11th may,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

1

Daily Exclusive ORYZA Rice

Newsletter

Volume 5, Issue I

May 11, 2015


2

South Korea Buys 75,378 Tons of Non-

Glutinous Rice in a Tender

May 08, 2015

South Korea Buys 75,378 Tons of Non-Glutinous Rice in a Tender

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has bought 75,378

tons of non-glutinous brown and milled rice for delivery between October and November 2015,

according to a tender notice on KAFTC website.

The registration of bids is valid till May 20, 2015 and electronic bidding for the same is valid till

May 21, 2015.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Trade Higher but Remain

Sharply Lower on the Week

May 08, 2015


3

Chicago rough rice futures for Jul delivery settled 4.5 cents per cwt (about $1 per ton) higher at

$9.740 per cwt (about $215 per ton). The other grains finished the day mostly higher; Soybeans

closed about 0.1% higher at $9.7625 per bushel; wheat finished about 1.9% higher at $4.8150

per bushel, and corn finished the day about 0.2% higher at $3.5850 per bushel.U.S. stocks surged

more than 1% on Friday as investors cheered a jobs report that showed economic growth but not

enough, in the eyes of most, to warrant central bank tightening immediately. Analysts called the

April employment figures a "Goldilocks" report because it was just right for gains in stocks.

The Dow Jones industrial average extended gains, briefly rising more than 275 points. The index

quickly added 250 points after the open as all blue chips advanced. April's jobs report showed a

creation of 223,000 jobs and an unemployment rate of 5.4%. Average hourly earnings increased

0.1%, a touch below expectations of 0.2%. The Dow futures more than tripled from about 50

points to as much as 191 points on the jobs report, which was mostly in-line with expectations.

In other economic news, wholesale inventories up 0.1% in March, versus 0.3% gain

estimates. European equities gained, with the FTSE 100 jumping about 2% on a more decisive-

than-expected U.K. election outcome.

The Dow Jones Industrial Average traded up 266 points, or 1.49%, at 18,188. The S&P 500

traded up 28 points, or 1.33%, at 2,115, with financials leading all 10 sectors higher. The Nasdaq

traded up 62 points, or 1.26%, at 5,007. Gold is trading about 0.5% higher, crude oil is seen

trading about 0.5% higher, and the U.S. dollar is seen trading about 0.1% higher at

about 1:15pm Chicago time.Thursday, there were 871 contracts traded, down from 1,022

contracts traded on Wednesday. Open interest – the number of contracts outstanding – on

Thursday increased by 216 contracts to 11,057.

Oryza Overnight Recap – Chicago Rough

Rice Futures Stabilize in Morning Trade as

Wheat and Corn Provide Support

May 08, 2015

Chicago rough rice futures for Jul delivery are currently seen trading 3.5 cents per cwt (about $1

per ton) lower at $9.730 per cwt (about $215 per ton) during early floor trading in Chicago. The

other grains are seen trading with mixed results: soybeans are currently seen about 0.4% lower,

wheat is listed about 0.8% higher and corn is currently noted 0.2% higher.U.S. stocks surged on

Friday as investors cheered a jobs report that showed economic growth but not enough to


4

warrant central bank tightening immediately. Analysts called the April employment figures a

"Goldilocks" report because it was just right for gains in stocks.

The Dow Jones industrial average quickly gained more than 250 points as all blue chips

advanced. Earlier, futures tripled on the 8:30 a.m. data release. April's jobs report showed a

creation of 223,000 jobs and an unemployment rate of 5.4%. Average hourly earnings increased

0.1%, a touch below expectations of 0.2%. The Dow futures tripled from about 50 points to as

much as 191 points on the jobs report, which was mostly in-line with expectations. Wholesale

inventories up 0.1% in March, versus 0.3% gain estimates.

European equities gained, with the FTSE 100 jumping about 2% on a more decisive-than-

expected U.K. election outcome. Risk assets and bank stocks gained, while the sterling rallied to

trade at 1.5413 against the dollar. The Dow Jones Industrial Average traded up 212 points, or

0.1.18%, at 18,135. The S&P 500 traded up 20 points, or 0.95%, at 1,207, with health care

leading all 10 sectors higher. The Nasdaq traded up 53 points, or 1.09%, at 4,999. Gold is

currently trading about 0.3% higher, crude oil is seen trading about 0.8% lower, and the U.S.

dollar is currently trading about 0.1% higher at 9:15am Chicago time.

