains Oct 02, 2014
Chicago rough rice futures for Nov delivery settled 8.5 cent per cwt (about $2 per ton) lower at $12.555 per cwt (about $277 per ton). Rough rice futures fell for the second consecutive session, leading many to feel that the recent upward trend has been broken and now expect prices to test support around $12.400 per cwt (about $273 per ton). Although prices did settle lower on the day, the market did manage to break through yesterday’s session high, a fact that is seen as supportive of higher prices. The other grains saw buying interest pick up late in the day’s trading session and managed to finish with gains; Soybeans closed about 0.9% higher at $9.2450 per bushel; wheat finished about 0.8% higher at $4.8375 per bushel, and corn finished the day about 0.5% higher at $3.2375 per bushel. U.S. stocks cut Thursday losses, with smaller companies bouncing back after dropping into correction mode the prior day, as investors mulled U.S. economic reports and the European Central Bank's move to step up stimulus. The ECB held interest rates unchanged, with ECB President Mario Draghi saying the central bank would purchase assets for two years or more to lift inflation and increase economic growth. In prepared remarks, IMF Managing Director Christine Lagarde said the IMF would cut its forecast for potential growth, with only a modest pickup expected in 2015. U.S. data had the number of Americans filing claims for unemployment benefits unexpectedly dropping last week, falling by 8,000 to 287,000. The report comes a day before the September jobs report. Less positive was a 10.1% drop in factory orders in August, with the number worse than the estimated 8.7% decline. Scaling back from a 130-point deficit, the Dow Jones Industrial Average was lately down 24.18 points, or 0.1%, at 16,780.53. The S&P 500 shed 6.71 points, or 0.3%, to 1,939.45, with energy and materials leading losses and utilities and financials in positive terrain among its 10 major industry groups. The Nasdaq lost nearly a point to 4,421.47. Gold is trading a touch lower, crude oil is seen trading about 0.1% higher, and the U.S. dollar is seen trading about 0.5% lower at about 1:00pm Chicago time.Wednesday, there were 2,029 contracts traded, down from 2,454 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 59 contracts to 11,008. Tags: chicago rough rice futures, U.S. rice market, U.S. rice prices
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Oryza U.S. Rough Rice Recap - Uneventful Market amid Limited Trade; USDA Reports Export Sales up 62% from Prior 4-week Average Oct 02, 2014
The U.S. cash market was fairly uneventful today with much of the export business constrained by high barge freight rates through November however many analyst believe things will pick up when rates subside.As of today, offers continue to hold steady around $13.00-$13.33 per cwt fob farm (about $287-$294 per ton) while bids remain unchanged near $13.00-$13.33 per cwt (about $287-$294 per ton) for October delivery however the trade was very limited today.In the meantime, today the USDA reported that cumulative net export sales for the week ending on September 27th, totaled 66,800 tons which was 44% greater than last week and 62% greater than the prior 4-week average. Increases reported for the following destinations including: 23,800 tons to Haiti, 14,600 tons to unknown destinations, 12,000 tons to Japan, 3,300 tons to the United Kingdom, and 3,000 tons to Honduras.U.S. rice exporters shipped 29,400 tons which was 57% lower than last week and 18% lower the prior 4-week average. The primary destinations included: 14,300 tons to Haiti, 4,300 tons to Mexico, 2,700 tons to Jordan, 2,500 tons to Canada, and 2,000 tons to South Korea. Tags: U.S. rice prices, U.S. rice market
Asia Rice Quotes Unchanged Today Oct 02, 2014
Thailand, Vietnam and Pakistan rice sellers kept their quotes mostly unchanged today. India rice sellers are out today due to a national holiday. 5% Broken Rice Thailand 5% rice is quoted about $420 - $430 per ton, about a $20 per ton discount to Vietnam 5% rice shown about $440 - $450 per ton. India 5% rice was last quoted about $420 - $430 per ton, about a $15 per ton premium on Pakistan 5% rice quoted about $405 - $415 per ton. 25% Broken Rice Thailand 25% rice was last quoted about $350 - $360 per ton, about a $50 per ton discount to Vietnam 25% rice shown about $400 - $410 per ton. India 25% rice was last quoted about $375 - $385 per ton, about a $20 per ton premium on Pakistan 25% rice quoted at about $355 - $365 per ton. Parboiled Rice Thailand parboiled rice is quoted about $425 - $435 per ton. India parboiled rice was last quoted about $410 - $420 per ton, about a $15 per ton discount to Pakistan parboiled rice quoted about $425 - $435 per ton. 100% Broken Rice
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Thailand broken rice, A1 Super, was last quoted about $310 - $320 per ton, about a $25 per ton discount to Vietnam broken rice shown about $335 - $345 per ton. India broken sortexed rice was last quoted about $320 - $330 per ton, on par with Pakistan broken sortexed rice quoted about $320 - $330 per ton. Tags: asian rice quotes, asian rice prices, Rice Prices
Global Rice Quotes October 2nd, 2014 Long grain white rice - high quality Thailand 100% B grade 435-445 ↔ Vietnam 5% broken 440-450 ↔ India 5% broken 420-430 ↔ Pakistan 5% broken 405-415 ↔ Cambodia 5% broken 465-475 ↔ U.S. 4% broken 525-535 ↔ Uruguay 5% broken 610-620 ↔ Argentina 5% broken 610-620 ↔ Long grain white rice - low quality Thailand 25% broken NQ ↔ Vietnam 25% broken 400-410 ↔ Pakistan 25% broken 355-365 ↔ Cambodia 25% broken 450-460 ↔ India 25% broken 375-385 ↔ U.S. 15% broken 515-525 ↔ Long grain parboiled rice Thailand parboiled 100% stxd 425-435 ↔ Pakistan parboiled 5% broken stxd 440-450 India parboiled 5% broken stxd 410-420 ↔ U.S. parboiled 4% broken 600-610 ↔ Brazil parboiled 5% broken 595-605 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 1065-1075 ↔ Vietnam Jasmine 585-595 ↔ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Malis 880-890 ↔ Brokens Thailand A1 Super NQ ↔ 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 ↔
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U.S. pet food 460-470 Brazil half grain NQ
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All prices USD per ton, FOB vessel, oryza.com
Better Rice Apps Mean Better Insights, Better Yields Oct 02, 2014
University of Milan (UM) has tied up with the International Rice Research Institute (IRRI) to develop computer models that will aid researchers to understand rice-based cropping systems and provide solutions to problems associated with rice-production and thereby help farmers to boost production. Roberto Confalonieri tells us more about the PocketLAI smart app which holds hope for farmers.
Oryza: We hear that PocketLAI smart app helps farmers to measure leaf area index (LAI) which is used to measure crop growth. How important is LAI for the growth of paddy plant? Dr Roberto: Yes, PocketLAI can help farmers to measure LAI (representing the one-sided leaf area per unit ground surface area), which is a variable highly informative in describing crops status. LAI, indeed, represents a key variable to analyze many processes involved with plant growth (like the amount of intercepted radiation), and it represents the interface between the plant and the atmosphere. Oryza: What can the app do? How is it directly useful to the farmers? Please tell us the scenario before and after using the app? Dr Roberto: First of all, farmers could use LAI estimates to get a better insight into the dynamics characterizing their fields. In practices, monitoring this variable could support them in deriving a more clear picture on how things are going, thus allowing them to properly modulate protocols for, e.g., top-dressing fertilization, according to how the season evolves. But there is a variety of ways LAI estimates can be used. Under conditions suboptimal for some factors during the vegetative phases, LAI around flowering can be used for deriving simple estimates of yield, especially when estimates for the same variety (or for variety with similar morphological features) are available for some years in the same farms. Some authors have indeed found relationships between LAI around flowering and final yield for different annual species. Of course, this is not the best way to forecast yields during the season, but it is something really simple to obtain. Other applications refer to use of LAI values to estimates crop water requirements, or the critical nitrogen concentration (in turns useful to estimate nutritional status). However, LAI estimates can be useful for different kinds of operators and studies. Some colleagues are using PocketLAI to collect information to be integrated in a complex system for large area in season rice monitoring. Others are evaluating the possibility of its use as a crowd-sourcing application. We have also a project where PocketLAI will be used to integrate remote sensing information for variable-rate fertilizer application (the app indeed collect georeferenced data).
