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Oryza Rice: Exclusive
Oryza Rice: Exclusive
Oryza Rice: Exclusive
Volume 5, Issue I
Daily Exclusive
ORYZA Rice
Newsletter
The government of Vietnam has allotted an additional 481 billion VND (around $22 billion) in
the state budget towards rice land development and protection, according to local sources.The
funds have been allotted in order to protect rice lands from urbanization, industrialization and
infrastructure construction. The government had also issued a decree on managing and using rice
fields efficiently.
The newly allotted funds will be used to develop and protect rice fields in nine main rice
producing localities of the country - Bac Ninh province in the North, Da Nang city, Thanh Hoa
Recently, Bangladesh has been importing too much of rice from India despite a decent
production in the country due to relatively low prices in India. Private traders in the country
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Vietnam 5% broken
350-360
India 5% broken
370-380
Pakistan 5% broken
390-400
Myanmar 5% broken
415-425
Cambodia 5% broken
430-440
Uruguay 5% broken
565-575
Argentina 5% broken
555-565
350-360
330-340
345-355
345-355
460-470
370-380
390-400
555-565
570-580
Vietnam Jasmine
490-500
NQ
NQ
815-825
315-325
Brokens
Thailand A1 Super
290-300
350-360
NQ
365-375
Indian Rice Exporters have expressed confidence that China may grant market access to Indian
non-basmati rice shipments shortly during the Indian Prime Minister's visit to Beijing this week,
according to local sources.The Chinese authorities have been blocking non-basmati shipments
from India as adequate quality protocols and phyto-sanitary norms have not be defined between
the two countries.
Rain is expected across the Southern Yangtze Valley and South China this week.
Rain showers are expected across Southern India this week.
Rain is expected to continue in Bangladesh this week also.
In Indonesia, rain is expected across Sumatra, Malay Peninsula, Kalimantan, East Malaysia, and
Sulawesi this week, which will slow main crop rice harvesting there.
A few showers are expected in Northern Pakistan this week.
Rain showers are expected across North-eastern and Southern Thailand this week.
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USDA Post has estimated MY 2015-16 (July - June) rice imports at around 4.3 million tons,
unchanged from MY 2013-14, due to a slight increase in production. The Post reports that
Chinese preference for imported rice is increasing due to reports in response to reports of heavy
metals and high pesticideresidues in some locally produced rice. The government is understood
to closely monitor and regulate rice imports as part of its food security strategy.The Post
estimates China's MY 2015-16 milled rice production at around 146.3 million tons, up about 1%
from an estimated 144.5 million tons due to government's continued support to the rice sector as
part of its food security strategy. The Post estimates China's MY 2015-16 paddy rice acreage to
remain unchanged from last year's 30.3 million hectares.
The Post estimates China's MY 2015-16 rice exports to decline to around 350,000 tons, down
about 12.5% from an estimated 400,000 tons in the previous year.USDA Post estimates rice
ending stocks to decline to around 46.35 million tons in MY 2015- 16 down about 1.6% from an
estimated 47.1 million tons last year due to an estimated increase in consumption by about 2% to
around 151 million tons.
The Post reports that the government continued to purchase japonica and indica rice at a
specified floor price in major rice producing provinces in MY 2014-15 to encourage production.
The government will auction the rice thus purchased later in the marketing year.
Thai rice exports have increased for the second consecutive month in March 2015 after declining
by more than half in January 2015, according to data from Thai Rice Exporters Association
(TREA). Thailand has exported around 785,891 tons of rice in March 2015, up about 7% from
around 732,151 tons exported in February 2015, and down about 2% from around 799,534 tons
exported in March 2014, according to TREA.
In value terms, Thailands rice exports earned about $384.9 million from total rice exports in
March 2015, up about 4% from around $369.58 million earned in February 2015, and down
about 4% from around $402.54 million earned in March 2014.
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In March 2015, white rice exports accounted for around 392,760 tons (about 50% of total March
2015 exports), Hom Mali rice exports accounted for about 120,211 tons (about 15% of total
March exports), brokens accounted for 98,754 tons (about 12.5% of total March 2015 exports),
glutinous variety accounted for 12,659 tons (about 1.6% of total March 2015 exports), parboiled
rice accounted for about 157,057 tons (about 20% of total March 2015 exports) and
husked/brown rice accounted for about 4,450 tons (about 0.5% of total March 2015 exports).
Average export prices of all varieties of rice except glutinous rice have declined during the
month. Average export prices of white rice witnessed the highest decline of about 7% month-onmonth in March 2015, while average export prices of glutinous rice increased by about 1%
month-on-month during the month.Thailand exported around 2.128 million tons of rice in the
first three months of 2015, slightly down from around 2.205 million tons exported during the
same period last year. Thai government is keen on exporting over 10 million tons of rice this
year.
