Daily Exclusive ORYZA Rice E-Newsletter
February 17,2016 Vol 7,Issue II
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Daily Exclusive ORYZA Rice E-Newsletter
Milled Rice Output to Decline 2% y/y to 103.61 Million Tons Feb 16, 2016
The government of India forecasts India's 2015-16 (July - June) milled rice output to decline about 2% to around 103.61 million tons from around 105.48 million tons in 2014-15. The government in its second advance estimates for major crops estimates output from the kharif rice crop (July - December) at around 90.59 million tons, down about 1% from last year's 91.39 million tons. Kharif crop accounts for about 87% of the country's total rice output. The decline is attributed to 14% deficiency in 2015 monsoon rains between July and September. 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. According to the Directorate of Economics & Statistics under the Ministry of Agriculture, the government targets to achieve an output of around 106.10 million tons (around 92.1 million tons from kharif and around 14 million tons from rabi). 2
Daily Exclusive ORYZA Rice E-Newsletter The government estimates India's 2015-16 total food grain production to increase marginally to around 253.16 million tons from around 252.02 million tons last year due to an expected increase in production of wheat and pulses. The food grain output is expected to increase despite prevailing dry conditions and below-average rains. "Overall food grain output is likely to be better than last year despite deficit monsoon for two straight years,� the Agriculture Minister was quoted.. "Timely contingency measures and promotion of better crop varieties restricted loss in production," he adds.
EU Imports 526,984 Tons of Rice in September 1, 2015 - February 9, 2016; Up 19% from Previous Year Feb 16, 2016
According to the latest data issued by the European Union (EU), rice imports by the EU increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31, 2016). 3
Daily Exclusive ORYZA Rice E-Newsletter The EU imported about 526,984 tons of rice during the period September 1, 2015 - February 9, 2016, up about 19% from around 441,482 tons imported during the same period last year. Japonica rice imports declined about 3% to around 38,686 tons in September 1, 2015 - February 9, 2016 period from around 39,800 tons during the same period last year. Indica rice imports increased about 21.5% to around 488,298 tons during the said period from around 401,682 tons last year. The UK remained the largest importer in September 1, 2015 - February 9, 2016 period with around 121,888 tons followed by France (90,732 tons), The Netherlands (61,144 tons), Poland (40,793 tons), Germany (39,530 tons), and Italy (38,510 tons). Other EU countries imported 134,387 tons. During the week ended February 9, 2016, the EU imported around 29,564 tons of rice, up about 50% from around 19,668 tons imported during the week ended February 2, 2015. The EU imported around 1.143 million tons of rice in the crop year 2014-15, up about 12.7% from around 1.013 million tons imported in the crop year 2013-14.
Government of India Procures 26.13 Million Tons of Rice as of February 11, 2016; Up 21% from Previous Year Feb 16, 2016
Paddy procurement by The Food Corporation of India (FCI) and other government agencies in the 2015-16 kharif marketing season (KMS) has reportedly reached around 26.13 million tons as on February 11, 2016, up about 21% from around 21.54 million tons during the same time last year, the Economic Times quoted the Food Minister. The government is targeting to procure about 30 million tons in KMS 2015-16. The Minister has assured that there is no shortage of food grains in the country despite two consecutive years of deficient rains. He also told reporters that the government is taking all measures to ensure that socially weaker sections would receive the food grains at subsidized prices. India’s rice stocks in the central pool as of February 1, 2016 stood at around 28.95 million tons (including a milled equivalent of about 12.71 million tons of paddy), up about 16% from around 24.88 million tons recorded during the same period last year, according to data from the Food Corporation of India (FCI). Month-over-month, India's rice stocks in the central pool are up about 11% from around 26.025 million tons recorded on January 1, 2016.
