28th march ,2016 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter

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www.ricepluss.com www.riceplusmagazine.blogspot.com

March 28,2016 Vol 7,Issue III


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Global Rice Quotes March 28th, 2016

Long grain white rice - high quality

Thailand 100% B grade 375-385 ↔

Vietnam 5% broken 380-390 ↔

India 5% broken 365-375 ↔

Pakistan 5% broken 335-345 ↔

Myanmar 5% broken 420-430 ↔

Cambodia 5% broken 420-430 ↔

U.S. 4% broken 440-450 ↔

Uruguay 5% broken 435-445 ↔

Argentina 5% broken 425-435 ↔

Long grain white rice - low quality

Thailand 25% broken 355-365 ↔


Pakistan 25% broken 305-315 ↔

Cambodia 25% broken 400-410 ↔

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 350-360 ↔

U.S. parboiled 4% broken 480-490 ↔

Brazil parboiled 5% broken 490-510 ↔

Uruguay parboiled 5% broken NQ ↔


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Long grain fragrant rice

Thailand Hommali 92% 670-680 ↔

Vietnam Jasmine 475-485 ↑

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 755-765 ↔

Brokens

Thailand A1 Super 330-340 ↔


Pakistan 100% broken stxd 285-295 ↔

Cambodia A1 Super 345-355 ↔

India 100% broken stxd 265-275 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 315-325 ↔

Brazil half grain NQ ↔

All prices USD per ton, FOB vessel, oryza.com

Drought Damages 320,800 Hectares of

Rice Fields in Thailand Since January 2015, Says OAE Mar 24, 2016

El Nino-induced drought has damaged about 2 million rai (around 320,000 hectares) of rice

lands in Thailand since January last year, Bloomberg quoted the Office of Agricultural

Economics (OAE).

About 1.1 million tons of rice worth 15.5 billion baht (around $442 million) has been damaged

as of March 17, 2016, says the OAE.


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Most of the damage had occurred in north-eastern and northern provinces. A total of 2.87 million

rai of agricultural lands have been reportedly damaged by drought.

Government approved a budget of around 32.4 billion baht (around $924 million) to ease the

impact.

Oryza U.S. Rough Rice Recap - Prices Hold

despite Marketing Year Low Weekly Export

Sales

The U.S. cash market was mostly unchanged today despite the USDA reporting a marketing year

low for weekly export sales.

The USDA reported that cumulative net export sales for the week that ended on March 17 totaled

14,500 tons, a decrease of 32% from the previous week and 82% lower than the prior 4-week

average.

Increases were reported for the following destinations: 3,500 tons to unknown destinations,

3,200 tons to Canada, 2,600 tons to Japan, 1,100 tons to New Guinea, and 900 tons to Saudi

Arabia.

U.S. rice exporters shipped 58,300 tons, a decrease of 23% from last week and 3% lower than

the prior 4-week average.

Increases were reported for the following destinations: 30,000 tons to Venezuela, 13,100 tons to

Japan, 3,500 tons to Mexico, 2,600 tons to Canada, and 2,200 tons to Taiwan.

USAID Officials Advise Ghana Rice Farmers

to Welcome Investment Opportunities to

Boost Production

Mar 24, 2016

Officials from the U.S. Agency for International Development (USAID) 'Feed the Future'

agriculture support project advised Ghana rice farmers to remain open minded about agriculture

investors and welcome them to boost rice production in the country, according to Ghana Web.


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The Capacity Building Coordinator of the project noted that most of the small farmers fear being

exploited by investors and therefore hesitate to accept and implement business ideas from them.

He added that such fears will not help development of the agricultural sector. “Business should

be taken as a win-win situation but where farmers think that anybody who is coming to do

business with them is coming to cheat them, might drive investors away,” he said. The official

advised rice farmers to explore investment opportunities and enhance their productivity and

incomes.

He was speaking at a three-day workshop in Ho city, aimed at training network leaders of rice

farmer based organizations in the Volta region on agricultural policy.

USAID Feed the Future Agriculture Policy Support Project is a five-year programme aimed to

improve the security-enabling environment for private sector investment in agriculture.

Currently, Ghana imports over a half of its annual rice consumption demand and the government

is planning to increase rice production by about 20% per annum over the next four years to

achieve self-sufficiency in rice production. USDA estimates Ghana to produce around 300,000

tons (milled basis) and import around 600,000 tons of rice in MY 2015-16 to meet consumption

needs of around 930,000 tons.

Egypt Plans to Import Rice to Ensure Local

Supplies Amid Hoarding by Traders

Mar 24, 2016

The government of Egypt is planning to import rice to ensure uninterrupted rice supplies for the

state subsidized rice program as local traders have been hoarding rice in expectation of high

prices, according to Bloomberg.

The General Authority for Supply Commodities (GASC) had issued an international tender

for an unspecified amount of rice for delivery from April 20 to May 10, 2016. “The government

is holding this tender to put pressure on traders to reduce prices after failing to accumulate rice

stockpiles, leaving it at the mercy of the traders,” said the head of the rice committee of the trade

ministry‟s

Agricultural Export Council. He added that this is the first international tender in many years, he

said.

The official noted that the situation arose because of the failure of the current administration to

store rice while past governments stored as much as 500,000 tons bought from farmers.

Meanwhile, the government cancelled a tender last week to buy local rice due to high prices,

according to the AlBorsa daily. The prices offered by traders reportedly reached as high as 5,200

Egyptian pounds ($585) per ton, from 3,200 pounds per ton in December.


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Thailand Plans to Hold Road Shows to Boost

Rice Exports

Mar 25, 2016

The government of Thailand is planning to hold road shows as part of efforts to boost Thai rice

exports and achieve the 9.5 million target, Reuters quoted the Foreign Trade Department's

Director-General.

"Senior government officials from Iraq and the Philippines are due to visit Thailand in late April,

and we expect to have talks on rice sales with them as well,” she said.

Thai officials are expecting demand to increase due to lower supplies and consequently push up

average rice prices to around $400 per ton a ton, up from $350-$370 per ton last year.

The Thai government is also planning to export another 1 million tons of rice to China under a

new government-to-government (G2G) deal and senior Commerce Ministry officials will

reportedly visit Beijing to negotiate rice sales. It is also expecting higher sales to Iran.

Thailand exported around 2.38 million tons of rice so far this year.

Thailand Exports 1.025 Million Tons of Rice

in January 2016, Up 68% y/y and Down 16%

m/m

Mar 24, 2016

Thailand exported around 1.025 million tons of rice in the first month of 2016 (January), up

about 68% from around 608,504 tons exported during the same period last year, according to

data from Thai Rice Exporters Association (TREA). In value terms, Thailand rice exports earned

around $443 million in January 2016, up about 31% from around $337 million earned during the

same period last year.

Month-on-month, Thailand rice exports declined about 16% from around 1.22 million tons

exported in December 2015. In value terms, Thai rice exports declined about 18% from around

$537.11 million in December 2015.

During the month, white rice exports accounted for around 603,269 tons (about 59% of total

January 2016 exports), Hom Mali rice exports accounted for about 121,206 tons (about 16% of

total January 2016 exports), brokens accounted for 105,815 tons (about 10% of total January

2016 exports), glutinous variety accounted for 12,460 tons (about 1% of total January 2016


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exports), parboiled rice accounted for about 177,317 tons (about 17% of total January 2016

exports) and husked/brown rice accounted for about 5,124 tons (about 0.5% of total January

2016

exports).

Average export prices of all varieties of rice, except the Hom Mali rice, increased during the

month.

Thailand exported around 9.795 million tons of rice in 2015, down about 11% from around

10.969 million tons exported during the same period last year.

Thailand Exports 1.025 Million Tons of Rice

in January 2016, Up 68% y/y and Down 16%

m/m


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Mar 24, 2016

Thailand exported around 1.025 million tons of rice in the first month of 2016 (January), up

about 68% from around 608,504 tons exported during the same period last year, according to

data from Thai Rice Exporters Association (TREA). In value terms, Thailand rice exports earned

around $443 million in January 2016, up about 31% from around $337 million earned during the

same period last year.

Month-on-month, Thailand rice exports declined about 16% from around 1.22 million tons

exported in December 2015. In value terms, Thai rice exports declined about 18% from around

$537.11 million in December 2015.