Thailand Rice Sellers Lower Some of Their

Quotes; Vietnam Rice Sellers Increase Some

of Their Quotes

May 08, 2015

Thailand rice sellers lowered their quotes for Hommali rice by about a $5 per ton to about $875-

$885 per ton today. Vietnam rice sellers increased their quotes for 100% broken rice by about a

$5 per ton to about $310 - $320 per ton. Other Asia rice sellers kept their quotes mostly

unchanged.

5% Broken Rice

Thailand 5% rice is indicated at around $370 - $380 per ton, about a $20 per ton premium on

Vietnam 5% rice shown at around $350 - $360 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


5

Thailand 25% rice is shown at around $350 - $360 per ton, about a $20 per ton premium on

Vietnam 25% rice shown at around $330- $340 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

Thailand parboiled rice is indicated at around $375 - $385 per ton.

India parboiled rice is indicated at around $360 - $370 per ton, about a $30 per ton discount to

Pakistan parboiled rice shown at around $390 - $400 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about a $5 per ton

premium on Vietnam 100% broken rice shown at around $310 - $320 per ton, up about a $5 per

ton from yesterday.

India's 100% broken rice is shown at around $270 - $280 per ton, about a $15 per ton discount

to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

Thailand to Impeach Former Commerce

Minister


6

May 08, 2015

Amid allegations of corruption in the former Thai government’s rice mortgage scheme, the Thai

junta’s National Legislative Assembly (NLA) has voted to impeach the former Commerce

Minister Boonsong, according to local media. Boonsong was also banned from politics for five

years by the NLA.

The corruption case centers around Boonsong’s team claiming to have sold 1.2 million tons of

rice to China in 2013 but instead having sold the rice locally; the China-based company that

appeared to buy the rice in fact sold it back to a Thai rice trading company.This follows the

January impeachment of the former Prime Minister, Yingluck.

The first impeachment hearing for Boonsong is scheduled to take place on June 29,

2015. Boonsong's former deputy commerce minister and a former director-general of the

Department of Foreign Trade were also banned from office, according to Reuters.

Oryza U.S. Rough Rice Recap - Quiet

Market as Buyer and Sellers Standoff on

Prices

May 08, 2015

The U.S. cash market was quiet today as most sellers remain uninterested in selling at the levels

where buyers have interest while buyers see little reason to change their prices ideas given the

supply situation.Analysts contend that the standoff between buyers and sellers will likely

continue without fresh demand as most buyers will stay on the sidelines especially given the

breakneck pace farmers have been planting the past two weeks while most sellers will continue

to hold out on selling until prices cover their cost of production.

West Africa Rice Production Projected to

Grow, Imports to Remain Stable, Says USDA

Post

May 08, 2015


7

Rice production in 2014/15 for ten nations in West Africa (Burkina Faso, Cote d'Ivoire, Gambia,

Guinea-Conarkry, Mali, Mauritania, Niger, Senegal, and Togo) is expected to reach 5.1 million

tons, up 4.3% from the previous year, the USDA Post reports in its recent 2015 Update West

Africa Rice Annual. However, imports are expected to remain stable at about 3.6 million tons in

2014/15.Looking further out to 2015/16, the USDA Post expects production to increase 2.8% y/y

with rice imports again stable.

http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_Dakar_Senegal_4-29-2015.pdf

http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_Dakar_Senegal_4-29-2015.pdf


8

Weekly Recap: Thailand Leads Global Rice

Quotes Lower

May 08, 2015

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,

ended the week at about $406 per ton, down about $2 per ton from a week ago, down about $6


9

per ton from a month ago and down about $44 per ton from a year ago.The UN’s Food and

Agriculture Organization (FAO) projects that in 2015-16 higher rice utilization will surpass

higher production and lead to lower ending stocks and a lower stocks-to-use ratio worldwide, for

the second year in a row.

Thailand

Thailand 5% broken rice is today shown at about $375 per ton, down about $10 per ton from a

week ago, down about $15 per ton from a month ago, unchanged from a year ago.

The Economic Minister has agreed to distribute coupons or cards to rice farmers, allowing them

to purchase seed and fertilizer at discounted prices.

The USDA Post forecasts that Thailand will export about 11 million tons of rice in 2015, with

exports accelerating in the second half of the year due to sales of government stocks. However,

rice exports there still face an uphill battle on export price competition.

Amid allegations of corruption in the former Thai government’s rice mortgage scheme, the Thai

junta’s National Legislative Assembly voted to impeach the former Commerce Minister

Boonsong and ban him from political office for five years.

