6th august (thursday),2015 daily global rice e newsletter by riceplus magazine

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Daily Global Rice e-Newsletter

Aug ,2015

Vol 5,Issue XIII

August 06 ,2015

Vol 5,Issue XIII

Daily Global Rice E-Newsletter

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Pakistan, Malaysia urged to increase trade volume

August 06, 2015

RECORDER REPORT

not focus on agriculture based products in trade with Malaysia as the two countries have the

potential to increase the volume of the trade from current level of $1.43 billion. According to an

assessment of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) which

came into effect in 2008, Malaysian exports to Pakistan remain $1.2 billion while Pakistani

exports to Malaysia stands at $233 million, which shows the balance of trade totally is in favour

of Malaysia. The assessment report compiled by Pakistan Business Council (PBC) said that the

MPCEPA was aimed at promoting bilateral trade between the two countries by giving tariff

reductions on various commodities.

The agreement is one of the most comprehensive agreements Pakistan is a part of, covering trade

in goods, trade in services, investment and economic co-operation. Though not exceeding 1.5%

of Pakistan's overall exports, Pakistan's exports to Malaysia have been on a rise since 2004 with

total exports to Malaysia in 2014 amounting to $233 million. Comparatively Malaysia's exports

to Pakistan amounted to only 0.52% of its total world exports while total exports from Malaysia

to Pakistan amounted to around $1.2 billion in 2014. The top 10 exports accounted for 86% of

Pakistan's total exports to Malaysia in 2014. These top items consisted mainly of Cereals (Rice),

Cotton, textiles and articles of apparel and Fish.

Meanwhile, out of the 80 product categories exported to Pakistan by Malaysia, the top 10

accounted for 85% of the total export value. These majorly consisted of Palm Oil (52% of total

exports), Machinery and Mineral fuels. The study conducted at the HS 6 level shows that

Pakistan's top potential trade commodities continue to be largely agriculture based. While

Pakistan faces 0% tariffs in 71 of the 100 top potential items, a comparison of Malaysia's free

trade agreements with India and China shows them to have a lower overall duty structure than

Pakistan on most of the items of Pakistan's interest.

This study makes the following recommendations: (i) The Pakistani business community need to

be involved in the negotiation of any future trade agreements. (ii) None of the major trade

agreements Pakistan has signed, have seen a significant increase in its exports. Imports however

have shown a healthy increase post all major FTAs signed by Pakistan. (iii)The Government of

Pakistan needs to ensure that the focus is not only on concessions for agriculture based exports

but that value added manufacturing sector has access to markets that allow it to develop critical

mass. And Pakistan still needs to focus on the following sectors while creating awareness or

while negotiating future concessions; Salt; Sulphur; earths and stone for the export of portland

cement to Malaysia, sugars and sugar confectionery for the export of sugar confectionary and

Glucose & glucose syrup, Articles of apparel and clothing accessories and Machinery,

Mechanical Appliances and Electrical Appliances.

The study said Pakistan's world exports have mostly been focused on agriculture based

commodities, a trend that is reflected in Pakistan's exports to Malaysia with rice being the top

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exported commodity in 2014, contributing 45.5% of Pakistan's total exports to Malaysia. This is

a significant rise from 2008 when rice exports amounted to only 28.23% of total exports to

Malaysia. Pakistani rice however enjoys no preferential treatment under the FTA. Pakistan's

dependence on a few major agro based exports leaves it with little room to compensate for years

where the recurring conditions of boom and slump may heavily affect overall exports. While

Pakistan aims to increase its share of rice exports to Malaysia, Malaysia's claim that it aims to be

self-sufficient in the production of rice by 2020 becomes a matter of concern, specifically since

45.5% of all Pakistani exports to Malaysia in 2014 were rice.

Rice has been given no concession, with exporters having to face a tariff of 40% on all Pakistani

exports of rice. While Malaysia has maintained this trend in all its other free trade agreements as

well, India is the only country with whom Malaysia has a trade agreement where tariffs for rice

are at 20%, resulting in Indian exports increasing from $8 Million to $18 Million from 2011-

2014. Comparatively when looking at Malaysia's exports to Pakistan, exports are based more on

commodities manufactured within the country, along with a focus on Palm Oil and Organic

Chemicals. This indicates a more diversified economy with a divided focus on both agro based

and manufactured commodities for export.

While Malaysian exports to Pakistan continue to be heavily focused on Palm oil, a 2008-2014

comparison shows a diversification in these exports, with Palm oil dropping from 69.96% to

52.06%, while Machinery shows an increase to 7.82% from 0.26%' hence corroborating the

previously mentioned statement. Pakistan's top potential trade commodities identified in this

study continue to be largely agriculture based. While Pakistan faces o% tariffs in 71 of the 100

top potential items, a comparison of Malaysia's free trade agreement with India and China show

them to have a lower overall duty regime than Pakistan does on most of the items Pakistan does

face tariffs in, hence affecting the country's competitiveness in the Malaysian market.

An example of this can be seen for 'T-shirts, singlets and other vests, of cotton, knitted' (HS

610910), where Pakistan faces a duty of 20% under the MPCEPA, China a duty of 0% (Under

the ACFTA) and India a duty of 10% under the MICECA. Cotton, one of Pakistan's top export

items, has a duty advantage in Malaysia, with o% tariff rates of most cotton commodities (Raw

and cotton yarn), and an overall ad valorem tariff of 4.2%. Unfortunately Pakistan does not seem

to have utilised this opportunity as Cotton exports to Malaysia have dropped from 15.09% of

Pakistan's total exports to Malaysia in 2008, to 10.02% in 2014. Malaysia on the other hand has

seen an increase in exports of two of its top world export items, namely Machinery and Mineral

fuels, both of which face higher tariff rates (than those given to China) of 7% and 6%

respectively, for exports to Pakistan.

