17th june (wednesday),2015 daily exclusive oryza e rice newsletter by riceplus magazine

1 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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June 17 ,2015




Philippines Considers New Technology to

Analyze Nutrients in Rice Plants

Jun 16, 2015

Researchers from the Philippine Rice Research institute (PhilRice) is exploring new technology

called visible-near-infrared (Vis-NIR) Spectroscopy to estimate content of nitrogen in the leaves

of some Philippine irrigated lowland rice varieties, according to a news release on the PhilRice

website.Vis-NIR spectroscopy can be useful in arriving at the exact amount of fertilizers needed

by rice plants. It can also be useful for knowing the exact timing for fertilizer application.

The technology is more popular in the U.S. and Australia and is used to analyze nutrients in

plants. It can also be used to analyze soil, chemical and grain quality. It is known to analyze data




in less than a minute.The lead researcher of the project noted that though there are various tools,

such as the Soil Test Kit and Leaf Color Chart, in the country to guide farmers with application

rates of fertilizers and minimize environmental pollution, but the Vis-NIR spectroscopy helps in

determining the nutrient status from tissue analysis of the plants at different growth stages and

quantifies the nutrient demand and correspondingly helps in applying the needed fertilizers at

appropriate time.However, the PhilRice official noted that the initial costs associated with the

technology are high as they need to be imported. Currently such instruments, which can be used

for commercial purposes, cost about P4-5 million (around $88,506 - $110,633) in the

Philippines.If manufactured locally, such instruments can be got at about P100,000 to 150,000

(around $2,212 - $3,319), says the official.

Philippines Approves Up to 805,200 Tons of

Rice Imports through Private Traders;

Rejects Bids for 100,000 Tons

Jun 16, 2015

The National Food Authority (NFA) of the Philippines has approved private traders to import up

to 805,200 tons of 25% well-milled rice under the WTO minimum access volume (MAV) to




maintain buffer stocks and avoid potential price spikes amid fears of an impending El Nino

weather pattern, according to a statement on the NFA website.Private importers can apply to the

NFA for import permits from next month, Reuters quoted the spokesman of the NFA. Rice

shipments are expected to arrive before November 30, 2015.

As per the WTO guidelines, about 293,100 tons of rice can be imported each from Thailand and

Vietnam; about 50,000 tons can be imported each from India, Pakistan and China; and 15,000

tons can be imported from El Salvador and the remaining 54,000 tons from other countries.

Import tariffs on the rice shipments are pegged at 35%.Meanwhile, the NFA has rejected bids by

Vietnam, Thailand and Cambodia for 100,000 tons of rice today as all the three bidders offered

prices higher than the government's reference price of $408.14 per ton, according to Reuters.

The 100,000 tons are part of June 5 tender in which the NFA invited bids for 250,000 tons from

Vietnam, Thailand and Cambodia but purchased only 150,000 tons from Vietnam. While

Thailand offered to sell 100,000 tons at $418 per ton, Vietnam and Cambodia offered $417 per

ton and $464 per ton respectively.The NFA reportedly asked all the three governments to submit

revised bids by 07.00 GMT today.The NFA bought 650,000 tons of rice (450,000 tons from

Vietnam and 200,000 tons from Thailand) so far this year. It is authorized to import another

250,000 tons in case El Nino weather pattern intensifies.However, the NFA Deputy

Administrator told reporters that the government will assess next month the impact of El Nino on

rice production and decide on the additional imports.

Weather forecasters are expecting El Nino pattern to intensify in the latter part of the year

significantly impacting the rice and other crops production. The Philippines Statistics Authority

(PSA) also estimated Philippines's 2015 second quarter (April - June) production to decline by

about 4.3% to around 3.898 million tons from last year's 4.073 million tons due to a decline in

harvest area prompted by dry spell and insufficient water supply as well as incidence of pests and

diseases in some rice growing areas.Both FAO and USDA are estimating the Philippines to

import 1.7 million tons of rice in 2015.

China Seeks to Enhance Grain Storage

Capacity to 95% of Output by 2020

Jun 16, 2015




The government of China is planning to enhance its grain storage capacity to about 95% of the

total grain output by 2020 in order to ensure grain supply and safety, according to Bloomberg.By

the end of 2015, the government is seeking to add 50 million tons of grain storage capacity to the

existing capacity. Currently, China has storage facilities that can hold about 106 million tons of

grains compared to the total annual out of around 607 million tons.

