April 9, 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
USDA Post Estimates Turkey MY 2014-15 Rice Imports at 300,000 Tons, Down 12% from Last Year Apr 08, 2015
USDA Post has estimated Turkey's rice imports at around 300,000 tons in MY 2014-15 (September - August), down about 12% from an estimated 341,000 tons imported in the previous year. According to data from the Turkish Grain Board (TMO), Turkey imported around 196,687 tons of rice between September 2014 and January 2015, with Russia being the top exporter with around 87,854 tons so far. Turkey imported 37,000 tons of paddy rice from the U.S. so far in 2014-15. The Post reports that recently, Turkish importers had faced severe import restrictions and penalties due to Turkey's implementation of the 2010 Biosafety Law. Therefore the Post expects rice importers to be more cautious in accepting shipments that are contaminated with corn or
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com soybean traits that are meant for animal feed. They are particularly cautious in importing paddy rice as they are more prone to a biotech detection and quarantine regulations. The Turkish government authorized the Turkish Grain Board to import 4.2 million tons of cereals, including rice, at a zero customs duty through a Cabinet of Ministers' decision published in the Official Gazette on April 19, 2014.Turkey imported around 413,932 tons of rice in MY 2013-14. The U.S. was the top exporter to Turkey with around 172,872 tons followed by India with 67,338 tons. The Post estimates Turkey's rice imports to increase to 350,000 tons in MY 2015-16 with around 25,000 tons coming from the U.S. The government increased the agricultural support budget from 9.7 billion Turkish Lira (TL) in 2014 ($4.49 billion) to 10.1 billion TL ($4.1 billion) in 2015.The Post estimates Turkey's milled rice production to decline about 8% to around 460,000 tons in MY 2014-15 due to a slight reduction in planting area. It estimates Turkey's paddy rice acreage to decline about 3% to around 95 million hectares.
Global Rice Quotes April 9th, 2015 Long grain white rice - high quality Thailand 100% B grade 395-405 Vietnam 5% broken 360-370 ↔ India 5% broken 375-385 ↔ Pakistan 5% broken 360-370 ↔ Myanmar 5% broken 410-420 ↔ Cambodia 5% broken 435-445 ↔ 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 340-350 ↔ Pakistan 25% broken 335-345 ↔ Cambodia 25% broken 410-420 India 25% broken 345-355 ↔ U.S. 15% broken 470-480 ↔ Long grain parboiled rice Thailand parboiled 100% stxd Pakistan parboiled 5% broken stxd
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385-395 395-405 3
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com ↔
India parboiled 5% broken stxd 360-370 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 470-480 ↔ 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 340-350 ↔ India 100% broken stxd 275-285 Egypt medium grain brokens NQ ↔ U.S. pet food 370-380 ↔ Brazil half grain NQ ↔
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All prices USD per ton, FOB vessel, oryza.com
Italy Supports Senegal to Boost Rice Production Apr 08, 2015
An Italian rice cooperative project "Support project to National Program for Investment in Agriculture" along with three other cooperatives trained by the Italian National Research Center (CNR) and a group of Italian farmers have taken up a project to help and support the Senegalese farmers to boost rice production, according to local sources.The project, which is funded by the Italian Minister for Foreign Affairs as well as the Senegalese Institute of Research in Agriculture, and Regional Director of Rural Development of Sedhiou, aims at training Senegalese farmers about good farming practices and local seeding rules. It also aims at developing about 4,000 hectares of rural land to improve rice production around the Casamance river. Farmers from various Senegalese cooperatives, including Assolucer, Diendé, Pakao Est, had participated in the training sessions. 4
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com
Senegal is a net importer of rice and imports over one million tons of rice or about 80% of around 1.4 million tons of rice needed for its domestic consumption. The government has been keen on reducing dependence on imports by increasing rice production. In this direction, the President had recently launched an ambitious $148 million program to achieve self-sufficiency in rice production by 2017. The Prime Minister also hinted at imposing taxes and duties on rice imports to protect local rice sector.USDA estimates Senegal to produce about 289,000 tons of rice and import around 1.15 million tons in MY 2014-15 (October - September) to meet a consumption demand of around 1.45 million tons.
