15th april,2016 daily exclusive oryza rice e-newsletter by riceplus magazine
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Daily Exclusive ORYZA
Rice E-Newsletter
April 15,2016 Vol 7,Issue IV
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Cuba Hopes to Import Arkansas Rice; Looks
Forward to Removal of U.S. Trade Embargo
Apr 14, 2016
Cuba is keen on importing rice from the U.S. state of Arkansas, but is looking forward to the
U.S. government to lift the trade embargo with the Caribbean nation, according to a news release
by the University of Arkansas citing a Cuban diplomat.
One of the officials of a Cuban delegates, who visited the University of Arkansas System
Division of Agriculture officials, that the trade embargo is constricting rice imports from
Arkansas.
"Rice produced in Arkansas has a long grain variety that is a favorite of the Cuban country. We
are ready to import this variety from Arkansas. The only problem we have is according to the
restriction that's still in place by the Congress, the so-called embargo, trade between Arkansas
and Cuba cannot be supported by commercial credits," said the Deputy Chief of Mission at the
Cuban Embassy in Washington.
Currently, under the embargo provisions, Cuba must pay cash to import American products.
However, the official noted that commercial credits are necessary to support high levels of
international trade. "We really need the support of Arkansas companies to put away all these
restrictions and to start with no more trade conditions, an important change for important
commerce between Arkansas and Cuba," he added.
Recently, the U.S. agreed to ease the existing financing and banking restrictions with Cuba
allowing for the revival of rice and other agricultural trade with the Caribbean nation.
Cuba imports about 50% of its annual rice consumption needs. USDA estimates Cuba to produce
around 395,000 tons of milled rice and import around 500,000 tons of rice in MY 2015-16 (July
- June) to meet a consumption demand of around 895,000 tons. Cuba currently imports rice from
Brazil, India and Thailand. Cuba's rice production in 2016 is likely to fall significantly due to on-
going drought conditions.
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3 EU Imports 747,104 Tons of Rice in
September 1, 2015 - April 5, 2016; Up 15%
from Previous Year
Apr 14, 2016
According to the latest data issued by the European Union (EU), rice imports by the EU nations
increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31,
2016).
The EU imported about 747,104 tons of rice during the period September 1, 2015 - April 5,
2016, up about 15% from around 648,098 tons imported during the same period last year.
Japonica rice imports increased about 4% to around 57,197 tons in September 1, 2015 - April 5,
2016 period from around 54,923 tons during the same period last year. Indica rice imports
increased about 16% to around 689,907 tons during the said period from around 593,175 tons
last year.
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The UK remained the largest importer in September 1, 2015 - April 5, 2016 period with around
167,857 tons followed by France (126,304 tons), The Netherlands (87,161 tons), Germany
(58,724 tons), Poland (55,807 tons) and Italy (54,525 tons). Other EU countries imported
196,726 tons.
During the week ended April 5, 2016, the EU imported around 29,670 tons of rice, up about 69%
from around 15,763 tons imported during the week ended March 29, 2015.
The EU imported around 1.143 million tons of rice in the crop year 2014-15, up about 12.7%
from around 1.013 million tons imported in the crop year 2013-14.
EU Exports 135,740 Tons of Rice in
September 1, 2015 - April 5, 2016; Down 16%
from Previous Year
Apr 14, 2016
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According to the latest export data issued by the European Union (EU) for the crop year 2015-16
(September 1, 2015 - August 31, 2016), the EU exported about 135,740 tons of rice during the
period September 1, 2015 - April 5, 2016, down about 16% from around 160,655 tons exported
during the same period last year.
Japonica rice exports declined about 18% to around 113,271 tons in September 1, 2015 - April 5,
2016 period from around 138,272 tons during the same period last year. Indica rice exports
increased slightly to around 22,469 tons during the said period from around 22,383 tons last year.
Italy remained the largest exporter in September 1, 2015 - April 5, 2016 period with around
72,024 tons followed by Spain (17,990 tons), Greece (16,507 tons), and Portugal (10,114 tons).
Other EU countries imported 19,105 tons.During the week ended April 5, 2016, the EU exported
around 6,188 tons of rice, about twice from around 6,188 tons exported during the week ended
March 29, 2016.
EU Exports 135,740 Tons of Rice in
September 1, 2015 - April 5, 2016; Down
16% from Previous Year
Apr 14, 2016
According to the latest export data issued
by the European Union (EU) for the crop
year 2015-16 (September 1, 2015 -
August 31, 2016), the EU exported about
135,740 tons of rice during the period
September 1, 2015 - April 5, 2016, down
about 16% from around 160,655 tons
exported during the same period last
year.Japonica rice exports declined about
18% to around 113,271 tons in
September 1, 2015 - April 5, 2016 period
from around 138,272 tons during the
same period last year. Indica rice exports
increased slightly to around 22,469 tons during the said period from around 22,383 tons last
year.Italy remained the largest exporter in September 1, 2015 - April 5, 2016 period with around
72,024 tons followed by Spain (17,990 tons), Greece (16,507 tons), and Portugal (10,114 tons).
Other EU countries imported 19,105 tons.During the week ended April 5, 2016, the EU exported
around 6,188 tons of rice, about twice from around 6,188 tons exported during the week ended
March 29, 2016.
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6 USDA Post Forecasts Taiwan 2016 Rice
Imports at 126,000 Tons, Up 3% from
Previous Year
Apr 14, 2016
The USDA Post forecasts Taiwan 2016 milled rice imports at around 126,000 tons (around
144,720 tons brown equivalent), up about 3% from around 122,000 tons imported in 2015. It
forecasts 2017 rice imports to remain unchanged at 126,000 tons.
The Post reports all the imports are under the WTO TRQ with country specific quota (CSQ)
allocations, and Taiwan's rice TRQ is divided into two portions: 35% or 44,000 (50,652 tons
brown equivalent) is reserved for private sector imports and 65% or 82,000 (94,068 tons brown
equivalent) is set for public sector imports.
The quota for private sector imports is divided among three separate auctions. Bidding is
scheduled each year during the months of November, February, and April.
The quota for public sector imports is divided by both country of origin and tender type: SBS
and normal tender. SBS tendering is subject to a mark-up price (a floor price), and normal
tendering is subject to a pre-set ceiling price calculated on the basis of delivery and duty paid
(DDP) terms for delivery to designated Council of Agriculture (COA) warehouses.
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In its previous report, the Post reported that Taiwan has completed the 2016 U.S. rice
Simultaneous Buy and Sell (SBS) tender of 35,600 tons at the first scheduled held on February
18.Taiwan also completed the 2016 Thai SBS tender for 6,500 tons on the same day. This year,
Taiwan authorities held only one SBS tender of 2016 U.S. tariff rate quota (TRQ) rice imports
instead of the usual two tranches of SBS tenders. The SBS delivery term is between May 1, 2016
to April 30, 2017.
Based on Taiwan Custom's 2015 data, the Post reports that Taiwan imported 122,000 of rice on a
milled basis, of which the U.S. supplied 53,000 tons accounting for 43% share, followed by
Vietnam (27%), Thailand (21%), Australia (5%), Myanmar (2%) and other countries combined
2%.
The Post forecasts Taiwan's 2015-16 (January - December 2016) rice production at around 1.144
million tons, up from around 1.136 million tons last year due to an increase in acreage. Local
production caters to 90% of the annual rice consumption needs of around 1.23 million tons and
the remaining 10% is imported.
Government of China to Facilitate New GM
Crops in Thirteenth Five Year Plan
Apr 14, 2016
The government of China has decided to facilitate cultivation of new genetically modified (GM)
crops in the thirteenth five year plan (2016-2020), according to the Economic Times quoting a
senior official from the Chinese Agriculture Ministry.
The official informed a press conference on Wednesday that the five year plan will push forward
with the commercialization of anti-pest GM corn. He noted that the government will continue
research on GM rice and wheat over the next five years. However, he ruled out planting of GM
rice on an industrial scale in the short term.
Though China government supports cultivation of GM crops for ensuring food security in the
country, large-scale cultivation of GM crops remains sensitive as environmentalists and some
scientists have been warning against the technology's long-tern consequences for biodiversity
and human health.
Currently, only two GM crops - a type of cotton approved in 1996 and a virus resistant papaya
authorized in 2006 - are commercially cultivated in China. However, the government allows for
the import of GM soya, corn, cotton and rape to be used as ingredients in processed products.
According to official data, corn is the largest grown crop in China, followed by rice and wheat.
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The official also noted the government has decided to crackdown on illegal cultivation of GM
crops. "Sporadic illegal planting of (GM crops) does exist in some area and we will crack down
harshly on it," he said.
Oryza U.S. Rough Rice Recap - Prices Firm
after IGB Purchases 150,000 Tons
Apr 15, 2016
The U.S. cash market was materially firmer today after it was reported that the Iraqi Grain Board
purchased 90,000 tons from the U.S. and 60,000 tons from Uruguay.
Analysts note that this is a welcome shot-in-the-arm for the market and will likely help stabilize
prices; however, the market needs more rough rice exports if price increases are to be
sustainable.
In the meantime, the USDA reported that cumulative net export sales for the week that ended on
April 7 totaled 41,600 tons, a decrease of 54% from the previous week and 2% lower than the
prior 4-week average.
Increases were reported for the following destinations: 14,000 tons to Honduras, 10,600 tons to
Mexico, 7,400 tons to Canada, 3,000 tons to Costa Rica, and 2,600 tons to Guatemala.
U.S. rice exporters shipped 109,200 tons, an increase of 30% from last week and 53% higher
than the prior 4-week average.
Increases were reported for the following destinations: 32,600 tons to Mexico, 25,800 tons to
Colombia, 25,400 tons to Japan, 10,300 tons to Saudi Arabia, and 8,700 tons to Canada.
Philippines Stops Auction of Old Rice Stocks
to Avoid Price Falls During Harvest Time
Apr 14, 2016
The National Food Authority (NFA) of the Philippines has decided to stop the auction of the
remaining 3% of the 2014 imported rice stocks to avoid price falls during the harvest time,
according to Bloomberg.
"It would be unfair to our farmers for the NFA to unload stocks into the commercial market at
this time that they are selling their harvest,” the NFA Administrator was quoted. He added that
the auction process would send wrong signals in the market unduly distorting the price and
supply situation even though the volume is relatively low.
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The NFA usually auction rice stocks that are more than six months old and it is mandatory for
the buyers to get the rice re-processed to ensure that it is fit for human consumption.
The official noted that the government was still considering imports of around 500,000 tons
despite sufficient stocks. The NFA is also reportedly considering private sector imports under the
WTO minimum access volume (MAV).
USDA Post Forecasts China MY 2015-16
Rice Stocks to Increase on Lower Demand
Apr 14, 2016
The USDA Post forecasts China's MY 2015-16 (July - June) ending stocks to increase to around
50.61 million tons, up about 5% from an estimated 47.64 million tons in MY 2014-15 and down
from USDA's official estimates of around 47.76 million tons due to lower demand. It forecasts
stocks to further increase to around 52.91 million tons in MY 2016-17. The government has been
facing severe problem in selling the rice stocks.
The Post forecasts China's MY 2015-16 rice consumption to around 148 million tons, down from
USDA's official estimates of around 150.3 million tons due to shifting consumer preferences, the
economic slowdown, and lower feed use. It forecasts consumption to further fall to around 147.4
million tons in MY 2016-17.
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Meanwhile, the Post estimates China's MY 2015-16 rice imports at around 5 million tons, up
from last year's 4.7 million tons and unchanged from USDA's official estimates. Chinese traders
will continue to import rice as long as local rice prices are higher (due to high support prices)
compared to the neighboring countries. They mostly import rice from Vietnam and Thailand due
to their competitive prices and geographical proximity. The Post also reports that Chinese rice
processors are increasingly seeking high quality imported rice as they suspect the quality of rice
from state reserves. It forecasts imports to remain stable at 5 million tons in MY 2016-17.
The Post forecasts China's MY 2015-16 paddy rice production at around 208.243 million tons,
slightly up from last year's 206.51 million tons and unchanged from USDA's official estimates of
around 208.24 million tons. The government is planning to continue with the current rice
subsidies and procurement policy as part of its food security strategy as reiterated in the
Communist Party’s 2016 “No. 1 Document.”
California Rice Acreage Expected to Increase
1% y/y to 170,800 Hectares in 2016
Apr 14, 2016
Californian rice acreage is expected to reach around 427,000 acres (around 170,800 hectares) in
2016, up about 1% from around 422,770 acres (around 169,108 hectares) last year due to
reduced prices of other crops, according to Capital Press citing a government report.
According to the report based on the National Agricultural Statistics Service (NASS) survey,
acreage for the medium-grains varieties is likely to reach around 390,000 acres (around 156,000
hectares), up about 3% from last year.
One of the executives of the USA Rice Federation noted that reduced prices for some crops, such
as hay, oats and upland cotton, and continuing water shortages could push up rice acreage.
He, however, stated that excess acreage could in turn lower farm level paddy rice prices. He
noted that average farm gate paddy prices have been following a declining trend. Currently,
average farm gate paddy prices are quoted at around $370 per ton, down from around $373.19
per ton last year, and down from a peak of $600 per ton.
Meanwhile, rice growers in Northern California are expected to their full allocations of surface
water this year.
California mostly produces medium-grain rice and is the second largest rice producing state in
the U.S. after Arkansas, and typically contributes to about 25% of the total rice grown in the U.S.
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annually. The state's rice sector employs about 25,000 people and most of the rice grown here is
exported.
Sellers Lower Some of Their Quotes; Other
Asian Rice Quotes Unchanged Today
Apr 14, 2016
India rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $325-
$335 per ton today. Vietnam and Pakistan rice sellers kept their quotes unchanged. Thailand rice
sellers are out today due to a public holiday.
5% Broken Rice
Thailand 5% rice was last indicated at around $370 - $380 per ton, about $5 per ton premium on
Vietnam 5% rice shown at around $365 - $376 per ton. India 5% rice is indicated at around $370
- $380 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $345 - $355 per
ton.
25% Broken Rice
Thailand 25% rice was last indicated at around $360 - $370 per ton, about $10 per ton premium
on Vietnam 25% rice shown at around $350- $360 per ton. India 25% rice is indicated at around
$325- $335 per ton, about $15 per ton premium on Pakistan 25% rice shown at around $310 -
$320 per ton.
Parboiled Rice
Thailand parboiled rice was last 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.
100% Broken Rice
Thailand broken rice, A1 Super was last indicated at around $330 - $340 per ton, about $10 per
ton discount to Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100%
broken rice is shown at around $275 - $285 per ton, about $10 per ton discount to Pakistan
broken sortexed rice shown at around $285 - $295 per ton.
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12 Oryza CBOT Rough Rice Futures Recap -
Chicago Rough Rice Futures Surge as
Rumors Circulate of Improved Export
Outlook for U.S. Rice
Apr 15, 2016
Chicago rough rice futures for May delivery settled 33 cents were cwt (about $7 per ton) higher
at $10.220 per cwt (about $225 per ton). The other grains finished the day with mixed results;
Soybeans closed about 0.9% lower at $9.5625 per bushel; wheat finished about 0.2% lower at
$4.6675 per bushel, and corn finished the day about 0.3% higher at $3.7800 per bushel.
U.S. stocks traded in a range Thursday, trying for a third-straight day of gains, amid bank
earnings and choppy trade in oil. U.S. crude oil futures settled down 26 cents, or 0.62%, at
$41.50 a barrel. Ahead of Sunday's highly anticipated meeting of producers in Doha, Qatar, the
International Energy Agency (IEA) trimmed its forecast for demand growth but said a fall in
U.S. oil output was accelerating. European stocks were slightly higher, while in Asia the Nikkei
225 surged 3.2% and the Shanghai composite closed half a percent higher.
In U.S. economic news, weekly jobless claims declined to a seasonally adjusted 253,000,
revisiting a level last seen in 1973. The consumer price index rose 0.1% last month. In the 12
months through March, the core CPI that strips out food and energy costs, rose 2.2% after
gaining 2.3% in February, Reuters said. In afternoon trade, the Dow Jones industrial average
advanced 22 points, or 0.12%, to 17,931. The S&P 500 added 1 point, or 0.06%, to 2,083, with
telecommunications leading five sectors higher and materials the greatest laggard. The Nasdaq
composite traded down 2 points, or 0.03%, to 4,945. Gold is seen trading about 1.7% lower,
crude oil is seen trading about 1% lower, and the U.S. dollar is seen trading about 0.2% higher at
about 2:00pm Chicago time.
Wednesday, there were 836 contracts traded, down from 1,656 contracts traded on Tuesday.
Open interest – the number of contracts outstanding – on Wednesday decreased by 146 contracts
to 12,831.
Iraq Buys 150,000 Tons of U.S., Uruguay Rice
Apr 15, 2016
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Iraq has purchased 90,000 tons of U.S. rice and 60,000 tons of Uruguay rice in a recent tender, Oryza has
learned from trade sources.
Global Rice Quotes
April 15th, 2016
Long grain white rice - high quality
Thailand 100% B grade 380-390 ↔
Vietnam 5% broken 365-375 ↔
India 5% broken 370-380 ↔
Pakistan 5% broken 345-355 ↔
Myanmar 5% broken 415-425 ↔
Cambodia 5% broken 445-455 ↔
U.S. 4% broken 430-440 ↔
Uruguay 5% broken 435-445 ↔
Argentina 5% broken 415-425 ↔
Long grain white rice - low quality
Thailand 25% broken 360-370 ↔
Vietnam 25% broken 350-360 ↔
Pakistan 25% broken 310-320 ↔
Cambodia 25% broken 425-435 ↔
India 25% broken 325-335 ↔
U.S. 15% broken (sacked) 470-480 ↔
Long grain parboiled rice
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Thailand parboiled 100% stxd 370-380 ↔
Pakistan parboiled 5% broken stxd NQ ↔
India parboiled 5% broken stxd 335-345 ↓
U.S. parboiled 4% broken 480-490 ↔
Brazil parboiled 5% broken 490-510 ↔
Uruguay parboiled 5% broken NQ ↔
Long grain fragrant rice
Thailand Hommali 92% 670-680 ↔
Vietnam Jasmine 440-450 ↔
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Mails 760-770 ↔
Brokens
Thailand A1 Super 330-340 ↔
Vietnam 100% broken 340-350 ↔
Pakistan 100% broken stxd 285-295 ↔
Cambodia A1 Super 345-355 ↔
India 100% broken stxd 275-285 ↔
Egypt medium grain brokens NQ ↔
U.S. pet food 315-325 ↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com
ORYZA News have been published with permission of ORYZA.com with thanks