On its own the Malaysia Pakistan free trade agreement (MPCEPA), seems to provide relative

concessions for Pakistani exports. A closer look however paints a picture of higher comparative

tariff rates and the under - utilisation by the Pakistani business community of the concessions

that do exist. During the 2008-2014 time period, while Malaysian exports to Pakistan continued

to rise, Pakistani exports could not catch up, hence based on the study conducted the following

recommendations are put forth:

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It shall create awareness amongst the business community of new opportunities for trade

available as many items in the FTA have entered the o% tariff track; a fact many of the local

manufacturers and exporters appear to be unaware of. Pakistan needs to focus on creating

awareness amongst its business community about the opportunities available or negotiating

future concessions from Malaysia; this is because these sectors have the highest trade potential

and are thus necessary for boosting exports:

Salt; Sulphur; earths and stone; plastering materials, lime and cement as there is a trade potential

of $78.26 Million for the export of Portland cement to Malaysia. Articles of apparel and clothing

accessories, knitted or crocheted has the third highest trade potential of $60.15 Million. While

this category falls under the MPCEPA, 5 of the 6 top potential subcategories have a duty regime

of 20%. Comparatively duties for China and India for these same categories are at 0% and 10%

making their products more competitive in the Malaysian market.

Machinery, Mechanical Appliances and Electrical Appliances as analysis show there is a

combined trade potential of $75.36 Million for the exports of gas turbines, vacuum pumps, air

conditioners, refrigerators and Mobile telephones.

A special focus should be on air conditioners and refrigerators as Pakistan currently faces a duty

reduction to 20% in both these categories while China and India face 0% and 11%

respectively. Pharmaceutical products is also currently an under-utilised opportunity as there is a

trade potential of $47.5 Million in the export of Antibiotics, Medicaments, Hormones nes and

Pencillins with a current 0% duty regime. Plastics and articles thereof and Paper and paperboard

have a combined trade potential of $88.64 Million for the export of Polyvinyl Chloride, Film &

Sheet of Polyethylene terephththalates (Pakistan: No concession 20%, China: 6.6% and India:

12.3%) and of Polymers of propylene (Pakistan: No concession 20%, China: 13.3% and India:

14%); along with Paper and paperboard (13.3% duty to China's o% and India's 4.6%).

http://www.brecorder.com/business-a-economy/189/1214512/

Fake rice' just stale, contaminated rice – NFA

Suspected fake rice turns out to be 'retrograded rice' while the contaminated rice from

Davao City is an isolated case, according to tests by government agencies

Pia Ranada

@piaranada

Published 3:51 PM, August 06, 2015

Updated 3:56 PM, Aug 06, 2015

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REAL RICE AFTER ALL. NFA Food Development Center Director Jocelyn Sales explains tests

done on suspected fake rice samples. Photo by Pia Ranada/Rappler

MANILA, Philippines – There is no fake rice in the Philippines so far, officials of the National

Food Authority (NFA) assured on Thursday, August 6.―What is clear from the series of tests is

that there is no existence of ‗fake rice‘ in our country,‖ NFA Administrator Renan Dalisay said

in a news briefing.Test results of rice samples reported to be "fake rice" show that the strange

appearance of the rice was only due to a ―retrogradation process‖ involving a series of freezing,

thawing, and heating.In other words, retograded rice can be termed as "stale rice," NFA Food

Development Center Director Jocelyn Sales said at the news conference.

The 50-gram rice sample from Davao City contaminated with a plasticizer chemical compound,

dibutyl phthalate (DBP), was also found to be only an ―isolated case.‖Test results showed that of

the 21 rice samples tested, only the Davao sample was found with the presence of a

chemical.―What we have is an isolated case of chemically-contaminated sample which may have

been the result of mishandling or pure neglect to safeguard rice from contaminants,‖ said

Dalisay.The tests were conducted by multiple agencies including the NFA‘s Food Development

Center (FDC), Philippine Rice Research Institute (PhilRice), International Rice Research

Institute (IRRI), Research Institute for Tropical Medicine (RITM), and the Department of

Health.

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'Stale' rice

Though DBP was found only in the Davao sample, all the reported ―fake rice‖ looked like

styrofoam, prompting complaints by citizens.But the tests showed that the samples were still

rice, but in a degraded form.RITM tests showed that the alleged fake rice is ―morphologically

different‖ from cooked NFA rice because it seemed to have undergone a series of quick freezing,

thawing, and heating.―When rice undergoes quick freezing, many small ice crystals form in and

out of cells. Water will ooze out and you will get a spongy, styrofoam-like structure,‖ said

Sales.She likened retrograded rice to stale bread. Though dry, it is safe for eating, she

added.More tests confirmed that, despite its bad condition, it is still rice.A DNA analysis by

PhilRice showed that the rice sample was ―positive for rice DNA.‖ IRRI tests supported the

PhilRice finding.―The IRRI rice is very similar to the unknown samples from NFA. The

unknown samples are more similar to rice than to corn or sweet potato,‖ said Rose Cuevas of

IRRI.

'Don't put hot food in plastic'

As for the contaminated rice from Davao City, it‘s likely that the chemical came from plastic

containers which was used to pack the cooked rice, said Sales.The chemical DBP is typically

used by plastic bag makers as an additive to make the bags more flexible. Without DBP, plastic

bags can crumble.The Davao rice was likely placed inside a plastic bag while still hot.―You

shouldn‘t put hot food in plastic. When food is hot, the plasticizer (DBP) can migrate from

plastic to the food,‖ said Sales.Since reports of fake rice came to NFA‘s attention on June 30, the

agency has sent teams to make daily inspections of rice stalls in markets nationwide.The NFA

says it has responded to more than a hundred reports of suspected fake rice from different parts

of the country.The most recent report of fake rice came from Naga City in Bicol two days ago.

The sample tested negative for contamination, and was proven to be rice, said Dalisay.The

agency gave assurances that it will continue its market monitoring activities.

―We remind the public to be very cautious in their own food handling practices as the

government will continue to ensure that food, especially rice, will be available, affordable,

accessible, and safe for the public,‖ said Secretary Francis Pangilinan, Presidential Assistant for

Food Security and Agricultural Modernization. –

http://www.rappler.com/nation/101771-fake-rice-nfa-retograded-rice

APEDA India News

International Benchmark Price

Price on: 05-08-2015

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Product Benchmark Indicators Name Price

Apricots

1 Turkish No. 2 whole pitted, CIF UK (USD/t) 5875

2 Turkish No. 4 whole pitted, CIF UK (USD/t) 5125

3 Turkish size 8, CIF UK (USD/t) 4125

Sultanas

1 Australian 5 Crown, CIF UK (USD/t) 2994

2 South African Orange River, CIF UK (USD/t) 2589

3 Turkish No 9 standard, FOB Izmir (USD/t) 2381

White Sugar

1 CZCE White Sugar Futures (USD/t) 803

2 Kenya Mumias white sugar, EXW (USD/t) 690

3 Pakistani refined sugar, EXW Akbari Mandi (USD/t) 623

Source:agra-net For more info

Market Watch

Commodity-wise, Market-wise Daily Price on 05-08-2015

Domestic Prices Unit Price : Rs per Qty

Product Market Center Variety Min Price Max Price

Barley (Jau)

1 Dahod (Gujarat) Other 1200 1250

2 Dausa (Rajasthan) Other 1031 1071

3 Neemuch (Madhya Pradesh) Other 1080 1195

Maize

1 Dehgam (Gujarat) Other 1150 1250

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2 Dhing (Assam) Other 1310 1400

3 Kota (Rajasthan) Other 1100 1251

Pine Apple

1 Ropar (Punjab) Other 1600 2000

2 Harippad (Kerala) Other 2000 2500

3 Shillong (Meghalaya) Other 2000 2400

Carrot

1 Bharuch (Gujarat) Other 1500 2000

2 Bolangir (Orissa) Other 2800 3000

3 Akluj (Maharashtra) Other 1500 2500

Source:agra-net For more info

Egg Rs per 100 No

Price on 05-08-2015

Product Market Center Price

1 Ahmedabad 352

2 Chittoor 358

3 Mysore 357

Source: e2necc.com

Other International Prices Unit Price : US$ per package

Price on 05-08-2015

Product Market Center Origin Variety Low High

Onions Dry Package: 50 lb sacks

1 Atlanta Colorado Yellow 25 26

2 Dallas Texas Yellow 20 20

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3 Detroit Washington Yellow 19 22

Cucumbers Package: 50 lb cartons

1 Atlanta Virginia Round Green Type 13 13.50

2 Detroit Michigan Round Green Type 10 13.50

3 Miami Canada Round Green Type 13 15

Apples Package: cartons tray pack

1 Atlanta Washington Red Delicious 23 24

2 Detroit Washington Red Delicious 22 24.50

3 Miami Washington Red Delicious 18 20

Source:USDA

Nagpur Foodgrain Prices Open- Aug 06 Thu Aug 6, 2015 2:47pm IST

Nagpur, Aug 6 Gram prices reported down in Nagpur Agriculture Produce and Marketing

Committee (APMC) here on poor buying support from local millers amid high moisture content

arrival. Fresh fall in Madhya Pradesh pulses and good monsoon reports in the region also

affected prices, according to sources.

* * * *

FOODGRAINS & PULSES

GRAM

* Gram Kabuli and gram pink recovered in open market on increased seasonal demand from

local traders amid weak overseas supply.

TUAR

* Tuar varieties ruled steady here but demand was poor in weak trading activity.

* Masoor and Udid varieties reported strong in open market here on increased festival

season demand from local traders amid weak supply from producing belts.

* In Akola, Tuar - 7,300-7,500, Tuar dal - 10,400-10,600, Udid at 9,100-9,500,

Udid Mogar (clean) - 10,000-11,000, Moong - 7,600-7,800, Moong Mogar

(clean) 9,200-9,800, Gram - 4,200-4,400, Gram Super best bold - 5,800-6,000

for 100 kg.

* Wheat, rice and other commodities remained steady in open market

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in thin trading activity because of heavy rains, according to sources.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg

FOODGRAINS Available prices Previous close

Gram Auction 3,570-4,270 3,600-4,310

Gram Pink Auction n.a. 2,100-2,600

Tuar Auction n.a. 6,700-7,400

Moong Auction n.a. 6,000-6,400

Udid Auction n.a. 4,300-4,500

Masoor Auction n.a. 2,600-2,800

Gram Super Best Bold 6,000-6,200 6,000-6,200

Gram Super Best n.a.

Gram Medium Best 5,600-5,800 5,600-5,800

Gram Dal Medium n.a. n.a.

Gram Mill Quality 5,500-5,700 5,400-5,700

Desi gram Raw 4,650-4,750 4,650-4,750

Gram Filter new 6,000-6,200 6,000-6,200

Gram Kabuli 6,100-7,400 6,000-7,300

Gram Pink 6,800-7,000 6,700-6,900

Tuar Fataka Best 10,800-11,000 10,800-11,000

Tuar Fataka Medium 10,300-10,600 10,300-10,600

Tuar Dal Best Phod 9,900-10,100 9,900-10,100

Tuar Dal Medium phod 9,400-9,700 9,400-9,700

Tuar Gavarani New 7,900-8,000 7,900-8,000

Tuar Karnataka 8,300-8,500 8,300-8,500

Tuar Black 11,000-11,200 11,000-11,200

Masoor dal best 8,300-8,500 8,000-8,400

Masoor dal medium 7,900-8,200 7,700-8,000

Masoor n.a. n.a.

Moong Mogar bold 9,600-9,800 9,600-9,800

Moong Mogar Medium best 8,200-8,800 8,200-8,800

Moong dal Chilka 8,800-9,000 8,800-9,000

Moong Mill quality n.a. n.a.

Moong Chamki best 9,700-10,000 9,700-10,000

Udid Mogar Super best (100 INR/KG) 11,400-11,900 11,200-11,800

Udid Mogar Medium (100 INR/KG) 10,300-10,800 10,200-10,700

Udid Dal Black (100 INR/KG) 9,300-9,700 9,200-9,600

Batri dal (100 INR/KG) 4,500-5,000 4,500-5,000

Lakhodi dal (100 INR/kg) 3,250-3,400 3,250-3,400

Watana Dal (100 INR/KG) 3,100-3,350 3,100-3,350

Watana White (100 INR/KG) 3,100-3,200 3,100-3,200

Watana Green Best (100 INR/KG) 3,300-3,900 3,300-3,900

Wheat 308 (100 INR/KG) 1,400-1,500 1,400-1,500

Wheat Mill quality(100 INR/KG) 1,550-1,700 1,550-1,700

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Wheat Filter (100 INR/KG) 1,300-1,500 1,300-1,500

Wheat Lokwan best (100 INR/KG) 2,200-2,400 2,200-2,400

Wheat Lokwan medium (100 INR/KG) 1,900-2,100 1,900-2,100

Lokwan Hath Binar (100 INR/KG) n.a. n.a.

MP Sharbati Best (100 INR/KG) 3,200-3,700 3,200-3,700

MP Sharbati Medium (100 INR/KG) 2,550-2,850 2,550-2,850

Rice BPT New(100 INR/KG) 2,750-3,000 2,750-3,000

Rice BPT (100 INR/KG) 3,000-3,300 3,000-3,300

Rice Parmal (100 INR/KG) 1,600-1,700 1,600-1,700

Rice Swarna new (100 INR/KG) 2,200-2,450 2,200-2,450

Rice Swarna old (100 INR/KG) 2,500-2,700 2,500-2,700

Rice HMT new(100 INR/KG) 3,200-3,750 3,200-3,750

Rice HMT (100 INR/KG) 3,800-4,200 3,800-4,200

Rice HMT Shriram New(100 INR/KG) 4,200-4,500 4,200-4,500

Rice HMT Shriram old (100 INR/KG) 4,600-5,000 4,600-5,000

Rice Basmati best (100 INR/KG) 8,000-10,000 8,000-10,000

Rice Basmati Medium (100 INR/KG) 7,000-7,500 7,000-7,500

Rice Chinnor new (100 INR/KG) 4,300-4,700 4,500-4,800

Rice Chinnor (100 INR/KG) 5,000-5,400 5,100-5,500

Jowar Gavarani (100 INR/KG) 2,100-2,350 2,100-2,350

Jowar CH-5 (100 INR/KG) 2,400-2,500 2,400-2,500

WEATHER (NAGPUR)

Maximum temp. 25.0 degree Celsius (77.0 degree Fahrenheit), minimum temp.

22.4 degree Celsius (72.3 degree Fahrenheit)

Humidity: Highest - n.a., lowest - n.a.

Rainfall : 0.3 mm

FORECAST: Generally cloudy sky. Rains or thunder-showers likely. Maximum and minimum

temperature would be around and 27 and 21 degree Celsius respectively.

Note: n.a.--not available

(For oils, transport costs are excluded from plant delivery prices, but included in market prices.)

http://in.reuters.com/article/2015/08/06/nagpur-foodgrain-idINL3N10H3DB20150806

World food prices hit lowest level in almost six years, UN

agency reports

Prices of dairy products dropped in July mainly due to lower import demand from China, the

Middle East and North Africa amid abundant EU milk supplies. Photo: FAO/Alessia

Pierdomenico

6 August 2015 – Prices for global agricultural products in July hit their lowest level since

September 2009, as sharp drops in the prices of dairy products and vegetable oils more than

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offset some increases for those of sugar and cereals, the United Nations Food and Agriculture

Organization (FAO) confirmed today.According to the UN agency's monthly Food Price Index,

meat prices remained stable. An increase in international prices of bovine meat offset a decline

for pig meat and ovine meat, while prices for poultry remained stable.The trade-weighted index

tracks prices on international markets of five major food commodity groups: cereals, meat, dairy

products, vegetable oils and sugar.In July, says FAO, the dairy price index dropped 7.2 percent

from the previous month, mainly due to lower import demand from China, the Middle East and

North Africa amid abundant EU milk production which has resulted in good availability of dairy

products for export.As for the July vegetable oil price index, it was some 5.5 percent below its

June level, reaching its lowest value since July 2009.

The recent slide was primarily caused by a fall in international palm oil prices due to increased

production in Southeast Asia combined with slower exports especially from Malaysia. Another

reason is a further weakening of soy oil prices on ample supplies for export in South America

and a favourable outlook for global supply in 2015/16.The cereal price index rose by 2.0 percent

from June, but was still 10.1 percent below July last year's level. For the second consecutive

month, higher wheat and maize prices, in part due to unfavourable weather in North America and

Europe, kept the cereal index rising, but rice prices continued to fall.The sugar price index rose

by 2.5 percent from June 2015, largely due to less than ideal harvesting conditions in the main

producing region of Brazil.

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News Tracker: past stories on this issue

UN agency reports world food prices declining to six-year low

http://www.un.org/apps/news/story.asp?NewsID=51573#.VcR7A_lViko

El Niño Tests How Soft Commodities Weather the Storm

The El Niño weather pattern can wreak havoc on already battered agricultural

commodities

Rainfall in India‘s monsoon season is tracking just below the long-term average. Here, laborers plant saplings in a

paddy field on the outskirts of the eastern Indian city of Bhubaneswar. PHOTO: REUTERS

By LUCY CRAYMER

Updated Aug. 6, 2015 12:09 a.m. ET

WELLINGTON, New Zealand—Investors in soft commodities are used to being slaves to the

weather‘s twists and turns. With prices now in a depression and the El Niño weather pattern

looming, the forecast looks more unsettled than normal.The possibility that the Federal Reserve

will raise interest rates later this year, coupled with a strong U.S. dollar as a result, have weighed

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on prices of commodities already under pressure thanks to slowing growth in the key Chinese

market. Soft commodities haven‘t been spared, with sugar trading around six-year lows, dairy at

13-year lows and palm oil down around 13% so far this year.Yet the expected dry weather in

Asia and wetness in the U.S. and South America that El Niño may bring could stem the losses in

agricultural products, and even push prices higher if the impact on crops is as bad as some

expect.El Niño occurs when winds in the equatorial Pacific slow down or reverse direction. That

warms water over a vast area, which in turn can upend weather patterns around the world. It

typically reduces rainfall in Australia and across parts of southeast and southern Asia in the

winter and spring. ENLARGE

Australia‘s Bureau of Meteorology Tuesday said that the weather phenomenon has continued to

strengthen and temperatures in the central tropical Pacific Ocean may exceed the peak values

reached during 2002 and 2009 El Niño events.―High volatility weather patterns are going to

wreak havoc on the commodities markets,‖ said Michael Underhill, chief investment officer at

Wisconsin-based Capital Innovations, which has nearly $1 billion of assets under

management.The impact of El Niño so far this year has been patchy across Asia.

Rainfall in India‘s monsoon season is currently tracking just below the long-term average while

most of the areas that were in need of rain, including Vietnam and Philippines, have received

some over the past 10 days.Meanwhile, the Thai Rice Exporters Association last month

downgraded expected rice-export forecasts. It expects to export 9.5 million tons of rice in 2015,

down from 10.97 million tons in 2014 because of a lack of rain. Rains in July have somewhat

alleviated the dry conditions.

‗High volatility weather patterns are going to wreak havoc on the commodities markets.‘

—Michael Underhill, chief investment officer at Wisconsin-based Capital Innovations

The difficulty for investors is judging whether El Niño will have enough of an impact on crops to

offset the broader macroeconomic trends that have been pushing commodity prices down.El

Niño‘s impact may not play out the same way in all regions. For example, while the dry weather

it brings in South East Asia may damage crops, the extra rain it brings in North and South

America could help farmers, leading to rising supply of commodities. Arabica coffee could

benefit from a reduction in frosts as El Niño boosts temperatures, while increased rain could

boost corn crops in Brazil. However, too much rain in the Americas could hamper milling of

sugar and harvesting of grains and have a negative impact on supply.

Concerns about the weather pattern caused an initial ―pop‖ in a number of agricultural

commodity prices over the last couple of months, said Matthew Bradbard, director at RCM

Alternative, a Chicago-based firm that specialized in managed future products. But if markets

start to anticipate it won‘t be as bad as first expected this could reverse, he added, noting the rally

in wheat in early July has been pared back as early concerns about the impact of El Niño on the

grain have waned, though he expects sugar prices to start strengthening. ―Sugar is extremely

cheap and...prices have just got decimated of late,‖ he said. ―People aren‘t meant to pick tops or

bottoms but I‘m lightly starting to buy sugar because it is so cheap.

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‖Some Asia-based companies could benefit from upended weather patterns because of their

exposure to palm oil and sugar prices, said Mr. Underhill. For every 10% that palm oil prices

rise, for example, Golden Agri-Resources Ltd., the world‘s second largest palm oil plantation

company could see net profit increase by 16%, he said. Trading company Wilmar

International Ltd. could meanwhile benefit from soft commodity price volatility brought on by

weather changes.The market hasn't taken into sufficient account the support that El Niño could

provide to agricultural commodity prices and what this could mean for upstream producers,

saidJames Govan, investment manager at Baring Global Agricultural Fund in London.―El Niño

tends to be most positive for Argentina and southern Brazil, as these regions tend to see an

improvement in yields. We have increased our allocation to Latin American farming stocks—

these companies are also currently gaining from depreciating local currencies against the U.S.

Dollar,‖ he said.

Write to Lucy Craymer at [email protected] http://www.wsj.com/articles/el-nino-tests-how-soft-commodities-weather-the-storm-1438834405

Only 40% of rice production target met

Thursday, August 06, 2015

By ACE JUNE RELL S. PEREZ

RICE production in Davao City reached 3,465.91 metric tons (MT) as of July 2015, about 40

percent of the city's rice production target for this year, City Agriculturist Office (CAO) of

Davao said.CAO data showed that for 2015, the city is eyeing to produce 9,052.87 MT in

4,377.29 hectares."Through our regular rice production monitoring we found out that the

destructive effects of the dry spell contributed a lot in the low rice production of the city," Babeta

Samodal, agriculturist II rice report officer said, adding that the city should have already

accomplished more than half of its target at present.

Data released by the regional office of the Department of Agriculture (DA) showed the city's

total riceland damage in July 2015 was pegged at 320 hectares.The ill effects of the El Nino have

more than 90 percent chance to continue until 2016, according to Philippine Atmospheric,

Geophysical and Astronomical Services Administration.Largest bulk of rice production is from

Calinan with 2,044.86 MT production, followed by Tugbok (486.10 MT) and Talomo (276

MT).Samodal said Davao is rich with irrigated lowland and upland rice areas.

The city's rice production as of July 2015, from irrigated areas, contributed a total of 2,991.81

MT while lowland rice only contributed 399.25 MT and upland rice with 74.85 MT.CAO rice

production monitoring in 2014 showed that a total of 11,414.14 MT were produced by the city

from the 3,172.17 hectares harvested area.Rice producing land areas in Davao are Talomo,

Buhangin, Paquibato, Toril, Tugbok, Calinan, Baguio and Marilog. (Sun.Star Davao)

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http://www.sunstar.com.ph/davao/business/2015/08/06/only-40-rice-production-target-met-

423194

Old carvings excite scientists

New find: A giant rock with carved figures made by people in Yen Bai Province 400 years ago.

YEN BAI (VNS) — Around 20 big stones with figures carved on these and dating as far back as

16th or 17th century have been discovered recently by scientists from the Yen Bai Province's

museum.The stones, measuring between two cubic metres and 50 cubic metres, were found

scattered in various communes of Che Cu Nha, La Pan Tau, Lao Chai and De Xu Phinh.Figures

carved on the stones includes images of terrace rice fields, flamingos, horses, astrological maps,

yin-yang and five basic elements' symbols and mysterious lines, believed to be some kind of

ancient characters.Local scientists have chosen six big stones with the most typical carved

figures for further research, which will add more value to the already famous local beautiful

terrace rice fields from a tourism point of view. — VNS

http://vietnamnews.vn/life-style/274139/old-carvings-excite-scientists.html

Agro-forestry-fishery exports: secondary items make up

mainstay reduction

Impressing export turnover growth of secondary items in agricultural-forestry- fishery industry such as

cashew nut, pepper, cassava, vegetable and fruits has partly made up the drastic fall of traditionally

mainstay products including rice, coffee and seafood in the first seven months this year.

Seafood export value reaches US$3.5 billion in the first seven months this year, down 17 percent over the

same period last year (Photo: SGGP)

Mainstay product turnover reduction

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In the first seven months, export

turnover of farm produce and

seafood products dropped 3.6

percent over the same period last

year to only US$16.9 billion,

raising concerns because Vietnam

has been familiar with good export

growth of these products for the last

several years.The most reduction

was from coffee, rubber, rice and

seafood.Unofficial statistics show

that rice exports reached only 3.7

million tons worth US$1.5 billion,

down 3.1 percent in volume and 8.3

percent in value. Previously, the

Vietnam Food Association reported

that rice export price averaged US$431 a ton in the first half this year, a year on year fall of 4.64

percent.Rice exports to China that is the Vietnam‘s largest market with 38 percent market share decreased

9 percent in volume and 13.2 percent in value in the seven months.Coffee and rubber even reduced deeper

than rice. Vietnam shipped 792,000 tons of coffee to yield US$1.6 billion, down 40 percent in volume

and 33.7 percent in value.Rubber products saw a year on year volume of 13.6 percent increase and value

decline of 9.2 percent to 519,000 tons and US$760 million.

The above three products‘ reduction was said because supply has exceeded demand after top export

nations including Vietnam quickly expanded their cultivation areas.The most concern was from seafood

which turnover plunged 17 percent to bring only US$3.5 billionExport value of brackish shrimp,

accounting for 50 percent of seafood export turnover, dropped 29 percent to US$1.2 billion in the first six

months, according to the General Department of Vietnam Customs.

The Vietnam Association of Seafood Exporters and Producers (VASEP) forecast that shrimp export

turnover would approximate US$3.2 billion this year, a reduction of US$700 million over 2014 due to

increasing supply in the world. Pangasius fish is expected to slide 4 percent to US$1.7 billion for the

whole year.

Minor items rise up

Shrimp harvest in Nha Be district, HCMC (Photo: SGGP)

While main products experienced the turnover shortfall, secondary items posted an impressive growth

such as vegetable, cashew nuts, pepper and cassava in the first seven months.Firms exported 184,000 tons

of cashew nuts worth US$1.3 billion, a year on year increase of 11.8 percent in volume and 26.6 percent

in value. Export price averaged US$7,213, up 12.6 percent. Chairman of the Vietnam Cashew

Association Nguyen Duc Thanh said that prices of many kinds of nuts including cashew had soared up

because of drought in the world. With this momentum, cashew nut and product export turnover might hit

at least US$2.5 billion this year.About 98,000 tons of pepper was sold abroad bringing US$920 million,

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down 20.6 percent in volume but up 2 percent in value. Average export prices moved up 30 percent to

exceed US$9,300 a ton.

