17th March ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

8/19/2019 17th March ,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

March 17,2016

Vol 7,Issu


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Brunei Developing High-Yielding Varieties to

Achieve Rice Self -Sufficiency

Mar 16, 2016

The government of Brunei is working on the development of high-yielding rice varieties that can produce about 12 tons per hectare to achieve self-sufficiency in rice production, according toBrunei Times.

The Minister of Primary Resources and Tourism reportedly told in the 12th Legislative Council(LegCo) meeting that research will be conducted to identify and develop such varieties. Thegovernment is planning to introduce them to farmers by 2019.

Responding to a member's question on the government’s assistance to farmers in the country's

main rice growing areas, the Minister noted that the Department of Agriculture and Agrifood(DAA) has helped farmers get fertilisers, pesticides and machinery to plant Pusu, Bario, Adanand Laila rice varieties. He noted that DAA also conducted research on the viability of planting ahybrid rice variety BDR5 (Brunei Darussalam Rice 5), which is a high-yielding, low maturityvariety.

The Minister noted that the government has been encouraging farmers to use modern machinery but soil in many rice growing areas is not suitable to use such machinery.

The government has been aiming for 60% self-sufficiency in rice production by 2015. Last year,the Deputy Permanent Secretary at the Ministry of Industry and Primary Resources (MIPR)

apprised the Parliament that the government is far from achieving the target due to poorirrigation infrastructure. However, the government has intensified efforts to increase rice production, including incentive schemes such as the buy-back programme, infrastructuredevelopment and the adoption of advanced production technologies to boost yields and overall productivity, according to the official.

Brunei produces only 2% of the nation’s domestic annual rice consumption of around 40,000tons. Brunei’s rice production has remained at around 1,000 tons since 2002, according to the

USDA. The U.S. agency estimates Brunei to produce 1,000 tons of milled rice and importaround 40,000 tons in 2016, to meet a consumption demand of around 41,000 tons.

Global Rice Quotes March 17th, 2016Long grain white rice - high qualityThailand 100% B grade 380-390 ↑Vietnam 5% broken 375-385 ↔India 5% broken 365-375 ↔


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Pakistan 5% broken 335-345 ↔Myanmar 5% broken 420-430 ↔Cambodia 5% broken 410-420 ↔U.S. 4% broken 440-450 ↔Uruguay 5% broken 445-455 ↔

Argentina 5% broken 435-445 ↔Long grain white rice - low qualityThailand 25% broken 355-365 ↔Vietnam 25% broken 355-365 ↔Pakistan 25% broken 305-315 ↔Cambodia 25% broken 395-405 ↔India 25% broken 335-345 ↑U.S. 15% broken (sacked) 460-470 ↔Long grain parboiled riceThailand parboiled 100% stxd 375-385 ↑Pakistan parboiled 5% broken stxd NQ ↔

India parboiled 5% broken stxd 350-360 ↔U.S. parboiled 4% broken 480-490 ↔Brazil parboiled 5% broken 520-530 ↔Uruguay parboiled 5% broken NQ ↔Long grain fragrant riceThailand Hommali 92% 670-680 ↑Vietnam Jasmine 460-470 ↔India basmati 2% broken NQ ↔Pakistan basmati 2% broken NQ ↔Cambodia Phka Mails 755-765 ↔Brokens

Thailand A1 Super 335-345 ↑Vietnam 100% broken 345-355 ↔Pakistan 100% broken stxd 285-295 ↔Cambodia A1 Super 335-345 ↔India 100% broken stxd 265-275 ↔Egypt medium grain brokens NQ ↔U.S. pet food 280-290 ↔Brazil half grain NQ ↔All prices USD per ton, FOB vessel, oryza.com

Bangladesh Misses 2015-16 Aman RiceProcurement Target by 6,000 Tons

Mar 16, 2016


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The government of Bangladesh procured only 194,000 tons of 2015-16 Aman (July - December)rice against the targeted 200,000 tons, reports the Financial Express citing the BangladeshSangbad Sangstha (BSS).

The Bangladesh government targeted to procure 200,000 tons of 2015-16 Aman rice from

millers between December 15, 2015 and March 15, 2016 at Tk 31 per kilogram (around $388.5 per ton). The decline in procurement can be attributed to a temporary increase in milled rice inmost of the country's markets in early March following a hike in prices at the mill-gates. Coarserice prices were in the range of Tk 30 - 33 per kilogram (around $392 - $430 per ton). Therefore,traders noted that millers found it more profitable to sell in markets rather than to thegovernment.

The Director (procurement division) of the Department of Food noted that the government hopedto achieve the target within the slated timeframe given the higher procurement price. He alsonoted that they also hoped the higher procurement price would encourage farmers plant morerice in the next season.

Earlier, the Food Minister noted that the production cost of 2015 Aman paddy is estimated ataround Tk 18.5 per kilogram (around $232 per ton) and that of milled rice is estimated at aroundTk 28.5 per kilogram (around $357 per ton).

The government procured 320,000 tons of 2014-15 Aman rice from millers at around Tk 32 perkilogram (around $401), according to data from the Food Ministry. Aman rice crop accounts forabout 38% of the total rice production in Bangladesh.

The Food and Agriculture Organization (FAO) estimates paddy rice output from the 2015 Amanrice crop at about 19.6 million tons, down about 1% from last year due to a decline of about 2%

in acreage reflecting low domestic prices at sowing time. USDA forecasts Bangladesh’s MY2015-16 (July 2015 – June 2016) milled rice production at around 34.6 million tons, slightly upfrom an estimated 34.5 million tons in MY 2014-15. It forecasts Bangladesh to import around600,000 tons of rice in MY 2015-16 from an estimated 1.2 million tons in MY 2014-15.

Vietnam Rice Quotes Mixed Today; Other

Asia Rice Quotes Unchanged

Mar 16, 2016

Vietnam rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around$355-$365 per ton and increased their quotes for Jasmine rice by about $15 per ton to around$460-$470 per ton today . Other Asia rice sellers kept their quotes unchangedtoday.

5% Broken Rice


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Thailand 5% rice is indicated at around $365 - $375 per ton, about $10 per ton discount toVietnam 5% rice shown at around $375 - $385 per ton. India 5% rice is indicated at around $365- $375 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $335 - $345 perton.

25% Broken Rice

Thailand 25% rice is indicated at around $355 - $365 per ton, on par with Vietnam 25% riceshown at around $355- $365 per ton. India 25% rice is indicated at around $330- $340 per ton,about $25 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice isindicated at around $350 - $360 per ton, about $55 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 $330 - $340 per ton, about $15 per tondiscount to Vietnam 100% broken rice shown at around $345 - $355 per ton. India's 100% broken rice is shown at around $265 - $275 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

USDA Post Forecasts Egypt MY 2015-16 Rice

Exports at 250,000 Tons, Unchanged fromPrevious Year

The USDA Post forecasts Egypt's MY 2015-16 (October - September) rice exports at around250,000 tons, unchanged from the previous year, but down from the USDA's official estimates ofaround 400,000 tons. Egypt’s rice is not internationally competitive under the currentgovernment policy, which requires rice exporters to pay export tax of about LE 2,000 (around$256) per ton of rice.

The Post reports that shortages in foreign currency and a parallel market charging an exchange

rate of 20% above the official rate, has proved too onerous for the rice millers and exporters. ThePost also reports that the government may extend the export window to August 2016 and mayease its requirements due to increasing stocks. However, this may happen only after thegovernment ensures that it has sufficient supply for its smart card subsidy program.

The USDA Post forecasts Egypt's MY 2015-16 milled rice production at 4 million tons, downfrom last year's 4.53 million tons, but unchanged from USDA's official estimates. However, thePost has lowered its forecasts for Egypt's MY 2015-16 rice area below the USDA's official


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estimates.

