26th january ,2016 daily exclusive oryza rice e newsletter by riceplus magazine
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Daily Exclusive ORYZA Rice E-Newsletter
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www.ricepluss.com www.riceplusmagazine.blogspot.com
January 26,2016 Vol 6,Issue I
Daily Exclusive ORYZA Rice E-Newsletter
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Cambodia Prime Minister Calls for More
Investment in Rice Storage, Drying Facilities
Jan 25, 2016
The Cambodian Prime Minister has highlighted the need for more investment in rice storage an
drying facilities to facilitate more exports, according to Xinhua.
Speaking at the opening ceremony of the 5th Cambodia Rice Forum in Phnom Penh, the Prime
Minister noted that lack of adequate rice storage facilities and drying machines is barring traders
and exporters from buying a large amount of paddy rice from farmers. To address this issue and
boost exports, more investment is needed, he said.
"The government of Cambodia has been negotiating with China for loans to construct storage
facilities and drying machines across the country," he was quoted. He expressed confidence that
China being the top importer of Cambodian rice would certainly support for the development of
the Cambodian rice sector.
About 700 people comprising of policy makers, rice millers, exporters, farmer-representatives,
and transport company representatives reportedly attended the rice forum.
Recently, the Cambodia Rice Federation (CRF) also noted that about $550 million is needed for
the development of the country's rice production and supply chain to achieve the one million ton
export target.
Cambodia's rice exports increased significantly in 2015 though the one million ton target could
not be reached. Cambodia exported around 538,396 tons of milled rice in 2015 up about 39%
from around 387,061 tons exported during the same period last year.
Government of Guyana Advises Farmers to
Delay 2016 Rice Sowing Due to Dry
Conditions
Jan 25, 2016
The government of Guyana has advised farmers to delay rice planting activities for the 2016 crop
due to the beginning of the El Niño-induced dry season, according to local sources.
However, some farmers are understood to have planted about 90% of their fields, according to
the Agriculture Minister. He advised farmers who have not started planting to delay their
planting operations. “If you haven’t planted already, don’t plant now because you wouldn’t get
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enough water, and we are trying to have enough water to save the crop that is already planted,”
he said. The Minister also advised farmers who have already planted not to plant in the
remaining area.
The Ministry of Agriculture is reportedly working with other agencies such as the Civil Defence
Commission (CDC), and the National Drainage and Irrigation Authority (NDIA) to monitor the
areas hardest hit by the current dry weather conditions.
Guyana's 2015 paddy rice production increased about 8% to around 1.06 million tons (around
687,784 tons, basis milled) from around 977,289 tons (around 635,238 tons, basis milled) in
2014, according to data from the Guyana Rice Development Board (GRDB).
New IRRI Facility to Study Climate Change
Impact on Rice Production
A new $10 million state-of-the art facility for studying climate change effects on rice plant
growth has been opened on January 21, 2016, on the campus of the International Rice Research
Institute (IRRI) as part of the IRRI's efforts to achieve food and nutrition across the globe,
according to an IRRI press release.
The facility is named after Lloyd T. Evans (1927-2015), a world-renowned Australian plant
physiologist who also served as a member of the IRRI board of trustees (1984-89), according to
the press release.
The Lloyd T.Evans Plant Growth Facility (PGF) is funded by the Australian government,
through the Australian Centre for International Agricultural Research (ACIAR). The PGF has
eight controlled environment glasshouses and large sets of plant and seed laboratories, which can
simulate various weather conditions such as drought, flood and heat. They will also allow
researchers to study the effects of temperature, humidity, light intensity, atmospheric gases and
water management systems on rice plant growth.
“Fundamentally, (the facility will) enable scientists to simulate the effects of climate change,”
said the IRRI Deputy Director General for Communication and Partnerships. “We will know
exactly how the plants react to the effects of climate change and ensure how [they] will continue
to grow and be productive [under these conditions],”• he said.
Indonesia Needs 1.2 Million Tons of Rice
Stocks by March 2016 to Ensure Adequate
Supplies, Says Minister
Jan 25, 2016
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The government of Indonesia needs about 1.2 million tons of rice to maintain adequate stocks by
the end of March 2016, Antara News Agency quoted the National Development Planning
Minister.