Oryza March 2015 Rice Market Review
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Apr 08, 2015
The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the month of March at about $413 per ton, down about $7 per ton from a month ago and down about $41 per ton from a year ago. Global rice prices trends were mostly lower across the board in March. Thailand rice prices were weak in March, due to sluggish import demand and of the auctioning of government stock supplies. Rice prices in India were also weak ahead of the Rabi harvest. In the U.S. and South American countries, prices in March were stable to lower. South American rice prices were pressured by the arrival of the new crop. Prices were steadier in Vietnam, supported in part by the launching of the official one million ton paddy procurement program. Separately, FAO has forecasted 2014-15 global rice production at about 494.4 million tons, slightly down from an estimated 496.6 million tons in 2013-14 and slightly down from its last month's forecast of about 495.9 million tons. It estimates 2014-15 global rice utilization at about 6
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com 499.4 million tons, up about 1.7% from an estimated 491.2 million tons in 2013-14, and slightly down from last month's estimates of about 500 million tons. The global rice trade in 2014-15 is expected to reach at about 41.3 million tons, down about 2.5% from an estimated 42.4 million tons last year and slightly down from last month's forecast of about 41.4 million tons. Thailand Thailand 5% broken rice ended the month of March at about $390 per ton, down about 4% per ton from a month ago and up about 1% per ton from a year ago.The government of Thailand received bids for about 780,000 tons from 40 firms for the one million tons it auctioned on March 6. All the bids were above the floor price set by the government and the government is hoping to raise more than 8 billion baht (about $247 million) from this auction. The military government already sold about 1.18 million tons of rice from five auctions raising about 17.21 billion baht (about $528 million) since it seized power in May 2014. The Thailand government plans to sell about 10 million tons this year and about 7 million tons next year from government stocks. Meanwhile, the government is planning to sell the degenerated rice after August 2015 when the investigation against those involved in the sales of low-grade rice is expected to be over. Separately, the Thai Commerce Ministry has decided to delay the third auction of rice from the government stockpiles to avoid further decline of rice prices, which have already started declining due to increasing supplies from the second crop harvest. The Commerce Minister told reporters that the government would issue next tender when prices recover. He added that markets may pick up at the end of April 2015. Thailand exported about 610,504 tons of rice in January 2015, down about 59% from about 1.47 million tons exported in December 2014, and down about 12% from about 696,558 tons exported in January 2014, according to data from Thai Rice Exporters Association (TREA). Thailand exported about 732,151 tons in February 2015, up about 3.1% from the same month last year. Meanwhile, the TREA forecasts Thailand to export about 800,000 tons in March 2015. The USDA estimates Thailand to export about 11 million tons of rice in MY 2014-15 (January December 2015), slightly above 10.97 million tons exported in 2014 as the government is keen on selling rice from its stockpiles this year. TREA also expects low export demand for Thai rice to continue in the second quarter of 2015 due to tougher competition but is estimating a year-end export figure of around 10-11 million tons. Separately, Brunei is likely to increase its rice imports from Thailand this year as 90% of the Southeast Asian nation's population prefer Thai rice for its taste and healthy properties, Bangkok post quoted Brunei's government spokesman as saying. Brunei produces only 2% of the annual
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com consumption of about 40,000 tons. Brunei’s rice production has remained at about 1,000 tons since 2002, and the country imports most of rice required for domestic consumption. The government of Thailand has decided to set up two investigative panels to probe for alleged corruption in government-to-government (G2G) deals as part of the rice pledging scheme introduced by the former Prime Minister Yingluck Shinawatra, according to local sources. Separately, the TREA President has expressed pessimism that Thailand may not be able to regain its lost market share for fragrant rice in Hong Kong this year due to the higher prices. Currently, Thai fragrant rice is quoted at about $900 per ton compared to about $585 per ton of Vietnam's fragrant rice and about $600 per ton of Cambodia's fragrant rice. The USDA estimates January 2015 - December 2015 milled rice production to decline to about 19.404 million tons, down about 4% from about 20.46 million tons last year due to an expected decline in off-season rice planting following drought forecasts. The Rice Policy Committee in Thailand has approved a budget of about 582 million baht (about $18 million) to subsidize interest costs of millers, Bloomberg quoted the Permanent Secretary for Commerce as saying. The military government is encouraging millers to store rice during the harvest season in order to curb price falls due to increased supplies by providing low interest loans. Vietnam Vietnam 5% broken rice ended the month of March at about $370 per ton, unchanged from a month ago and down about 5% per ton from a year ago.Vietnam exported about 904,954 tons of rice in first three months of calendar year 2015, down about 26% from about 1.22 million tons of rice exported during same time last year, according to data from the Vietnam Food Association (VFA). In March 2015, Vietnam rice export increased sharply from last month. Vietnam exported about 480,490 tons of rice in March 2015, up about 139% from about 200,814 tons rice exported in February 2015, but down about 18% from about 583,294 tons rice exported in March 2014. The FAO says that Vietnam is expected to export about 6.9 million tons rice in 2015, up about 7% from last year. FAO estimates total paddy rice production in Vietnam is expected to reach a record level of 45 million tons in 2014, up about 2% from about 44.04 million tons produced in 2013, due to higher yields amid favorable weather conditions. Separately, the Vietnamese Deputy Minister for Industry and Trade has expressed optimism that Vietnam's rice exports, which declined about 4% y/y to about 6.4 million tons in 2014, to rebound in 2015 backed by increased demand from China and lower export prices. Meanwhile, the VFA noted that Vietnam's rice exports in 2015 would be affected by rice oversupplies in Thailand and other rice exporting nations. According to data from the VFA, Vietnam businesses signed contracts for 8