India

India 5% broken rice is today shown at about $375 per ton, up about $5 per ton from a week ago,

down about $5 per ton from a month ago and down about $45 per ton from a year ago.

Average wholesale rice prices in April stand at Rs. 2,760 per ton, up slightly from the previous

month but down about 8% from April of 2014.

The upcoming monsoon season may bring insufficient rains, potentially reducing rice

production, according to the USDA Post.

Planting for the main rice crop begins this week.

Vietnam

Vietnam 5% broken rice is today shown at about $355 per ton, down about $5 per ton from a

week ago, down about $10 per ton from a month ago and down about $35 per ton from a year

ago.


10

Pakistan

Pakistan 5% broken rice is today shown at about $380 per ton, unchanged from a week ago, up

about $15 per ton from a month ago and down about $40 per ton from a year ago.

Central & South America

Brazil 5% broken rice is today shown at about $550 per ton, unchanged from a week and a

month ago and down about $115 per ton from a year ago. The Brazilian paddy rice index

maintained by CEPEA reached around 35.58 real per 50 kilograms as of May 4, 2015, down

about 0.56% from around 35.78 real per 50 kilograms recorded on April 27, 2015. In terms of

USD per ton, the index reached around $231.43 per ton on May 4, 2015, down about 5.5% from

around $245 per ton recorded on April 27, 2015.

Five percent broken rice from Uruguay and Argentina is today shown at about $565 per ton,

unchanged from a week ago, down about $10 per ton from a month ago and down about $60 per

ton from a year ago.

Cuba’s main rice crop, which accounts for about 60-70% of the nation’s rice production, is

typically planted between March and July and this year there are concerns that water supplies are

insufficient. In a GIEWS Country Brief, FAO reports that “Sowing operations are already

reported to have been hindered by limited supplies of water in major reservoirs, particularly over

the eastern-most provinces of the country.”

U.S.

U.S. 4% broken rice is today shown at about $485 per ton, unchanged from a week and a month

ago and down about $100 per ton from a year ago.

Chicago rough rice futures for July delivery dropped steadily this week, opening at $10.205 per

cwt (about $225 per ton) on Monday and reaching a high of $10.435 per cwt (about $230 per

ton) that same day. Futures then dropped throughout the week, reaching a low of $9.680 per cwt

(about $213 per ton) before closing at $9.725 per cwt (about $214 per ton) on Friday.

The U.S. cash market was mostly unchanged this week, although it dropped slightly in response

to rumors the Iraqi Grain Board would cancel its most recent tender.

Other Markets


11

Cambodia 5% broken rice is today shown at about $435 per ton, unchanged from a week ago,

down about $5 per ton from a month and a year ago.

The decline of the euro against the dollar is making European rice more competitive. Sales and

exports are recovering, making trade protection less likely.

The Nigeria Customs Service and Nigerian rice importers are in a standoff over N20 billion

(about $100 million) in unpaid rice import duties. More than likely, the duties will not be paid in

full.

Rice production in 2014/15 for ten nations in West Africa (Burkina Faso, Cote d'Ivoire, Gambia,

Guinea-Conarkry, Mali, Mauritania, Niger, Senegal, and Togo) is expected to reach 5.1 million

tons, up 4.3% from the previous year, the USDA Post reports in its recent 2015 Update West

Africa Rice Annual. However, imports are expected to remain stable at about 3.6 million tons in

2014/15.

The main rice crop in Cuba is facing water shortages that will negatively impact planting and

yields, according to the UN’s FAO.

Indonesia has rice stockpiles for six to seven months but may consider rice imports, depending

on domestic production, in June or July.

South Korea’s state-run Agro Fisheries & Food Trade Corporation bought 75,378 tons of non-

glutinous brown and milled rice in a tender.

India Main Crop Paddy Rice Planting

Underway

May 08, 2015

May 8 marks the first week in India’s planting of its main rice crop. This week, plantings stand at

130,000 hectares, down from 138,000 hectares May 8 2014, and down from 188,000 hectares the

same week in 2013 and 226,000 hectares in the same week of 2012.Main crop rice planting has

not actually been declining in recent years, but it has been slower to start. Past data shows that by

week 16 planting over the last four years has evened out, reaching about 33 million

hectares. Recent wet weather may be to blame for this year’s seemingly slow start. As of late

April, India’s pre-monsoon rainfall was 72% above normal.


12

Documents

11th may,2015 daily exclusive oryza rice e newsletter by riceplus magazine