The Post forecasts Egypt's MY 2015-16 rice consumption at around 3.5 million tons, down fromaround 4 million tons last year and down from USDA's official estimates of around 4 milliontons due to shortages of rice supplies in the government’s subsidy program.

The USDA Post forecasts rice stocks to increase about 31% y/y to around 1.2 million tons duringthe year as many traders are hoarding stocks in expectation of high prices.

Indonesian Rice Farmers Hope to Benefit

from Crop Insurance Scheme Amid Drought

Mar 16, 2016

Rice farmers in Indonesia's main rice growing area Bali are hoping to benefit from the province'scrop insurance program, which was launched in October 2015, to protect farmers from crop

failures caused by disasters such as drought, flooding or pest attacks, according to Reuters.

The program is part of the larger Indonesian crop insurance scheme launched in 2012-13 withfinancial support from the Japan International Cooperation Agency (JICA). It promises to payfarmers up to six million rupiah (around $480) for a crop failure. Under the program, thegovernment will pay 80% of the premium of 180,000 rupiah (around $13) per hectare.


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The Indonesian crop insurance scheme already covers 470 hectares of rice fields in East Javaand Sumatra. This year, it has included Bali and few other provinces. The Head of the BaliProvincial Agriculture and Foodstuffs Affairs Office noted that the program aims to cover 4,000hectares this year.

Though the scheme currently targets only small-scale farmers, it aims to bring in all 27 millionfarmers in Indonesia's 33 provinces by 2019.

Around 1,000 hectares of farm land in Bali is suffering severe drought conditions induced by theEl Nino weather phenomenon, which threaten the upcoming harvest. However, farmers aresceptical about the claims settlement under the scheme.

Vietnam Prime Minister Seeks Neighboring

Nations' Help to Combat Drought

The Vietnam Prime Minister is seeking help from the neighboring nations, especially thosewhich are part of the Mekong River Commission, to help Vietnam in combating water shortfallsdue to the on-going drought conditions, according to Vietnam Net.

He reportedly asked the Ministry of Natural Resources & the Environment, the Ministry ofForeign Affairs and Vietnam Mekong River Commission to send diplomatic notes to thecountries in Mekong upriver asking them to share information about water resources and theoperation of their hydropower reservoirs on Mekong River. He reportedly plans to ask them to provide water to the lower course of Mekong, so that Vietnam's provinces in the Mekong Deltacan benefit.

The Prime Minister’s instruction shows the state’s strong concern about water resources and thedifficulties Mekong Delta’s people are facing," said the former Deputy Secretary of the Vietnam

Mekong River Commission.

He also noted that the International Mekong River Commission, which comprises the membersfrom four countries in Mekong’s lower course, has so fat not taken any action amid the on-goingdrought conditions. “In principle, the commission’s member countries have to have meetings anddiscuss existing problems to come to consensus on the solutions to the problems. If so, countriescan voice their protests against the actions which affect the water sources,” he added.

Other leading rice experts also praised the Prime Minister's action. China has reportedly agreedto release water from its Jinghong Hydropower Station reservoir into the lower Mekong River tohelp Vietnam deal with drought and salinity in a number of provinces in Mekong Delta.

About Nearly 140,000 hectares of rice area in Mekong Delta has been reportedly damaged bydrought and salt water intrusion as of March 7, 2016.


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Oryza U.S. Rough Rice Recap – Prices Firm

Amid Limited Trade Activity

Mar 17, 2016

The U.S. cash market was slightly firmer today although trading was limited as most buyers andsellers remain at odd on prices.Some market participants are hopeful that more demand from Iraqand Colombia will show up and shore up U.S. prices however the U.S. still remainsuncompetitive compared to some South American countries.

