April 17, 2015
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com
Volume 5, Issue I Daily Exclusive
ORYZA Rice Newsletter
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com
Government of Indonesia Needs Adequate Farm Land to Achieve Rice Self-Sufficiency, Says Former Bulog Official Apr 16, 2015
The government of Indonesia should garner adequate land for rice cultivation to achieve selfsufficiency in rice production, local sources quoted a former Bulog official as saying.The government is aiming to achieve self-sufficiency in rice production over the next few years and end rice imports. It is keen on increasing 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. The government has been adopting several measures to achieve its target such as converting between 100,000 to 110,000 hectares of land into farming areas, improving irrigation channels to cover 1 million hectares of cultivated area as well as enhance distribution of seeds, fertilizers and farming equipment. Agrarian and Spatial Planning Minister said the government was planning to use unproductive land in forests and idle land in various places for rice cultivation. He noted that acquiring land from owners could be a major challenge for the government. 2
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com The National Coordinator of the Alliance for Prosperous Villages (ADS) that focuses on food and rural issues suggested that the government should prevent conversion of farm land for other purposes such as infrastructure under Law No. 41/2009 in order to ensure the self-sufficiency target. He noted that the government has so far not taken any measures to curb these conversion activities.USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled (around 57.165 million tons, basis paddy) and import around 1.25 million tons of rice in MY 2014-15 (January 2015 - December 2015).
Vietnam Rice Exports to African Destinations Decline Sharply in February 2015 Apr 16, 2015
Vietnam has exported around 182,400 tons of rice in February 2015, down about 43% from around 320,750 tons exported in January 2015, and down about 45% from around 331,439 tons exported in February 2014, according to USDA. While share of Vietnam's rice exports to Asia,
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Africa and Americas declined m/m in February 2015, its share of exports to Europe and Australia increased m/m during the month. Asia accounted for around 112,818 tons (about 62% of total rice exports by Vietnam in February 2015), down about 15% from around 132,097 tons exported in January 2015 and down about 63% from around 300,886 tons exported in February 2014.Vietnam exported around 14,798 tons of rice to Africa (about 8% of total February 2015 exports), down about 87% from around 114,912 tons exported in January 2015, and down about 29% from around 20,970 tons exported in February 2014. Vietnam exported around 33,587 tons of rice to American destinations (about 18% of February 2015 exports), down about 46% from around 62,625 tons exported in January 2015, and about 6.5 times more from around 5,188 tons exported in February 2014.Vietnam's exports to Australia (about 0.2% of February 2015 exports) increased about 2.5 times to around 3,659 tons in February 2015 from around 1,429 tons exported in January 2015 and increased about 3.8 times from around 941 tons exported in February 2014.Vietnam's exports to Europe and CIS countries (about 10% of total February 2015 exports) accounted for around 17,538 tons, about 81% higher than around 9,687 tons exported in January 2015 and about 5 times higher than around 3,454 tons exported in February 2014. In terms of grade, 5% broken rice exports accounted for around 70,848 tons (or, about 39% of total February 2015 exports); Jasmine rice exports accounted for around 37,239 tons (or, about 20% of total February 2015 exports); 15% broken rice exports accounted for around 24,622 tons (or, about 13% of total exports in February 2015); 25% broken rice exports accounted for around 6,278 tons (or, about 3% of total exports in February 2015); glutinous rice exports accounted for around 8,489 tons (or, about 5% of total February 2015 exports); and 10%, 100% and other varieties accounted for around 34,924 tons (or, about 19% of total exports in February 2015).
