June 25 ,2015
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Global Rice Quotes June 24th, 2015 Long grain white rice - high quality Thailand 100% B grade 375-385
↔
Vietnam 5% broken
345-355
↔
India 5% broken
385-395
↔
Pakistan 5% broken
385-395
↔
Myanmar 5% broken
415-425
↔
Cambodia 5% broken
NQ
U.S. 4% broken 450-460
↔ ↔
Uruguay 5% broken
565-575
↔
Argentina 5% broken
555-565
↔
Long grain white rice - low quality Thailand 25% broken
345-355
↔
Vietnam 25% broken
325-335
↔
Pakistan 25% broken
340-350
↔
Cambodia 25% broken NQ
↔
India 25% broken
350-360
↔
U.S. 15% broken
440-450
↔
Long grain parboiled rice 2
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Thailand parboiled 100% stxd
365-375
Pakistan parboiled 5% broken stxd
↔
395-405
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% 815-825
↔
Vietnam Jasmine
↔
480-490
India basmati 2% broken
NQ
↔
Pakistan basmati 2% broken
NQ
↔
Cambodia Phka Mails
↔
NQ
Brokens Thailand A1 Super
315-325
↔
Vietnam 100% broken 310-320
↔
Pakistan 100% broken stxd
285-305
Cambodia A1 Super
↔
NQ
India 100% broken stxd 280-290
↔
Egypt medium grain brokens
NQ
↔
U.S. pet food
↔
350-360
Brazil half grain NQ 3
↔
↔
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All prices USD per ton, FOB vessel, oryza.com
Myanmar Exporters Struggle to Meet European Rice Standards Jun 24, 2015
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Currently Myanmar exports milled rice to the European Union (EU) at zero percent duty under the Everything But Arms (EBA) agreement, which was extended in 2012, and the EU has been assisting the South east Asian nation to develop its rice sector and supply them quality rice.In order to export to quality rice to the EU, the government of Myanmar needs to invest sufficiently in expanding and upgrading domestic mills and other domestic infrastructure, according to a World Bank report released last year. The Secretary General of the Myanmar Rice Federation (MRF) told local sources that Myanmar's rice lacks quality compared with some neighboring countries. “We need to think about quantity and quality to promote exports. But quantity is tough to increase, so we should look at improving quality and exporting Europe to receive a good price,” he was quoted as saying.Experts have suggested that though Myanmar seeks to improve the quality of rice, certain practical challenges have been arising in upgrading rice mills and improvement of quality checks in line with international demands. Recently, a delegation from the EU reportedly visited Myanmar seeking to purchase fragrant rice. “If there is market interest, we will grow fragrant rice and export it to Europe,” said the Vice Chair of the MRF.According to the MRF data, Myanmar exported around 100,000 tons of rice to the EU in 2014 and the government is targeting to export 200,000 tons this year.The EU statistics show that Myanmar's rice exports to the EU increased about 81% to around 144,552 tons during September 2014 - April 2015 from around 79,942 tons during the same period last year.
Government of Togo Takes Measures to Boost Rice Production Jun 24, 2015
The government of the West African nation Togo has distributed 300 tons of improved rice seeds to farmers as part of efforts to increase rice production in the country, Bloomberg quoted the Agriculture Minister.The Togo government also provided 300 tons or improved corn seeds to the farmers. It reportedly spent about 600 million CFA francs (around $1.023 million) on the operation. Togo is a net importer of rice and imports about half of its rice consumption needs annually. USDA estimates Togo to produce about 95,000 tons of milled rice and import about 100,000 5
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tons of rice in MY 2014-15 (October- September) to meet an annual consumption of about 195,000 tons.
Oryza Overnight Recap – Chicago Rough Rice Futures Continue to Drift Sideways on Lack of Fundamental News Jun 24, 2015
Chicago rough rice futures for Jul delivery are currently seen trading 2.5 cent per cwt (about $1 per ton) lower at $9.810 per cwt (about $216 per ton) during early floor trading in Chicago. The other grains are seen trading lower this morning; soybeans are currently seen trading about 0.2% lower, wheat is listed about 0.7% lower and corn is currently noted about 0.4% lower.U.S. stocks traded lower on Wednesday as discouraging developments in the Greece debt talks weighed on investor sentiment, amid domestic data. A Greek government official said that Prime Minister Alexis Tsipras had told associates that Greece's proposed measures had not been accepted by creditors, Reuters reported on Wednesday. Prior to the news, recent reports had indicated progress towards a resolution ahead of Greece's June 30 payment deadline to the International Monetary Fund on June 30. The Eurogroup meets in Brussels on the matter at 1 p.m. ET Wednesday. In U.S. economic news, the final read on first-quarter gross domestic product (GDP) data showed a decline of 0.2%, in-line with expectations and above a previous estimate of a 0.7% contraction. The improved read supports the improving trend in more recent economic reports that indicate moderate growth in the second quarter. Better performance strengthens the Federal Reserve's case for raising short-term interest rates as early as September. The Dow Jones Industrial Average opened down 67 points, or 0.37%, at 18,077. The S&P 500 opened down 3 points, or 0.18%, at 2,120, with materials leading nine sectors lower and utilities the only gainer. The Nasdaq opened down 10 points, or 0.20%, at 5,150. Gold is currently trading about 0.3% lower, crude oil is seen trading about 0.3% higher, and the U.S. dollar is currently trading about 0.1% lower at9:00am Chicago time.
