9th december,2013 daily global & odyza rice e newsletter shared by riceplus magazine

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Daily Rice Global Rice e-Newsletter shared by Riceplus Magazine
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Riceplus Magazine shares daily International RICE News for global Rice Community. We publish daily two newsletters namely Global Rice News & ORYZA EXCLUSIVE News for readers .You can share any development news for readers.
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9th december,2013 daily global & odyza rice e newsletter shared by riceplus magazine

  1. 1. 9th December , 2013 Share developments in rice and allied sectors, Promote the Concept of Knowledge Economy Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  2. 2. Dear Sir/Madam, YOUR IDEA has a great worth---JUST share it through RICE PLUS 10000+ stakeholders of rice industry read & apply various ideas and analysis written by the authors. Be the part of Rice plus authors For more information visit www.ricepluss.com,www.publishpk.net Contact mujahid.riceplus@gmail.com riceplus@irp.edu.pk International RICE News Food Security And Smuggling Of Rice Into Ghana Through Unapproved Routes Food security is not just a problem of production but also of purchasing power, access and distribution.Food security has been defined as spelled out in a policy brief of the FAO (Food and Agricultural Organization) dated June 2006 as existing "when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life."Food security issues are complex and its solutions differ in application to all countries.In Ghana, the issue of self-sufficiency to create "food security" has been at the center of heated arguments with particular reference to one of the basic foodstuffs; rice.The situation in Ghana is its reliance on imports which comprise about 70% of its rice demand.However, according to the Ministry of Food and Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  3. 3. Agriculture, the country has made great strides since the past four years in promoting locally produced rice.The fact still remains that Ghana's demand and supply gap in rice production is primarily sourced through imports.According to Food security - Ghana, "globally, there is consensus that if a country has the ability to become self-sufficient in most of its food requirements it should pursue that objective. In the case of Ghana it definitely has the ability to become self-sufficient in the supply of both rice..."The question, however, is how can this be achieved? The issue with rice production is that of whether the rice is of high quality and how well Government of Ghana can boost local rice imports.Another issue is how to enhance productivity of the rice produced or the rice imported.Producing more without taking the Ghanaian consumers into consideration is surely a wrong signal.Ghanaian rice hardly sells since the quality of the imported rice is deemed much better than the locally produced ones though it costs more. With so much prominence given to rice imports into the country, small-scale importers are reported to indulge in smuggling activities with "official connivance", allowing them to sell at lower prices and invariably depriving the nation of its deserving tax revenue.Rice smuggling has long been a regular and lucrative venture along Ghana's entire western frontier of which Elubo, Debiso, Dadieso, Enchi among other areas are reported to be key trade routes.In May last year, Ghanaians were taken aback when ace investigative reporter, Anas Aremeyaw Anas, posing as a rice dealer, revealed the existence of powerful rice smuggling cartels, operating along Ghana's porous border with La Cote d"Ivoire.Anas Aremeyaw Anas released an audio-visual footage of live smuggling operations at various areas of the western border which confirmed "the voluntary connivance of uniformed public officials, engaged in smuggling transactions involving several convoys of truck-loads of rice, ready to be hauled into Ghana – free of tax, free of quality control checks and free of VAT ....while fat, illicit payments are made to individuals and into private pockets. The state is said to lose a whooping GHc 69 million every year, to this seemingly harmless activity along our land borders with la Cote d‘Ivoire." as published by myjoyonline on October 6,2013. It reported that over 100,000 metric tonnes (about 4 million bags) of rice is smuggled into Ghana from Cote d'Ivoire annually. Through these depots and routes, several truckloads of rice evade import duties and Valued Added Tax (VAT). Perhaps the main incentive to these rice smugglers is the high duty differential in the importation of rice and its related dealings.Obviously, such activities have severe repercussions on legitimate rice importers in Ghana. The State runs into huge losses in the generation of tax revenue and legitimate rice importers also risk losing their businesses. A report released by Ministry of Information early this year disclosed that "due to the difference in the duty scheme, the price of perfumed rice in Ghana has increased by 34.5 percent.The report further stated that "the significant price difference naturally drives the consumer to purchase a bag of ‗Uncle Sam‘ smuggled in from Cote d‘Ivoire rather than a bag of local or locally-imported rice. ‗Uncle Sam‘ is therefore currently Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  4. 