Documente Academic
Documente Profesional
Documente Cultură
January 08,2016
Vol 6,Issue I
www.ricepluss.com
www.riceplusmagazine.blogspot.com
Pakistan and Indonesia have finalized a one-million ton rice agreement under which Pakistan
will export one million tons of rice worth $400 million over the next four years, Bloomberg
quoted a Pakistan Commerce Ministry Statement.
The agreement will be implemented by the Pakistan Trading Corporation and the Indonesian
state logistics agency Bulog.
The first tender to export 15,000 tons of rice, including 5,000 tons of basmati rice, has been
reportedly finalized. The tender is expected to push up rice prices in Pakistan.
Pakistan-Indonesia bilateral trade increased over four times to around $2.2 billion in 2014 from
around $700 million in 2010 after conclusion of the Preferential Trade Agreement, according
to the statement.
Colombia Rice Export Quota, Inc (COL-RICE) has announced a tender schedule for the shipping
of 94,209 tons of U.S. rice (milled equivalent) to Colombia under the U.S.-Colombia Trade
Promotion Agreement (TPA) as per the 2016 tariff rate quota (TRQ) for U.S.
The details of the auctions are as follows:
COL-RICE administers the Tariff Rate Quota for rice established by the U.S. Colombia TPA,
which came into force on May 15, 2012.
The government of Thailand is planning to reduce the rice production to exactly match the local
consumption and exports, Bloomberg quoted the Permanent Secretary for Commerce.
The official noted that the annual local and export demand is currently at around 25 million tons
(basis paddy), while the average annual production stands at around 31-32 million tons.
She noted that the government is planning to reduce production and implement new measures to
improve farmers' incomes beginning from the 2016-17 main rice crop season, for which planting
will start in May 2016. She added that the Ministries of Commerce, Agriculture and Interior are
working with the farmers, exporters and millers groups on the implementation of the plan.
The official noted that the government is targeting to export 9 million tons of rice in 2016. She
also state that the government will sell rice to the industrial sector at the end of January or early
February.
Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Tumble as
Export Sales Soften and Oil Slides to New
Low
Jan 08, 2016
Chicago rough rice futures for Mar delivery settled 21 cents per cwt (about $5 per ton) lower at
$11.620 per cwt (about $256 per ton). The other grains finished the day mostly lower; Soybeans
closed a tick lower at $8.6450 per bushel; wheat finished about 1.2% higher at $4.6850 per
bushel, and corn finished the day about 0.1% lower at $3.5300 per bushel.
U.S. stocks traded lower Thursday as China news overnight and low oil prices renewed concerns
about global economic growth. The Dow Jones industrial average briefly traded more than 10%
from its 52-week intraday high, in correction territory. The Nasdaq composite was down more
than 2.5%, also trading in correction territory. Traders also noted failure to hold technical levels
and concerns ahead of potential Thursday night news. In mid-morning trade, the Dow regained
more than half of an opening decline of 317.90 points after the China Securities Regulatory
Commission suspended its recently implemented circuit breaker system Thursday morning ET.
3
employment report is due Friday morning. In midday trade, the Dow Jones industrial average
declined 201 points, or 1.19%, to 16,705. The S&P 500 fell 25 points, or 1.23%, to 1,965, with
financials and materials leading all 10 sectors lower. The Nasdaq composite traded down 76
points, or 1.59%, to 4,759. Gold is seen trading about 1.6% higher, crude oil is seen trading
about 2.1% lower, and the U.S. dollar is seen trading about 0.7% lower at about 1:45pm
Chicago time.
Wednesday, there were 481 contracts traded, down from 627 contracts traded on Tuesday. Open
interest the number of contracts outstanding on Wednesday increased by 46 contracts to
13,458.
The Food Corporation of India (FCI), the nodal agency for food grain procurement and
distribution has procured around 18.966 million tons of rice as of January 1, 2016 in KMS 201516 (October 2015 - September 2016), according to data by the Ministry of Consumer Affairs,
Food & Public Distribution.
Punjab (9.349 million tons), Haryana (2.854 million tons) and Chhattisgarh (2.311 million tons)
are the top contributors to the central pool so far in KMS 2015-16.
Last week, Food Ministry officials told reporters that the pace of procurement was higher than
expected due to a decline in prices of common variety of rice in various markets across the
country.
The government of India is planning to procure around 30 million tons of rice in the KMS 201516.
The FAO All Rice Price Index increased by one point to around 197 points in December 2015
after declining continuously for fifteen months.
According to the FAO, prices of the Higher quality sub-index India remained stable at 180
points, while those of the Lower Quality Indica sub-index increased by about 2% to 181 points.
While the Japonica sub-index declined by 1% to 242 points, the Aromatic sub-index increased
by 4% 152 points due to a recovery of basmati prices.
In January - December 2015, the FAO All Rice Price Index averaged 211 points, down about
10.5% from around 235 points during the same period last year. Sub-index for higher quality
5
Indica rice prices declined about 11% y/y and sub-index for lower quality Indica rice prices
declined about 8.7% y/y. Aromatic rice price sub-index declined about 31.1% y/y, and the subindex for Japonica rice prices declined by about 0.9% y/y.
According to the FAO, rice quotations in Thailand declined due to the arrival of new crop
supplies. Prices in India firmed up due to government procurement and quotations in Vietnam
remained stable. Quotations in Pakistan also increased due to strengthening of its currency.
Prices in the Americas declined while those in Brazil increased due to tightening of supplies,
according to the FAO.
During December 2015, average rice export quotations (on fob basis) of Thai 100% broken rice,
Thai 5% rice, Thai 25% rice and Thai parboiled rice declined to around $373 per ton, $362 per
ton, $356 per ton and $364 per ton respectively. Average export prices of Thai A1 Super rice and
Thai Fragrant rice increased to around $332 per ton and $782 per ton respectively.
Export prices of Vietnam 25% broken rice increased to around $345 per ton. Quotations of India
25% broken rice declined to around $310 per ton and those of and Pakistan 25% broken rice
increased to around $287 per ton. While U.S. 4% broken rice variety increased to around $500
per ton, U.S. California 4% rice declined to around $815 per ton. Uruguay 5% rice remained
unchanged at around $510 per ton.
6
The U.S. cash market was weaker today as long grain exports for the last week of 2015
disappointed market participants.
Analysts also note that there was a second vessel of long grain paddy sold out of the Port of Lake
Charles, Louisiana, reportedly at cheaper levels than what it would cost exporters to ship the
paddy by barges from Arkansas to New Orleans, Louisiana.
In the meantime, the USDA reported that cumulative net export sales for the week that ended on
December 31 totaled 51,300 tons, a decrease of 30% from the previous week and 11% lower
than the prior 4-week average.
Increases were reported for the following destinations: 24,700 tons to South Korea, 10,000 tons
to Haiti, 5,000 tons to unknown destinations, 4,300 tons to Panama, and 3,200 tons to Saudi
Arabia, while a reduction of 100 tons was reported for Mexico.
U.S. rice exporters shipped 33,700 tons, a decrease of 9% from than last week and 41% lower
than the prior 4-week average.
Increases were reported for the following destinations: 12,900 tons to South Korea, 9,000 tons to
the United Kingdom, 5,700 tons to Mexico, 2,700 tons to Canada, and 900 tons to Yemen.
The government of Laos is aiming to produce 4.2 million tons of paddy rice in 2016 to ensure
adequate supply for domestic consumption and exports, local sources quoted the Ministry of
Agriculture and Forestry.
The Ministry noted that it plans to allocate 2.1 million tons for domestic consumption, one
million tons for exports, 640,000 tons for processing, 400,000 tons for reserves, and 60,000 tons
for seeding purposes.
Thailand rice sellers lowered their quotes for 25% broken rice by about $5 per ton to about $335$345 per ton today. Vietnam rice sellers lowered their quotes for 5% broken rice by about $5 per
ton to about $350-$360 per ton . Other Asia rice sellers kept their quotes unchanged today
.
5% Broken Rice
Thailand 5% rice is indicated at around $350 - $360 per ton, on par with Vietnam 5% rice shown
at around $350 - $360 per ton. India 5% rice is indicated at around $355 - $365 per ton, about
$25 per ton premium on Pakistan 5% rice shown at around $330 - $340 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $335 - $345 per ton, about $5 per ton discount on
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.
9
The government of Iraq procured 54,000 tons of rice from farmers during on on-going 2015-16
harvest season, which ended today, Bloomberg quoted the Director-General of the Iraq grain
board.
In November 2014, the government set prices at 700,000 dinars (around $639) per ton for
jasmine quality rice and at around 900,000 dinars (around $822) per ton for anber variety.The
country's annual consumption is estimates at around 1.2 million tons.
Thailand rice sellers lowered their quotes for 25% broken rice by about $5 per ton to about $335$345 per ton today. Vietnam rice sellers lowered their quotes for 5% broken rice by about $5 per
ton to about $350-$360 per ton . Other Asia rice sellers kept their quotes unchanged
today
5% Broken Rice
10
Russia's rice exports declined by about 67% to around 35,400 tons in the first five months of
2015-16 (July - November) from around 102,700 tons despite the country recording a 5.8% y/y
increase in production in 2015, according to UkrAgroConsult.Reduction in purchases from its
major importers is understood to be the main reason for a decline in exports this year.Russia's
major importer Turkey reduced its purchases by about 89% y/y to around 7,400 tons during the
five-month period from around 66,000 tons last year. Decline in imports by Turkey from Russia
is very pronounced despite estimations that the country is will increase its rice imports by about
4% in 2015-16. The share of Turkey in Russia exports is likely to fall significantly this year from
about 40% last year.Russia's other important buyer Turkmenistan reduced its purchases by about
30% in the first five months of 2015-16 compared to the same period in 2014-15.The USDA
estimates Russia to export 190,000 tons of rice in MY 2014-15 (January - December 2015) and
about 160,000 tons in MY 2015-16.
Exclusive News have been shared with written permission of ORYZA.com with thanks.
11