20 th january ,2016 daily exclusive oryza rice e-newsletter by riceplus magazine

8/20/2019 20 Th 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 20,2016

Vol 6,Iss


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Brazil Exports 1.31 Million Tons of Rice in

2015, Up 6% from Previous Year

Jan 19, 2016

Brazil exported around 1.32 tons of rice in 2015 (January – December), up about 6% fromaround 1.24 million tons exported in 2014, according to data released by the Rice Institute of RioGrande do Sul (IRGA).

In December 2015, Brazil exported around 144,525 tons of rice, down about 22% from around184,882 tons exported in November 2015.

Cuba remained the largest importer of Brazilian rice in December 2015 with around 42,647 tons,or about 30% of Brazil's total rice exports during the month. Venezuela accounted for around29,990 tons (about 21% of Brazil's total rice exports during the month); Gambia accounted foraround 25,529 tons (about 18% of Brazil's total rice exports during the month); Switzerland


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Selenio is quoted 350-400 euros (about $ 381-436) per ton, up from 335-385 euros (about $ 365-420) per ton, unchanged from the previous week.

Augusto is out at 335-355 euros (about $ 365-387) per ton, unchanged from the previous week.

Loto and Nembo are quoted 330-360 euros (about $ 360-392) per ton, unchanged from the previous week.

India Rice Sellers Lower Some of Their

Quotes; Other Asia Rice Quotes Unchanged

Today

Jan 19, 2016

India rice sellers lowered their quotes for parboiled rice by about $5 per ton to about $345-$355 per ton today. 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 shownat around $350 - $360 per ton. India 5% rice is indicated at around $355 - $365 per ton, about$20 per ton premium on Pakistan 5% rice shown at around $335 - $345 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $340 - $350 per ton, on par with Vietnam 25% riceshown 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 $355 - $365 per ton. India parboiled rice isindicated at around $345 - $355 per ton, about $60 per ton discount to Pakistan parboiled ricelast shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $315 - $325 per ton, about $20 per tondiscount to Vietnam 100% broken rice shown at around $335 - $345 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.


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Oryza U.S. Rough Rice Recap – Prices

Slightly Firmer Amid Limited Farmer Selling

Jan 20, 2016

The U.S. cash market was slightly firmer today with offers from resellers increasing with thefutures market while farmer selling interest was nearly non-existent.

Analysts note that most buyers remain hand to mouth and have interest roughly $0.50 per cwt below where there were sellers today and as a result the trade was very quiet.

Analysts expect that prices will continue to decline until there is a substantial increase in U.S.export demand, so who will come in and throw U.S. producers a bone? Iraq? Venezuela?Colombia?

Government of Indonesia Plans to Procure

3.9 Million Tons of Rice from Farmers in

2016

Jan 19, 2016

Indonesia's state logistics agency Bulog is planning to procure about 3.9 million tons of rice,

including 3.2 million tons of medium quality rice and 700,000 tons of premium rice, fromfarmers this year, according to Tempo.Co. Bulog uses the medium quality rice is for PublicService Obligation (PSO) and the premium rice for commercial purposes.

"To maintain the stability of domestic rice prices, Bulog seeks to strengthen its rice stocks," saidBulog's Procurement Director. The agency will reportedly allot 30 trillion Rupiah (around $2.16 billion) for the purpose. "For the PSO rice, the cost is Rp 7,500 per kilogram [around $539 perton]. The premium rice is a bit pricier, so the budget is almost Rp30 trillion," noted the official.

Last year, Bulog could not procure the targeted amount of rice due to low production and highmarket prices.

Separately, the government is likely to issue new regulation extending the scope of Bulog'sduties. "The new regulation would extend the company’s oversight task beyond rice, to 10 other

food commodities including sugar, oil, beef, chicken, egg, onions, chilli and flour — making itmore powerful in managing food prices and stockpiles," said the Bulog President Director. "Weused to oversee rice. As our role is to be expanded in the future, we’ve prepared our

organization, infrastructure and standard operational procedures, including the business model,”he added.


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VFA Foresees Better Prospects for Vietnam

Rice Exports in 2016 Compared to Previous

YearJan 19, 2016

The Vietnam Food Association (VFA) is expecting better prospects for Vietnam's rice exports in2016 compared to the same period last year with contracts of about 1.3 million tons carriedforward from last year as well as renewed demand from large and regular markets, according toSaigon News.