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com export of about 1.94 million tons as of March 19, 2015, up about 7% from last year. But 1.4 million tons are yet to be delivered. The Ministry of Agriculture and Rural Development (MARD) of Vietnam is planning to develop specialized large-scale rice growing areas in the Mekong River Delta (MRD) region to cater to the growing needs of local and international markets, according to local sources. Separately, Agriculture Ministers of Thailand and Vietnam have also decided to work closely to develop sustainable rice markets in order to increase the quality and value of rice production in the longrun. Separately, the MARD has proposed to develop a national brand name to the Vietnamese rice by 2020 in order to increase its reach into higher quality-conscious markets such as the EU, U.S., and Japan; as well as retain traditional markets by addressing the existing loopholes in international marketing and distribution channels, according to local sources. Vietnam enterprises have bought about 71% or about 700,000 tons of targeted one-million tons of winter-spring rice under the government-approved stock piling plan so far from March 1, 2015 when the scheme began. The scheme will continue till April 15, 2015. The government approved the stockpiling plan to prevent prices from falling during the harvest of the winterspring crop. Vietnam's policy to increase rice production has paid off in terms of increased exports and foreign exchange but has not been very beneficial to rice farmers or environment, according to experts. Farmers have been used to grow three crops a year to maintain pace of production and exports but their incomes have not risen proportionately due to increased costs for fertilizers and land preparation for each crop. Also the quality of rice grown is said to be of low quality compared to the quality of rice grown by other exporting nations such as Thailand, India and Pakistan. On the other hand too much of rice growing has been degrading soil efficiency, say experts. Experts are suggesting that the government of Vietnam encourage only two rice crops a year and support farmers to shift to a more diverse range of crops, from coconuts to prawns, and use the most suitable and fertile land to grow rice. India India 5% broken rice ended the month of March at about $380 per ton, down about 4% per ton from a month ago and down about 12% per ton from a year ago. India exported about 9.57 million tons of rice (including basmati and non-basmati) in the first ten months of FY 2014-15 (April - March), up about 7% from about 8.96 million tons exported during the same period in FY 2013-14, according to provisional data released by the Agricultural and Processed Food Products Export Development Authority (APEDA). Meanwhile, India's rice exports to African destinations have been reportedly impacted by increased supplies from 9
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Thailand and price competition with other exporting nations such as Vietnam and Pakistan. India's rice exports to Nigeria, Africa's largest importer of rice, have been affected because it is facing foreign exchange problems due to oil price decline and depreciation of its local currency against dollar. Earlier, in August 2014, India’s rice exports to African countries were impacted due to the spread of the Ebola Virus Disease (EVD). The Commerce Ministry of India has decided to formulate a new and specific strategy to boost rice exports, including basmati and non-basmati, to Africa, according to local sources. Separately, Indian basmati rice could not find its way into the world's largest consumer of rice, China, due to concerns of it being infested with 'khapra beetle' and lack of proper phyto-sanitary regulations between the two countries. Now, the government of India is preparing ground to begin exporting basmati rice to China. India's National Plant Protection Organization (NPPO) is likely to declare some of the country's rice-shelling and exporting units registered with it as free from 'khapra beetle' infestation, according to local sources. The government of India is expected to send a list of credited Indian rice mills with the infestation-free certification from the NPPO to the Chinese authorities by the end of June this year, according to the President of Punjab Rice Exporters' Association. Meanwhile, India's Commerce Secretary and a high level delegation are visiting Iran this week to discuss ways to boost trade, including revival of rice trade, between the two nations, according to local sources. The government of India has decided to sell excess rice stocks in the open market from the new fiscal year that begins on April 1, 2015, according to local sources. Separately, the Chief Minister (CM) of the South Indian state Telangana has urged the government of India to reconsider its decision to end the levy rice procurement system starting from the 2015-16 (October - September) kharif marketing season (KMS). Under the levy rice procurement system, state governments procure a percentage of milled rice needed for their public distribution (PDS) activities from millers, who purchase paddy from farmers, instead of procuring paddy directly from farmers and getting it custom milled. India's hybrid rice acreage has reached about 2.5 million hectares in 2014, about 250 times from a mere 10,000 hectares in 1995, according to the Minister of State for Agriculture Minister. Currently, the hybrid rice acreage accounts for about 5.6% of the total rice area of about 45 million hectares in the country. Planting for India 2014-15 rabi (secondary) rice crop (November - May) has reached about 3.943 million hectares as of March 27, 2015; down about 9.5% from about 4.355 million hectares planted during the same period last year, according to preliminary data released by the Indian Agriculture Ministry. Bangladesh 10
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com FAO forecasts Bangladesh rice imports to decline to about 700,000 Tons in 2014-15 (July June), down about 36% from an estimated 1.1 million tons in the previous year due to an expected increase in production in during the year. The agency estimates Bangladesh 2014 paddy production from all three crops - Aman (April - December), Aus (February - August) and Boro (October - May) - at about 52.2 million tons (about 34.97 million tons, basis milled), up about 1.3% from an estimated 51.539 million tons (about 34.531 million tons, basis milled). Bangladesh's private sector imported about 1.07 million tons of rice in July 1, 2014 - March 22, 2015, nearly three times more than 374,560 tons of rice imported in the entire 2013-14 fiscal year (July - June), according to data from the Ministry of Food. Separately, increasing rice imports have been severely hurting the Bangladesh rice sector, according to local sources. Rice millers across the country are facing huge losses as they bought paddy from farmers at higher prices but now they holding huge stocks of locally produced coarse and medium rice because of the cheap imported rice. Separately, The government of Bangladesh has decided to lower the open market rice price under the OMS program to about Tk22 per kilogram (about $282.5 per ton) from about Tk26 per kilogram (about $334 per ton) as part of efforts to curb rice imports by the private sector, according to local sources. Meanwhile, the government of Bangladesh is planning to procure one million tons of 2015 Boro paddy and 100,000 tons of Boro rice between May 1, 2015 and August 31, 2015. It has fixed the procurement price for paddy at Tk 22 per kilogram (about $283 per ton) and that for rice at Tk 32 per kilogram (about $412 per ton). The government of Bangladesh has estimated the total output from 2014-15 Aman rice crop (April - December) at about 13.189 million tons, up about 1.3% from about 13.023 million tons produced in 2013-14. Meanwhile, Bangladesh's 2015 Boro (January - May) rice acreage has reached about 4.822 million hectares, surpassing the government target of about 4.78 million hectares by about 42,000 hectares, local sources quoted data from the Field Service Wing of the Department of Agricultural Extension (DAE). Pakistan Pakistan 5% broken rice ended the month of March at about $355 per ton, up about 4% per ton from a month ago and down about 13% per ton from a year ago. Pakistan basmati rice prices, which have been declining since September 2014, have reversed and increased sharply in February 2015, according to the FAO. In February 2015, Pakistan's basmati rice export prices have increased about 12% to about $978 per ton from about $876 per ton in January 2014, and down about 27% from their year-ago levels of about $1,348 per ton. In terms of local currency, average Pakistan basmati rice prices in February 2015 increased to about PKR 99,512 per ton