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Daily Exclusive ORYZA Rice E-Newsletter
India Hopes to Secure One Million Ton Rice Export Deal with Indonesia Feb 16, 2016
The government of India is hoping to secure a one million ton rice export deal with Indonesia, as the South East Asian nation is likely to witness a fall in its rice production this year due to the extending dry conditions, according to the Economic Times. "Indonesia is expecting a fall in rice production this year and looking to imports rice. Indonesia has started the negotiation process," a government source was quoted. The source noted that a final price is not yet decided but the economic cost to the government for the one million tons of rice comes to about Rs.3,300 crore (around $485 million). The source assured that the government's rice stocks are in a comfortable position. India’s rice stocks in the central pool as of February 1, 2016 stood at around 28.95 million tons (including a milled equivalent of about 12.71 million tons of paddy), up about 16% from around 24.88 million tons recorded during the same period last year, according to data from the Food Corporation of India (FCI). Month-over-month, India's rice stocks in the central pool are up about 11% from around 26.025 million tons recorded on January 1, 2016. Paddy procurement by Indian government in the 2015-16 kharif marketing season (KMS) has reportedly reached around 26.13 million tons as on February 11, 2016, up about 21% from around 21.54 million tons during the same time last year. The government is targeting to procure about 30 million tons in KMS 2015-16. However, India’s rice exports declined about 10% to around 7.79 million tons in the first nine months of FY 2015-16 (April - December 2015) from around 8.65 million tons during the same period last year due to a decline in demand from African nations as well as a stiff competition with Thailand, Vietnam and Pakistan.
Sri Lanka Plans to Export Surplus Rice to Southern African Region Feb 16, 2016
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Daily Exclusive ORYZA Rice E-Newsletter The government of Sri Lanka, which has about 200,000 tons of surplus paddy rice, is planning to export it to the Southern African nations, according to the Sunday Times Sri Lanka. The Minister of Rural Economy P. Harrison told reporters that the government's rice stocks are far above that required for domestic consumption. He noted that negotiations were underway with Ghana and Nigeria who are keen on importing rice from Sri Lanka. “We are negotiating and are hopeful of securing a good price for our rice,� he was quoted. The government is also planning to clear the excess rice stocks by distributing it among the recipients of its social welfare scheme 'Samurdhi.' The government of Sri Lanka is reportedly expecting paddy rice output from the 2015-16 Maha crop (September - March) at around 2.93 million tons, up about 7% from around 2.74 million tons last year.
Farmers Urged to Increase Indica Rice Hectarage Italian Rice Feb 16, 2016
The President of the Association of the Italian Milling Industries (AIRI) urged rice farmers to increase the hectarage under the Indica varieties, according to local sources. Indica rice hectarage in Italy has been declining over the past few years due to low prices and high imports. Speaking in a meeting last week, the AIRI President called upon the farmers unions to join forces to defend the Italian rice sector, starting from the decisions on imminent sowing, as well as sharing a common strategy for access to the highest EU decision-making levels. He also noted that the AIRI is planning for an alliance with the three most important Italian Unions (Coldiretti, Confagricoltura and Cia) in order to deal directly the European Commissioner or agriculture Phil Hogan agriculture and the Commissioner for trade Cecilia Malmstrom, to seek their support in defending the Italian rice sector. "In a few years the Italian market has grown from 2 million and a half tons to 2 million 800 thousand tons," he said. More immigrates people, who consume more indica rice; the growth of Italian cuisine, with its risotto, but also the ethnic one, like sushi employing round varieties; a wider use of rice as an ingredient in cereals for breakfast or other preparations are some of the reasons for an increase in rice consumption in the country. "I see a great prospect for rice cultivation, if we succeed to face the external threats: Italy can grow up to 250,000 hectares compared to the 232,000 of last crop year," he added. The official 6
Daily Exclusive ORYZA Rice E-Newsletter noted that 75,000-80,000 hectares of typical varieties such as Carnaroli, Vialone Nano, Baldo and more, 45,000-50,000 hectares of Ribe type, other 60,000-70,000 hectares of round, and 60,000-65,000 hectares of Indica would be an ideal bifurcation of the rice varieties in a year. Indica rice acreage reached around 35,000 hectares in 2015, and the first indications on sowings for 2016 show a further decline, he says.