The Chairman of the VFA told reporters that noted that export conditions are more favorable thisyear with relatively low inventories compared to last year. He stated that in addition to the 1.3

million tons of rice export contracts carried forward from last year, demand from large buyerssuch as Indonesia and the Philippines are expected to place their orders early in the year. Also,about 3 million tons of rice is expected to be harvested from the winter-spring crop. He,therefore, noted that the country is ready to export about 4.3 million tons of rice in the first halfof this year.

The VFA sources are predicting the rice export market to be good until the end of first half of theyear as China, Indonesia, Malaysia and the Philippines are likely to sign import contracts as soonas possible in order to stabilize domestic food supply and cope with drought caused by El Nino.

The VFA Chairman noted that in 2015, demand for Vietnam rice was very low until September.

Higher domestic prices vis-à-vis global prices and higher inventory coupled with low demandforced the government to lower the export target to 6 million tons. However, contracts fromIndonesia and the Philippines helped the country to export 6.58 million tons. He noted that in theabsence of these contracts, several rice exporting companies had to face severe losses.

A leading rice exporter expressed hope that global rice prices may recover this year due to thenegative effects of El Nino on food production as well as declining inventories in the majorexporting nations such as India and Thailand.

VFA Foresees Better Prospects for Vietnam

Rice Exports in 2016 Compared to PreviousYear

Jan 19, 2016


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The Vietnam Food Association (VFA) is expecting better prospects for Vietnam's rice exports in2016 compared to the same period last year with contracts of about 1.3 million tons carriedforward from last year as well as renewed demand from large and regular markets, according toSaigon News.

The Chairman of the VFA told reporters that noted that export conditions are more favorable thisyear with relatively low inventories compared to last year. He stated that in addition to the 1.3million tons of rice export contracts carried forward from last year, demand from large buyerssuch as Indonesia and the Philippines are expected to place their orders early in the year. Also,about 3 million tons of rice is expected to be harvested from the winter-spring crop. He,therefore, noted that the country is ready to export about 4.3 million tons of rice in the first halfof this year.

The VFA sources are predicting the rice export market to be good until the end of first half of theyear as China, Indonesia, Malaysia and the Philippines are likely to sign import contracts as soonas possible in order to stabilize domestic food supply and cope with drought caused by El Nino.

The VFA Chairman noted that in 2015, demand for Vietnam rice was very low until September.Higher domestic prices vis-à-vis global prices and higher inventory coupled with low demandforced the government to lower the export target to 6 million tons. However, contracts fromIndonesia and the Philippines helped the country to export 6.58 million tons. He noted that in theabsence of these contracts, several rice exporting companies had to face severe losses.

A leading rice exporter expressed hope that global rice prices may recover this year due to thenegative effects of El Nino on food production as well as declining inventories in the majorexporting nations such as India and Thailand.

Oryza CBOT Recap – Chicago Rough RiceFutures Begin the Week on a Positive Note,

Supported by Firmer Grains

Jan 20, 2016

Chicago rough rice futures for March delivery settled 21 cents per cwt (about $5 per ton) higherat $10.875 per cwt (about $240 per ton). The other grains finished the day higher; Soybeans

closed about 0.5% higher at $8.8350 per bushel; wheat finished about 0.2% higher at $4.7450 per bushel, and corn finished the day about 1.2% higher at $3.6775 per bushel.

U.S. stocks traded mixed Tuesday as pressure from lower oil prices offset initial attempts to bounce from a sharply lower start to the year. Stocks pared gains soon after the open as U.S.crude oil turned lower and struggled to hold $30 a barrel. Stocks opened higher as oil gained andsofter Chinese data spurred some hopes of further monetary stimulus. Asian markets closedhigher, with the Shanghai composite up more than 3%. European stocks held more than 1%


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higher. Overnight, China reported GDP of 6.9% for 2015, the slowest pace since 1990. Fourth-quarter GDP growth was 6.8% year-over-year, a touch below expectations. December retail salesshowed 11.1% growth from the same period last year, while industrial production grew 5.9%.Both were mildly below estimates.

On Tuesday, the International Monetary Fund cut its global economic growth forecast for 2016to 3.4%, down from prior forecasts but up from a 3.1% forecast for 2015. In economic news, the NAHB housing index held steady at 60 in January, but from a downwardly revised Decemberreading and off a recent high of 65 in October. In afternoon trade, the Dow Jones industrialaverage gained 45 points, or 0.3%, to 16,036. The S&P 500 gained 3 points, or 0.2%, to 1,884,with financials leading seven advancers and materials the biggest laggard. The Nasdaqcomposite was flat. Gold is seen trading about 0.1% lower, crude oil is seen trading about 3%lower, and the U.S. dollar is seen trading slightly lower at about 1:00pm Chicago time.