4. sold on all Ghanaian markets and retail outlets." (myjoyonline report, October 2013).BRIDGING THE GAP Rice smuggling can be reduced to the minimal point when government directs its focus to shutting down the destination venues used by the smugglers. The National Security apparatus, in the Tuesday edition of the Enquirer, was reported to have begun investigations into the activities of customs officers at Elubo in the Western Region for allowing an alleged rice smuggler to bring into Ghana, twelve articulated trucks and two cargo trucks of "Uncle Sam" rice. It is believed that the smuggler, Hayssam Haroun of Kaprace Limited, colluded with the Elubo Custom officers to "backdate the period the rice was imported from the Ivory Coast." Four of the 12 trucks were reportedly released by Customs at Elubo and were on their way to Kumasi in the Ashanti Region, the Enquirer stated. As a way to curb the situation, government has placed a fiat (an order by court) on the importation of rice through the country's borders to maximize revenue. The fiat ensures that rice imports are patched through the Tema port, Takoradi Harbour and the Kotoka International Airport (KIA).These are the only authorized routes. Moreover, dealing with the situation also demands the need to cut down high taxes imposed on the importation of rice.Contrary to several countries which have cut down taxes on basic foodstuff imports as means of supporting consumers, the Government of Ghana has opted to impose punitive duties and taxes that have resulted in worsening the plight of consumers and also led to the establishment of a thriving smuggling industry in Ghana .High duties and levies on rice imports may serve as a major disappointment to rice importers in the country, hence forcing those who cannot cope with the situation to devise new ways of promoting their business.Therefore, a moderate tax imposition will surely discourage rice importers from bootlegging rice and in the long run, boost the nation's revenue and economic status.Considering the effect of rice smuggling on the food security, it is of no doubt that government's intervention and lower taxes which may serve as incentive to rice importers would help combat any illicit trade. . Hooda again writes to Centre for norms' relaxation for milled rice Rajesh Moudgil, Hindustan Times Chandigarh, December 07, 2013 First Published: 19:48 IST(7/12/2013) | Last Updated: 19:52 IST(7/12/2013) Haryana chief minister Bhupinder Singh Hooda has again written to union minister of state for food and public distribution KV Thomas to relax the norms pertaining to milled rice in the wake of the damage caused to paddy by untimely rains in October in the state.Referring to his earlier letter in the context, sent on November 16, Hooda said though the procurement agencies in Haryana had procured such paddy so that farmers got remunerative prices for their produce, the procured paddy cannot give rice conforming to prescribed specifications, which included 67% yield, 25% broken, 3% damaged and 3% dicoloured rice.He proposed in his letter that these specifications needed to be relaxed. Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  5. 5. The yield from 67% to 66%, broken from 25% to 30%, damaged from 3% to 4% and also the discoloured from 3% to 4%, without any value cut.Hooda added that the relaxations sought, fell within the prescribed limit under the Food Safety and Standards Act, 2006. In absence of these relaxations it would not be possible for the state to get the procured paddy milled and deliver the entire due quantity of the custom milled rice (CMR), he said, adding that these relaxations were sought only in the case of paddy procured during kharif market season, 201314, due to the damage caused by the unseasonal rains.Meanwhile, Haryana rice millers' association president Rajender Aggarwal and secretary Ashish Mehta told HT that the rain had badly hit the paddy and it had damaged rice to the extent of 5% -6%. Mehta said the millers feared that the same would not be accepted by the Food Corporation of India, which would thus cause huge losses to the millers in terms of penalty. He said a delegation of the association had also recently met union social justice minister Kumari Selja as well as Sirsa and Kurukshetra MPs, namely Ashok Tanwar and Naveen Jindal, and apprised them of their plight and that they too had written to Thomas in this context. Biazon orders release of ‘smuggled’ rice By Elias O. Baquero Saturday, December 7, 2013 THE Bureau of Customs (BOC) Port of Cebu released rice worth P23.9 million last Friday. It was one of the last acts of outgoing Commissioner Rozzano Rufino ―Ruffy‖ Biazon, whose official functions ended that same day.The Port of Cebu had held the 15,995 sacks of rice on board mv Queen of Joy, which is docked at Pier 2, Cebu City, on suspicion that these were smuggled through the Batangas port and were shipped to Cebu in the guise of relief goods.The Customs Police Division