The current warehouses were built in 1980 and are in a deteriorating condition. Therefore the

government is planning to upgrade these warehouses by the end of 2017.The government has

recognized the need to improve its ability to respond to emergencies, monitor its food quality,

safety, reduce waste and set up efficient grain information system.




Conab Estimates Brazil 2014-15 Paddy Rice

Production to Increase 2% y/y to 12.399

Million Tons

Jun 16, 2015

Brazil’s National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddy

rice production at around 12.544 million tons (around 8.53 million tons, basis milled), up about

3.5% from around 12.121 million tons (around 8.24 million tons, basis milled) in 2013-14, and

slightly up from its May forecast of around 12.399 million tons.Conab has estimated Brazil's

2014-15 paddy rice acreage at around 2.312 million hectares, down about 2.6% from around

2.373 million hectares in 2013-14. Paddy rice acreage in the key rice growing Centro-Sul

(Center-South) region is projected at 1.548 million hectares in 2014-15, down about 1% from

around 1.565 million hectares in 2013-14. Rice acreage in the North/Northeast regions is

estimated at around 763,800 hectares, down 6% from around 808,400 hectares in 2013-14.




Average rice yield in Brazil in 2014-15 is projected at around 5.425 tons per hectare, up about

6% from around 5.108 tons per hectare recorded in the previous year.USDA estimates Brazil

MY 2015-16 (April – March) paddy rice production at around 11.765 million tons (around 8

million tons, basis milled), down about 5% from an estimated 12.397 million tons (around 8.43

million tons, basis milled) in MY 2014-15. It estimates Brazil’s 2015-16 paddy rice acreage

decline slightly to around 2.3 million hectares. USDA estimates Brazil to export around one

million tons of rice and import around 550,000 tons of rice in 2015.

Brazil Paddy Rice Index Increases About 2%

from Last Week

Jun 16, 2015

The Brazilian paddy rice index maintained by CEPEA reached around 33.71 real per 50

kilograms as of June 15, 2015, up about 1.6% from around 33.18 real per 50 kilograms recorded




on June 8, 2015.In terms of USD per ton, the index reached around $217 per ton on June 15,

2015, up about 2% from around $213 per ton recorded on June 8, 2015.

Global Rice Quotes

June 17th, 2015

Long grain white rice - high quality

Thailand 100% B grade 365-375 ↔

Vietnam 5% broken 345-355 ↔

India 5% broken 365-375 ↔

Pakistan 5% broken 380-390 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 430-440 ↔

U.S. 4% broken 465-475 ↔

Uruguay 5% broken 565-575 ↔

Argentina 5% broken 555-565 ↔

Long grain white rice - low quality

Thailand 25% broken 340-350 ↔


Pakistan 25% broken 335-345 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 350-360 ↔

U.S. 15% broken 455-465 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 360-370 ↔

Pakistan parboiled 5% broken stxd 400-410 ↔

India parboiled 5% broken stxd 355-365 ↔

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% 840-850 ↔

Vietnam Jasmine 475-485 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 820-830 ↔




Brokens

Thailand A1 Super 315-325 ↔


Pakistan 100% broken stxd 295-305 ↔

Cambodia A1 Super 350-360 ↔

India 100% broken stxd 280-290 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 365-375 ↔

Brazil half grain NQ ↔

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

Government of India May Increase 2015-16

Paddy MSP This Week

Jun 16, 2015

The Cabinet Committee on Economic Affairs (CCEA) may approve a proposal to raise the

minimum support price (MSP) of paddy for the 2015-16 kharif marketing season, according to

local sources.The CCEA is scheduled to meet on June 17 and the proposal on MSP of kharif

crops, including rice, is listed on the agenda for discussion, the Agriculture Secretary was quoted

as saying.




Based on the recommendations by the Commission for Agricultural Costs and Prices (CACP),

the body that advises the government on the pricing policy for major farm products, the

Agriculture Ministry is reportedly considering to increase the MSP of kharif crops.In April this

year, the CACP has advised the government of India to increase the minimum support price

(MSP) for common grade paddy by about 3.6% or about Rs.50 per quintal (about $8 per ton) for

the 2015-16 (July - June) crop season, according to local sources.Currently, the MSP for paddy is

Rs.1,360 per quintal (around $218 per ton) for common grade paddy and Rs. 1,400 per quintal

(around $224 per ton) for Grade-A paddy.