During the month, white rice exports accounted for around 603,269 tons (about 59% of total

January 2016 exports), Hom Mali rice exports accounted for about 121,206 tons (about 16% of

total January 2016 exports), brokens accounted for 105,815 tons (about 10% of total January

2016 exports), glutinous variety accounted for 12,460 tons (about 1% of total January 2016

exports), parboiled rice accounted for about 177,317 tons (about 17% of total January 2016


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exports) and husked/brown rice accounted for about 5,124 tons (about 0.5% of total January

2016 exports).

Average export prices of all varieties of rice, except the Hom Mali rice, increased during the

month.

Thailand exported around 9.795 million tons of rice in 2015, down about 11% from around 10.969

million tons exported during the same period last year.

USDA Post Forecasts Thailand MY 2015-16

Rice Exports to Decline Sharply on Tight

Supplies

Mar 24, 2016


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The USDA Post forecasts Thailand's MY 2015-16 (January-December 2016) at around 8 million

tons, down from around 9.8 million tons in MY 2014-15 and down from the USDA's official

estimates of around 10 million tons due to tight supplies of new-crop white and parboiled rice as

well as sluggish demand from African market.

The Post is also expecting the sales of old-rice crop in the stockpiles to slow down in the coming

months. Average monthly rice exports for the next eight months are expected at around 600,000

- 700,000 tons as against one million tons in January 2016. However, the Post is expecting the

Thai rice exports to accelerate in the last quarter of 2016 when supplies of new-crop white rice

enter the market.

The Post forecasts Thailand's MY 2016-17 exports to increase to 10 million due to larger

exportable supplies of white and parboiled rice. It also rice exports to be driven by heavily

subsidized sales of the Government stocks which are expected to be sold off in 2017.

The USDA Post forecasts Thailand's MY 2015-16 paddy rice production at around 24 million

tons, down from last year's 29.4 million tons and down from USDA's official estimates of around

24 million tons due to a sharp reduction in off-season rice acreage and production. The Post

forecasts Thai MY 2015-16 off-season rice area at around 1.055 million hectares, down about

46% from last year due to limited water resources. It forecasts off-season paddy production to

decline to around 2.966 million tons, down about 60% from last year.

The Post expects MY 2016-17 paddy rice production to increase 11% y/y to 26.5 million tons in

anticipation of some recovery in off-season rice production.

The USDA Post forecasts MY 2015-16 rice consumption at around 11.5 million tons, unchanged

from USDA's official estimates as expected demand for non-food grade rice in ethanol

production will likely be offset by the demand for non-food grade rice in swine feed

manufacturers. The Post forecasts MY 2016-17 rice consumption to increase to 12.5 million tons

mainly due to larger demand for broken rice in swine feed. The recovery in rice production are

expected to likely ease current tight supplies of broken rice. Also, the Government is expected to

continue the sales of non-food grade rice stocks for feed use in 2017, says the Post.

The government currently hold 13 million tons (including 7 million of food-grade rice and 6

million tons of non-food grade rice) and is planning to sell off the stocks by mid-2017.

Oryza CBOT Rough Rice Futures Recap -

Chicago Rough Rice Futures Close the

Shortened Week Lower but off of Session

Lows

Mar 25, 2016


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Chicago rough rice futures for May delivery settled 4 cents were cwt (about $1 per ton) lower at

$10.265 per cwt (about $226 per ton). The other grains finished the day higher; Soybeans closed

about 0.6% higher at $9.1050 per bushel; wheat finished unchanged at $4.6300 per bushel, and

corn finished the day about 0.4% higher at $3.7000 per bushel.

U.S. stocks traded mostly lower Thursday, the final trading day of the week, as a decline in oil

prices weighed and traders eyed dollar strength. U.S. crude oil futures came well off session lows

to trade just over 1 percent lower, near $39.35 a barrel in afternoon trade. The weekly oil rig

count, released Thursday due to the Good Friday holiday, showed a drop of 15 oil rigs. Ahead of

the open, St. Louis Federal Reserve President James Bullard said the Fed's next interest rate hike

"may not be far off" provided the economy evolves as expected. However, he told reporters in a

Reuters report he was undecided on whether to push for a rate hike at the Fed's April meeting

partly because to the limited amount of data expected before then. In economic news, weekly

jobless claims came in at 265,000.