of the Enforcement and Security Service under Major Camilo Cascolan Jr. recommended the issuance of a warrant of seizure and detention against the shipment for not having a shipping permit from the National Food Authority (NFA). Out of their hands Cascolan also suggested submitting samples of the rice to the International Rice Research Institute (IRRI) in Los Baños, Laguna to determine whether the rice was imported or produced locally.Under the law, it is a violation to ship 3,000 sacks or rice or more without an NFA shipping permit. The same law provides that the NFA, together with the BOC, may initiate seizure and forfeiture proceedings if the rice is imported.Although the transport documents identified Philippine Phosphate Corp. as the owner and consignee of the rice, other people, including PNP Maritime Command officers, reportedly lobbied for the release of the cargo.In a press conference last Dec. 5, District Collector Roberto Almadin said the rice claimants only submitted the NFA shipping permit after the cargo reached Cebu.He also said they‘ve submitted rice samples to the IRRI, but the Port of Cebu referred the matter to the commissioner‘s office to decide whether to release the cargo. Chaos at the port According to a source at BOC, Biazon should have refrained from ordering the release of the rice because there‘s an ongoing investigation. He should have left the decision to incoming Commissioner John Sevilla.According to Port of Cebu sources, chaos erupted at the Pier 2 when customs policemen guarding mv Queen of Joy noticed that it was about to set sail. One of them fired a warning shot and sought the assistance of the Philippine Coast Guard only to be told the rice had been released.The sources said there was a lapse in Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  6. 6. protocol when the customs police were not informed about the release because the Tariff and Customs Code of the Philippines provides that they (customs police) are the custodians of shipments, which are still under BOC jurisdiction.When sought for comment, Almadin said he was not informed about the chaos at the port. He also didn‘t receive any report that the customs police were not told about the shipment.―They (customs police) are supposed to be informed. If that really happened, an inquiry on the process of dissemination will be undertaken. All papers can be made available at our office. All task appertaining to customs has been undertaken,‖ Almadin said in his text message to Sun.Star Cebu. EXCLUSIVE ORYZA NEWS Myanmar President Seeks IRRI Cooperation to Improve Rice Production Dec 06, 2013 Myanmar President U Thein Sein called for continued cooperation with the International Rice Research Institute (IRRI) to help improve rice production and farmer income in Myanmar during his visit to IRRI this week.The President said that rice consumption in Myanmar is increasing due to population growth while rice area in the country is shrinking. According to the President, Myanmar‘s population is expected to reach around 100 million by 2050, up about 67% from the current 60 million. "We need high-yielding varieties to address rising population and decreasing land area planted to rice," he said. He also said that there is a need to develop different high-yielding rice varieties to match different topography and agro-ecological zones in Myanmar.Myanmar produces about 12.7 million tons of rice annually against a consumption of around 11.7 million tons. Myanmar is targeting to become a major rice exporter in the coming years, and IRRI is working with the Myanmar government to help develop the country‘s Rice Sector Development Strategy. Tags: myanmar rice production, International Rice Research Institute (IRRI) USDA Post Slashes India 2013-14 Rice Production Forecast by 2 Million Tons Dec 06, 2013 Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  7. 7. The USDA Post in New Delhi has lowered India‘s MY 2013-14 (October – September) rice production forecast to about 103 million tons, down around 2 million tons or about 2% from USDA official projection of around 105 million tons.The Post says that recent cyclones (Phaillin, Helen and Lehar) and consequent heavy rains caused significant damage to rice crop and delays in harvest in India. Local sources say that crop losses could be up to 3 million tons, but the USDA Post says that some crop losses will be offset by higher rabi (winter) rice crop production this year.Rice prices are increasing in India and the government may liquidate its ―more-thansufficient‖ rice stocks to control prices ahead of general elections in April – May 2014, the Post says. Rice stocks with the Indian government stand at around 28.6 million tons as of November 1, 2013, slightly down from last year, but significantly higher than buffer and strategic reserve norms which vary from 7.2 MMT on October 1 to 14.2 MMT on March 1). Tags: India rice production Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  8. 8. Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Dec 06, 2013 Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to about $455 - $465 per ton today. Other Asia rice sellers kept their quotes unchanged. 5% Broken Rice Thai 5% rice is quoted around $390 - $400 per ton, about a $40 per ton discount to Viet 5% rice shown around $430 - $440 per ton. Indian 5% rice is quoted around $415 - $425 per ton, about a $40 per ton premium over Pak 5% rice quoted around $375 - $385 per ton. 25% Broken Rice Thai 25% rice is quoted about $370 - $380 per ton, about a $30 per ton discount to Viet 25% rice shown around $400 - $410 per ton. Indian 25% rice is quoted about $375 - $385 per ton, about a $40 per ton premium over Pak 25% rice quoted around $335 - $345 per ton. Parboiled Rice Thai parboiled rice is quoted around $455 - $465 per ton, down about $5 per ton from yesterday. Indian parboiled rice is quoted around $395 - $405 per ton, about a $35 per ton discount to Pak parboiled rice last quoted around $430 - $440 per ton. 100% Broken Rice Thai broken rice, A1 Super, is quoted around $335 - $345 per ton, about a $40 per ton discount to Viet broken rice shown around $375 - $385 per ton. Indian broken sortexed rice is quoted about $315 - $325 per ton, about a $10 per ton discount to Pak broken sortexed rice quoted around $325 - $335 per ton. Tags: Asia rice quotes, India rice quotes, Pakistan rice quotes, Thailand rice quotes, Vietnam rice quotes Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Dec 06, 2013 Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to about $455 - $465 per ton today. Other Asia rice sellers kept their quotes unchanged. 5% Broken Rice Thai 5% rice is quoted around $390 - $400 per ton, about a $40 per ton discount to Viet 5% rice shown around $430 - $440 per ton. Indian 5% rice is quoted around $415 - $425 per ton, about a $40 per ton premium over Pak 5% rice quoted around $375 - $385 per ton. 25% Broken Rice Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  9. 9. Thai 25% rice is quoted about $370 - $380 per ton, about a $30 per ton discount to Viet 25% rice shown around $400 - $410 per ton. Indian 25% rice is quoted about $375 - $385 per ton, about a $40 per ton premium over Pak 25% rice quoted around $335 - $345 per ton. Parboiled Rice Thai parboiled rice is quoted around $455 - $465 per ton, down about $5 per ton from yesterday. Indian parboiled rice is quoted around $395 - $405 per ton, about a $35 per ton discount to Pak parboiled rice last quoted around $430 - $440 per ton. 100% Broken Rice Thai broken rice, A1 Super, is quoted around $335 - $345 per ton, about a $40 per ton discount to Viet broken rice shown around $375 - $385 per ton. Indian broken sortexed rice is quoted about $315 - $325 per ton, about a $10 per ton discount to Pak broken sortexed rice quoted around $325 - $335 per ton. Tags: Asia rice quotes, India rice quotes, Pakistan rice quotes, Thailand rice quotes, Vietnam rice quotes India Winter Rice Crop Planting Area Reaches 128,000 Hectares; Up 11% from Last Year Dec 06, 2013 Planting area under India‘s Rabi rice (winter) crop has reached around 128,000 hectares as of December 6, 2013, up about 11% from around 115,000 hectares recorded during the same time last year, according to the Ministry of Agriculture.India‘s total Rabi planting area (including rice and other grains) stands at around 45.042 million hectares, up about 11% from around 40.74 million hectares during this time last year. Tags: India rice planting area Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  10. 10. Oryza Overnight Recap – Chicago Rough Rice Futures Seen Lower Ahead of U.S. Jobs Report Dec 06, 2013 Chicago rough rice futures for January delivery are trading lower by about 6.5 cents (about $1.5 per ton) to about 15.590 per cwt (about $344per ton) as on 6:15am Chicago time. The other grains are seen mixed this morning: soybeans are currently trading lower by about 6.5 cent (about $1.4 per ton), wheat is trading higher by about 2.2 cents (about $0.5 per ton), and corn is trading higher by about 2 cents (about $0.5 per ton).U.S. stocks futures are set for a rebound from a string of losses today as investors await a. monthly U.S jobs report that could either break or make the case for the Federal Reserve's monetary stimulus' future. Dow Jones Industrial Average futures are currently trading lower by about 0.43% to 15822, S&P 500 index futures are trading lower by about 0.43% to 1785 and NASDAQ composite futures are trading lower by about 0.12% to 4033. In non-agri commodities market, crude oil futures are currently trading lower by about 0.13 points and gold futures are trading lower by about 3.9 points. The U.S. dollar is currently trading lower against the euro while trading higher against GBP and the Japanese yen at about 6:15am Chicago time. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market Thailand 2013-14 Paddy Production Estimate Raised Dec 06, 2013 Thailand‘s total 2013-14 paddy production is estimated at 31 million tons, up 1-2% from the previous year, according to the USDA Post. Thailand‘s 2013-14 off season paddy production is estimated at 7-8 million tons, ―revised down slightly due to a decrease in the planting acreage of the offseason rice crop, water shortages, and a less attractive pledging program caused by limited government financial resources,‖ according to the USDA Post. Meanwhile the main crop currently being harvested has a yield above the previous year thanks to beneficial rain fall in September and October. The Post estimates Thai rice exports stand at 5.4 million tons in the period January-October 2013, down 6.3% due to a decline in parboiled rice exports. The USDA Post left its full year rice export target for 2013 at 7 million tons and projects 8 million tons exported in 2014. The report includes several graphs related to the Thai rice mortgage scheme, showing Thai farmers pledged about 44 million tons in 2011-12 and 2012-13, an amount much larger than previous rice schemes.The USDA Posts notes that Thai rice export quotes have fallen considerable since the scheme began and are very near Vietnam export quotes. Post estimates Thailand rice stocks at around 15 million tons. Full Report: http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Update_Bangkok_Thail and_12-2-2013.pdf Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  11. 11. Oryza Rice Index Continues to Firm Dec 06, 2013 The Oryza Rice Index, a weighted average of global rice export quotes, ended the week at $463 per ton, up $5 per ton from a week ago, up $12 per ton from a month ago, and down $15 per ton from a year ago. Earlier this week, FAO reduced its projection for global rice output in 2013 by 5 million tons, largely due to bad weather in Asia. Thailand Thailand 5% broken rice is shown around $395 per ton, unchanged from the previous week, down $15 per ton from a month ago, and down $155 per ton from a year ago. FAO predicts that Thai rice stocks, which have been increasing at significant rates due to the mortgage scheme , will reach 20.4 million tons next year, even with 8.5 million tons expected to be exported in 2014. Meanwhile, the National Anti-Corruption Commission there has Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  12. 12. announced more suspects in the rice scheme corruption case, bringing even more bad publicity to an already problematic situation. Protests there escalated earlier this week, as citizens seek more transparency about the corruption in the mortgage program without cooperation from the current government.The government continues to hold auctions but demand has been lacking. A holiday there on Thursday and Friday left the market quiet. India India 5% broken rice ended the week at $420 per ton, up $5 per ton from a week ago, up $10 from a month ago, and down $15 per ton from a year ago. The USDA has lowered its forecast for India‘s MY 2013-14 (OctoberSeptember) rice production to about 103 million tons, down about 2% (or 2 million tons) from the previous official projection due to three recent cyclones and poor weather. The USDA Post anticipates the Indian government may release some rice from its stocks in efforts to keep prices level leading up to the elections in April-May. However, according to the Ministry of Agriculture, the planting area of India‘s Rabi (winter) rice crop is up 11% from last year, which will help compensate for some of the losses due to storms and may keep prices from escalating too rapidly.The rice industry continues to watch as Iran negotiates a nuclear deal with Western nations. As sanctions on Iran are eased and trade shifts to dollars, more countries will begin trading with the country. India has enjoyed a near-monopoly in exports to Iran because as it was paying its oil debt in rupees, Iran was purchasing rice, soymeal, and other products from India in rupees. Consequently, India has had significant control over rice prices in Iran, but as Pakistan and Thailand seek to regain their share of the Iranian rice market after sanctions are eased, India will be forced to compete for Iran‘s business. The recent commercialization of a new basmati rice variety in India may help, as researchers estimate it will increase production from 4.5 tons per hectare to 6.5 tons per hectare. This new development will likely help India dominate the basmati rice export market, although prices for Pusa basmati rice dropped this week in response to concerns about the Iran trade flow. Vietnam Vietnam 5% broken rice is shown around $435 per ton, up about $15 per ton from last week, up $40 per ton from last month, and up about $15 per ton from last year. Quotes have risen after the sale of 500,000 tons to the Philippines.However, Vietnam‘s rice exports for the period January-November 2013 are down about 14% from same period last year. Through November, Vietnam exported about 6.1 million tons of rice, seemingly unable to reach last year‘s numbers, which placed Vietnam as the world‘s second largest rice exporter with 7.7 million tons. Pakistan Pakistan 5% broken rice is indicated around $380 per ton, unchanged from last week, up $5 per ton from last month, and down $52 per ton from last year. Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  13. 