27th October ,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

8/20/2019 27th October ,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

http://slidepdf.com/reader/full/27th-october-2015-daily-exclusive-oryza-rice-e-newsletter-by-riceplus-magazine 1/10

Page 1 of 10

Daily Exclusive ORYZA Rice E-NewsletterContents are published with permission of ORYZA.com

\

Vol 5.Issue X

October 27, 201

Daily Exclusive ORYZA Rice E-Newsletter



Page 2 of 10


Thailand to Encourage Farmers to Store Rice During

Harvest Period

Oct 26, 2015

The Thai government is planning to encourage farmers to store rice duringthe harvest period to protect rice prices from falling, according toBloomberg.The Permanent Secretary for Commerce told reporters that the Bank forAgriculture and Agricultural Cooperatives (BACC) will seek cabinet approvalto provide loans to farmers in northern and north-eastern provinces toencourage them to store rice.The BACC will reportedly lend 2.9 billion baht (around $2.54 million0 baht tofarmers at low interest rate as well as about 12.5 billion baht (around $11million) to cooperatives to process rice.

Last week, the Commerce Ministry said it is planning to introduce a newpledging scheme for Hom Mali rice as part of measures to control pricesduring the harvest season.Thailand exported about 6.61 million tons of rice in the first nine months of2015, down about 13% y/y, according to Commerce Ministry data.The government has decided to sell 2 million tons of rotten rice fromstockpiles. It is reportedly planning to another 9 million tons will be soldlater.

Government of India Allows Private Traders to

Procure One Million Tons of Rice in KMS 2015-16Oct 26, 2015

The government of India has allowed private traders to procure around onemillion tons of rice during the 2015-16 Kharif Marketing Season (KMS) in thestates of Uttar Pradesh, Bihar, Jharkhand, West Bengal and Assam,according to local sources.The Indian government is targeting to procure a total of 6.9 million tons ofrice from the five states in the on-going procurement season, local sources

quoted a Food Ministry official.The decision to involve private players in the rice procurement operations isbased on the recommendations of the Committee set up to restructure theFood Corporation of India (FCI) operations. The Committee headed by aformer Food Minister noted that the government needs to focus on the



Page 3 of 10


procurement operations in the five north-eastern states to improve efficiencyin transportation, packaging and storage facilities in those states.The five states contribute to over 40% of India's rice production by the FCIreportedly does not have a robust procurement mechanism in these statesand often forces farmers to go for a distress sale. In order to avoid such a

situation and help farmers receive the minimum support price (MSP), theFood Ministry has decided to involve private players in the rice procurementprocess.The FCI is in the process of shortlisting companies for procurement in thefive states.The government of India is planning to procure around 30 million tons of ricein the KMS 2015-16, including around 2.7 million tons from Uttar Pradesh, 2million tons from Bihar, 1.8 million tons from west Bengal, 300,000 tonsfrom Jharkhand and 50,000 tons from Assam.The MSP for common and grade A varieties of paddy is respectively fixed atRs.1,410 (around $211 per ton) and Rs.1,450 (around $217 per ton) perquintal for the 2015-16 KMS.

Oryza CBOT Rough Rice Futures Recap - Chicago

Rough Rice Futures Continue to Slide as Market Turns

Bearish

Oct 26, 2015

Chicago rough rice futures for Jan delivery settled 19.5 cents per cwt (about$4 per ton) lower at $11.945 per cwt (about $263 per ton). The other grainsfinished the day with mixed results; Soybeans closed about 1.2% lower at$8.8450 per bushel; wheat finished about 4% higher at $5.0900 per bushel,and corn finished the day about 1.3% higher at $3.8450 per bushel.U.S. stocks traded in a range Monday, attempting to hold last week's gains,as investors readied for another week of earnings and central bankannouncements. Stocks rallied last week, with the S&P 500 ending inpositive territory for 2015, after hints of further stimulus from the EuropeanCentral Bank Thursday and a surprise rate cut by the People's Bank of ChinaFriday. European equities closed lower Monday, while most Asian stocksclosed mildly higher. The Hang Seng ended a touch lower. In U.S. economic

news, September new home sales fell 11.5% to near a one-year low aftertwo straight months of gains, Reuters said.

The Federal Open Market Committee kicks off its two-day meeting Tuesdayand is scheduled to release its statement Wednesday afternoon. In earlyafternoon trade, the Dow Jones Industrial Average declined 16 points, or0.09%, at 17,630. The S&P 500 traded down 2 points, or 0.12%, at 2,072,



Page 4 of 10


with energy leading seven sectors lower and consumer discretionary leadingadvancers. The Nasdaq traded up 12 points, or 0.23%, at 5,043. Gold istrading about 0.2% higher, crude oil is seen trading about 1.2% lower, andthe U.S. dollar is seen trading about 0.3% lower about 1:30pm Chicagotime.

Friday, there were 2,940 contracts traded, down from 2, 976 contractstraded on Thursday. Open interest – the number of contracts outstanding – on Friday decreased by 163 contracts to 12,644.

