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Daily January 06, 2015
Exclusive ORYZA E-Newsletter
DAILYCompiled EXCLUSIVE ORYZA E-NEWSLETTER & Edited by Riceplus Magazine
January 06, 2015 Vol 5 Issue I
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER News Headlines… Eat Rice, Save Birds! Vietnam, Pakistan Rice Quotes Down; Other Asia Rice Quotes Unchanged Today Cambodia Exports 387,100 Tons of Rice in 2014; Up 2% from Previous Year China Renews Safety Certificates for Two GM Rice Varieties Fukushima Rice Cleared of Radiation Effects First Time Since Nuclear Disaster Guyana Exports 501,208 Tons of Rice in 2014; Up 27% from Previous Year India Government Procures 14.918 Million Tons of Rice as of January 1, 2015 in KMS 2014-15 Oryza U.S. Rough Rice Recap - Market Participants Return from Vacation to Weaker Prices; Export Sales Hit Marketing Year Low Indonesia Hopes for Zero Rice Imports in 2015 Global Rice Quotes Oryza Afternoon Recap - Chicago Rough Rice Futures Trade Higher Supported by Rallying Grains Ghana Small Scale Traders Urge Government to Reconsider Ban on Inland Rice Importation Vietnam Targets to Export About 7.5 Million Tons of Rice in 2015
Eat Rice, Save Birds! Jan 05, 2015 Bird enthusiasts in the region of Devaswom Padam in Varapuzha, India, are asking supporters to Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874 28
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DAILY EXCLUSIVE ORYZA E-NEWSLETTER
eat more rice – but not just any rice, specifically pokkali rice purchased from farmers in the Varapuzha area.The campaign, led by the Cochin Natural History Society (CNHS), an NGO dedicated to bird conservation, is in response to the drastic reductions in farmland in the area as farming no longer brings the economic revenue it once did. As rice paddies decreased, so did the presence of about 50 bird species that normally frequent the area. Some of those bird species include Little Cormorant, Oriental Darter, several types of Herons, Little Egret, and the Asian Openbill, among others. Devaswom Padam in Varapuzha is one of the favorite wetland birding locations in the region for these species. Birders and like-minded supporters are asked to buy pokkali rice that is farmed by local farmers and, after processing through a threshing unit, is sold for Rs. 60 per kilogram (about 95 cents USD). The profit is returned to the farmers to encourage them to continue engaging in pokkali farming.Last year, there was good demand for the rice and the biggest obstacle was its transportation to buyers. One quintal of this rice was sold last year. Source with thanks:ORYZA.com
Vietnam, Pakistan Rice Quotes Down; Other Asia Rice Quotes Unchanged Today Jan 05, 2015
Vietnam rice sellers lowered their quotes for 100% broken rice and Jasmine rice by about $5 per ton and $20 per ton to around $325 - $335 per ton and around $490 - $500 per ton, respectively, today. Pakistan rice sellers lowered their quotes for 5% broken rice , 100% broken rice and 25% broken rice by about $5 per ton each. Other Asia rice sellers kept their quotes unchanged today.
5% Broken Rice Thailand 5% rice is quoted at around $405 - $415 per ton, about $25 per ton premium on Vietnam 5% rice shown at around $380 - $390 per ton. India 5% rice is quoted at around $385 $395 per ton, about $10 per ton premium on Pakistan 5% rice quoted at around $375 - $385 per ton, down about $5 per ton from Friday. 25% Broken Rice
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
Thailand 25% rice was last quoted at around $350 - $360 per ton, on par with Vietnam 25% rice shown at around $350 - $360 per ton. India 25% rice is quoted at around $350 - $360, about $20 per ton premium on Pakistan 25% rice quoted at around $330 - $340 per ton, down about $5 per ton from Friday. Parboiled Rice Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $375 - $385 per ton, about $30 per ton discount to Pakistan parboiled rice quoted at around $405 - $415 per ton. 100% Broken Rice Thailand broken rice, A1 Super, is quoted at around $325 - $335 per ton, down about $5 per ton from Friday and about $5 per ton discount to Vietnam 100% broken rice shown at around $330 $340 per ton. India's 100% broken rice is shown at around $295 - $305 per ton, about $5 per ton discount to Pakistan broken sortexed rice quoted at around $300 - $310 per ton, down about $5 per ton from Friday.