Oryza U.S. Rough Rice Recap - Prices Seen Unchanged as Market Waits for Iraqi Tender Results Feb 17, 2016
The U.S. cash market was mostly unchanged today with little trading to report. Analysts note that market participants are eagerly awaiting the results of the latest Iraq tender. Offers need to be submitted on February 21 and must remain valid until February 25. Many are hopeful that Iraq will buy more than the 90,000 MT that they tendered for.
Maldives Plans to Import Rice from Bangladesh, Says Maldivian Government Official Feb 16, 2016
The Maldives is planning to import rice, medicine, sands and other necessary products from Bangladesh, the Financial Express quoted the Maldivian High Commissioner to Bangladesh. He reportedly conveyed the same message to the Bangladesh Commerce Minister on a visit to Bangladesh. The development reportedly comes after a joint working group was formed in November 2015 to boost trade between the two countries. The Commerce Minister noted that Bangladesh exported products worth $5.64 million to the Maldives and imported products worth $1.16 million in FY 2014-15 (July - June).
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Daily Exclusive ORYZA Rice E-Newsletter
Thailand 2015 Rice Exports Decline 11% y/y to 9.795 Million Tons Feb 16, 2016
Thailand exported around 9.795 million tons of rice in 2015, down about 11% from around 10.969 million tons exported during the same period last year, according to data from Thai Rice Exporters Association (TREA). In value terms, Thailand rice exports earned around $4.51 billion during the year, down about 16% from around $5.38 billion earned during the same period last year. During the year, white rice exports accounted for around 4.87 million tons (about 50% of total 2015 exports), Hom Mali rice exports accounted for about 1.385 million tons (about 14% of total 2015 exports), brokens accounted for 1.036 million tons (about 10.6% of total 2015 exports), glutinous variety accounted for 124,190 tons (about 1% of total 2015 exports), parboiled rice accounted for about 2.32 tons (about 24% of total 015 exports) and husked/brown rice accounted for about 65,165 tons (about 0.6% of total 2015 exports). Average export prices of all varieties of rice declined during the year. 8
Daily Exclusive ORYZA Rice E-Newsletter In December 2015, Thailand exported around 1.22 million tons of rice, up about 60% from around 763,419 tons exported in November 2015, and down about 17.5% from around 1.48 million tons exported in December 2014. In value terms, Thailand’s rice exports earned about $537.11 million from total rice exports during the month, up about 61% from around $332.87 million earned in November 2015, and down about 22.5% from around $693.75 million earned in December 2014.
Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Move Higher as Firmer US Grains Provide Support Feb 17, 2016
Chicago rough rice futures for Mar delivery settled 7.5 cents per cwt (about $2 per ton) higher at $10.840 per cwt (about $239 per ton). The other grains finished the day higher; Soybeans closed about 0.7% higher at $8.6775 per bushel; wheat finished about 1.4% higher at $4.6900 per bushel, and corn finished the day about 1.2% higher at $3.6775 per bushel. U.S. stocks traded higher Tuesday, helped by gains in consumer discretionary and financials, as well as positive developments in China. Consumer discretionary gained more than 2% to lead the S&P 500 higher. The U.S. Commerce Department said on Friday that core retail sales, which exclude automobiles, gasoline, building materials and food services, increased a more-thanexpected 0.6% last month after an unrevised 0.3% decline in December. U.S. markets were closed Monday for Presidents Day. Mainland Chinese markets reopened Monday after a weeklong Lunar New Year holiday and closed higher Tuesday, with the Shanghai composite up more than 2.5% for the week so far. The Nikkei 225 held slight gains Tuesday for week-to-date gains of nearly 7.4%.In midday trade, the Dow Jones industrial average traded up 156 points, or 0.9%, to 16,130. The S&P 500 gained 22 points, or 1.19%, to 1,886, with consumer discretionary leading nine sectors higher and energy the only decliner. The Nasdaq composite rose 72 points, or 1.66%, to 4,409. Gold is seen trading about 2.9% lower, crude oil is seen trading about 1.2% lower, and the U.S. dollar is seen trading about 1% higher at about 2:35pm Chicago time. Friday, there were 1,614 contracts traded, up from 1,019 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 466 contracts to 13,243.