Iraq Seeks to Purchase 30,000 Tons of Rice in

International Tenders

Jun 16, 2015

Iraq has invited international tenders to purchase about 30,000 tons of rice from the U.S.,

Uruguay, Argentina, Brazil and India, Bloomberg quoted a statement from the Iraq's Trade

Ministry.Last date for submitting bids is June 28, 2015 and offers remain valid till July 2, 2015.

Indonesia Aims to Procure 2 Million Tons of

Rice from Local Farmers During Dry Season

Jun 16, 2015

The government of Indonesia aims to procure 2 million tons of rice from local farmers during the

dry season (June - mid-December), Bloomberg quoted the Secretary General at Agriculture

Ministry.The government directed the state logistics agency to procure the said amount of rice

over the next two months, according to the official. He told reporters that the government has

identified regions that are prone to suffer drought conditions during the dry season. However, the

government is expecting a normal dry season despite fears of an impending El Nino.

The Ministry official expressed confidence that the country would have sufficient or surplus

stocks during the months of October - December if production in dry season is normal.The

President of the state logistics agency Bulog noted that the agency has 1.4 million tons of rice

inventories currently. The government has ruled out immediate import of rice given sufficient




stocks. It is likely to take a decision on rice imports after the Ramzan festive season in July.The

government had lowered the rice procurement target to 2.75 million tons in the beginning of this

month from the initially set 3.2 million tons due to slow pace of procurement. The procurement

had been slow despite an increase in the government purchase price (Harga pokok penjualan,

HPP) by about 10% to around Rp7,260 per kilogram (around $577 per ton) from the existing

Rp6,600 per kilogram (around $524 per ton).USDA estimates Indonesia to produce around 36.3

million tons of rice, basis milled (around 57.17 million tons, basis paddy), and import around

1.25 million tons of rice in MY 2014-15 (October - September).

Oryza Afternoon Recap - Chicago Rough

Rice Futures Continue to Edge Higher but

Market Lacks Fundamental Support

Jun 16, 2015




Chicago rough rice futures for Jul delivery settled 2.5 cents per cwt (about $1 per ton) higher at

$9.800 per cwt (about $216 per ton). The other grains rallied for the most part with wheat the

only product to close in the red; Soybeans closed about 2.1% higher at $9.5750 per bushel; wheat

finished about 0.1% lower at $4.8875 per bushel, and corn finished the day about 1.7% higher at

$3.5400 per bushel.U.S. stocks traded higher on Tuesday as the Federal Reserve began its two-

day meeting and investors attempted to shake off worries about the Greece debt talks. The

Federal Open Market Committee kicked off its meeting on Tuesday. The real news of interest on

monetary policy won't come until Wednesday afternoon, when the Fed releases its statement and

Yellen holds a press conference. Consensus is for a rate hike in September.

The Dow Jones industrial average gained more than 100 points as European stocks also

recovered from early losses to close mostly higher. Concerns about Greece abated slightly after

weighing heavily on stocks on Monday and index futures Tuesday morning. The major averages

shook off mild declines to attempt gains in morning trade, with the Dow Jones industrial average

recovering to trade in the black for the year after closing in negative territory on Monday. The

Greek jitters weighed globally, with Asian shares closing broadly in the red. European stocks

recovered to close mostly higher while the Greek ATHEX Composite ended more than 4.5%

lower. The Dow Jones Industrial Average traded up 104 points, or 0.60%, at 17,895. The S&P

500 traded 11 points, or 0.51%, at 2,094, with consumer staples leading nine sectors higher and

industrials the only decliner. The Nasdaq traded up 26 points, or 0.51%, at 5,055. Gold is trading

about 0.4% lower` , crude oil is seen trading about 0.7% lower, and the U.S. dollar is seen

trading about 0.2% lower at about 2:00pm Chicago time.Monday, there were 1,825 contracts

traded, up from 979 contracts traded on Friday. Open interest – the number of contracts

outstanding – on Monday decreased by 556 contracts to 11,132.

Oryza Overnight Recap – Chicago Rough

Rice Futures See Follow-through Buying

Following Yesterday’s Afternoon Rally

Jun 16, 2015

Chicago rough rice futures for Jul delivery are currently seen trading 7.5 cent per cwt (about $2

per ton) higher at $9.850 per cwt (about $217 per ton) during early floor trading in Chicago. The

other grains are seen trading higher; soybeans are currently seen trading about 0.3% higher,

wheat is listed about 0.3% higher and corn is currently noted about 0.1% higher.U.S. stocks




traded mildly higher on Tuesday as investors attempted to shake off concerns about lack of

resolution in Greece debt talks amid the Federal Reserve's two-day meeting.

The major averages shook off mild declines to attempt slight gains in morning trade, with the

Dow Jones industrial average recovering gains for the year. Greek Prime Minister Alexis

Tsipras on Monday blamed creditors for the collapse of talks on unlocking aid for reforms at the

weekend. The impasse has raised concerns that Athens is heading for a debt default that could

end with it leaving the euro zone. A spokesman said Athens has submitted proposals and is

waiting for a response from lenders, Reuters said. Euro zone finance ministers are next due to

discuss the Greek crisis on Thursday—when Tsipras has a planned visit to Russia. The Federal

Open Market Committee begins its highly-anticipated meeting on Tuesday.

The real news of interest on monetary policy won't come until Wednesday afternoon, when the

Fed releases its statement and Chair Janet Yellen holds a press conference. Consensus is for a

rate hike in September. U.S. stocks closed lower on Monday as concerns about Greece's future

took a toll ahead of the highly-anticipated Fed meeting. The Dow Jones Industrial Average

traded 53 points higher, or 0.32%, at 17,848. The S&P 500 gained 6 points, or 0.27%, at 2,090,

with consumer staples leading nine sectors higher and utilities the only laggard. The Nasdaq

traded up 12 points, or 0.23%, at 5,041. Gold is currently trading about 0.7% lower, crude oil is

seen trading about 0.6% higher, and the U.S. dollar is currently trading about 0.2% higher

at 9:00am Chicago time.

Thailand's Third Rice Auction Receives Less

Interest than First Two

Jun 16, 2015

Thailand's third auction for around 1.06 million tons of rice

this year has attracted less response compared to the first two,

according to local sources.While the first auction had 96

bidders, the second had 45 bidders, according to the

Commerce Ministry's Foreign Trade Department.Forty three

bidders were qualified to bid in today’s auction, but only 40

bidders submitted their bids in the auction for 1.06 million




tons of rice. The remaining three bidders reportedly backed out from the auction as they were

doubtful of the quality of the grain offered for sale.The Thai government reportedly sold 840,000

tons of rice worth about 7.8 billion baht (around $232 million), according to Commerce Ministry

sources.

The Thai military government currently holds about 16 million tons of rice accumulated from the

rice pledging scheme introduced by the previous government. It had sold about 1.88 million tons

of rice from six auctions raising around 25.58 billion baht (around $785.2 million) since it seized

power in May 2014. It also reportedly sold one million tons of rice under government-to-

government contracts. It aims to sell about 10 million tons of stockpiled rice this year and about

7 million tons next year.

According to a stock-audit report released earlier this year, only about 2.35 million tons are of

standard quality, about 14.4 million tons are of sub-standard quality, around 694,000 tons of rice

are rotten and the remaining 390,000 tons of rice are missing. The Director-General of the

Department of Foreign Trade (DG-DFT) confirmed that only 2.6 million tons are fit for human

consumption. The government is considering to sell the remaining stocks to the industrial

sector.Separately, the farmers' associations are not happy with the government's call to delay

main wet season rice planting due to low rainfall and deteriorating water levels in reservoirs.

They are likely to defy the government's request and take chances.

Oryza U.S. Rough Rice Recap - Prices Seen

Sideways as IGB Announces New Tender

Jun 16, 2015

The U.S. cash market was unchanged again today despite news that the Iraqi Grain Board issued

another tender to buy at least 30,000 MT of long grain white rice which follows their last tender

in which no origin was awarded.The IGB is seeking to buy either U.S., Uruguayan, Argentine,

Brazilian, or Indian origin and offers need to be submitted no later than June 28th

and must

remain valid through July 2nd

. Analysts note that if the U.S. is able to secure some of this

business it could turn the U.S. market around and cause buyers that are hand to mouth to change

their strategy and look for great coverage.

17th june (wednesday),2015 daily exclusive oryza e rice newsletter by riceplus magazine

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