National Agencies Show Interest to Invest in

Thai Rice Research

Mar 16, 2016

A number of research institutes in Thailand are keen on investing the country's rice researchactivities to help the government increase the competitiveness of Thai rice and rice products inthe global market, according to ThaiVisa.com.The Director-General of the Thai RiceDepartment, which takes care of rice research in the country, told reporters that the investments by the agencies will be used to develop premium rice species, improve nutritional value, andhelp farmers raise productivity while lowering costs. He also noted that the Department's currentrice research activities are primarily focussed on the development of a new strain that thrives indry weather conditions. He added that the Department is working on the development of a

variety called 'Kor Khor 61.'

"Researchers are trying to introduce rice as ingredients in dietary supplements and cosmetics.Fifteen studies have so far yielded promising results. They will soon be introduced to the riceindustry," he said.In a latest development, the Agricultural Research Development Agency(ARDA) has shown interest to invest in the country's rice research. "ARDA would recommendtechnologies to the farming sector to help increase the quality of grains," said the DeputyDirector of the ARDA.

Thailand Plans to Sell 641,000 Tons of

Stockpiled Rice in March 2016Mar 16, 2016

The government of Thailand is planning to sell about 641,000 tons of stockpiled rice on March30 and 31, 2016, Reuters quoted the Thai Commerce Ministry.This will be the second auction ofthis year. The Chief of the Foreign Trade Department told reporters that bidding for 418,000 tons


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of rice fit for human consumption will take place on March 30 and bidding for 223,000 tons unfitfor human consumption will take place on March 31, 2016."The government will open biddingfor rice in government stocks as it sees that the market needs rice including rice for industrialuse. This is a good time to offload rice from government stockpiles," she said.The governmentreportedly sold 152,377 tons of rice worth 1.78 billion baht (around $50 million) in the first

auction on February 16 for human consumption, lower than the targeted 204,000 tons. It soldaround 245,262 tons of stockpiled rice worth 1.53 billion baht (around $43 million) for industrialuse on February 17, as part of the first auction.The government still holds about 12 million tonsof rice in its stockpiles and is keen on selling about 5 million tons this year.

Oryza CBOT Rough Rice Futures Recap -

Chicago Rough Rice Futures Capture Late

Session Rally as U.S. Dollar Tumbles and Oil

Surges in Wake of FOMC AnnouncementMar 17, 2016

Chicago rough rice futures for May delivery settled 11.5 cents were cwt (about $3 per ton)higher at $10.485 per cwt (about $231 per ton). The other grains finished the day mostly lower;Soybeans closed about 0.3% higher at $8.9450 per bushel; wheat finished about 1.4% lower at$4.7075 per bushel, and corn finished the day about 0.1% lower at $3.6825 per bushel.U.S.stocks struggled to hold gains Wednesday ahead of the scheduled afternoon conclusion of theFed meeting. The Federal Open Market Committee is due to conclude its two-day meeting on

Wednesday with the 2 p.m. ET release of its statement and economic projections. Those includethe highly scrutinized "dot plot," which shows the targets for appropriate federal funds rates byFOMC participants. Fed Chair Janet Yellen is also scheduled to give a news conference at 2:30 p.m. U.S. crude oil futures traded near $37.84 a barrel in midday trade, a touch off session highs.Earlier, WTI briefly traded more than 4% higher after weekly crude oil inventories showed asmaller-than-expected build of 1.3 million barrels and following news producers will meet nextmonth in Qatar to discuss a proposal to freeze output. In other economic news, housing startsrose 5.2% in February.

Industrial production declined 0.5% in February, with capacity utilization at 76.7%.In afternoontrade, the Dow Jones industrial average traded down 29 points, or 0.17%, at 17,237. The S&P

500 traded down 3 points, or 0.17%, at 2,012, with health care leading five sectors lower andenergy the greatest advancer. The Nasdaq composite dipped 1 point, or 0.03%, to 4,727. Gold isseen trading about 0.1% lower, crude oil is seen trading about 4% higher, and the U.S. dollar isseen trading about 0.2% higher at about 1:00pm Chicago time.Tuesday, there were 288contracts traded, down from 352 contracts traded on Monday. Open interest – the number ofcontracts outstanding – on Tuesday increased by 38 contracts to 12,495.

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

17th March ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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