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com (using historical exchange rates), up about 13% from about PKR 88,305 per ton in January 2015, and down about 29% from about PKR 140,731 per ton in February 2014. The FAO has estimated Pakistan will export about 3.8 million tons of rice in 2015, slightly up from 2014 due to expected increased production this year. The FAO estimates Pakistan's 2014 paddy rice production at about 10.1 million tons (about 6.85 million tons, basis milled), down about 1% from about 10.19 million tons (about 6.93 million tons, basis milled) produced in 2013, due to localized crop damages in some eastern parts of Punjab, Gilgit Baltistan and Azad Jammu and Kashmir (AJK), following floods in September and drought in south-eastern parts of Sindh province. Meanwhile, the Chairman of the Rice Exporters Association of Pakistan (REAP) has forecasted that the country would not be able to meet its rice export target of about 3.8 million tons in FY 2014-15 (July - June) as demand from China and Malaysia has been falling. The REAP Chairman noted that Pakistan's rice exports may reach about 3.5 million tons in 2014-15, of which 600,000 tons are expected to be basmati. The National Space Agency of Pakistan (SUPARCO) estimated Pakistan FY 2014-15 (July - June) paddy rice production to decline about 19% to about 8.437 million tons (about 5.65 million tons, basis milled) from about 10.04 million tons (about 6.72 million tons, basis milled) produced last year. Pakistan's total exports, including basmati and non-basmati, continued to decline for second consecutive month in February 2015 after they declined sharply in January. Pakistan exported about 355,747 tons of rice (including basmati and non-basmati) in February 2015, down about 15% from about 419,153 tons exported in January 2015, according to provisional data from the Pakistan Bureau of Statistics (PBS). Separately, the Basmati Growers Association (BGA) of Pakistan has challenged the application filed by India's Agricultural and Processed Food Products Exports Development Authority (APEDA) with the Intellectual Properties Appellate Board (IPAB), which has accepted its petition last month. However, the IPAB has reportedly adjourned the hearing on the application filed by the BGA challenging the grant of geographical indication (GI) tag for basmati rice grown in India, which came for hearing in the last week of February 2015. The IPAB had adjourned the hearing to July 8, 2015. The Chairman of the REAP has also urged the government of Pakistan to consider establishing a Rice Technical Institute to help famers use technology in rice cultivation. Cambodia
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Cambodia 5% broken rice ended the month of March at about $440 per ton, up about 1% per ton from a month ago and down about 3% per ton from a year ago. Cambodia exported about 149,464 tons of rice in the first three months of 2015, up about 77% from about 84,331 tons exported during the same period in 2014, according to data from the Secretariat of One Window Service for Rice export Formality (SOWS-REF). Cambodia exported 387,061 tons of rice in 2014. In March 2015, Cambodia exported about 75,867 tons of rice, up about 101% from about 37,676 tons of rice exported in February 2015 and up about 112% from about 35,758 tons of rice exported in March 2014. The Cambodia Rice Federation (CRF) has urged the government to strictly implement the Code of Conduct, which was devised in February 2014, to prohibit local trading firms export cheap rice from neighboring countries under the Cambodian brand. The Code of Conduct was basically meant to reassure the European Union (EU) that Cambodia was not violating the Everything But Arms Agreement, under which the EU imported rice from Least Developed Nations (LDCs) at zero-percent duty to support their economies and farmers. Meanwhile, an EU delegation met with the members of the CRF to discuss the concerns raised by Italian rice producers that increasing rice imports from Asian LDCs such as Cambodia are impacting Italian rice prices and consecutively farmers' incomes. The CRF told the EU delegation that Cambodia has been focusing on exporting more of fragrant and jasmine rice to the EU and does not compete with the locally produced white rice. The CRF added that Cambodia's rice exports to EU so far in 2015 have declined by about 30% compared to same period last year. However, Italy's Ente Nazionale Risi, the National Agency for rice noted that the figures provided by Cambodia on 2015 rice exports are wrong as the EU data shows that the decline during the stated period has been only 10%. Separately, Cambodia is planning to increase its official rice exports to one million tons this year, but there are concerns over the government achieving this target due to lack of sufficient milling capacity and funding. Recently, the CRF agreed to levy a fee of $1 per ton of fragrant rice and 40.5 per ton of long-grain white rice towards collection of requisite fund for rice sector development. The government of Cambodia is also planning to double rice exports to China in 2015-16 (May - April) to about 200,000 tons. Central & South America Brazil 5% broken rice ended the month of March at about $550 per ton, unchanged from a month ago and down about 17% per ton from a year ago. Brazil has exported about 119,828 tons of rice in the first two months of 2015, according to data released by the Rice Institute of Rio Grande do Sul (IRGA). In February 2015, Brazil exported about 49,915 tons of rice, down about 13
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com 29% from about 69,913 tons exported in January 2014. Meanwhile, Brazil’s National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddy rice production at about 12.152 million tons (about 8.26 million tons, basis milled), slightly up from about 12.122 million tons (about 8.24 million tons, basis milled) in 2013-14. Brazil rice stocks have declined sharply to about 135,717 tons in February 2015, down about 44% from about 240,544 tons in January 2015 and down about 77% from about 582,298 tons in February 2014, according to the Conab. Five percent broken rice from Uruguay and Argentina ended the month of March at about $575 per ton, down about 4% per ton from a month ago and down about 8% per ton from a year ago. Argentina has exported about 510,707 tons of rice in 2014 (January – December), down about 5% from about 535,722 tons exported during the same period in 2013, according to data from the Ministry of Agriculture in Argentina. The USDA estimates Argentina's milled rice production at about 975,000 tons in MY 2014-15 (April – March), against consumption of about 500,000 tons. It estimates Argentina to export about 580,000 tons of rice in MY 2014-15. The USDA has forecasted Peru's MY 2014-15 (April - March) rice imports at about 