The highest hike was from cassava and products with 2.8 million tons worth US$886 million, raising

35.4 percent in volume and 40 percent in value.Wood and furniture value was up 8.3 percent to hit

US$3.7 billion, which is expected to break US$7 billion this year.Vegetables and fruits have recovered in

recent years after a long stagnation.The Vietnam Fruit and Vegetable Association reported an export

turnover hike of 22.8 percent to near US$881 million in the first seven months. Markets posting the

highest growth rate comprising Germany with 50 percent and the United Kingdom with 31.3 percent.

Experts expected stronger growth in the second half of the every year that is the main export season. In

addition, many new markets have already opened to Vietnamese fruits including longan and litchi. If

growth rate tops 25 percent, US$2 billion turnover is possibly reachable.

By Cong Phien – Translated by Hai Mien

http://www.saigon-gpdaily.com.vn/Business/Economy/2015/8/114801/

PNNL researchers lead decade-long study on rice

modification for bioenergy

August 6, 2015 | Meghan Sapp

In Washington state, with the addition of a single gene, rice can be cultivated to emit virtually no methane

from its paddies during growth. It also packs much more of the plant‘s desired properties, such as starch

for a richer food source and biomass for energy production, according to a study in Nature.

The results, which appear in the July 30 print edition of Nature and online, represent a culmination of

more than a decade of work by researchers in three countries, including Christer Jansson, director of plant

sciences at the Department of Energy‘s Pacific Northwest National Laboratory and EMSL, DOE‘s

Environmental Molecular Sciences Laboratory. Jansson and colleagues hypothesized the concept while at

the Swedish University of Agricultural Sciences and carried out ongoing studies at the university and with

colleagues at China‘s Fujian Academy of Agricultural Sciences and Hunan Agricultural University.

Tags: PNNL, Rice, Washington

Category: Research

http://www.biofuelsdigest.com/bdigest/2015/08/06/pnnl-researchers-lead-decade-long-study-on-rice-

modification-for-bioenergy/

Ghana 'reduces sugar and rice imports'

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President John Dramani Mahama says government has made significant strides in the reduction

of some imported products including rice and sugar which hitherto were massively imported for

local consumption.He stated that local rice production for instance has significantly improved by

about 60 per cent.President Mahama said this when he commissioned a 50 million Ghana Cedis

Tomato Processing Plant for Conserveria Africana Limited in Tema.President Mahama

emphasized that the strides made has helped to reduce the Country's foreign exchange.

http://www.gbcghana.com/1.5801590

Rakhine State flooding death toll hits at least 55 By Aung Shin | Thursday, 06 August 2015

The number of confirmed casualties in Rakhine State has hit 55 and is likely to rise further,

officials reported yesterday, as civil society groups and residents said drinking water shortages

were the main concern.

A body is transported on a boat through mangrove forest in Mrauk-Oo township on August 4. Photo: Kaung Htet / The Myanmar

Times

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The northern part of Rakhine has been among the hardest-hit by recent floods that have afflicted 12

of Myanmar‘s 14 states and regions, affecting an estimated 260,000 people.But many areas remain

virtually cut off from assistance, reachable only by helicopter. ―The death toll could increase. There

are still villages that we haven‘t reached yet,‖ U Tin Maung Swe, state-level administrator in Sittwe

told The Myanmar Times.

The regional government is supplying food and other aid to villages through airdrops using military

helicopters. A total of 180 flights have been undertaken since August 2.―Airdrops of food supplies

with helicopters are not sufficient. It is just to provide mental encouragement to the flood victims.

We are now going by small boats to villages in very remote areas,‖ U Tin Maung Swe

said.According to the regional government, five townships in northern Rakhine State have been

classified flood disaster zones – Kyauktaw, Minbya, Mrauk-Oo, Buthidaung and Maungdaw – with

as many as 300,000 people affected.As well as the human toll, thousands of livestock and at least

200,000 acres of paddy have been damaged.

But many more acres of paddy are likely to be damaged in the disaster-hit northern part of Rakhine,

which has between 800,000 and 900,000 acres of rich paddy fields, according to official

data.Similarly, Rakhine residents are sceptical of the official casualty figures.―The government‘s

figures are not reliable. It seems that government officials are reluctant to release the real number of

casualties. There are some villages still disconnected,‖ said UKhine Pray Soe, vice chair of the

Rakhine National Party.He said drinking water was the most urgent need among flood-hit

communities.―We have no idea how we can solve the drinking water problem at the moment. There

are also difficulties for cooking,‖ he said.

When The Myanmar Times travelled to villages around Mrauk-Oo on August 4, residents were

covering long distances in small boats in the hope of finding drinking water. Other boats were

searching for bodies.Most land transport routes and power lines have been cut off in Rakhine State

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due to the flooding. The capital city, Sittwe, has received limited electricity through the use of

generators.Meanwhile, the telecommunication system, which was poor to begin with, has also been

badly damaged in many areas. As a result, remote villages remain out of contact with government

officials and civil society groups.―The death toll could be at least 100,‖ said U San Kyaw, a member

of a Sittwe charitable organisation.