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Oryza: Do farmers or rice professionals need any formal training to use this app as it involves some numbers and measuring the plant canopies etc? Does one need a smartphone to use it? Dr Roberto: This probably depends on the specific context. However, PocketLAI is decidedly easier to use than many mobile apps that are currently downloaded and used by people without specific IT skills. Oryza: Do you think even developing countries like India and Pakistan where farmers are yet to catch up with technology can use this with ease as I understand the app works on a smartphone? Dr Roberto: A smartphone is enough (currently Android, the version for iOS will be released in spring), and no specific trainings are needed. The app integrates a simple manual and a video-tutorial will be published in the coming weeks. However, it is really easy to use the app, specific studies targeting the highest usability were performed while moving from the prototypes to the product. Oryza: Can we expect any more such apps/technology from you later this year? Dr Roberto: Our lab (Cassandra lab) has a dedicated R&D line on the development of mobile apps to be used to collect field data. We have other products under development/test, that will be issued soon. But, at the moment, I will not tell you more about this: it will be a surprise. Oryza: How much does it cost to install this app? Dr Roberto: There’s a patent pending on the method implemented in the app: University of Milan is the owner, and we agreed with our office for technology transfer to distribute it at 35 euros for research institutes and students, and 70 euros for private companies. It is not so cheap compared to most of the mobile apps that can be classified as consumer products… but commercial instruments for LAI measurements costs thousands of dollars. Where can one download this app? Dr Roberto: An email request to cassandra.lab@unimi.it will allow us to send the application and related instruction for its registration. Tags: Rice, rice news, rice apps, technology, Research, yield, easy
Thailand Rice Production Declining amid Low Prices, Insufficient Water Oct 02, 2014
Thailand’s Office of Agricultural Economics reports that the nation’s paddy rice production may drop about 4.4% in the 2014-15 crop year starting in October, Bloomberg reports.The office estimates that Thailand’s paddy rice production in 2014-15 will be 35.5 million tons, the lowest since 2009-10, as the minor crop paddy harvest is projected to decline 17% to 8.4 million tons. The office is not yet projecting a decrease in the 2014-15 main crop harvest, but it’s possible that continued depressed prices and insufficient water could continue. Tags: Thailand rice production, Thailand
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Rice Acreage, Production, and Consumption are Declining in Spain Oct 02, 2014
Rice growing area in Spain is shrinking according to data supplied by Magrama, Minister of Agriculture, in July 2014. The data shows that after the increase registered in 2013, the 2014 rice growing area is even smaller than the one farmed in 2012, when it had reached 112,800 hectares. In 2013 this amount expanded to 113,200 hectares, but in 2014 it lost 2.1%, and now it consists of 110,800 hectares.Since higher yields haven’t made up for lower acreage, Spanish paddy production is also declining. In 2012, with a slightly smaller area, it had been 899,600 tons, in 2013 851,500 tons. Prices have also been in a downward trend. In June 2014 paddy was shown around 274.4 euros (about $ 346) per ton, down 2.1% m/m from May 2014 and down 6.36% y/y from June 2013.Domestic rice consumption in Spain is sliding; consumption was 179,900 tons in 2013 (worth about 256.4 million euros or about $ 323.3 million), and 178,000 tons in 2014 (worth about $ 323.5 million) of 2014. Tags: spansih rice production, spanish rice consumption, Spanish rice prices, spain
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