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Oryza U.S. Rough Rice Recap - Offers Jump with Futures while Bids Hold Steady Jun 24, 2015
The U.S. cash market was firmer today with offers increasing in tandem with the futures market while bids remained at the same levels seen earlier in the week.Analysts note that despite the run up in the futures today, buyers insist that there is not enough demand to justify paying the prices farmers are willing to sell at.Analysts remain doubtful that tomorrow’s USDA exports sales report will show a substantial increase from the previous three weeks sales figures, all of which were uninspiring .
Pakistan Rice Exporters Seek Special Package from Government Jun 24, 2015
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Members of the Rice Exporters Rice Association of Pakistan (REAP) have urged the government to provide a special package for the rice sector to help alleviate the problems of rice growers and exporters, according to local sources.At a meeting in the Ministry of National Food Security and Research on June 23, the REAP members put forth their demands to the government. In the light of increasing rice surplus stocks, the exporters sought a subsidy on rice exports and removal of withholding tax on loans taken by rice growers and exporters. They also demanded for procurement of surplus stocks by the Pakistan Agriculture Storage and Services Corporation (PASSCO) Limited. Pakistan consistently produces around one million tons of basmati rice annually, but is unable to export all the produced output due to a competition from India. Pakistan’s basmati rice exports have declined to around 630,035 tons in 2014 from around 968,941 tons in 2012 and from around one million tons in 2011. Local sources say the unsold stock is being accumulated as stocks. Currently, Pakistan has around 600,000 tons of basmati stocks and traders are expecting to add another 400,000 tons this year taking the stock level to about one million tons by the end of this year. Decline in global rice export prices also contributed to a fall in rice export earnings. While export prices of Pakistan 5% rice declined about 12% to around $390 per ton from around $445 per ton last year, basmati rice export prices declined about 34% to around $895 per ton from around $1,350 per ton last year.The South Asian nation produced a record 7 million tons of rice in 2014-15 (July - June), up about 3% from last year due to an increased acreage under highyielding rice varieties and increased availability of irrigation water. However, local consumption of rice is only 3 million tons and the remaining is for export.
Oryza Afternoon Recap - Chicago Rough Rice Futures Rocket Past $10.000 on LastMinute Buying Frenzy; Wheat and Corn Unable to Maintain Early Gains and Slip to a Loss by the Close Jun 24, 2015
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Chicago rough rice futures for Sep delivery settled 29 cent per cwt (about $6 per ton) higher at $10.125 per cwt (about $223 per ton). Rough rice futures shot higher in the closing moments of trading today as aggressive buying pushed price beyond previous resistance just below $10.000 per cwt (about $220 per ton) which had held since mid-April. Traders will now watch for followthrough buying and continue higher as a signal that the recent sideways trend has truly come to an end and that a bullish move is underway. The other grains closed lower as afternoon selling saw a day of back-and-forth trading slip into the red for all products of the complex; Soybeans closed about 0.6% lower at $9.8175 per bushel; wheat finished about 0.7% lower at $5.1800 per bushel, and corn finished the day about 0.3% lower at $3.6650 per bushel.U.S. stocks traded lower on Wednesday as discouraging developments in the Greece debt talks weighed on investor sentiment, amid domestic data. The Dow Jones industrial average traded about 150 points lower in early afternoon trade. The Dow transports fell more than 2% as railway stocks dragged all components lower. Euro zone leaders struck a mostly negative tone in their remarks on the negotiations Wednesday. European Union Vice President Valdis Dombrovskis said progress is being made but a long night of talks is likely as many issues remain, Reuters reported. German Finance Minister Wolfgang Schaeuble said he did not expect an agreement on Greece Wednesday. Speaking before a meeting of European finance officials in Brussels, he added he didn't feel much had changed on the Greece issue since Monday. In U.S. economic news, the final read on firstquarter gross domestic product (GDP) data showed a decline of 0.2%, in-line with expectations and above a previous estimate of a 0.7% contraction. Encouragingly, consumer spending was revised up to 2.1% from the initial 1.8%.The improved read supports the improving trend in more recent economic reports that indicate moderate growth in the second quarter. Better performance strengthens the Federal Reserve's case for raising short-term interest rates as early as September. The Dow Jones Industrial Average traded down 145 points, or 0.80%, at 17,998. The S&P 500 traded down 13 points, or 0.60%, at 2,111, with materials leading all 10 sectors lower. The Nasdaq traded down 31 points, or 0.60%, at 5,129. Gold is trading about 0.3% lower, crude oil is seen trading about 1.6% lower, and the U.S. dollar is seen trading at about 0.2% lower at about 1:00pm Chicago time.Tuesday, there were 1,491 contracts traded, up from 1,167 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday decreased by 284 contracts to 9,610.
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Philippines Weather Agency Expects Onset of Rainy Season Soon Jun 24, 2015
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) has announced on June 23 that it is expecting the onset of the rainy season within the next few days, according to a news release on its website.It noted that in the coming days, moderate to heavy rains are expected over most parts of Western Luzon and Western Visayas due to the Low Pressure Area (Area) due to the southwest monsoon. However, it noted that monsoon breaks or periods of no rain are expected during the rainy season. In the first week of June, the PAGASA predicted a weak El Nino affecting the regualr monsoons.“Farmers should
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plant early, they should start the land preparation right now,� the Agricultural Secretary was quoted as saying. Currently, the country's rice self-sufficiency is at 96-97%. In the second week of June, the Philippines Statistics Authority (PSA) estimated Philippines's 2015 second quarter (April June) production to decline by about 4.3% to around 3.898 million tons from last year's 4.073 million tons due to a decline in harvest area prompted by dry spell and insufficient water supply as well as incidence of pests and diseases in some rice growing areas
Government of Tanzania Urged to Settle Rice Export Issue with EAC Jun 24, 2015
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The Chairman of the Rice Council of Tanzania (RCT) has urged the government to settle the rice export issue with the East African Community (EAC), as Kenya and Uganda banned rice imports from Tanzania for its rice shipments being mixed up with low quality Indian and Pakistani rice, according to local sources.Speaking at a meeting on the challenges faced by the country's rice sector, the official noted that most of the low quality rice from India, Pakistan, Thailand and China is smuggled through porous borders. Such unofficial imports have not only denied requisite tax revenue to the Tanzanian government but also spoilt the reputation of the Tanzanian rice, he said. He also reportedly emphasized that since importers of rice from these countries do not pay taxes, they sell rice cheaply in the local market depriving requisite income to farmers, who incur heavy costs to produce their rice. Also rice production in Tanzania is not subsidized unlike in most of the Asian rice producing countries.The official reminded that in 2014, Tanzania produced over 700,000 tons of paddy but could not export anything to the EAC markets. Therefore, he urged the Tanzania Revenue Authority (TRA) to ensure that low quality rice does not enter the country's borders and also improve its collection particularly in porous borders. The Executive Director of Agricultural non- state actors Forum (Ansaf) added that if the government does not act promptly, apart from Tanzania further losing its reputation, its economy might be impacted significantly due to loss of income for rice producers as well as export revenues for the government.USDA estimates Tanzania to produce around 1.386 million tons of rice, basis milled, and export around 30,000 tons in MY 2015-16 (June 2014 - May 2015).
Thailand to Auction One Million Tons of Rice in July Jun 24, 2015
The government of Thailand is planning to sell about one million tons of rice in an open tender in early July as part of its efforts to cut down its rice stocks accumulated from the rice pledging scheme introduced by the previous government in October 2011, according to Reuters.The Deputy Director-General of the Commerce Ministry's Foreign Trade Department told reporters that the exact date of the tender would be decided on June 26 12
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in a meeting.The upcoming rice auction is the fourth one this year and the eighth auction since the military government took over in May 2014. The Commerce Ministry sold about 2.73 million tons of rice in the first seven auctions since it took power, raising over $888 million.The Thai military government currently holds over 16 million tons of rice in its warehouses and is planning to sell about 10 million tons this year about six million tons next year.
Thailand Advises Farmers to Further Delay Rice Planting Till August Jun 24, 2015
The government of Thailand has requested farmers in the Central region to further delay rice planting till August from the earlier set July as 22 of the 76 provinces are still fighting drought conditions, according to Reuters.The Minister of Natural Resources and Environment told local sources that the government would dig 500 new wells near the Chao Phraya River, in addition to the 300 wells already in place, to help store water along the river.The Irrigation Department is planning to reduce water supply in the Chao Phraya basin due to exceptionally low levels of water in the Chao Phraya reservoir, according to Bloomberg. Supply is expected to decline by 5 million cubic feet per day to 28 million cubic feet per day. On June 12, it reduced water supply to about 30-35 cubic feet per day from the earlier 62 million cubic feet per day. At this pace the Department expects to use the available water till August 10, by when it expects rains to resume. About 850,000 rai of rice land (around 136,000 hectares) may be affected due to the additional water cut. Initially around 3.44 million rai (about 550,400 hectares) of rice land was expected to be unaffected by the cut in water supplies.A decline in production in Thailand is expected to push up rice prices, which have declined significantly since the beginning of the year. Export prices of Thai 5% rice are currently ruling at about $370 per ton compared to about $410 at the beginning of the year. 13
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