13. U.S. U.S. 4% broken rice is shown around $590 per ton, unchanged from last week, down $10 per ton from last month, and down $5 per ton from last year. The week after the Thanksgiving holiday has been a slow one, with little action and lots of watching to see what the House and the Senate decide about the farm bill. Iraq will purchase at least 30,000 tons of rice in tenders that close Sunday, December 8. They are seeking long grain rice from Uruguay, Brazil, Argentina, or the U.S. and medium grain rice from the U.S., Spain, or Australia. For now, it‘s a small tender, but if Iraq continues to open its tenders to U.S. rice, we may see some impact on prices. However, Iraq rejected the medium grain offers by Egypt and California at the last tender. South America Uruguay and Argentina 5% broken rice is shown around $630 per ton, unchanged from last week and up $10 per ton from last month. Meanwhile Brazil 5% broken rice is shown around $685 per ton, unchanged from last week and up $65 per ton from last month. Brazil‘s CONAB announced a December 10 auction for over 50,000 MT of its current stocks, in response to climbing domestic prices.Brazil, Uruguay, and Argentina are eligible to participate in the Iraq tender on December 8. Tags: Oryza White Rice Index (WRI) Oryza Afternoon Recap – Chicago Rough Rice Futures Close Down after Failing to Breach $16.000 per cwt Dec 06, 2013 Chicago rough rice futures for January delivery settled 11 cents per cwt (about $2.40 per ton) lower at $15.545 per cwt (about $342 per ton). Analysts say the decline away from resistance at $16.000 per cwt (about $352 per ton) suggest rice will resume its recent range trade. Soybeans finished the day about 0.2% lower at $13.255 per bushel; wheat finished about 0.1% lower at $6.3725 per bushel; and corn finished the day about 0.3% higher at $4.24 per bushel. U.S. stock markets traded up on a better-than-expected U.S. jobs report. Gold declined about 0.2%, crude oil advanced 0.3%, and the U.S. dollar ticked up 0.1%. Thursday, there were 398 contracts traded, down from 465 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday was 8,741 down from 8,804 on Wednesday. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  14. 14. Oryza November 2013 Rice Market Review Dec 06, 2013 The Oryza White Rice Index, a weighted average of global white rice quotes, ended November at $460 per ton, up about 1.5% from a month ago, and down about 4% from a year ago. The index increased in November due to sharp increase in Vietnam rice quotes. Vietnam 5% broken rice quotes increased about 8% from a month ago. Vietnam remains the most expensive origin in Asia. Globally, Brazil remains the most expensive origin again and Pakistan remains the cheapest origin. Thailand Thailand 5% broken rice ended the month at $395 per ton, down about 4% from a month ago and down about Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  15. 15. 28% from a year ago.Thailand has exported about 4.6 million tons rice during January - September 2013, down about 8% from last year's export during the same period in last year. Meanwhile, FAO expects that Thailand rice export will reach 7 million tons in 2013 and about 8.5 million tons in 2014 and it expects that Thai rice stock will reach about 20.4 million tons in 2014, up from about 15 million tons this year. Separately, Thai Commerce Minister claims that rice stocks in government warehouses have declined to about 7 million tons in November. He also says that the government is planning to secure more government-to-government rice export deals in the coming months, which will help Thailand regain its status as the world‘s largest rice exporter in 2014. The Thai government signed an agreement to export 1.2 million tons of rice to China for delivery in December 2013, according to Thai sources. Separately, the IMF says that the Thailand government should discontinue its rice mortgage program to reduce the country‘s fiscal deficit and use cash transfers to help poor farmers. The IMF added that the fiscal position of Thailand is strong, but the government has to reduce spending on populist schemes to reduce fiscal deficit which is estimated at about 3.4% of GDP in the fiscal year 2012-13 (October – September). Overall, public debt may increase to about 53% of GDP by 2018, according to the IMF. In mid-month, the Thai government announced an auction of about 452,000 tons of rice to make space for new arrivals from the main crop harvest, which usually peaks in November – December. However only four bidders participated in this auction. This was the sixth auction by the government this year. Government auctions have consistently fallen short of expectations. Traders say auctions fail because of high prices and expectations for lower prices in the coming weeks while traders also prefer to buy new paddy rice from the ongoing harvest instead of old stocks held under the government scheme. In beginning of the month, Thailand‘s Deputy Commerce Minister urged four Southeast Asian countries (Cambodia, Laos, Myanmar, and Vietnam) to join Thailand in forming of a rice cartel to improve rice prices and storage problems, but most don‘t expect such an effort to lead anywhere. India India 5% broken rice ended the month at $415 per ton, almost unchanged from a month ago and down about 4% from a year ago. Meanwhile, average wholesale rice prices in India reached about Rs. 2,931 per quintal (about $473 per ton, using current exchange rate) in November 2013, up about 7% from about Rs. 2,750 per quintal (about $451 per ton, using historical exchange rate) in