27th october ,2014 daily exclusive oryza e newsletter by riceplus magazine

27th October, 2014

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China Ban of Cross-Border Rice Imports Shatters Myanmar Rice Sector Oct 24, 2014

China's official ban of cross-border rice imports from Myanmar in August has led to decline in Myanmar’s rice exports to China through borders to about 25 tons a day from around 3,500 tons few months ago.

This is also impacting total rice exports and local prices, say traders.Myanmar's total rice exports have fallen from around 100,000 tons a month to around 50,000 tons. Average wholesale rice prices of rice have fallen about 8% to around 355,710 kyat (around $350) per ton from around 388,450 kyat (around $400) per ton in July 2014, according to FAO. The situation is causing hardships to farmers. Exporters are hesitant to buy rice from farmers due to existing stockpiles and farmers are struggling to earn their live hood says the Chairman of the Myanmar Freedom Farmers' League. He said the government should provide low-interest loans to help farmers survive. Most of them are not keen on investing in next year's summer crop, he told local sources.

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China has been an important export market for Myanmar rice for the last couple of years. Myanmar's rice exports to China (mostly through northern borders) increased almost 125 times since 2011 and most of it is through northern borders, according to a report by the World Bank in June this year. In 2013 alone, Myanmar exported 747,000 tons of rice to China through the Muse border.

Chinese authorities treat these cross border imports as illegal as there is no formal rice export agreement between China and Myanmar. They have been complaining for a long time that the quantity of illegal rice exports from Myanmar has been increasing and has expressed concerns that Myanmar rice is not adhering to China’s plant quarantine rules. The Chinese government had also recently demanded a formal sanitary and phyto-sanitary agreement on rice standards with Myanmar. Both the countries are keen on finalizing such an agreement.

“We’ve already signed a quality control agreement and I hope we can soon proceed to the next steps,” told Myanmar's Commerce Minister to local sources.

Tags: Myanmar rice exports to China, Myanmar rice exports through borders

India 2014 Main Rice Crop Planting Slightly Lower than Last Year Oct 24, 2014

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Planting for the 2014 India kharif or main rice crop (June – December) is complete and the data from the Indian Agriculture Ministry shows that this year's kharif planting is slightly lower than last year.As of October 24, 2014, planting for India 2014 kharif rice crop reached around 38.18 million hectares of rice area, slightly down from around 38.36 million hectares planted during the same time last year, according a statement released by the Agriculture Ministry.

Kharif planting had improved tremendously, despite being delayed by late arrival of monsoons in many rice growing states, due to revival of rainfall from July. The Indian government has estimated 2014-15 (October 2014 - September 2015) kharif rice production at around 88.02 million tons, down about 4% from around 91.69 million tons produced during the same time in 2013-14, according to a statement from the Agriculture Ministry.

However, the government is expected to revise its forecasts now that the planting for kharif rice is completed by the end of this week.

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USDA estimates India's 2014-15 (October - September) production at around 102 million tons, down about 4% from an estimated 106.29 million tons in 2013-14. However, few analysts say India 2014-15 production may be about 10% lesser than last year's.

Tags: India kharif rice planting, India rice production in kharif season

India Invites Interest to Commercialize New Rice Varieties Oct 24, 2014

The Central Rice Research Institute (CRRI) has invited Expression of Interest (EOI) applications from firms and companies interested in commercializing four new rice varieties developed by it, according to a notice on its website.The CRRI has recently developed four new rice varieties including highly aromatic small-grain rice, long-grained basmati rice and high protein-rich rice and puffing rice, according to the notice.

The Institute has called companies and firms interested in commercializing these varieties by post-harvest value addition. It will grant licenses on non-exclusive basis for a period of five years and requires the companies to pay Rs.2,000 (around $33) as participation fee through a non-refundable demand draft payable to ICAR-CRRI. They are also required to specify a percentage of royalty on net profit they are ready to pay to the Institute.The CRRI also requires the companies to submit a brief profile of their firm, activities, turn-over and a copy of audited financial statement of the last three years.The EOIs should reach the Institute by 3.00 p.m. on 12.11.14, according to the notice.

Tags: India rice varieties, Basmati rice, Puffed rice, Long-grain rice, small-grain rice

Thai Rice Policy Committee Approves Government Recommendations to Boost Prices Oct 24, 2014 The Thai Rice Policy Committee has approved measures suggested by the government to boost prices of white rice and fragrant rice during the upcoming harvest season, according to Bloomberg.The government will encourage farmers to delay sales of about 2 million tons from the upcoming harvest to

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boost rice prices. It is keen on increasing the price of unmilled white rice to around 8,500 baht (around $263) per ton, prices of unmilled jasmine rice to around 16,000 baht (around $495) per ton, and prices of glutinous rice to around 13,000 baht (around $401) per ton during the main crop harvest season, which will begin in November.

It will also pay about 1,000 baht (around $77) per ton to farmers to ensure rice is kept in good conditions. It will provide low-interest loans to farmers to hold their harvest and refrain from selling. Such an action is expected to control downward pressure on prices. The loans will be increased to 90% of the value of rice stored (without releasing into market) from the current 80%.These measures are expected to increase incomes to farmers also along with boosting prices. Farmers are likely to earn around 15,400 baht per ton (around $475) on jasmine rice and around 12,700 baht per ton (around $392) on glutinous rice, according to government sources.

Meanwhile, the Thai government has been ordered by the Justice Minister to closely monitor the subsidy payouts to the rice farmers and ensure that they reach to the eligible recipients, according to local sources.

Tags: Thai rice prices, Glutinous rice, Jasmine rice, white rice

Oryza Overnight Recap - Chicago Rough Rice Futures Remain under Pressure Following Yesterday's Bearish Action Oct 24, 2014

Chicago rough rice futures for Nov delivery are currently noted 4 cents per cwt (about $1 per ton) lower at $12.325 per cwt (about $272 per ton) during early morning floor trading in Chicago. The other grains are seen trading mostly lower: soybeans are currently seen about 0.6% lower, wheat is listed about 0.7% higher and corn is noted about 0.3% lower.

U.S. stocks wavered between modest gains and losses on Friday, with benchmark indexes poised for weekly gains, amid earnings from Microsoft, Amazon and others and as investors took in stride the first confirmed case of Ebola in New York City. Stocks briefly added to gains after data had new-home sales rising 0.2% in September. The Dow Jones Industrial Average gained 20.20 points, or 0.1%, to 16,698.10. The S&P 500 added about a point to 1,951.44, with health care pacing gains and energy falling hardest among its 10 major sectors.

The Nasdaq rose 9.07 points, or 0.2%, to 4,461.86. Gold is currently trading about 0.2% higher, crude oil is seen trading about 1.6% lower, and the U.S. dollar is currently trading about 0.3% lower at 9:45am Chicago time.

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Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market

Oryza U.S. Rough Rice Recap - Prices Hold but Sentiment is for Softer Prices Oct 24, 2014

The U.S. cash market held its ground today with offers and bids holding steady however the sentiment is for lower prices until export demand picks up.

As of today, offers could still be found around $12.50-$12.75 per cwt fob farm (about $276-$281 per ton) while bids were unchanged near $12.15-$12.45 per cwt (about $268-$274 per ton) for October-November; however, there were no buyers or seller willing to come off of their prices ideas.

Tags: U.S. rice prices, U.S. rice market

Oryza Afternoon Recap - Chicago Rough Rice Futures Defy Pressure from Falling Grains but Remain Lower on the Week Oct 24, 2014

Chicago rough rice futures for Nov delivery settled 4 cents per cwt (about $1 per ton) higher at $12.405 per cwt (about $273 per ton). Rough rice futures recovered slightly today as buying interest picked during late session trading. Today’s gains were not enough to erase steep losses sustained yesterday and the market has charted another loss on the weekly chart. Technically the market outlook remains bearish and many expect a testing of recent lows in the coming weeks. The other grains were softer today, likely due to profit taking following yesterday’s rally and ahead of the weekend; Soybeans closed about 1.6% lower at $9.7750 per bushel; wheat finished about 1.7% lower at $5.1875 per bushel, and corn finished the day about 1.9% lower at $3.5300 per bushel.

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U.S. stocks rose on Friday, adding to weekly gains, as quarterly results from companies including Microsoft and Procter & Gamble inspired investor enthusiasm. A report from the Commerce Department on Friday had newhome sales rising 0.2% to a six-year high in September, while the pace of August sales was revised sharply lower. After an early dip of 28 points, the Dow Jones Industrial Average jumped as much as 111 points, and was lately up 56.87 points, or 0.4%, at 16,734.77. The S&P 500 added 4.24 points, or 0.2%, to 1,955.06, with utilities pacing gains and energy falling hardest among its 10 major sectors. The Nasdaq rose 6.34 points, or 0.2%, to 4,459.13. Gold is trading about 0.2% higher, crude oil is seen trading about 1.6% lower, and the U.S. dollar is seen trading about 0.2% lower at about 1:00pm Chicago time.

Thursday, there were 1,722 contracts traded, up from 1,588 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday decreased by 226 contracts to 10,289.

Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market

Vietnam Experts Call for New Regulations Encouraging High Grade Rice Exports Oct 24, 2014

Rice experts in Vietnam have urged farmers to move away from producing and exporting low and medium grade rice and focus on high grade rice production and exports, according to local sources.Speaking at a conference on rice sector, the Director of the Vietnam Center for Economic and Policy Research (VEPR) said

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Vietnam rice farmers have increased the production as well as exports of low and medium grade exports over the past decade, and currently low-grade rice accounts for over 40% of Vietnam's rice export volume. This is a not good outcome for Vietnam in the long run, he says.

He noted that in recent years India, Myanmar and Cambodia have also increased supplies of low and medium grade rice in the international market and Vietnam has been facing a stiff competition from these three countries. Also due to a heavy competition, Vietnam exporters have not been getting decent prices. He added that low grade rice gives low profits to farmers and also would not generate high export revenue.

The VEPR Director stated that when supply surpasses demand, the pressure would be felt on the domestic prices as well. Local prices have been stable at around VND5,000 per kilogram (around $231.5 per ton), say farmers. They also noted that on the other hand, production costs have been incessantly rising.

He said government regulations have also been barring farmers from producing and exporting certain types of rice, which could earn good profits to them. An agronomist added that the government should frame new regulations to encourage farmers to grow niche varieties of rice and export high quality rice. It should lay stress on improving brand, quality, diversity and prices of Vietnam’s rice, he noted.

Tags: Vietnam rice exports, low grade rice, medium grade rice, Vietnam rice prices

Oryza White Rice Index – Index Again Testing Support at $450 per ton with Main Crop Harvest Underway Oct 24, 2014

The Oryza White Rice Index, a weighted average of global rice export quotes, ended the week at $448 per ton, down about $9 per ton w/w, down $20 per ton m/m, and down $6 per ton y/y. The index is again testing support at $450 per ton as Thailand continues to suffer from excess stocks accumulated under the rice mortgage scheme and El Nino failed to sufficiently curtail India’s rice production enough to ignite a rally.

Thailand Thailand 5% broken rice ended the week shown around $425 per ton, unchanged from last week, down $15 per ton m/m, and up $15 per ton y/y.

The Thai commerce ministry will delay about a million tons of rice sales in order to elevate prices, according to Bloomberg. Meanwhile, the Thai government will sell around 207,899 tons of rice from its stockpiles on October 28, according to Reuters.

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Thailand’s National AntiCorruption Commission (NACC) said it will quickly close the corruption case of former Prime Minister Yingluck Shinawatra’s involvement in the rice pledging scheme, according to local sources.

Bahrain has promised to purchase an unknown quantity of rice from Thailand to further boost bilateral relations between the two countries.

India India 5% broken rice is today shown around $420 per ton, unchanged from a week ago, down $10 per ton from a month ago, and up $5 per ton from a year ago.

Planting for the main rice crop (June-December) is complete and data from the Indian Agriculture Ministry shows that planted acreage is slightly lower than last year.

The Indian state of Mizoram will purchase 3,000 tons of rice from a private contractor in order to ensure adequate supplies in the face of railway and transportation disruptions.

Laboratory tests on Indian basmati rice from Punjab confirm there were no pesticide residues detected. After U.S. authorities began rejecting basmati rice from India in August 2011, noting traces of tricyclazole in them, many Indian rice experts were critical, claiming the state government of Punjab and Punjab University both recommend against using tricyclazole.

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The red kernel rice variety “korgutt” from the Indian state of Goa has been recognized by the National Bureau of Plant Genetic Resources as a unique germplasm for its tolerance to salinity stress.

Vietnam Vietnam 5% broken rice is today shown around $445 per ton, up $10 per ton from the previous week, unchanged from a month ago, and up $45 per ton from a year ago.

Vietnam exported about 4.927 million tons of rice during January 1-October 16, about 14% less than the same time last year, according to the Vietnam Food Association. Average rice export prices so far this year are about $433 per ton (FOB), up about $3 per ton from the same time last year.

Pakistan Pakistan 5% broken rice ended the week at $440 per ton, unchanged from a week ago, down about $10 per ton from a month ago, and up about $20 per ton from a year ago.

Pakistan exported about 221,715 tons of rice in September, up about 20% from August, according to the Pakistan Bureau of Statistics. In terms of value, rice export earnings increased to about $132.9 million in September, up about 27% from August.

Researchers at the Pir Mehar Ali Shah Arid Agricultural University had developed models to help farmers utilize fertilizer most effectively.

The National Space Agency of Pakistan estimated Pakistan’s FY 2014-15 (July-June) milled rice production will fall below 6.78 million tons as a result of floods during August that damaged about 116,700 hectares of paddy fields.

Central & South America Brazilian 5% rice is today shown around $550 per ton, down about $50 per ton from a week ago, down $60 per ton from a month ago, and down $70 per ton from a year ago.

The Brazilian paddy rice index maintained by CEPEA reached around 36.7 real per 50 kilograms as of October 20, 2014, down about 0.05% from around 36.72 real per 50 kilograms recorded on October 13, 2014. In terms of USD per ton, the index reached around $299 per ton on October 20, 2014, down about 3% from around $307 per ton recorded on October 13, 2014.

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Uruguay and Argentine 5% broken rice ended the week at $600 per ton, unchanged from a week ago, down $15 per ton from a month ago, and down $20 per ton from a year ago.

U.S. U.S. 5% broken rice ended the week at $445 per ton, down $75 per ton from a week ago, down $85 per ton from a month ago, and down $155 per ton from a year ago.

Chicago rough rice futures for November delivery were steady until late in the week. Most of the week futures ranged from $12.500 per cwt to $12.555 per cwt ($276-$277 per ton), reaching a high of $12.650 per cwt ($279 per ton) on Monday but dropping sharply on Thursday to a low of $12.330 per cwt ($272 per ton) before closing at $12.365 per cwt ($273 per ton) on Friday.

The U.S. cash market softened this week in line with CBOT futures. Offers were holding near $12.50-$12.75 per cwt fob farm (about $268-$274 per ton) throughout the week, but bids dropped from $12.40-$12.75 per cwt (about $273-$281 per ton) for October-November early in the week to $12.15-$12.45 per cwt (about $268-$274 per ton) by the end of the week with little to no trading happening.

Other Markets The rice harvest Italy is lagging behind last year’s numbers. The harvest is delayed due to cold, damp weather during July and August. Average paddy prices are lower than the end of last crop year, too, spurring Italian rice growers to seek Italian and European support.

Rice prices in Russia have increased in the last year, and the USDA Post reports that it’s mainly because some ports have closed to Chinese rice imports.

Rice farmers in Bangladesh are criticizing the government for favoring rice millers and fixing production costs for unhusked and husked rice for this year’s Aman rice crop (April-December). Production costs for paddy rice are fixed at around Tk 18 per kilogram (around $228 per ton), up about 6%, and production costs for milled rice are fixed at around Tk 28 per kilogram (about $355 per ton), up about 10%.

The third quarter paddy rice production for the Philippines is estimated at 3.01 million tons, down 10.5% from last year but about 0.5% higher than the earlier forecast.

Indonesia’s new president is striving for self-sufficiency in basic foods like rice, corn, and sugar, within the next four years, according to Reuters.

Experts say that Egypt’s rice exports will only reach about 300,000 tons in 2014-15, well below the one million ton target.

China’s ban on cross-border rice imports in Myanmar has led to decreased rice crossing the border – about 25 tons a day now, down from 3,500 tons a day a few months ago.

Tags: oryza white rice index (OWRI), Rice Prices, rice news

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