220,000 tons, up about 22% from an estimated 180,000 tons imported in 2013-14, and down about 8% from USDA's official estimates of about 240,000 tons. Based on data from the Peru Customs Authority (SUNAT), the agency reports that Peru imported about 208,077 tons of rice in 2014 (January - December). Currently, there are no restrictions on rice imports in Peru and rice enters duty-free into the country. It estimates Peru to produce 2.15 million tons of rice in MY 2014-15, slightly down from an estimate 2.156 million tons in 2013-14 and down about 2% from USDA's official estimates of about 2.1 million tons. Meanwhile, the FAO estimates Peru's 2015 paddy rice production to increase about 2% to about 2.93 million tons (about 2.05 million tons, basis milled) from about 2.875 million tons (about 2.01 million tons, basis milled) last year. The FAO estimates Peru's 2014 rice imports at a slightly higher level compared to last year due to reduced output in 2014. It estimates Peru's total cereal imports in 2014, including rice, to increase about 8% y/y to about 4.5 million tons. The government of Guyana has secured the deal to export over 200,000 tons of paddy and rice to Venezuela in 2015, according to local sources. The first shipment to Venezuela would take place just before the harvesting of the first crop of 2015 begins, Guyana's Agriculture Minister said. Meanwhile, the Guyana government is planning to secure export contract for another 10,000 tons to Venezuela due to lack of lucrative export markets for its rice. Guyana produced about 633,000 tons of rice in 2014, up about 18% from about 535,212 tons from 2013; and exported about 501,208 tons of rice in 2014, up about 27% from about 394,000 tons exported in 2013, according to the Agriculture Minister. The Caribbean nation aims to produce about 618,000 tons of milled rice and export about 521,000 tons in 2015.
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com The FAO forecasts Colombia's 2014-15 (July - June) rice imports to double from their relatively low level in 2014 due to a reduction in 2014 paddy rice production. Assuming favorable weather conditions, the FAO forecasts 2015 paddy rice production at about 1.91 million tons, up about 8% from about 1.77 million tons in 2014. Separately, the government of Colombia had negotiated subsidies to the rice milling industry if they paid a price of $40 per ton to rice growers. However, the government is planning to end the subsidies to rice milling industry in 2015 due to high rice prices and its budget constraints, according to the USDA. The agency estimates Colombia to import about 350,000 tons of rice in 2014-15 (April - March), up about 8% from about 325,000 tons in 2013-14. It estimates rice imports to decline to about 300,000 tons in 2015-16. It estimates Colombia's 2014-15 milled rice production to decline about 7% to about 1.22 million tons from about 1.31 million tons in 2013-14. However, the agency estimates the country's production to increase to 1.35 million tons in 2015-16 due to an increase in acreage to about 450,000 hectares from an estimated 390,000 hectares in 2013-14. The Colombian government does not maintain rice stocks but offers financial storage incentives for producers and millers to hold inventories. Meanwhile, the agency estimates Colombia's rice stocks in 201415 to decline by 25% to about 90,000 tons from about 120,000 tons in 2013-14. However, it expects stocks to increase to about 140,000 tons in 2015-16. The government of Costa Rica has decided to continue with its longstanding policy of fixing producer and consumer prices for rice for increasing rice production in the country as well as to ensure that the government does not violate WTO commitments, according to the USDA. U.S. U.S. 4% broken rice ended the month of March at about $485 per ton, up about 1% per ton from a month ago and down about 17% per ton from a year ago. The USDA has forecasted U.S. MY 2014-15 all rice exports at about 4.72 million tons, up about 11% from last year and up about 1% from its February forecasts. The USDA lowered its estimates for U.S. MY 2014-15 all rice ending stocks by about 2% to about 1.86 million tons from its last month's estimates of about 1.9 million tons. However, it estimates U.S. all rice ending stocks to increase about 25% y/y in MY 2014-15. The USDA estimates U.S. all rice farm prices to increase to about $308.64 - $321.82 per ton from last month's estimates of about $302.03 - $315.26. It increased estimates for long-grain rice farm prices to about $268.96 $282.19 per ton and estimates for combined medium and short-grain farm prices to about $399.03 - $416.67. Separately, California's ongoing drought is expected to hold on the medium-grain rice prices firm and prevent them from falling, according to the CEO of an Australian rice processing company. He noted that drought conditions in the U.S. state have led to drying up of reservoirs 15
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com and Californians are relying on snowpack, as it melts and flows into reservoirs. However, the flow from snowpack also fell about 24% from last year. In this situation, Californians are resorting to purchasing water for both domestic and agricultural purposes. The state's paddy rice acreage in 2014 had declined to about 420,000 hectares, down about 25% from about 525,000 hectares planted in 2013 due to prolonged dry conditions and water shortages. Africa The USDA has forecasted South Africa's MY 2014-15 (May 2014 - April 2015) rice imports at about 1.15 million tons, slightly up from about 1.144 million tons in MY 2013-14 and up 4.5% from USDA's official forecasts of about 1.1 million tons. The increase is likely to be catered to increased export demand from the neighboring countries. The agency forecasts South Africa's MY 2015-16 rice imports to increase 10% y/y to about 1.3 million tons to meet increasing consumption. South Africa does not produce any rice and totally depends on imports to meet its consumption demand. It also exports a small amount of rice to neighboring countries after meeting its needs. The FAO has forecasted mixed prospects for Madagascar's 2015 paddy rice production due to heavy rains caused by cyclone Chedza in western, central and eastern parts as well as ongoing dry conditions in the southern regions. The agency has forecasted mixed prospects for Madagascar's 2015 paddy rice production due to heavy rains caused by cyclone Chedza in western, central and eastern parts as well as ongoing dry conditions in the southern regions. Agricultural experts meeting in a forum in the capital city of Senegal warned the government that self-sufficiency in rice production cannot be achieved without qualified and trained farmers, according to local sources. Senegal is a net importer of rice and imports about 80% of about 1.4 million tons of rice needed for its domestic consumption. The government has been keen on reducing dependence on imports by increasing rice production. In this direction, the government had launched an ambitious $148 million program to achieve self-sufficiency in rice production by 2017. Separately, the government of Senegal is planning to limit annual rice imports at 500,000 tons as part of its efforts to boost domestic production and achieve rice self-sufficiency. The government of Ghana is likely to shortly announce total ban on inland rice imports, local sources quoted the Deputy Minister of Trade as saying. The government 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. 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.
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com China China has imported about 189,700 tons of rice in first two months (January - February) of 2015, down about 44% from about 338,700 tons imported during the same period in 2014, according to data from China Customs General Administration. Meanwhile, China has exported about 34,400 tons of rice in January - February 2015, up about 42% from about 24,182 tons exported during the same period last year, according to the Customs data. The government of China has sold about 15,268 tons or 1.2% of about 1.4 million tons of lateharvest rice from reserves. The government sold the rice at an average price of about 2,710 yuan (about $433) per ton. Meanwhile, China's Agriculture Ministry has predicted the country's early rice planting area to slightly increase to about 5.8 million hectares in 2015 from about 5.78 million hectares in 2014. The government of China has procured about 28.07 million tons of 2014-15 middle to lateseason rice for reserves as of March 31, 2015, up about 4.6% from about 26.84 million tons procured last year. Separately, China's Guangdong Grain Association has signed an agreement with the Rice Exporters Association of Pakistan (REAP) for the import of about 1,500 tons of rice this year, according to local sources. Philippines The USDA has forecasted the Philippines MY 2014-15 (July 2014 - June 2015) rice import at about 1.6 million tons, up about 33% from an estimated 1.2 million tons in MY 2013-14. The Philippines imported about 1.4 million tons of rice as of October 2014 and the agency estimates total CY 2014 rice imports at about 1.8 million tons. Meanwhile, the agency estimated MY 2015-16 rice imports at about 1.305 million tons (including 805,000 tons of legitimate imports and 500,000 tons of unofficial imports. Based on the data from the Philippines Statistics Authority (PSA), the Philippines produced a record 19 million tons of paddy in 2014, up 2.87% from about 18.4 million tons in 2013 despite marginally lower rice acreage. The USDA estimates the Philippines MY 2015-16 paddy rice production at about 19.68 million tons (about 12.4 million tons, basis milled), up about 3% from an estimated 19.14 million tons (about 12 million tons, basis milled). Separately, The Bureau of Agricultural Statistics (BAS) has estimated the Philippines paddy production in FY 2014 at about 18.97 million tons, up about 2.87% from about 18.44 million tons in FY 2013 despite a decline in the paddy rice acreage by about 6,419 hectares y/y, according to local sources. The
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com government aims to produce about 20 million tons of rice each year from 2014 until 2016 through expanding the cultivation areas and the yield per hectare. Separately, the Philippines Department of Agriculture (DA) has advised rice farmers to prepare for early harvesting of the ongoing rice crop to avoid potential losses expected from an El Ninoinduced drought, according to a news release on the government website. Conditions were dry last September and are expected to remain dry until July this year. The DA is also planning to plant seeds of high-yielding rice varieties, including hybrid rice, certified inbred seeds and Green Super Rice (GSR), in over 560,000 hectares of rice area in 2015, according to news release on the government website. The High Yielding Technology Adoption (HYTA) program is part of the government's efforts to increase paddy rice production to achieve rice self-sufficiency in the country, according to the DA sources. The National Economic and Development Authority (NEDA) of Philippines has decided to review the government's agriculture policy especially with regard to rice imports and the quantitative restriction (QR) regulations, local sources quoted the NEDA Director General (DG) as saying. Separately, The National Food Authority (NFA) has decided to import 200,000 tons of rice from Thailand and 300,000 tons of rice from Vietnam under government-to-government (G2G) deals to ensure adequate stocks ahead of the lean season as well as to curb price hikes. The NFA imported over 1.4 million tons of rice last year. Japan The FAO estimated Japan's 2014-15 (April-March) rice imports at about 700,000 tons. The agency estimates Japan's 2014 aggregate paddy production at about 10.6 million tons (about 7.74 million tons, basis milled), down about 1% from about 10.76 million tons (about 7.85 million tons, basis milled) in 2013 due to a slight decline in planting area. Meanwhile, the USDA estimated Japan to import about 700,000 tons of rice in 2015, up about 7% from an estimated 650,000 tons in 2014 due to an expected decline in production. The USDA said that Japan’s 2014 rice production declined about 1.2% to about 7.583 million tons from about 7.676 million tons in 2013. The agency said that per capita consumption of table rice in Japan has been declining but that for feed has been increasing. The Japan Rice Industry Export Promotion Association has launched the "This is Japan Quality" initiative jointly with the Agriculture Ministry to boost rice exports by highlighting the merits of Japanese rice, according to local sources.