October 2013, and up about 20% from about Rs. 2,441 per quintal (about $450 per ton, using historical exchange rate) in November 2012.India‘s rice stocks in the central pool stand at about 28.2 million tons (including a milled equivalent of about 11.38 million tons of paddy) as of November 1, 2013, which is down about 2.5% from rice stocks in the central pool recorded on November 1, 2012. Current rice stocks in India‘s central pool are about four times the required buffer and strategic reserve norms of about 7.2 million tons for this time of the year. Separately, the Indian government procured about 15.7 million tons rice as of November 20, 2013, in the ongoing Kharif marketing season (KMS) which runs from October to September. Meanwhile, Indian government is also seeking U.S support in its efforts to get World Trade Organization‘s legitimacy for the flagship program, the Food Security Law, at the Bali ministerial meeting to held in December. However, Pakistan wants the WTO to block India‘s Food Security Law because of concerns the Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  16. 16. program may lead to subsidized rice entering the global market chain and harm rice exports of countries such as Pakistan, Thailand, and Vietnam. The U.S. and Canada also say that India‘s Food Security Law may distort international trade. Separately, Indian rice exporters are bracing up for higher competition in the key rice import market, Iran, which was increasingly relying on Indian rice exporters due to western sanctions since 2011. Indian rice exporters say the equations have changed since western powers agreed to relax trade sanctions on Iran earlier this week. India is one of the few countries to have a barter trade system and other payment mechanisms with Iran, which helped India to import oil and export rice and other items to Iran. This led to a surge in India‘s basmati rice exports last year, and Iran quickly overtook Saudi Arabia and the U.A.E. to become the largest buyer of Indian basmati rice in 2012-13. However, the nuclear deal between western powers and Iran may weaken the Indian advantage by eventually allowing free trading in US dollars if Iran dismantles its nuclear program in six months. Analysts say that the move will benefit other rice exporters such as Thailand and Uruguay. Pakistan, which is the only other major basmati rice producer in the world and also neighbors Iran, stands to gain the most, they added. Vietnam Vietnam 5% broken rice ended the month at $425 per ton up about 7.6% from a month ago and down about 1% from a year ago.Vietnam shipped about 6.1 million tons rice during January – November 2013, down about 14% from about 7.1 million tons exported during same period in last year. In October, the Vietnam Food Association (VFA) lowered this year‘s rice export target from 7.5 million tons to 6.7 million tons. Meanwhile, average Vietnam rice export price in January – November 2013 stands at about $431 per ton (FOB), down about 5.5% from about $456 per ton seen during the same period last year. Separately, Vietnam is expected to supply about 500,000 tons rice to Philippines in a government tender to meet domestic demand after rice stocks with the National Food Authority (NFA) dropped in the aftermath of cyclone Haiyan, local sources say. In same tender, Thailand government representatives offered to supply 25% broken long grain well-milled rice for $475 per ton. However, Vietnam offered the same quality rice for just $462.25 per ton, and may reduce prices in the ongoing negotiations, according to some sources. Vietnam is expected to ship the rice by December 31, 2013. The NFA estimates that about 200,000 tons of rice is required to feed the typhoon-affected nation over the next 3 months. The remaining 300,000 tons of rice will be used to maintain buffer stocks with the NFA. Pakistan Pakistan 5% broken rice ended November at $380 per ton, up about 1% from a month ago and down about 13% from a year ago.Pakistan has exported about 882,132 tons of rice in the first four months of the fiscal year 201314, beginning in July,up about 24% from about 711,393 tons exported during the same period in FY 2012-13, according to provisional data from the Pakistan Bureau of Statistics (PBS). Average basmati rice export prices in the first four months of FY 2013-14 stand at about $931 per ton, down about 3% from about $962 per ton Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  17. 