Vietnam Exports 4.48 Million Tons of Rice in January 1

- October 20, 2015

Oct 26, 2015

Vietnam exported about 4.48 million tons of rice in January 1 - October 20, 2015, down

about 17% from about 5.37 million tons of rice exported in first ten months of 2014,

according to data from the Vietnam Food Association (VFA). The average rice export



Page 5 of 10


price so South Korea Plans to Procure 590,000 Tons tons of Rice in 2015 to Stabilize

Prices

Oct 26, 2015

The government of South Africa is planning to purchase about 590,000 tonsof locally produced rice as part of efforts to stabilize rice prices, local sourcesquoted the Farm Ministry. It earlier planned to purchase about 360,000 tonsof rice. However, due to a decline in prices due to an expected increase inrice production third year, it decided to increase the local rice procurementby another 200,000 tons.

South Korea's rice production (milled basis) is estimated to increase about0.4% to around 4.258 million tons in 2015 from around 4.241 million tons in2014 due to higher yields, according to the Ministry if Agriculture, Food andRural Affairs. Average rice prices have declined about 7.5% y/y to around

156,880 won per 80 kilograms (around $1,720 per ton) as of October 15,2015.

The government has reportedly decided to set aside 360,000 tons of theprocured volume as part of the country's strategic reserves and to contribute30,000 tons to the ASEAN Plus Three Emergency Rice Reserve.The Farm Ministry noted that the government may purchase more ricedepending on the movement of rice prices and overall production. It is

reportedly planning to release a long-term rice stabilization plan later thisyear.

The Ministry said it would release about 200 billion won (around $176.4million) to help the private sector to buy up rice. It also noted that it wouldconsider increasing the payment guarantee coverage of rice processingplants from the current 3 billion won (around $2.63 million) to 5 billion won(around $4.4 million) so as to help private sector to buy about 2.13 milliontons of rice this year, up about 85,000 tons from last year.

The country's current rice reserves stand at around 1.32 million tons. TheMinistry is expecting the demand for rice at around 3.97 million tons in2016. The government is currently facing the challenge of falling

consumption and increasing stocks.

far in this year stands at about $418.7 per ton (FOB), down about 4% perton from about $435.6 per ton recorded during same last year.During October 1-20, 2015, Vietnam exported about 130,300 tons of rice,down about 77% from about 570,769 tons rice exported in full month ofOctober 2014, and down about 75% from about 532,267 tons rice exported



Page 6 of 10


in full month of September 2015. The average export price so far in Auguststands at about $400.09 per ton, down about 15% per ton from a year agoand down about 2% per ton from a month ago.

Global Rice Quotes

October 27th, 2015

Long grain white rice - high quality

Thailand 100% B grade 360-370 ↓

Vietnam 5% broken 370-380 ↔

India 5% broken 350-360 ↔

Pakistan 5% broken 305-315 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 415-425 ↔

U.S. 4% broken 490-510 ↔

Uruguay 5% broken 535-545 ↔

Argentina 5% broken 530-540 ↔

Long grain white rice - low quality

Thailand 25% broken 330-340 ↔


Pakistan 25% broken 280-290 ↔

Cambodia 25% broken 400-410 ↔

India 25% broken 330-340 ↔

U.S. 15% broken 500-510 ↔



Page 7 of 10


Long grain parboiled rice

Thailand parboiled 100% stxd 360-370 ↔

Pakistan parboiled 5% broken stxd 405-415 ↔

India parboiled 5% broken stxd 340-350 ↔

U.S. parboiled 4% broken 590-610 ↔

Brazil parboiled 5% broken 545-555 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 815-825 ↔

Vietnam Jasmine 475-485 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 830-840 ↔

Brokens

Thailand A1 Super 305-315 ↔


Pakistan 100% broken stxd 275-285 ↔

Cambodia A1 Super 355-365 ↔

India 100% broken stxd 285-295 ↓

Egypt medium grain brokens NQ ↔

U.S. pet food 330-340 ↔

Brazil half grain NQ ↔

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



Page 8 of 10


Italian Paddy Rice Prices Continue to Increase in Third

Week of October 2015

Oct 26, 2015

Italian paddy rice prices, which were quite low in the last week of Septemberlast week and first week of October, have increased in the second week ofOctober and are continuing to increase in the third week as well. Prices ofboth Indica and Japonica varieties increased during the week. Harvesting of2015-16 (September - August) rice land is almost complete and the totalamount of paddy available can be known shortly, according to local sources.Below are farm gate paddy quotes from the Milan grain exchange, as ofOctober 20:

Arborio-Volano rice is quoted 650-675 euros (about $ 716-743) per ton, up100 euros (about $ 110) per ton from 550-575 euros (about $ 605-633) perton of October 13;Balilla, Centauro and similar paddies are out at 315-335 euros (about $ 347-369) per ton, up from 290-310 euros (about $ 319-341) per ton of October13.Lido, Crono, Flipper and similar varieties are quoted 285-305 euros (about $314-336), up from 265-285 euros (about $ 292-336) per ton of a weekprior.