February durable goods orders declined 2.8%.European stocks closed 1.5% lower. In Asia, the

major indexes closed lower with the Nikkei 225 down 0.6% and the Shanghai composite 1.6%

lower. In afternoon trade, the Dow Jones industrial average declined 70 points, or 0.4%, to

17,432. The S&P 500 traded down 8 points, or 0.4%, to 2,028, with financials leading seven

sectors lower and telecommunications leading advancers. The Nasdaq composite declined 13

points, or 0.29%, to 4,755. Gold is seen trading about 0.2% lower, crude oil is seen trading about

1% lower, and the U.S. dollar is seen trading about 0.1% higher at about 1:00pm Chicago time.

Wednesday, there were 425 contracts traded, up from 215 contracts traded on Tuesday. Open

interest – the number of contracts outstanding – on Wednesday decreased by 17 contracts to

12,631.

Oryza Weekly: Rice Market Awaits New

Demand as Prices Continue to Fall

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

ended the week at $386 per ton, down $3 per ton from a week ago, up $5 per ton and down about

$50 per ton from a year ago.

Thailand

Thailand 5% broken rice is today quoted at about $370 per ton, down about $5 per ton from a

week ago, up about $10 per ton from a month ago and down about $20 per ton from a year ago.


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The government of Thailand maintains its 9.5 million tons rice export target for 2016; Thailand

exported about 2.3 million tons of rice during the period January 1 – March 17, an increase of

about 28% from during the same period last year.

In January 2016, Thailand exported about 1.025 million tons of rice, an increase of about 68%

from the same period last year. In value terms, rice exports earned about $443 million in

January, up about 31% from the same period last year.

The Thai Commerce Ministry plans to clinch another one million ton government-to-government

rice export deal with China.

The USDA Post forecasts Thailand's MY 2015-16 (January-December 2016) at around 8 million

tons, down from around 9.8 million tons in MY 2014-15 and down from the USDA's official

estimates of around 10 million tons due to tight supplies of new-crop white and parboiled rice as

well as sluggish demand from African market.

El Nino-induced drought has damaged about 2 million rai (around 320,000 hectares) of rice

lands in Thailand since January last year, Bloomberg quoted the Office of Agricultural

Economics (OAE).

Vietnam

Vietnam 5% broken rice is today quoted at about $385 per ton, up about $5 per ton from a week

ago, up about $30 per ton from a month ago, and up about $25 per ton from a year ago.


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The Committee for Economic Affairs under the Vietnam National Assembly has approved the

government‟s proposal to reduce rice growing area in the country by about 270,000 hectares to

around 3.76 million hectares by 2020.

Cambodia & Myanmar

Cambodia 5% broken rice is today quoted at about $425 per ton, unchanged from a week and a

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

Myanmar 5% broken rice is today shown at about $425 per ton, unchanged from a week ago, up

about $5 per ton a month and up about $10 per ton a year ago.

India

India 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 $5 per ton from a year ago. The market is

slow amid the holiday week.

Pakistan

Pakistan 5% broken rice is today quoted at about $340 per ton, unchanged from a week and a

month ago and down about $25 per ton from a year ago.

In the first eight months of FY 2015-16 (July-February), Pakistan exported about 2.895 million

tons of rice, up about 3% from 2.55 million tons during the same period the previous

year. However, in terms of value, Pakistan earned about $1,209 million during that period,

which is about 11% less than earned during the same period last year.

The founder and director of PRIME Institute is advising Pakistan‟s government to liberalize the

country‟s rice market, including its research and development, in order to develop better quality

rice seeds and to boost exports.

The government has decided to push for exports of basmati rice, horticulture, meat, and other

products to Iran, China, Europe, and Afghanistan under the new three-year Strategic Trade

Policy Framework 2015-18. The policy aims to increase the country‟s rice exports to around $35

billion by the end of 2018, from the current $24 billion.

Medium-sized rice-growers, millers, processors, and exporters have formed a “rice syndicate”

under the Union of Small and Medium Enterprises to deal with the problems faced by the

country‟s rice sector.