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com Separately, the Chief of the Central Union of Agricultural Cooperatives of Japan has urged the Minister of Agriculture, Forestry and Fisheries to retain high tariffs on the economy's "sensitive" products, including rice, wheat, barley, pork, beef, dairy products and sugar, as part of the TransPacific Partnership talks with the U.S., according to the Bureau of National Affairs (BNA). Europe The European Union (EU) has imported about 522,634 tons of milled rice from non-EU nations in September 1, 2014 - March 10, 2015 period of the crop year 2014-15 (September - August), up about 5% from about 495,908 tons imported during the same period last year, according to the EU data. The U.K remained the biggest buyer of non-EU rice with 104,349 tons (accounting for about 20% of EU's total imports from the non-EU nations during the period. Meanwhile, the EU has exported about 141,087 tons of milled rice in the first six months of 2014-15 (September August), up about 45% from about 100,791 tons exported during the same period in 2013-14, according to data released by the European Commission (EC). Meanwhile, a report titled "Prospects for EU agricultural markets and income 2014-2024�, released in December 2014, predicts that EU's rice production will remain stable over the next decade through 2024 on a slightly decreased area but the region's rice consumption will increase slightly to about 5.5 kilograms per person per year during the period. According to the report, though the EU rice market seems to be highly fragmented, Japonica and Indica rice varieties occupy a major share. The report says, the EU has limited capacity to expand production with only few countries engaged in production, the EU has to continue its dependence on imports to meet the rising consumption demand. Italy and Spain contribute to nearly 80% of EU rice production. Separately, the French Rice Growers Union slammed the government for depriving the rice sector of coupled contribution of about 3 million euros (about $3.26 million) in addition to the funds provided under the new European Union (EU) Common Agricultural Policy (CAP). Indonesia The FAO estimates Indonesia's rice imports to return to more normal quantities and reach about 1.2 million tons in 2014-15 (April - March) due to a reduction in 2014 aggregate rice production. The agency estimates Indonesia's 2014 aggregate paddy rice production at about 70.61 million tons (about 45 million tons of rice, basis milled), slightly down from an estimated 71.28 million tons (about 45.3 million tons of rice, basis milled) in 2013 due to a slight contraction in paddy acreage. It estimates aggregate paddy rice production in 2015 at about 73.4 million tons (about 46.6 million tons of rice, basis milled), up about 4% from an estimated 70.6 million tons (about 45 million tons of rice, basis milled) in 2014. Meanwhile, the USDA estimates Indonesia to 19
Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com import about 1.25 million tons of rice in MY 2014-15 (January 2015 - December 2015), slightly up from an estimated 1.225 million tons in MY 2013-14. The agency estimates Indonesia's 201415 milled rice production at about 36.3 million tons (about 57.165 million tons, basis paddy), unchanged from last year and down about 0.5% from USDA's official estimates of about 36.5 million tons (about 57.48 million tons, basis paddy). Indonesia's Agriculture Ministry has estimated the country's paddy rice output in the first four months (January - April) of 2015 at about 32.9 million tons, up about 4.1% from about 31.6 million tons produced during the same period last year. The government of Indonesia is expecting to procure between 2.5 - 2.75 million tons of rice from local farmers, down about 14 - 22% from its target of 3.2 million tons, according to local sources. However, this year, the President is keen on avoiding imports and increasing 2015 paddy rice production by about 4% to about 73.4 million tons (about 48.44 million tons, basis milled) from an estimated 70.61 million tons (about 46.65 million tons, basis milled) in 2014. Meanwhile, the government of Indonesia is most likely to achieve the self-sufficiency in rice production in 2015 itself, much ahead of the 2018 target set by the President, the south-east Asian nation's Vice-President said. Separately, the government of Indonesia is planning to design a cycle of rice plant of harvesting covering the entire nation to maintain continuous stocks in the country. South Korea The USDA estimates South Korea to import about 560,000 tons of rice in MY 2014-15 (November - October), including 408,000 tons of rice imports under the WTO's Minimum Market Agreement (MMA) quota in the 2015 calendar year. South Korea plans to complete its 2015 rice imports under the 2015 Tariff Rate Quota (TRQ) purchasing plan between January October 2015 through public open tenders. The delivery is expected to be done by December 31, 2015. The agency estimates South Korea to produce about 4.24 million tons of milled rice in MY 2014-15, slightly up from an estimated 4.23 million tons in MY 2013-14. It estimates South Korea's milled rice production to decline about 6% y/y to about 4 million tons in MY 2015-16 due to an expected 1.8% y/y decline in area planted to about 801,000 hectares. Research and Scientific Development: Researchers are working towards developing a perennial rice variety, which need not be planted every year, and will yield good amount of rice for many years. http://oryza.com/22044/perennial-rice-revolution-rice-cultivation
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com A farmer in India's northern state Uttar Pradesh has developed a new variety of basmati rice through organic farming using seeds brought by his ancestors from Pakistan. http://oryza.com/22104/jhumka-basmati-indias-new-rain-and-pest-tolerant-basmati-rice-variety The European Union (EU) funded project ERMES is developing new models for monitoring rice crops through advanced information, including early warnings of possible threats, and there by boost rice yields. http://oryza.com/22091/eu-project-uses-space-and-sensory-technology-boost-rice-yields Agriculture Ministers of Thailand and Vietnam, who met in Hanoi on March 12, 2015, have decided to work closely to develop sustainable rice markets in order to increase the quality and value of rice production in the long-run. http://oryza.com/22088/vietnam-thailand-plan-jointly-develop-sustainable-rice-markets Thailand's Pathum Thani Rice Research Center has developed a new rice variety - called Thani 200 or Kor, Khor.57 - that can withstand colder climates as well as resistant to pests. http://oryza.com/22230/thailand-develops-pest-and-cold-resistant-rice-variety March Tenders: South Korea issued a tender to buy about 58,897 tons of rice but bought about 33,897 tons of rice. http://oryza.com/22034/south-korea-seeks-buy-58897-tons-non-glutinous-rice-internationaltenders http://oryza.com/22177/south-korea-buys-33897-tons-rice-china-tender http://oryza.com/22263/south-korea-passes-tenders-buy-25000-tons-rice-due-high-prices The government of Morocco issued a tender to bought small short and round rice in tender. http://oryza.com/22106/morocco-seeks-purchase-small-short-and-round-rice-tender
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Precision Agriculture Models Can Supplement EU CAP to Boost Rice Yields While Conserving Natural Resources, Says EC Report Apr 08, 2015
A recent report by the Italy-based Joint Research Center (JRC) of the European Commission (EC) has identified Precision Agriculture (PA) as a potential means to increase rice production in the EU member states while reducing the environmental ill effects associated with various rice production systems. The report recommends that PA can be integrated into the EU Common Agriculture Policy (CAP) 2014-2020 to achieve the desired results.