Thailand Sells 152,377 Tons of Stockpiled Rice in First Auction of This Year Feb 16, 2016
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Daily Exclusive ORYZA Rice E-Newsletter The government of Thailand has sold 152,377 tons of stockpiled rice worth 1.78 billion baht (around $50 million) in the first auction of this year, Reuters quoted sources from the Commerce Ministry.Bids of 15 private companies were reportedly successful in today's auction. The Ministry noted that the sale would be approved by Thailand's rice management committee but did not provide a time frame. Rice from about 35 warehouses was offered in the auction.The Ministry aimed to sell between 500,000 - 600,000 tons of rice, including about 204,000 tons of "good grade" rice for human consumption in the first lot and about 360,000 tons of "Grade C" rice for industrial use in the second lot, in February 2016. The Ministry has invited bids for the auction of second lot of rice from interested parties from February 17, 2016.Earlier this month, the Commerce Ministry Permanent Secretary noted that the market prices of rice won't be affected due to the current auctions as paddy from the 2015-16 crop has already reached the market.The government currently holds about 13 million tons of rice in its stockpiles and it is reportedly planning to clear the stocks by the end of 2017.
Global Rice Quotes February 17th, 2016 Long grain white rice - high quality Thailand 100% B grade 370-380 ↔ Vietnam 5% broken 345-355 ↔ India 5% broken 360-370 ↔ Pakistan 5% broken 340-350 ↓ Myanmar 5% broken 415-425 ↔ Cambodia 5% broken 425-435 ↔ U.S. 4% broken 460-470 ↔ Uruguay 5% broken 440-450 ↔ Argentina 5% broken 430-440 ↔ Long grain white rice - low quality Thailand 25% broken 345-355 ↔ Vietnam 25% broken 335-345 ↑ Pakistan 25% broken 310-320 ↔ Cambodia 25% broken 405-415 ↔ India 25% broken 325-335 ↔ U.S. 15% broken (sacked) 440-450 ↔ Long grain parboiled rice Thailand parboiled 100% stxd 370-380 Pakistan parboiled 5% broken stxd NQ ↔ India parboiled 5% broken stxd 350-360 U.S. parboiled 4% broken 480-490 ↔ Brazil parboiled 5% broken 520-530 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 680-690 ↓ Vietnam Jasmine 430-440 ↑
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Daily Exclusive ORYZA Rice E-Newsletter India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Mails 750-760 ↔ Brokens Thailand A1 Super 325-335 ↔ Vietnam 100% broken 320-330 ↔ Pakistan 100% broken stxd 290-300 ↑ Cambodia A1 Super 345-355 ↔ India 100% broken stxd 260-270 ↔ Egypt medium grain brokens NQ ↔ U.S. pet food 280-290 ↔ Brazil half grain NQ ↔ All prices USD per ton, FOB vessel, oryza.com
Thailand Rice Sellers Lower Some of Their Quotes Today; Pakistan Rice Quotes Mixed Today Feb 16, 2016
Thailand rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $345-$355 per ton today. Pakistan rice sellers increased their quotes for 5% broken rice by about $5 per ton to around $345-$355 per ton and lowered their quotes for 25% broken rice by about $10 per ton to around $310-$320 per ton. Other Asia rice sellers kept their quotes unchanged today. 5% Broken Rice Thailand 5% rice is indicated at around $360 - $370 per ton, about $15 per ton premium on Vietnam 5% rice shown at around $345 - $355 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $15 per ton premium on Pakistan 5% rice shown at around $345 - $355 per ton. 25% Broken Rice Thailand 25% rice is indicated at around $345 - $355per ton, about $15 per ton premium on Vietnam 25% rice shown at around $330- $340 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $15 per ton premium on Pakistan 25% rice shown at around $310 $320 per ton. Parboiled Rice Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 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 $325 - $335 per ton, about $5 per ton premium on Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $25 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton. Exclusive News have been shared with written permission of ORYZA.com with thanks
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