Oryza Afternoon Recap - Chicago Rough Rice Futures Break through Support at $10.000 as Technical Bearishness Drives Market Action Apr 16, 2015
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Chicago rough rice futures for May delivery settled 13 cents per cwt (about $3 per ton) lower at $9.965 per cwt (about $220 per ton). The other grains finished the day higher; Soybeans closed about 0.1% higher at $9.6600 per bushel; wheat finished about 0.8% higher at $4.9450 per bushel, and corn finished the day about 0.1% higher at $3.7625 per bushel.U.S. stocks reversed to trade mildly higher on Thursday as oil held near highs for the year and investors digested domestic data and earnings reports. Crude oil gained to hit $57 for the first time since Christmas Eve. The commodity reversed earlier losses on reports of increased tension in Yemen that could pressure supply. Brent crude extended gains to trade above $64 a barrel. Earlier, mixed economic data and remarks by Federal Reserve officials weighed slightly as equities held to the flatline. The Dow Jones industrial average and S&P 500 tried for gains. U.S. March housing starts showed a 0.926 million unit rate, below expectations but above February's 0.908 million unit rate. The usual weekly initial jobless claims came in at 294,000, above expectations and a slight increase from the prior week. The Philadelphia Fed's business outlook index for April showed 7.5, above expectations. European Central Bank chief Mario Draghi was questioned about Greece at his regular press conference on Wednesday, after the central bank opted to keep interest rates unchanged. Draghi said he was unready to "contemplate" a default by Greece and dismissed fears of a bubble in bond markets. The Dow Jones Industrial Average traded down 5 points, or 0.03%, at 18,107. The S&P 500 traded down 1 point, or 0.05%, at 2,105, with utilities the greatest of six laggards and consumer sectors leading advancers. The Nasdaq traded down 1 point, or 0.01 percent, at 5,010. Gold is trading about 0.2% lower, crude oil is seen trading about 1.4% higher, and the U.S. dollar is seen trading about 0.8% lower at about 1:15pm Chicago time. Wednesday, there were 1,516 contracts traded, down from 2,412 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday decreased by 154 contracts to 11,014
Oryza U.S. Rough Rice Recap - Softer Prices as Export Sales Disappoint Apr 16, 2015
The U.S. cash market was softer today after the USDA reported disappointing export sales leading buyers to drop their further.Analysts note that the market will likely continue to fall until the U.S. gets some significant export demand however most in the industry are not very optimistic about landing some of the Iraqi business. 5
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com In the meantime, the USDA reported that cumulative net export sales for the week ending on
April 9th, totaled 34,300 tons, which was 44% lower than last week and 53% lower than the prior 4-week average.Increases were reported for the following destinations including: 14,000 tons to Costa Rica including 7,000 tons switched from unknown destinations, 6,700 tons to Mexico, 5,800 tons to Guatemala which was switched from unknown destinations, 5,100 tons to Panama, and 4,700 tons to Haiti while decreases of 12,200 tons and 1,800 tons were reported for unknown destinations and Colombia, respectively. U.S. rice exporters shipped 82,600 tons, which was 37% higher than last week and 35% higher than the prior 4-week average. The primary destinations included: 32,200 tons to Colombia, 12,100 tons to Costa Rica, 11,800 tons Haiti, 5,900 tons to Guatemala, and 5,100 tons to Panama.
Argentina Exports 12,762 Tons of Rice in January 2015; Down 75% from Previous Year Apr 16, 2015
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Argentina has exported around 12,762 tons of rice in January 2015, down about 75% from around 50,783 tons exported during the same period in 2014, according to data from the Ministry of Agriculture in Argentina. Month-on-month, Argentina's rice exports increased about 9% from around 11,700 tons exported in December 2014.
In January 2015, Argentina exported around 4,092 tons of rice to Chile (about 32% of total January 2015 exports), around 3,086 tons of rice to Bolivia (about 24% of January 2015 exports), around 2,582 tons of rice to Brazil (about 20% of January 2015 exports), and around 1,300 tons of rice to Costa Rica (about 10% of January 2015 exports). It exported the remaining 14% or around 1,702 tons of rice to Angora (25 tons), Algeria (799 tons), Canada (516 tons), Denmark (79 tons), the U.S. (154 tons), Italy (50 tons), Paraguay (27 tons), the U.K. (20 tons), Germany (12 tons) and Ukraine (20 tons). USDA estimates Argentina's milled rice production at about 975,000 tons in MY 2014-15 (April – March), against consumption of around 500,000 tons. It estimates Argentina to export around 580,000 tons of rice in MY 2014-15.
Syria Tenders to Buy 6,360 Tons of White Rice Apr 16, 2015
A state purchasing agency in Syria has issued an international tender to purchase 6,360 tons of white rice, according to Reuters.The last date for the tender is May 18, 2015 and the delivery is sought 30 days after the issuing of a letter of credit to finance the deal with the General Foreign Trade Organization, according to the European traders.