Chicago rough rice futures for Jul delivery are currently seen paused 6.5 cent per cwt (about $1
per ton) lower at $9.380 per cwt (about $207 per ton) ahead of floor trading in Chicago. The
other grains are seen trading mixed overnight; soybeans are currently seen about 0.1% lower,
wheat is listed about 1.9% higher and corn is currently noted 1.1% higher.U.S. stock index
futures indicated a higher open on Thursday, with investors eyeing weekly jobless claims data
for direction, after retail figures for April fell flat. The Dow futures continued to hold gains of
more than 100 points amid some steadying in bond yields and further weakening in the dollar
with the euro at $1.14 for the first time since February. Weekly jobless claims came in at
264,000, a touch below last week's reading and below expectations for a slight increase. The
initial filings for unemployment benefits per week remain near 15-year lows.
The producer price index for April fell 0.4%, with the core figure down 0.2%. The report was
expected to show a slight uptick. The monthly measure of input costs is a secondary factor in
determining the rate of change in prices, after the consumer price index. The Federal Reserve
will eye both the employment situation and inflation for signs the economy is ready for an
interest rate hike. Consensus is for a rate hike in September or later in the year, but central bank
policymakers have not ruled out a June liftoff. In Europe, European equities traded lower
Thursday amid growing concerns for the health of the U.S. economy. Gold is currently trading
about 0.1% higher, crude oil is seen trading about 0.1% lower, and the U.S. dollar is currently
trading about 0.4% lower at 8:15am Chicago time.
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Brazils National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddy
rice production at around 12.399 million tons (around 8.43 million tons, basis milled), up about
2% from around 12.121 million tons (around 8.24 million tons, basis milled) in 2013-14, and
slightly up from its March forecast of around 12.397 million tons.Conab has estimated Brazil's
2014-15 paddy rice acreage at around 2.331 million hectares, down about 1.7% from around
2.373 million hectares in 2013-14. Paddy rice acreage in the key rice growing Centro-Sul
(Center-South) region is projected at 1.553 million hectares in 2014-15, slightly down from
around 1.565 million hectares in 2013-14. Rice acreage in the North/Northeast regions is
estimated at around 777,600 hectares, down 4% from around 808,400 hectares in 2013-14.
Average rice yield in Brazil in 2014-15 is projected at around 5.320 tons per hectare, up about
4% from around 5.108 tons per hectare recorded in the previous year.USDA estimates Brazil
MY 2014-15 (April March) paddy rice production at around 12.206 million tons (around 8.3
million tons, basis milled), unchanged from MY 2013-14. It estimates Brazils 2014-15 paddy
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rice futures for Jul delivery settled 14.5 cents per cwt (about $3 per ton) higher at $9.635 per cwt
(about $212 per ton). The other grains finished the day with mixed results; Soybeans closed
slightly higher at $9.5700 per bushel; wheat finished about 6.8% higher at $5.1425 per bushel,
and corn finished the day about 1.4% higher at $3.6100 per bushel.U.S. stocks traded more than
1% higher on Thursday, bouncing from the prior day's muted trade, as investors watched the
dollar and calmer bond markets, amid mixed economic data.
The U.S. dollar recovered slightly but held near recent lows, while the euro briefly topped $1.14
for the first time since February. The U.S. 10-year Treasury yield fell to 2.24%.Traders also
noted some short covering ahead of options expiration on Friday. Weekly jobless claims came in
at 264,000, a touch below last week's reading and below expectations for a slight increase. The
initial filings for unemployment benefits per week remain near 15-year lows. The producer price
index for April fell 0.4%, with the core figure down 0.2%, missing expectations for a slight gain.
The monthly measure of input costs is a secondary factor in determining the rate of change in
prices, after the consumer price index.
The Federal Reserve will eye both the employment situation and inflation for signs the economy
is ready for an interest rate hike. Consensus is for a rate hike in September or later in the year,
but central bank policymakers have not ruled out a June liftoff. The Dow Jones Industrial
Average traded up 182 points, or 1.01%, at 18,242. The S&P 500 traded up 20 points, or 0.98%,
at 2,118, with information technology leading all ten sectors higher. The Nasdaq traded up 62
points, or 1.24%, at 5,043. Gold is trading about 0.4% higher, crude oil is seen trading about
1.5% lower, and the U.S. dollar is seen trading about 0.1% lower at about 1:00pm Chicago
time.Wednesday, there were 505 contracts traded, down from 835 contracts traded on Tuesday.
Open interest the number of contracts outstanding on Wednesday increased by 66 contracts
to 11,263.
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