Speaking in a meeting at the Vice-Presidential Office, the Minister noted that stocks are
necessary to ensure sufficient supplies in the country. He also noted that the buffer stock is
planned in anticipation of rice shortages due to a delay in the planting operations following
extended dry conditions.
"At the meeting, we reported everything to the vice president, including this development and
the policy we have adopted regarding food supplies," he said.
The Coordinating Minister of Economic Affairs, the State Enterprises Minister and the
Agriculture Minister were also present at the meeting.
Meanwhile, the government of Indonesia is planning to lower 2016 paddy rice output target to
75.13 million tons from last year's 76.23 million tons, according to the Director General of Food
Crops at Agriculture Ministry. The government will shortly sen a letter to National Planning
Ministry on the issue.
Global Rice Quotes
January 25th, 2016
Long grain white rice - high quality
Thailand 100% B grade 370-380 ↔
Vietnam 5% broken 345-355 ↔
India 5% broken 355-365 ↔
Pakistan 5% broken 340-350 ↑
Myanmar 5% broken 415-425 ↔
Cambodia 5% broken 425-435 ↔
U.S. 4% broken 465-475 ↔
Uruguay 5% broken 475-485 ↔
Argentina 5% broken 470-480 ↔
Long grain white rice - low quality
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Thailand 25% broken 350-360 ↑
Vietnam 25% broken 340-350 ↔
Pakistan 25% broken 305-315 ↔
Cambodia 25% broken 405-415 ↔
India 25% broken 325-335 ↔
U.S. 15% broken 445-455 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 370-380 ↑
Pakistan parboiled 5% broken stxd 405-415 ↔
India parboiled 5% broken stxd 345-355 ↔
U.S. parboiled 4% broken 500-510 ↔
Brazil parboiled 5% broken 520-530 ↔
Uruguay parboiled 5% broken NQ ↔
Long grain fragrant rice
Thailand Hommali 92% 680-690 ↔
Vietnam Jasmine 425-435 ↔
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Mails 750-760 ↔
Brokens
Thailand A1 Super 320-330 ↔
Vietnam 100% broken 320-330 ↓
Pakistan 100% broken stxd 290-300 ↔
Cambodia A1 Super 345-355 ↔
India 100% broken stxd 260-270 ↔
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Egypt medium grain brokens NQ ↔
U.S. pet food 280-290 ↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com
Pakistan Rice Exporters Seek Appropriate
Payment Mechanisms to Facilitate Exports to
Iran
Jan 25, 2016
The Chairman of the Rice Exporters Association of Pakistan (REAP) has called for appropriate
currency transfer arrangements between the two countries to facilitate exports to Iran, according
to the Nation.
The REAP Chairman appreciated the lifting of sanctions on Iran, as it would provide an
opportunity for Pakistan to enhance trade with the Middle East nation. He, however, noted that
the restart of rice export to Iran will remain ineffective until a detailed payment mechanism is
evolved.
He, therefore, urged the banking sectors of the two nations to establish active linkages as early as
possible to help traders to channel their payments. “In the past few years, lack of recognised and
trustable payment mechanism through banks proved to be the single largest factor hindering
bilateral trade,” he said. The official also reiterated that Pakistan was once the largest rice
exporter to Iran before the imposition of sanctions. But now, India has taken the position.
The official also noted that a free trade agreement (FTA) between the two governments would
provide a solution to most of the trading problems. He stated that currently Iran's tariffs on
agricultural products are very unpredictable as they change depending on the time of harvest.
However, the conclusion of an FTA can bring more predictability and clarity on such tariffs, he
added.
Oryza CBOT Rough Rice Futures Recap -
Chicago Rough Rice Futures Close Slightly
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Higher as Grains Begin the Week on a
Positive Note
Jan 26, 2016
Chicago rough rice futures for Mar delivery settled 5 cents per cwt (about $1 per ton) higher at
$11.010 per cwt (about $243 per ton). The other grains finished the day with mixed results;
Soybeans closed about 0.5% higher at $8.8050 per bushel; wheat finished about 1.3% higher at
$4.8150 per bushel, and corn finished the day about 0.1% lower at $3.6975 per bushel.