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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com PA is a whole-farm management approach using information technology, satellite positioning (GNSS) data, remote sensing and proximal data gathering, according to the report. The EC JRC undertook a study to analyze the effect of PA on agriculture in the European context as well as economic benefits associated with it.Applications of PA include auto-guiding systems and variable-rate technology that allow for precise tillage, seeding, fertilisation, irrigation, herbicide and pesticide application as well as harvesting. The report also says these systems can be customized depending on specific requirements. The report confirms that PA can play a substantial role in the EU in meeting the increasing demand for food, feed, and raw materials while ensuring sustainable use of natural resources and the environment. However, it says adoption of PA in the EU faces specific challenges due to the sizes and diversity of farm structures. Therefore, the report recommends appropriate guidelines related to PA and implementation assistance to EU member states, including a 'precision farming calculator' tool for differing farming systems. It also recommends the implementation of information campaigns among farmers and the adoption of appropriate tools to support them and agri-consultants in their decisions taking processes.These data related to the rice growing sector in EU member nations, can be supplied also by the EU-funded Ermes project, according to the report. The data can be integrated into innovative Remote Sensing and Crop Modelling techniques to assist farmers and regional authorities in rice cultivation and monitoring activities.
Brazil Paddy Rice Index Almost unchanged
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from Last Week Apr 08, 2015
The Brazilian paddy rice index maintained by the CEPEA reached around 35.86 real per 50 kilograms as of April 7, 2015, down about 0.03% from around 35.87 real per 50 kilograms recorded on March 31, 2015. In terms of USD per ton, the index reached around $232 per ton on April 7, 2015, up about 3.5% from around $224 per ton recorded on March 31, 2015.
Myanmar Exports 1.7 Million Tons of rice in 2014-15, Up 40% from Last Year Apr 08, 2015
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Myanmar has exported around 1.7 million tons of rice in the fiscal year 2014-15 (April - March), up about 40% from around 1.2 million tons exported in 2013-14, local sources quoted data from the Ministry of Commerce.China accounted for more than 1.1 million tons exports from Myanmar and most of the exports were through northern borders. Myanmar exported rice to about 64 countries in ASEAN, Europe and Africa.The government of Myanmar has been trying to legalize rice trade with China for a long time and early this year both the countries' representatives met to discuss legalizing Myanmar’s rice exports. According to the chairman of the Myanmar Farmers Association and joint secretary of the Myanmar Rice Federation, China has agreed to import one million tons of rice from Myanmar this year. He added that legal exports to China are likely to begin in May. The government is keen on increasing rice exports to around 3 million tons over the next few years and has prioritized rice in its National Export Strategy.USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million tons, milled basis) and export around 1.6 million tons of rice in MY 2014-15 (January - December 2015).
Oryza U.S. Rough Rice Recap - Bids Fall with Futures as Sellers Continue to Hold Firm Apr 08, 2015
The U.S. cash market was mostly unchanged today as bids dropped with the futures; however, most sellers remain on the sidelines hoping for demand to show up and prices to increase.Analysts note that most farmers are anxious to get into the fields this week; however, wet is in the forecast for the next 10 days and will likely keep many of them out their fields for at least another week.
Thailand 2014-15 Paddy Rice Output to Decline 11% y/y Due to 43% y/y Decline in Secondary Crop Output, Says OAE Apr 08, 2015
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Thailand's Office of Agricultural Economics (OAE) has estimated the country's paddy rice output for 2014-15 at around 32.6 million tons (around 21.5 million tons, basis milled), down about 11% from around 36.77 million tons (around 24.2 million tons, basis milled) last year, according to a notice on its website.The OAE estimates output from the 2014-15 main crop at around 27.1 million tons (around 17.89 million tons, basis milled), slightly up from around 27.09 million tons (around 17.88 million tons, basis milled) in 2013-14. It estimated output from the 2014-15 secondary/off-season crop at around 5.5 million tons (around 3.63 million tons, basis milled), down about 43% from around 9.67 million tons (around 6.4 million tons, basis milled) last year and down about 18% from its previous forecast of around 6.7 million tons.The decline is attributed to an expected decline in paddy rice acreage of the secondary crop. The OAE estimates paddy rice acreage of 2014-15 main crop to decline slightly to around 9.88 million hectares from around 9.93 million hectares last year. It estimates paddy rice acreage of 2014-15 secondary crop to decline about 42% to around 1.4 million hectares from around 2.4 million hectares last year.The OAE estimates per hectare yield from the 2014-15 main crop to increase slightly to 2.74 tons from 2.73 tons last year; and per hectare yield from the 2014-15 secondary crop to decline 3% to 3.89 tons from around 4.02 tons last year.The Thai government had discouraged rice farmers from planting for off-season crop due to drought and water shortages in reservoirs. The government is also planning to reduce acreage by about 4.44 million hectares (or about 39% of the total rice area of around 11.34 million hectares) under an agricultural zoning system to grow other cash crops, such as sugarcane, in 3-4 years.USDA estimates Thailand to produce around 29 million tons of paddy rice (around 19.15 million tons, basis paddy) and export around 11 million tons in MY 2014-15.
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