Oryza Global Weather Outlook Apr 16, 2015
Rain is expected across eastern South China, the Yangtze Valley, and much of the North China Plain this week. Rain showers are expected across Southern and Eastern India this week. Last week rain in across India slowed rabi rice harvesting there. 7
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Rain is expected across Bangladesh this week. Widespread rain is expected in most parts of Indonesia this week, which will slow main crop harvesting there. A bit of rain is expected in Vietnam this week. In the Philippines, light rain is expected across Luzon this week. Rain is expected in most parts of Brazil this week. Rain is expected across Argentina as well as Western Uruguay this week. In the U.S., rain showers are expected across the Delta and Coastal Bend this week, which will slow rice planting there.
Japan Supports Ghana Rice Sector with $2.5 Million in Agriculture Machinery Apr 16, 2015
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com The government of Japan is supporting the Ghana rice sector with agricultural machinery worth GH¢9.7 million (around $2.5 million) under the Grant Assistance, according to local sources.The donated machinery comprises of 77 agricultural tractors with matching implements, 49 power tillers, 20 rice threshers, 11 rice reapers and six rice mills. The support is aimed at helping Ghana increase rice production and reducing dependence on imports. The Deputy Chief of Mission Counsellor, Japan Embassy, told local sources that the Japanese government is keen on extending necessary support to Ghana's rice sector as part of efforts to enhance relationship between the two countries. He noted that Ghana's rice sector needs immediate attention given the importance of rice in the economy. In the light of increasing consumption for rice in the country, there is an urgent need to strengthen domestic rice production and distribution system. "The agricultural machinery would make it possible for small holder farmers to achieve timely field cultivation, high level of field bed preparation, planting and harvesting, which are important in rice production," added Ghana's Agriculture Minister.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.According to the USDA, Ghana’s rice production is estimated at about 300,000 tons (milled basis) in MY 2014-15 (October - September). The U.S. agency expects Ghana to import 650,000 tons of rice during the year to meet consumption needs of around 960,000 tons.
Oryza Overnight Recap – Chicago Rough Rice Futures Continue to Drift Lower as Market Lacks Fundamental Support and Technicals Forecast Continued Bearishness Apr 16, 2015
Chicago rough rice futures for May delivery are currently noted 5 cents per cwt (about $1 per ton) lower at $10.045 per cwt (about $221 per ton) ahead of floor trading in Chicago. The other grains are seen trading mixed overnight: soybeans are currently seen unchanged, wheat is listed about 0.7% higher and corn is currently noted unchanged.U.S. stock index futures indicated a lower open on Thursday, as financial earnings continue to dominate news flow and economic data continued to indicate tepid growth. U.S. March housing starts showed a 0.926 million unit rate, below expectations but above February's 0.908 million unit rate. The usual weekly initial
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com jobless claims came in at 294,000, above expectations and a slight increase from the prior week. The Philadelphia Fed's business outlook index for April is due at 10 a.m. Meanwhile in Europe, equities fell in early trading on Thursday after mixed first-quarter earnings reports and concerns that Greece's economic outlook has deteriorated further. Standard & Poor's cut the country's credit rating to "CCC+" from "B-" with a negative outlook on Wednesday. European Central Bank chief Mario Draghi was questioned about Greece at his regular press conference on Wednesday, after the central bank opted to keep interest rates unchanged. Draghi said he was unready to "contemplate" a default by Greece and dismissed fears of a bubble in bond markets. Gold is currently trading about 0.3% higher, crude oil is seen trading about 1.1% lower, and the U.S. dollar is currently trading about 0.4% lower at 8:30am Chicago time.
Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Apr 16, 2015
Thailand rice sellers lowered their quotes for 5% broken rice and parboiled rice by about $5 per ton each to around $380 - $390 per ton each today. Other Asia rice quotes are unchanged today. 5% Broken Rice Thailand 5% rice is indicated at around $380 - $390 per ton, down about $5 per ton from Friday and about a $20 per ton premium on Vietnam 5% rice shown at around $360 - $370 per ton. India 5% rice is indicated at around $370 - $380 per ton, about a $5 per ton discount to Pakistan 5% rice shown at around $375 - $385 per ton. 25% Broken Rice Thailand 25% rice is shown at around $355 - $365 per ton, about a $20 per ton premium on Vietnam 25% rice shown at around $335- $345 per ton. India 25% rice is indicated at around $345 - $355, about a $15 per ton premium on Pakistan 25% rice shown at around $330 - $340 per ton. Parboiled Rice
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Thailand parboiled rice is indicated at around $380 - $390 per ton, down about $5 per ton from Friday. India parboiled rice is indicated at around $365 - $375 per ton, about a $15 per ton discount to Pakistan parboiled rice shown at around $380 - $390 per ton. 100% Broken Rice Thailand broken rice, A1 Super, is indicated at around $320 - $330per ton, about a $10 per ton premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's 100% broken rice is shown at around $275 - $285 per ton, about a $10 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
Italian Museums to Showcase Rice Growing Tradition in International Expo 2015
Apr 16, 2015
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com The Italian rice community is planning to open two museums solely dedicated to rice ahead of the International Expo 2015, which will take place in Milan from May 1 - October 31, 2015, according to local sources. The whole idea is to promote about the Italian rice sector to the Expo visitors. On first museum called the Multimedial Agricultural Museum (MAM) will be hosted in Tenuta Kyrie, a ceremonial palace located between Novara and Pavia provinces and dates back to XVI century. The ancient "cascina" (big square farm, typical of Lombardy and Piedmont) of the palace is dedicated to professional rice growing even today. The farm owners, Costamagna Family and the a union of private and public subjects capable of getting the European Union (EU) Common Agricultural Policy (CAP) funds are will sponsor the museum during the International Expo 2015. A conference hall, a wide auditorium and two buildings will be reconstructed for the purpose. They will be used to set up nine big screens to play videos for the visitors as well as hosting an exhibition showcasing ancient and modern agricultural tools and machines. The videos will highlight the rice growing culture of Italy.The second museum "Museo della risaia” (Museum of the rice growing field) is being planned in Livomo Ferraris. It will show the places women used to work in summers to remove weeds from the rice fields. The museum will also highlight the living and working conditions of such women who came from different parts of the country. This museum will open on April 17, 2015. Simultaneously, the Festival of Italian risotto will take place between April 17 to June 2, every weekend in Biella Fiere, Gaglianico.
Global Rice Quotes April 16th, 2015 Long grain white rice - high quality Thailand 100% B grade
395-405
Vietnam 5% broken 360-370
↔
India 5% broken
370-380
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Pakistan 5% broken
375-385
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Myanmar 5% broken 410-420
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Cambodia 5% broken 435-445
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↔
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com U.S. 4% broken 480-490 Uruguay 5% broken 575-585 Argentina 5% broken 565-575
↔ ↔ ↔
Long grain white rice - low quality Thailand 25% broken 355-365 ↔ Vietnam 25% broken 335-345 ↔ Pakistan 25% broken 330-340 ↔ Cambodia 25% broken 410-420 India 25% broken 345-355 ↔ U.S. 15% broken 470-480 ↔
↔
Long grain parboiled rice Thailand parboiled 100% stxd 380-390 Pakistan parboiled 5% broken stxd 380-390 India parboiled 5% broken stxd 365-375 U.S. parboiled 4% broken 555-565 ↔ Brazil parboiled 5% broken 570-580 ↔ Uruguay parboiled 5% broken NQ ↔
↓ ↔ ↔
Long grain fragrant rice Thailand Hommali 92% 890-900 Vietnam Jasmine 475-485 ↔ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Mails 810-820
↔
↔
Brokens Thailand A1 Super 320-330 ↔ Vietnam 100% broken 310-320 Pakistan 100% broken stxd 285-295 Cambodia A1 Super 345-355 ↔ India 100% broken stxd 275-285 Egypt medium grain brokens NQ ↔ U.S. pet food 370-380 ↔ Brazil half grain NQ ↔
↔ ↔ ↔
All prices USD per ton, FOB vessel, oryza.com
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