His association set up a temporary centre in Sittwe to accept donations from individuals and arrange

delivery. As of yesterday evening it had received K100 million in cash, as well as many goods.―We

are going to very disconnected villages where nobody is reaching,‖ said U Thein Tun Aung, another

association‘s member.The group has dispatched supply boats to remote villages, travelling to Mrauk-

Oo three times and Minbya twice, he said.One Mrauk-Oo resident said on August 4 that while the

worst of the flooding was over, there was still a shortage of supplies.―The water went down in many

parts of town and people are almost back to normal. But they are waiting for aid to arrive,‖ he said.

http://www.mmtimes.com/index.php/national-news/15846-rakhine-state-flooding-death-toll-hits-at-least-

55.html

Mexican Dishes Bring U.S. Rice to Japanese Consumers

Japanese consumers sampling U.S. rice

Olé and kanpai!

TOKYO, JAPAN - This week, USA Rice conducted a consumer event here in collaboration with

Ryoritsushin, a popular food magazine. Approximately 60 Japanese consumers were introduced to U.S.

medium grain at Toro Tokyo, celebrity chef Richard Sandoval's hot Mexican and Latin American

restaurant in the posh and exclusive Ginza District.The event featured a discussion led by the magazine

about the new popularity of Mexican cuisine in Japan, followed by a presentation on U.S. rice including

its growing environment, exports, and unique sustainability story. Finally, Toro chef Ogawa explained to

the crowd why U.S. medium grain works nicely for his Mexican menus, and that it is the only rice on the

restaurant's menu. He then conducted a cooking demonstration of his "Mexican Egg," incorporating U.S.

medium grain rice.

Ms. Rachel Nelson, director of the U.S. Embassy Agricultural Trade Office here, offered a greeting and

toast to the invited participants and partook of the many Mexican dishes, all of which were prepared with

U.S.-grown rice.Attendees completed a questionnaire at the event's conclusion that showed 95 percent of

the participants were satisfied with the event and almost 98 percent thought the menus using U.S. medium

grain tasted good. Ninety-five percent of the participants liked the texture of U.S. medium grain.

"Simple first-person promotional events such as this one create a long-remembered positive image for

our rice that is passed on by word-of-mouth to many others," said USA Rice's Bill Farmer who attended

the event.

Contact: Michael Klein (703) 236-1458

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Weekly Rice Sales, Exports Reported

WASHINGTON, DC -- Net sales of 19,800 MT for 2014/2015 were up noticeably from the

previous week, but down 38 percent from the prior 4-week average, according to today'sExport

Sales Highlights report. Increases were reported for Libya (20,600 MT), Canada (1,500 MT),

South Korea (500 MT), New Guinea (400 MT), and El Salvador (400 MT). Decreases were

reported for Mexico (4,400 MT) and Jordan (400 MT). Net sales of 81,500 MT for 2015/2016

were reported for Panama (45,400 MT), Haiti (20,000 MT), Mexico (10,100 MT), Costa Rica

(4,500 MT), and El Salvador (1,000 MT). Decreases were reported for Canada (100 MT).

Exports of 77,700 MT were down 27 percent from the previous week and 3 percent from the

prior 4-week average. The primary destinations were Mexico (30,100 MT), Libya (20,600 MT),

South Korea (10,700 MT), El Salvador (6,000 MT), and Canada (3,100 MT).

This summary is based on reports from exporters from the period July 24-30, 2015.

CME Group/Closing Rough Rice Futures

CME Group (Prelim): Closing Rough Rice Futures for August 6.

Month Price Net Change

September 2015 $11.440 - $0.100

November 2015 $11.700 - $0.100

January 2016 $11.990 - $0.090

March 2016 $12.225 - $0.060

May 2016 $12.405 - $0.065

July 2016 $12.405 - $0.065

September 2016 $11.885 - $0.065

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Openings in China for high-quality food export

E-commerce there has grown to 10% of retail sales BS Reporter | Mumbai August 6, 2015 Last Updated at 22:34 IST

Beside the export of traditional

agricultural products like spice and

sugar, Indian companies can now look

forward to supplying high-quality

foodstuff to China, with consumers

there becoming more quality

conscious.―Indian companies can

scout for business opportunities in

China,‖ said Ping Chew, Asia head for

food & agricultural research at Rabo

Bank, in an interview to Business

Standard. ―Following the increasing

demand due to safety concerns among

Chinese consumers, producers/

distributors there are looking for outsourcing safer and quality products and also tying up with

foreign companies.‖

E-commerce there has grown to 10 per cent of retail sales. Last year, China‘s per capita income

was $7,500 per annum; measured by purchasing power parity, it was $13,000-14,000. Despite a

slowing economy, consumption remains a main driver. Higher disposable income has also has

made consumers more choosy about quality, safety and protein rich products. Chew said, ―Several

incidences of issues emerging in food safety were reported in China.‖ This is another reason why ore

Chinese companies source good brands, mainly from the US and Europe.

China‘s economy is now expected to grow at six to seven per cent annually till it stabilises, ―a new

normal for the economy‖, said Ping. He foresees further consolidation in China‘s food

andagriculture sector. It will increase import of soybean and feedgrain. At the downstream side, e-

commerce will continue to play a big role. ―There are enormous opportunities in China for foreigners

to invest or tie-up with local companies, and Indian companies can look forward for such

opportunities,‖ said Ping. Products in this regard include high-value dairy, cashew, processed

seafood, basmati rice and sesame seeds.