U.S. stocks traded lower Monday as a renewed decline in oil prices weighed amid some major
earnings reports, ahead of the Federal Reserve meeting later in the week. Despite the sharp
decline in oil, the major U.S. averages held only slightly lower in early afternoon trade. More
than 100 S&P 500 firms are due to report this week. Major tech firms set to announce quarterly
results in the next few days include Apple, Facebook, Amazon.com and Microsoft. No major
economic data was expected Monday. The Dallas Fed January manufacturing production index
came in at negative 10.2 versus 12.7 in December.
The business activity index was minus 34.6 versus minus 21.6 the previous month. Consumer
confidence is due Tuesday, ahead of consumer sentiment and fourth-quarter GDP on Friday.
European stocks closed lower Monday declines in oil prices weighed. Asian stocks ended higher,
with the Hang Seng up almost 1.4% and the Nikkei 225 up nearly 1%. The Shanghai composite
closed more than half a percent higher. In midday trade, the Dow Jones industrial average
declined 77 points, or 0.49%, to 16,015. The S&P 500 traded down 12 points, or 0.67%, to
1,894, with energy leading eight sectors lower and telecommunications and health care the only
gainers. The Nasdaq composite fell 27 points, or 0.58%, to 4,564. Gold is seen trading about
0.9% higher, crude oil is seen trading about 4.7% lower, and the U.S. dollar is seen trading about
0.2% lower at about 1:00pm Chicago time.
Friday, there were 423 contracts traded, down from 524 contracts traded on Thursday. Open
interest – the number of contracts outstanding – on Friday decreased by 101 contracts to 13,297.
Philippines 2015 Paddy Rice Production
Declines 4.31% to 18.15 Million Tons, Says
PSA
Jan 25, 2016
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The Philippine Statistics Authority (PSA) estimates the Philippines 2015 paddy rice production
at around 18.15 million tons, down about 4.31% from around 18.97 million tons in 2014.
The PSA estimates the harvest area at around 4.656 million hectares, down about 1.76% from
around 4.74 million hectares in 2014. It estimates the 2015 yield at around 3.9 tons per hectare
compared to around 4 tons per hectare in 2014.
All regions other than Bicol, Western Visayas, Zamboanga Peninsula and Northern Mindanao
recorded significant reductions in production, says the PSA.
The agency estimates the 2015 first half (January - June) paddy production at around 8.32
million tons from around 2.066 million hectares of land and the second half (July - December)
paddy production at around 9.83 million tons from around 2.59 million hectares.
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Based on the standing crop situation, the PSA estimates the Philippines 2016 first half paddy rice
production at around 8.2 million tons from around 2.02 million hectares. The agency estimates
the January - March 2016 paddy production at around 4.15 million tons, down about 4.98% from
around 4.37 million tons in 2015. It estimates the harvest area and yield to decline by about
4.25% y/y to around 1.1 million hectares and 0.76% to around 3.77 tons per hectare respectively.
The agency estimates the April - June 2016 paddy production harvest area and yield are foreseen
to increase by 2.37%, 1.03% and 1.33% y/y respectively to around 4.05 million tons, 922,967
hectares and 4.39 tons per hectare.
Thailand, Pakistan Rice Sellers Increase
Some of Their Quotes; Vietnam Rice Sellers
Lower Some of Their Quotes
Jan 25, 2016
Thailand Rice sellers increased their quotes for 5% broken rice, 25% broken rice and parboiled
rice by about $5 per ton each to about $360-$370 per ton, $350-$360 per ton and $370-$380 per
ton respectively. Vietnam rice sellers lowered their quotes for 100% broken rice by about $10
per ton to about $320-$330 per ton. Pakistan rice sellers increased their quotes for 5% broken
rice by about $5 per ton to about $340-$350 per ton. India rice sellers kept their quotes
unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $360 - $370 per ton, about $15 per ton premium on
Vietnam 5% rice shown at around $345 - $355 per ton. India 5% rice is indicated at around $355
- $365 per ton, about $15 per ton premium on Pakistan 5% rice shown at around $340 - $350 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $350 - $360 per ton, about $10 per ton premium o
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around
$325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 -
$315 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is
indicated at around $345 - $355 per ton, about $60 per ton discount to Pakistan parboiled rice
last shown at around $405 - $415 per ton.