Central & South America

Five percent broken rice from Uruguay and Argentina is today quoted at about $430 per ton,

down about $440 from a week ago, unchanged from a month ago and down about $150 per ton

from a year ago.


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Brazil 5% broken rice is today quoted at about $400 per ton, down about $60 per ton from a

week and a month ago and down about $150 per ton from a year ago.

Over the next three months, Guyana will export about 11,300 tons of rice to Panama as the

Panamanian government increased the 2016 import quota from Guyana.

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 steadily this week, coming down from the

weekly high of $10.520 per cwt (about $232 per ton) on Monday to settle at $10.220 per cwt

(about $225 per ton) at close on Friday.

The U.S. cash market was slightly weaker this week as it dipped with the futures market and

analysts anticipate tepid export sales.

Other Markets

The Directorate General of Food under Bangladesh‟s Food Ministry has proposed to sell 30

kilograms of rice every month to ultra-poor households at below market prices. Paddy rice

acreage in Bangladesh‟s Boro (January-May) crop in FY 2015-16 (July-June) will likely fall to

about 4.7 million hectares from 4.84 million hectares in FY 2014-15. The government of

Bangladesh plans to explore new markets for its rice in African countries.

South Korea‟s state-run Agro Fisheries & Food Trade Corporation is seeking to buy about

63,333 tons of non-glutinous rice in tenders for delivery between June 30 and September

30. Additionally, South Korea‟s KAFTC issued a tender Tuesday to buy another 22,200 tons of

rice for delivery in September.

Egypt‟s General Authority for Supply Commodities is seeking to buy an unspecified amount of

rice for delivery from April 20 to May 10 in an international tender. The government of Egypt is

planning to import rice to ensure uninterrupted rice supplies for the state subsidized rice program

as local traders have been hoarding rice in expectation of high prices

The USDA Post forecasts the Philippines MY 2015-16 (July-June) rice imports at around 2

million tons, up about 11% from in MY 2014-15 and unchanged from the USDA‟s official

estimates of around 2 million tons. The Philippine Statistics Authority forecasts 2016 first

quarter output at around 4.07 million tons, down about 6.8% from last year and down about 2%

from last month‟s forecast, due to persisting drought conditions.

The USDA Post forecasts Kenya‟s MY 2015-16 (October-September) rice imports at around

450,000 tons, up about 7% from last year but down from USDA‟s official estimates.


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The USDA Post reports that Japan‟s 2016 feed rice production will increase about 28% y/y to

around 491,000 tons (basis milled), due to higher incentives provided by the government.

Nigeria has reinstated its ban on rice imports through land borders, which was lifted in October

2015.

The government of Sri Lanka has temporarily reduced tax concessions on wheat flour imports

in order to encourage local rice consumption and protect paddy farmers who have excess stocks

this season.

Officials from the U.S. Agency for International Development “Feed the Future” agriculture

support project advised Ghana rice farmers to remain open-minded about agriculture investors

and welcome them to boost rice production in the country.

Bangladesh Seeks to Export Rice to African

Countries

Mar 24, 2016

The government of Bangladesh

is planning to explore new

markets for its rice in African

countries, newagebd.net quoted

the Food Minister."Bangladesh

is now the fourth in the world in

terms of rice production. At

present we have the scope to

export one to two lakh tonnes of

rice every year. We have

exported rice to Sri Lanka

recently we are now searching

new markets in countries of

Africa," he said.The Minister

was speaking at the inaugural

programme of the international

exposition of agro and food

processing sector of Bangladesh

titled „Food and Agro Bangladesh International Expo-2016.‟ A total of 150 manufacturers and

suppliers from Bangladesh, India, China, Jordan, Malaysia, Germany, Japan, USA and Taiwan

are exhibiting their products in the exhibition, which will go on till March 26, 2016.Earlier this

week, the Director General of the Food Department noted that currently, the government rice

stocks stand at around 1.072 million tons. The government is planning to reportedly purchase

one million tons of rice Boro (January – May) rice in May 2016.

Exclusive News have been shared with written permission of ORYZA.com with thanks

Documents

28th march ,2016 daily exclusive oryza rice e newsletter by riceplus magazine