Friday, there were 613 contracts traded, down from 1,869 contracts traded on Thursday. Openinterest – the number of contracts outstanding – on Friday increased by 79 contracts to 13,624.

India Basmati Rice Exporters Hope to

Consolidate Domestic Market as Export

Prices Plunge

Jan 19, 2016

Most of the Indian basmati rice exporters are looking at the option of consolidating in the

domestic market as export earnings fall significantly due to a plunge in the export prices,according to Business Standard.Lower realizations, higher stocks and uncertain demand owing toa fall in crude oil prices are forcing exporters to focus on the domestic market, according to localsources. Many leading brands have started consolidating their position in the domestic market byshifting their marketing strategies.India's basmati rice exports increased about 23% to around2.69 million tons in the first eight months of FY 2015-16 (April - November 2015) from around2.19 million tons during the same period last year, according to data from the Agri and ProcessedFood Products Exports Development Authority, (APEDA). However, earnings have exports havedeclined about 19% to around $2.41 billion in April-November 2015 period from around $2.96 billion during the same period last year.

Average basmati rice export prices declined by about 34% to around $897 per ton during theeight-month period from around $1,352 per ton last year. "The turmoil in West Asian countriesand a sharp decline in crude oil prices have put the exporters in a tight spot as the purchasing power of the traders in the importing countries has been hit," said the sources at APEDA.

Since fall in prices is a global phenomenon, the it is doubtful as to what the government can doto bail out the exporters. However, resumption of rice imports by Iran is certainly a respite toexporters. "We expect an annual demand of 1 million to 1.2 million from Iran, as the traders over


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there have been running low stocks. This may also trigger a revival in price but it is too premature to quantify the price revision," said one of the leading basmati rice exporters.

Though the farm gate prices have fallen to Rs. 2,200-2,500 per quintal (around $296- $370 perton) this year from around Rs. 4,000 per quintal (around $591 per ton) last year, increasing

carrying costs and finance costs are said to significantly affect exporters' revenues.

Syria Issues Tender to Buy 8,113 Tons of

White Long-Grain Rice

Jan 19, 2016

Syria's General Foreign Trade Organization (GFTO) has issued a tender to purchase 8,113 tonsof white long-grain rice of third class, according to a notice on its website.Rice is for delivery inthree tranches between May 1, 2016 to December 15, 2016.Offers should be submitted to GFTOSecretariat by 3 p.m. Damascus time, February 2, 2016, according to the notice.

Thai Government Urged to Accelerate

Stockpiled Rice Sales Through Increased

G2G Deals

Jan 19, 2016

Thailand's private sector is urging the government to accelerate sales of rice stocks through moregovernment-to-government (G2G) deals, according to Bangkok Post.The Deputy CommerceMinister told reporters that business leaders have told the government authorities that Thai riceexports could see a growth of at least 3% if the government clinches more G2G deals. They alsoreportedly suggested that an increase in exports of processed farm products would ensure exportgrowth this year.The Commerce Permanent Secretary told earlier this month that the governmentis aiming to sell about 2 million tons of rice in G2G deals, of which one million tons would beused to honour a memorandum of understanding (MoU) with China.She noted the government is planning to export about 9 million tons of rice worth $4.78 billion in 2016 compared to about 10million tons worth $5.1 billion exported in 2015.Meanwhile, the government has reportedlysought the private sector's help to map out strategic plans and supporting measures needed to boost export growth. A tentative proposal will be sent to the Commerce Ministry before January20, 2016, according to the Deputy Commerce Minister.Separately, the Supreme Court has begunhearing the case of the former Prime Minister Yingluck Shinawatra last week. The Court heardthe former President of the Thailand Research and Development Institute (TDRI) and three otherwitnesses on January 15, 2016. It has agreed to hear a total of 14 witnesses presented by public prosecutors and 43 witnesses presented by the Yingluck’s legal team. The next hearings areslated for February 17 and 26, and March 4 and 23, 2016.

Exclusive News have been shared with written permission of ORYZA.com with thanks

20 th january ,2016 daily exclusive oryza rice e-newsletter by riceplus magazine

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