Cambodia Exports 387,100 Tons of Rice in 2014; Up 2% from Previous Year Jan 05, 2015
Cambodia has exported about 387,100 tons of rice in 2014, up about 2% from around 378,856 tons exported in 2013, according to local sources. About 62% of rice exports were destined to Europe, according to sources at the Ministry of Agriculture.The Deputy Director of the Cambodia Rice Federation (CRF) was quoted as saying that year-on-year increase of rice exports in 2014 were very meagre compared to about 84% y/y increase in 2013 due to Thailand offloading its stockpiles accumulated from the controversial rice pledging scheme introduced by the previous government in October 2011. They also noted that increasing competition from Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874 28
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January 06, 2015
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Myanmar also contributed to a decline in Cambodia's rice exports. Both Cambodia and Myanmar are included under the European Union's (EU) Everything But Arms (EBA) agreement under which EU imports rice from Least Developed Countries (LDCs) at zero duty. He also noted that their profit margin in 2014 has reduced significantly compared to that in 2013. They added that Cambodian exporters need to lower their offer prices to attract more buyers and consequently increase revenues and profits.The CRF Deputy Director expressed confidence that 2015 would be a good year in terms of exports. He said an agreement was struck with China in August 2014 to export around 100,000 tons of rice in 2015. “While the EU is still our main market, we see large potential in China,� he was quoted as saying.USDA estimates Cambodia to export 1.2 million tons of rice (including official and unofficial exports to Vietnam and Thailand through borders) in 2015, up about 20% from around 1 million tons in 2013.
China Renews Safety Certificates for Two GM Rice Varieties Jan 05, 2015
China's Ministry of Agriculture has renewed bio-safety certificates to two varieties of pest-resistant genetically modified (GM) rice for another five years, according to Reuters. The Ministry renewed the certificates contrary to its earlier decision not to renew them.The bio-safety certificates, which were first granted in 2009, for the two GM rice varieties expired in August last year but the government decided not to renew the certificates raising doubts about the commercialization of GM rice in the near future as well as continuation of such research in the country. The decision was taken in view of public concerns over the health hazards associated with the growing of GM crops. However, there are still concerns over the large-scale production of GM rice and its commercialization in the China as the Asian nation has almost reached self-sufficiency in Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874 28
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producing conventional varieties of rice.Advocates of GM rice say it consists of betacarotene, which is useful in treating Vitamin A Deficiency (VAD) in children.
Fukushima Rice Cleared of Radiation Effects First Time Since Nuclear Disaster Jan 05, 2015
Rice grown in the Fukushima Prefecture of Japan has been cleared of radiation effects by the government for the first time since the nuclear disaster in 2011, according to Reuters. Sources at Fukushima Prefecture told media sources that about 360,000 tons of rice from the 2014 harvest have passed government's radiation checks for the first time since last three years. They noted that none of the rice samples contained higher than 100 becquerels of radioactive material per kilogram, the limit set by the government. They said very little amounts of rice produced in 2012 and 2013 failed to pass the government checks but the amount of rice not passing government checks had been reducing significantly year by year since 2012. The fact that all the 2014 rice passing the government checks indicates that they had been taking right steps to reduce the radiation effects, the official who heads the department that oversees Fukushima rice farming, was quoted as saying. Rice farmers and fishermen were hit hardest by the 2011 earthquake and tsunami that led to meltdowns from Tokyo Electric Power Co's nuclear plant. Japan had suspended rice exports since then.Japan exports around 200,000 tons of rice annually. USDA estimates Japan to produce around 7.7 million tons of rice in MY 2014-15 (November - October). It estimates Japan to import around 700,000 tons and export 200,000 tons of rice during the year.
Guyana Exports 501,208 Tons of Rice in 2014; Up 27% from Previous Year Jan 05, 2015
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER Guyana has exported around 501,208 tons of rice in 2014, up about 27% from around 394,000 tons exported in 2013, local sources quoted Agriculture Minister as saying.The South American country exported around 187,995 tons of rice to Venezuela, around 59,279 tons to Panama, around 99,000 tons to the Caribbean Community (CARICOM) and around 102,000 tons to Europe, according to the Minister.
He noted that Guyana is exploring export agreements with several West African countries.Guyana produced around 633,000 tons, up about 18% from around 535,212 tons from last year, according to the Agriculture Ministry. The Agriculture Minister noted that the government immensely supported the rice sector especially in providing fertilizers at subsidized prices and ensuring timely payments ti farmers. He added that the same support would be extended in 2015 as well. Guyana's both rice production and export figures surpassed estimations by USDA and the UN's Food and Agriculture Organization (FAO). USDA estimated the country to produce 620,000 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 FAO estimated Guyana to produce 570,000 tons of milled rice and export around 460,000 tons in 2014.
India Government Procures 14.918 Million Tons of Rice as of January 1, 2015 in KMS 2014-15 Jan 05, 2015
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
The Food Corporation of India (FCI), the nodal agency for food grain procurement and distribution has procured around 14.918 million tons of rice as of January 1, 2015 in KMS 201415 (October 2014 - September 2015), according to data by the Ministry of Consumer Affairs, Food & Public Distribution. Punjab (7.78 million tons) and Haryana (1.995 million tons) are the top contributors to the central pool so far in KMS 2014-15.The Indian government is targeting to procure 30.05 million tons of rice during the KMS 2014-15. Last year, the Indian government procured 31.86 million tons of rice against the targeted 34.29 million tons due to sluggish arrivals from Andhra Pradesh and Odisha, where paddy production was badly affected by cyclones and excess rainfall.
Oryza U.S. Rough Rice Recap - Market Participants Return from Vacation to Weaker Prices; Export Sales Hit Marketing Year Low Jan 05, 2015
The U.S. cash market was dead today as market participants returned from vacation to find a market with little to no sell or buy interest at the current levels.Many sellers who were hoping for Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874 28
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
prices to improve after the first of the year were disappointed by the bids they were seeing today as buyers continue to drop their bids in tandem with the future markets.In the meantime, the USDA reported that cumulative net export sales for the week ending on December 25 totaled 9,200 tons, a marketing year low, which was 86% lower than last week and 90% lower than the prior 4-week average. Increases were reported for the following destinations: 3,500 tons to Guatemala which was switched from unknown destinations, 2,800 tons to Mexico, 2,000 tons to El Salvador including 1,000 tons switched from unknown destinations, 1,400 tons to South Korea, and 1,400 tons to Jordan . Decreases of 4,500 tons were reported for unknown destinations.U.S. rice exporters shipped 91,500 tons, which was 43% higher than last week and 32% higher than the prior 4week average. The primary destinations included 60,600 tons to Iraq, 12,100 tons to Japan, 10,000 tons to Mexico, 3,500 tons to Guatemala, and 2,000 tons to El Salvador.
Indonesia Hopes for Zero Rice Imports in 2015 Jan 05, 2015
Indonesia is hoping to import no rice in 2015 given good prospects for paddy production during the year, according to local sources. Acting President of the State Logistics Agency Bulog has noted that the government aims to increase 2015 paddy rice production by about 4% to around 73.4 million tons (around 48.44 million tons, basis milled) from an estimated 70.61 million tons (around 46.65 million tons, basis milled) in 2014. If the target is reached successfully, there would be no need to import rice because of sufficient stockpiles and price stability in the country, he added. Speaking at a seminar in South Jakarta today, he noted that increased production would help Bulog to procure about 3.2 million tons of rice for stockpiling and ensure about 2 million tons of rice in reserves even after meeting local demand and government's 'rice for the poor' (Raskin) program. He said currently Bulog has 1.7 to 1.8 million tons of rice in stockpiles. In 2014, Bulog could procure only 2.77 million tons of rice against the targeted 3.2 million tons and had to import around 425,000 tons of rice from Vietnam and Thailand to compensate
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER
for the shortfall. Deputy Trade Minister noted that local farmers are well equipped to deal with extreme weather conditions to ensure minimum losses in production.The new President, who took charge on October 20, 2014, is keen on achieving self-sufficiency in rice production and ending rice imports within the next two years. In line with the set targets, the government is planning to rehabilitate around one million hectares of tertiary irrigation channels for paddy production and distribute 25,000 tons of subsidized seeds and subsidized fertilizer for around one million hectares of paddy fields. The government has allocated around Rp 2 trillion ($163.8 million) for the purpose. USDA estimates Indonesia to produce around 36.5 million tons of rice, basis milled (around 57.48 million tons, basis paddy) and import around 1.3 million tons of rice in MY 2014-15 (January 2015 - December 2015).
Global Rice Quotes January 6th, 2015 Long grain white rice - high quality Thailand 100% B grade
420-430
↔
Vietnam 5% broken 375-385
↓
India 5% broken
385-395
↔
Pakistan 5% broken 375-385
↔
Cambodia 5% broken U.S. 4% broken
455-465
↔
510-520
↔
Uruguay 5% broken 595-605
↔
Argentina 5% broken 595-605
↔
Long grain white rice - low quality Thailand 25% broken NQ
↔
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER Vietnam 25% broken 345-355
↓
Pakistan 25% broken 330-340
↔
Cambodia 25% broken
435-445
↔
India 25% broken
350-360
↔
U.S. 15% broken
495-505
↔
Long grain parboiled rice Thailand parboiled 100% stxd
405-415
↔
Pakistan parboiled 5% broken stxd 405-415
↔
India parboiled 5% broken stxd
↔
U.S. parboiled 4% broken
375-385 580-590
↔
Brazil parboiled 5% broken 570-580
↔
Uruguay parboiled 5% broken
↔
NQ
Long grain fragrant rice Thailand Hommali 92% Vietnam Jasmine
895-905 510-520
India basmati 2% broken
↔ ↔
NQ
↔
Pakistan basmati 2% broken NQ
↔
Cambodia Phka Mails
805-815
↔
Brokens Thailand A1 Super
330-340
↔
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January 06, 2015
DAILY EXCLUSIVE ORYZA E-NEWSLETTER Vietnam 100% broken
325-335
↔
Pakistan 100% broken stxd 300-310
↔
Cambodia A1 Super 365-375 India 100% broken stxd
↔
295-305
Egypt medium grain brokens
NQ
U.S. pet food 390-400
↔
Brazil half grain
↔
NQ
↔ ↔
All prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon Recap - Chicago Rough Rice Futures Trade Higher Supported by Rallying Grains Jan 05, 2015
Chicago rough rice futures for Mar delivery settled 4 cents per cwt (about $1 per ton) higher at $11.585 per cwt (about $255 per ton). Rough rice futures traded slightly higher today, finding support from broad based buying across the grain complex. The other grains also closed higher today; Soybeans closed about 3.7% higher at $10.4525 per bushel; wheat finished about 1.3% higher at $5.8900 per bushel, and corn finished the day about 2.6% higher at $4.0600 per bushel.U.S. stocks fell sharply on Monday, with the S&P 500 extending losses into a fourth session, as energy companies took it on the chin as the price of oil fell to its lowest since April 2009. On the New York Mercantile Exchange, U.S. light crude, also known as West Texas Intermediate, fell 4.7%, with futures for February delivery briefly falling as low as $49.95, and lately down $2.25 at $50.44 a barrel. In Greece, Prime Minister Antonis Samaras said the current election campaign could result in a departure from the European Union should the Syriza party win, with the comments helping Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874 28
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DAILY EXCLUSIVE ORYZA E-NEWSLETTER
push the euro to a near nine-year low. After a 335-point fall, the Dow Jones Industrial Average shed 294.64 points, or 1.7%, to 17,538.35. The S&P 500 declined 36.77 points, or 1.8%, to 2,021.43, with energy hardest hit and all 10 of its major sectors losing ground. The Nasdaq dropped 70.57 points, or 1.5%, to 4,656.24. Gold is trading about 1.4% higher, crude oil is seen trading about 4.3% lower, and the U.S. dollar is seen trading about 0.4% higher at about 1:00pm Chicago time.Friday, there were 543 contracts traded, down from 845 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Friday decreased by 3 contracts to 8,927.
Ghana Small Scale Traders Urge Government to Reconsider Ban on Inland Rice Importation Jan 05, 2015
The Small Scale Rice Dealers Association of Ghana (SSRIDA-GH) has sought the Ministry of Trade and Industry to reconsider the ban on inland rice importation or consider a total and immediate ban on rice imports to protect the interests of small scale rice traders from large foreign traders, according to local sources.Ghana imposed ban on inland rice importation in November 2013 and said it would allow rice imports only through the Kotoka International Airport (KIA), and Tema and Takoradi ports to restrict rice smuggling and ensure that imported rice is levied with the proper import duties and taxes. The National Coordinator of SSRIDA-GH noted that the current ban on inland rice importation alone is severely impacting small scale rice traders and is favoring major players in the industry. It is particularly encouraging foreign traders to dominate the local rice industry as small traders do not have sufficient capital base to carry out their businesses through air or sea. He reiterated that all the small traders never evaded taxes at borders.The members of Greater Accra Market Association (GAMA) have also been urging the government to reconsider the ban on inland rice importation as it was leading to increase in rice prices and was favoring foreign businessmen at the expense of local entrepreneurs. 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 selfsufficient in rice.According to the USDA, Ghana’s rice production is estimated at about 352,000 Riceplus Magazine wwww.ricepluss.com mujahid.riceplus@gmail.com Cell: +92 321 369 2874 28
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tons (milled basis) in MY 2013-14 (October - September). The U.S. agency expects Ghana to import 600,000 tons of rice during the year to meet consumption needs of around 975,000 tons of rice. It estimates Ghana to produce about 330,000 tons and import about 620,000 tons of rice in MY 2014-15.
Vietnam Targets to Export About 7.5 Million Tons of Rice in 2015 Jan 05, 2015
The Vietnam Food Association (VFA) is targeting to export between 7 million tons and 7.5 million tons of rice (including about 6.7 million tons of official and about 300,000 - 800,000 tons of non-official exports to China) in 2015, according to Reuters. According to the information on the Vietnam Customs Department website, Vietnam is expected to export around 2.4 million tons of rice to China (both official and unofficial), about 1 million tons to Indonesia, about 500,000 tons - 1.1 million tons to Malaysia and about 1.5 million tons of rice to the Philippines this year. Vietnam exported around 7.5 million tons of rice, including about 6.4 million tons of official rice exports and around 1.1 million tons of unofficial rice exports to China through borders) in 2014, according to the VFA.Vietnam stood as the world's second largest rice exporter in 2012 and 2013 after India. However, with Thailand rebounding with increased rice sales in 2014, India and Vietnam slipped to the second and third positions respectively. The three countries account for over two-thirds of global rice trade, according to the UN's Food and Agriculture Organization (FAO).USDA estimates Vietnam to produce around 28.25 million tons of rice, basis milled (around 45.2 million tons, basis paddy) and (officially) export around 6.7 million tons in MY 2014-15 (January 2015 - December 2015). Contents are published with permission of ORYZA.com
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