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100% Broken Rice
Thailand broken rice, A1 Super is indicated at around $320 - $330 per ton, on par with Vietnam
100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at
around $260 - $270 per ton, about $30 per ton discount to Pakistan broken sortexed rice shown at
around $290 - $300 per ton.
USDA Post Forecasts Vietnam 2016 Rice
Exports at 6 Million Tons, Down 8% from
Previous Year
Jan 25, 2016
USDA Post forecasts Vietnam's 2016 rice exports at around 6 million tons, down about 8% from
an estimated 6.5 million tons last year and down from USDA's official estimate of around 7.1
million tons due to an expected low carry-over stocks from MY 2014-15 (January-December
2015).
The Post estimates MY 2014-15 rice stocks to be very low due to unexpected increase in demand
from Indonesia and the Philippines. It is expecting rice stock in MY 2015-16 also to be almost
similar to MY 2014-15 levels, which will prevent Vietnam exporting large amounts during the
year. The Post estimates 2015-16 rice stocks to reach about 693,000 tons, up from USDA's
official estimates of around 673,000 tons and up from last year's 633,000 tons.
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The Post estimates Vietnam's 2015-16 (January-December 2016) paddy rice production to reach
around 45.056 million tons (around 28.38 million tons, basis milled), down from an estimated
45.175 million tons (around 28.46 million tons) last year and down from USDA's official
estimate of around 45.12 million tons (around 28.43 million tons, basis milled) due to the larger
planted and harvested area of winter crop, due to low level flooding in the Mekong River Delta
(MRD).
Post estimates that the country needs about 100,000 - 500,000 tons of additional rice for
fulfilling the needs of the food processing and animal feed industries. It forecasts MY 2015-16
rice consumption needs at around 22.6 million tons, up from last year's estimates 22.5 million
tons and up from USDA's official estimates of around 22 million tons.
Vietnam Exports About 108,959 Tons Rice in
January 1-20, 2016, Down 50% from
Previous Year
Jan 25, 2016
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Vietnam exported about 108,959 million tons of rice in January 1-20, 2016, down about 50%
from about 671,174 tons rice exported in January 2015, and down about 86% from about
760,993 tons rice exported in December 2015, according to data from the Vietnam Food
Association (VFA). The . The average export price so far in January stands at about $365 per
ton, down about 19% per ton from a year ago and down about 10% per ton from a month ago.
In 2015, Vietnam exported about up about 6.568 million tons, up about 4% from about 6.33
million tons of rice exported in 2014.
U.S. Finalizes Rice Trade Agreement with
China, Says USA Rice Federation
Jan 25, 2016
The U.S. and China have agreed on a protocol, which reportedly establishes the phytosanitary or
pest control rules necessary to allow U.S. rice into China, the Wall Street Journal quoted the
USA Rice Federation.
The USA Rice Federation reportedly noted that the USDA confirmed the finalizing of the deal
last week. It also noted that the deal came after the two nations settled on the requisite steps to be
taken by the U.S. industry to control insects and on labelling requirements for exports.
A USA Rice spokesman, citing USDA officials, said" "exports to China could be allowed by
early spring, barring any disruptions. U.S. mills and storage facilities will need to be inspected
by both the USDA and Chinese regulators, and China must issue a decree authorizing the
imports."
“The challenge now is to move from agreement to shipments,” added the Chief Executive of the
USA Rice Federation.
China, world's largest rice consumer, has not given access to the U.S. rice for a long time and a
rice deal between the two nations has been under negotiation for nearly a decade. The USDA
Animal and Plant Health Inspection Service (APHIS) has been reportedly working closely with
the U.S. rice industry and China’s Administration of Quality Supervision, Inspection and
Quarantine to finalize an agreement on the final set of protocols for exporting U.S. milled rice to
China.
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