Padano, Argo is out at 385-430 euros (about $ 424-474) per ton, unchangedfrom a week prior.Vialone Nano is quoted 515-540 euros (about $ 568-595) per ton, up from465-490 euros (about $ 512-540) per ton from a week prior.Carnaroli is quoted 650-685 euros (about $ 716-755) per ton, up from 590-625 euros (about $ 650-689) per ton of one week prior.Thaibonnet and similar varieties were indicated at 265-285 euros (about $292-314) per ton, unchanged from a week prior.Sant'Andrea is quoted 350-380 euros (about $ 385-419) per ton, up from325-355 euros (about $ 358-391) per ton of October 13.Luna Cl, Dardo and similar varieties are shown 285-305 ($ 314-336), upfrom 265-285 euros (about $ 292-336) per ton of October 13.Baldo is quoted 360-380 euros (about $ 397-426) per ton, up from 335-355euros (about $ 369-391) per ton of one week prior.

Roma was quoted 370-400 euros (about $ 408-441) per ton, up from 350-380 euros (about $ 385-419) per ton of October 13.



Page 9 of 10


Selenio is quoted 315-355 euros (about $ 347-391) per ton, up from 295-335 euros (about $ 325-369) per ton of October 13.Augusto is out at 305-325 euros (about $ 336-358) per ton, unchanged froma week prior;Loto and Nembo are quoted 295-325 euros (about 325-358) per

ton, unchanged from a week prior.

Vietnam Rice Sellers Alter Some Their Quotes Today;

Other Asian Quotes Remain Unchanged

Oct 26, 2015

Vietnam rice sellers have increased their quotes for 25% broken rice by

about $5 per ton to around $355 - $365 per ton today. They lowered theirquotes for jasmine rice by about $5 per ton to around $475 - $485 per ton.Other Asian rice sellers kept their quotes unchanged today.

5% Broken Rice Thailand 5% rice is indicated at around $355 - $365 per ton about $15 perton discount on Vietnam 5% rice shown at around $370 - $380 per ton.India 5% rice is indicated at around $350 - $360 per ton, about $45 per tonpremium on Pakistan 5% rice shown at around $305 - $315 per ton.

25% Broken Rice Thailand 25% rice is indicated at around $330 - $340 per ton, about $25 perton discount on Vietnam 25% rice shown at around $355- $365 per ton.India 25% rice is indicated at around $330 - $340 per ton, about $50 perton premium on Pakistan 25% rice shown at around $280 - $290 per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $360 - $370 per ton. Indiaparboiled rice is indicated at around $340 - $350 per ton, about $65 per tondiscount to Pakistan parboiled rice last shown at around $405 - $415 perton.

100% Broken Rice Thailand broken rice, A1 Super is indicated at around $305 - $315 per ton,at par with Vietnam 100% broken rice shown at around $305 - $315 perton. India's 100% broken rice is shown at around $290 - $300 per ton,about $15 per ton premium on Pakistan broken sortexed rice shown ataround $275 - $285 per ton.



Page 10 of 10


Unreasonable Government Policies Hindering Vietnam

Rice Exports, Say Experts

Oct 26, 2015

Unreasonable government policies are hindering Vietnam rice exports, localsources quoted experts as saying. They noted that though rice exports of allthe major exports have been impacted due toThe Head of the Mekong RiverDelta Research and Development Institute noted that rice exporters aregoverned by several legal documents with overlapping content andunreasonable regulations. They are hindering the normal operations of therice value chain, he said.

The Director of an exporting company noted that the recently released PrimeMinister's Decision No 68 is aimed at helping farmers in reducing their

production losses but does not support exporters in any manner. Whileexporters need to invest heavily in rice processing and milling systems aspart of the 'large paddy field model', they are not getting adequate supportfrom the government, he added.The exporter also noted that they are not getting easy access to bankfinance also despite the commitment made by the State Bank of Vietnam toprovide financial support to implement the 'large paddy field model'.Some experts pointed out that the current regulations have in fact weakened

the competitiveness of Vietnamese rice exporters.

Thailand to Sell 2 Million Tons of Rotten Rice fromStockpiles Beginning November 2015

Oct 26, 2015

The government of Thailand has approved the sale of 2 million tons of rottenrice from the stockpiles to industries starting from November 2015, Reutersquoted the Commerce Ministry Permanent Secretary.

"This rice is 2 million tonnes of rotten rice which humans and animals cannotconsume and it must be sold to the industrial sector only," said the CommerceMinistry official. She assured that the Ministry would ensure that the rottenstocks would not enter the markets for human and animal consumption.The official noted that the Ministry is planning to sell the rotten rice at pricesbelow those of edible rice. However, she did not hint at the likely price thatcould be fetched.Thailand is currently holding about 13.3 million tons of rice inits stockpiles.

Documents

27th October ,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine