Daily Exclusive ORYZA Rice E-Newsletter
April, 04,2016 Vol 7,Issue III
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Daily Exclusive ORYZA Rice E-Newsletter Oryza Weekly: Global Rice Market Mixed Amid Large Currency Moves Apr 02, 2016
The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $387 per ton, down $1 per ton from a week ago, up $2 per ton from a month ago and down $25 per ton from a year ago. Gloabl rice quotes ended the weekly mostly weeker to unchanged with the exception of South Asia. Thailand Thailand 5% broken rice is today quoted at about $370 per ton, unchanged from a week ago, up about $5 per ton from a month ago and down about $20 per ton from a year ago. The Thai Commerce Minister has assured that the rice and rubber deals with China won’t be affected by a change in the investment of the proposed Thai-Sino high-speed rail project. The government plans to sell more than 100,000 tons of food-grade rice in the second half of April, with about 12 million tons currently held in government stockpiles. Vietnam Vietnam 5% broken rice is today quoted at about $380 per ton, down about $10 per ton from a week ago, up about $20 per ton from a month ago and up about $15 per ton from a year ago. During the period January 1 – March 15, Vietnam exported 1.11 million tons of rice. The average rice export price so far this year is $397.33 per ton (FOB).
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Daily Exclusive ORYZA Rice E-Newsletter Vietnam rice exports are becoming less competitive due to higher prices compared to exports from Thailand and India, with export prices of Vietnam 5% rice increasing about $20 per ton since the beginning of March 2016. Current prices are quoted around $380-$390 per ton, which is $5-$55 higher per ton than India’s, Pakistan’s, and Thailand’s 5% rice. Vietnam rice exporters plan to sell to France’s second largest retail chain. Experts are noting that the Vietnamese government should focus on long-term water reserve policies in order to address the increasing salt water intrusion into coastal provinces. Ongoing drought and increasing salinity has affected about 180,000 hectares of farm land, destroying major crops, including rice. Cambodia & Myanmar Cambodia 5% broken rice is today quoted at about $455 per ton, up about $30 per ton from a week ago, up about $40 per ton from a month ago and up about $15 per ton from a year ago. Cambodia’s Foreign Minister has urged Malaysian businessmen to invest in the country’s rice milling sector as part of discussions with the Malaysian Ambassador to Cambodia this week. Separately, following an emergency meeting of the members of the Cambodia Rice Federation and the involved stakeholders with the Deputy Prime Minister, the government announced that it would remove the current value added tax on milling machines and take action on companies importing rice from neighboring countries and rebranding it as Cambodian rice. Myanmar 5% broken rice is today quoted at about $420 per ton, down about $5 per ton from a week and a month ago, and up about $5 per ton from a year ago. Meanwhile, the Myanmar Rice Federation, the Myanmar Rice and Paddy Traders Association, and the University of Agriculture plan to jointly conduct a survey on local rice consumption next year. India India 5% broken rice is today quoted at about $375 per ton, up about $5 per ton from a week a month ago, and down about $5 per ton from a year ago. India average wholesale rice prices have increased for the fifth consecutive month on concerns of low production following below average rains during the 2015-16 kharif (July-December) season. Average monthly wholesale rice prices were around Rs.2,833.93 per quintal in March, up about 1.6% from in February, but down slightly from the same time last year. In terms of USD per ton, wholesale rice prices in India stand at around $426 per ton (using current exchange rates) in March 2016, up about 5% from around $406 per ton (using historical exchange rates) in February 2016, and down about 7% from around $460 per ton (using historical exchange rates) in March 2015. Wholesale basmati rice prices in the national capital increased this week due to increased buying for stockpiling against restricted supplies from producing regions. Pakistan Pakistan 5% broken rice is today quoted at about $345 per ton, up about $5 per ton from a week and a month ago and down about $10 per ton from a year ago. The Commerce Minister has decided to replace the commercial attaché in Saudi Arabia following complaints from rice exporters. Central & South America Five percent broken rice from Uruguay and Argentina is today quoted at about $430 per ton, unchanged from a week ago, down about $10 per ton from a month ago and down about $145 per ton from a year ago.
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Daily Exclusive ORYZA Rice E-Newsletter The USDA Post forecasts Colombia’s MY 2016-17 (April-March) rice imports at around 320,000 tons, up slightly from an estimated 300,000 tons last year due to an expected increase in production. The Guyana Rice Development Board has signed agreements with two Jamaican companies recently to export about 80,000 tons of rice to the Caribbean nation in 2016, about double what was exported in 2015. U.S. U.S. 4% broken rice is today quoted at about $445 per ton, unchanged from a week ago, down about $15 per ton from a month ago and down about $40 per ton from a year ago. Chicago rough rice futures for May delivery dropped this week, reaching a new low of $9.425 per cwt (about $208 per ton) on Thursday before regaining some to close at $9.780 per cwt (about $216 per ton) Friday. The U.S. cash market dropped later in the week after the USDA estimated a 31% increase in long-grain acreage, which was quite higher than the 10-20% that had been anticipated by analysts. Other Markets South Korea’s Agro-Fisheries & Food Trade Corp purchased 7,700 tons of Thai rice as part of the tender to purchase 22,000 tons of rice. Reuters reports that South Korea also bought 44,000 tons of U.S. and Chinese rice under a separate tender. The USDA Post forecasts Tanzania’s MY 2015-16 (May-April) rice imports to increase about 60% y/y to around 160,000 tons. Egypt’s state grain buyer General Authority for Supply Commodities has canceled a tender to purchase an unspecified amount of rice for delivery from April 20 to May 10. Effective April 4, Egypt will ban rice exports (which have been allowed since October 2015); locals claim the tight supplies on the government’s failure to stockpile enough rice soon enough resulted in private traders hoarding rice in anticipation of higher prices. The Italian Minister of Agriculture has submitted a document to the European Commission Rice Committee urging it to apply duties to zero-duty EU rice imports from the Asian Least Developed Countries through a safeguard clause to protect the local rice sector, calling the EU rice “import situation totally out of control.” The European Union has increased its rice imports sharply since the beginning of the crop year 2015-16 (September-August), with 679,233 tons imported during that time, about 17% more than the same period last year. Meanwhile, the European Union exported about 123,197 tons of rice during the period September 1 – March 15, a decrease of about 17% from the same period last year. The UN’s FAO forecasts China’s MY 2015-16 (June-May) rice imports to decline about 6% y/y to around 5.8 million tons due to the government’s efforts to limit informal imports. The FAO forecasts China’s 2015 paddy rice output at around 208.25 million tons, up from 206.507 million tons in 2014 due to favorable weather conditions. The USDA Post forecasts South Africa’s MY 2016-17 (May-April) rice consumption to increase about 10% y/y to around 970,000 tons due to drought-reflected record corn prices. Consequently, the Post forecasts South Africa’s MY 2016-17 rice imports to increase about 10% y/y to about 1.1 million tons. In calendar year 2015, Algeria imported about 113,859 tons of rice, about 3% less than in CY 2014.
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Daily Exclusive ORYZA Rice E-Newsletter The government of the Philippines may not import rice for the lean season (July-September) this year due to adequate stocks. Since Wednesday, farmers in the Philippines are protesting to demand the governor release 15,000 bags of rice. Six thousand farmers blocked a main highway in the North Cotabato province and attacked police with sticks and stones, protesting the loss of their crops. Philippine police responded by opening fire on the protest, killing one person and wounding over 10.
South Korea Buys 7,700 Tons of Thai Rice Apr 01, 2016
South Korea's Agro-Fisheries & Food Trade Corp, the state's grain buying agency purchased 7,700 tons of Thai rice, according to Reuters. This was part of the tender to purchase 22,000 tons of rice. Reuters reports South Korea also bought 44,000 tons of U.S. and Chinese rice under a separate tender.
Philippine Police Open Fire on Rice Farmers' Protest, Killing One Apr 01, 2016
Six thousand Philippine rice farmers blocked a main highway in the North Cotabato province and attacked police with sticks and stones, protesting the loss of their crops. Reuters reports that Philippine police opened fire on the protest, killing one person, and wounding over 10 people. Protesting since Wednesday, farmers are demanding to speak with the governor and for the release of 15,000 bags of rice. The police department said it was investigating the incedent.
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Recover Slightly as does Corn; Beans and Wheat Add to Gains Following Yesterday's USDA Report Apr 01, 2016
Chicago rough rice futures for May delivery settled 9 cents were cwt (about $2 per ton) higher at $9.780 per cwt (about $215 per ton). The other grains finished the day higher; Soybeans closed about 0.8% higher at $9.1825 per bushel; wheat finished about 0.5% higher at $4.7575 per bushel, and corn finished the day about 0.7% higher at $3.5400 per bushel. U.S. stocks traded higher Friday, amid pressure from low oil prices, after encouraging reports on domestic employment and manufacturing. The major averages turned higher after ISM manufacturing for March came in at 51.8, topping expectations and up from February's 49.5 print. In afternoon trading, the major indexes held near session highs. U.S. crude oil futures held about 3% lower below $37.09 a barrel, hitting their lowest since March 16. The weekly oil rig count showed a decline of 10, according to Baker Hughes. Oil fell sharply on renewed oversupply concerns, after reports that Saudi Arabia would not agree to a production freeze unless Iran and other major producers also did so. The decline in oil and overnight sell-off in some major overseas stock indexes on disappointing Japanese data initially weighed heavily on U.S. equities, which opened lower despite an encouraging March jobs report. Traders also attributed part of the morning decline in stocks to beginning-of-quarter flows. In other economic 5
Daily Exclusive ORYZA Rice E-Newsletter news, February construction spending declined 0.5 percent. The final University of Michigan consumer sentiment read for March was 91.0. Earlier, the March U.S. Markit manufacturing PMI came in at 51.5. The March employment report showed creation of 215,000 jobs, with the unemployment rate edging up to 5.0% and average hourly earnings rising seven cents, according to Reuters. The labor force participation rate rose to 63%, its highest level since March 2014. In afternoon trade, the Dow Jones industrial average gained 64 points, or 0.37%, to 17,748. The S&P 500 rose 6 points, or 0.3%, to 2,065, with health care leading five sectors higher and energy the greatest laggard. The Nasdaq composite rose 60 points, or 0.57%, to 4,897. Gold is seen trading about 1% lower, crude oil is seen trading about 3.5% lower, and the U.S. dollar is seen trading about 0.1% higher at about 1:00pm Chicago time. Thursday, there were 2,902 contracts traded, up from 1,285 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday decreased by 23 contracts to 13,149.
Asia Rice Quotes Unchanged Today Apr 01, 2016
Asia rice sellers kept their quotes unchanged Today. 5% Broken Rice Thailand 5% rice is indicated at around $365 - $375 per ton, about $10 per ton discount to Vietnam 5% rice shown at around $375 - $385 per ton. India 5% rice is indicated at around $370 - $380 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton. 25% Broken Rice Thailand 25% rice is indicated at around $355 - $365 per ton, about $5 per ton discount to Vietnam 25% rice shown at around $360- $370 per ton. India 25% rice is indicated at around $335- $345 per ton, about $25 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 $355 - $365 per ton, about $50 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 $330 - $340 per ton, about $20 per ton discount to Vietnam 100% broken rice shown at around $350 - $360 per ton. India's 100% broken rice is shown at around $270 - $280 per ton, about $15 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
Global Rice Quotes April 4th, 2016 Long grain white rice - high quality Thailand 100% B grade 375-385 Vietnam 5% broken 370-380 India 5% broken 370-380
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Daily Exclusive ORYZA Rice E-Newsletter Pakistan 5% broken Myanmar 5% broken Cambodia 5% broken U.S. 4% broken Uruguay 5% broken Argentina 5% broken
340-350 415-425 450-460 440-450 435-445 425-435
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Long grain white rice - low quality Thailand 25% broken 355-365 ↔ Vietnam 25% broken 355-365 ↓ Pakistan 25% broken 310-320 ↔ Cambodia 25% broken 430-440 ↔ India 25% broken 335-345 ↔ U.S. 15% broken (sacked) 470-480 Long grain parboiled rice Thailand parboiled 100% stxd 370-380 Pakistan parboiled 5% broken stxd NQ India parboiled 5% broken stxd 355-365 U.S. parboiled 4% broken 480-490 Brazil parboiled 5% broken 490-510 Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 665-675 Vietnam Jasmine 465-475 ↓ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Mails 760-770 ↔ Brokens Thailand A1 Super 330-340 ↔ Vietnam 100% broken 345-355 ↓ Pakistan 100% broken stxd 285-295 Cambodia A1 Super 345-355 ↔ India 100% broken stxd 270-280 Egypt medium grain brokens NQ ↔ U.S. pet food 315-325 ↔ Brazil half grain NQ ↔
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All prices USD per ton, FOB vessel, oryza.com
Exclusive News have been shared with written permission of ORYZA.com with thanks
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