17. during the same period last year, while average non-basmati rice prices stand at about $556 per ton, up about 16% from about $478 per ton in July – October 2012. However, according to FAO, Pakistan‘s average basmati rice price during January – October stood at $1,367per tons (FOB), up about 23% from $1,114 per ton (FOB) during the same period last year.Separately, Pakistan's share of basmati rice market in EU has contracted significantly to about 18% in MY201-13 due to high production costs and poor marketing, according to data from the European Commission (EC). EC data showed that Pakistan basmati rice accounted for about 46.5% of EU‘s total basmati rice imports of about tons in MY 2010-11, however, it declined to about 19.4% in MY 2011-12. Brazil Brazil 5% broken rice ended month at $685 per ton, up about 11% from a month ago. Brazil‘s paddy rice production in 2012-13 is expected to reach about 12.15 million tons, up about 1.5% from the October 2013 forecast of about 11.97 million tons, and up about 5% from an estimated 11.6 million tons produced in 2011-12, according to the latest forecast by National Grains Supply Company (Conab). Average 2012-13-rice yield in Brazil is now forecast at about 5.05 tons per hectares, slightly up from the previous forecast of 4.99 tons per hectare, and up about 3% from an estimated 4.91 tons per hectare in 2011-12. However, Conab expects rice area to decline to about 2.408 million hectares in 2012-13, almost unchanged from previous forecast and down about 1% from an estimated 2.42 million hectares in 2011-12.Separately, Brazil rice stocks stood at about 958,506 tons in October 2013, almost unchanged from the previous month but down about 24% from year-ago levels of about 1.26 million tons recorded in October 2012, according to Conab. Argentina Argentina 5% broken rice ended November at $630 per ton up about 1% from a month ago.According to Argentina's Ministry of Agriculture, Argentina‘s total rice exports during January – September 2013 stand at about 411,294 tons, down about 17% from about 497,015 tons in the same period in 2012. Meanwhile, USDA expects that Argentina rice exports will decline from last year due to higher prices and lower estimated production this year. Argentina's rice production in 2012-13 is expected to decline to about 910,000 tons, down about 10% from over one million tons produced in the previous year, USDA said U.S. U.S. 4% broken rice ended the month at $590 per ton down about 2% from a month ago and down about 1% from a year ago. Meanwhile CBOT rough rice future ended the month at $15.96 per cwt (about $352 per ton), up about 6% from a month ago, and up about 5% from a year ago. Cambodia Cambodia 5% broken rice ended November at $460 per ton, up about 2.2% from a month ago. Cambodia exported about 332,009 tons of rice during January - November 2013, up about 94% from about 171,389 tons exported during same period in last year. Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  18. 18. Africa According to local sources, Nigeria may lower high rice import tariffs in 2014 to check losses due to rampant smuggling of rice into the country. To encourage rice production, the government imposed rice imports tariff of about 110% in January 2013, up from 40% to 60% import tariff prior to that. However, the move has done more harm than good to the country‘s economy. According to the USDA, rice import requirements of Nigeria in 2013-14 stand at about 3 million tons, up from about 2.9 million tons in the previous year and against a production estimate of about 2.7 million tons in 2013-14. According to Mozambican Agriculture Minister rice production in Mozambique is increasing and may be sufficient to meet the entire domestic demand for rice by 2017-18. According to the minister‘s claim, rice production in the country stood at about 400,000 tons in 2012-13, up about 100,000 tons or about 25% from the previous year. Consequently, rice import requirements of Mozambique have come down from 300,000 tons to about 200,000 tons considering an average annual rice consumption of about 600,000 tons, he said. China In third week of November, China‘s Zhengzhou Commodity Exchange (ZCE) launched rice futures contracts for Japonica rice variety, while early Indica rice (ER) futures debuted in ZCE in 2009. The launch of Japonica rice (short grain) is expected to help China improve its control of global rice prices in future. The first exchange-traded contracts of Japonica rice are for JR403, JR405, JR407, JR409, JR411, and the base price for each contract listed are 3,050 yuan (about $498) per ton. Separately, China National Grain and Oils Information Center (CNGOIC) China‘s rice imports may increase to a record 5 million tons in 2013-14 (October to September), up about 25% from CNGOIC's previous estimates of about 4 million tons, due to lower production and high domestic prices. Meanwhile, USDA recently estimates that China will import about 3.4 million tons rice in 2013-14 and also reduced its estimate for China 2013-14 rice production by one million tons due to the possibility of first year-on-year decline in rice production in about 10 years. Philippines At the beginning of November, a category -five Super typhoon hit the Philippines, which resulted the loss of about 10% of the country‘s annual paddy rice production of about 18-20 million tons. Later to this month, the Asian Development Bank (ADB) announced an assistance of $23 million in immediate relief to the Philippines . ADB says that it can also provide a $500 million emergency loan to the Philippines for rehabilitation work. According to Philippine‘s government sources two or three more typhoons could hit the Philippines in December. After typhoon, Philippines government estimates that Philippines rice imports could increase in 2014 and remain high in the coming years due to the adverse impact of typhoons. According to revised estimates by the Department of Agriculture (DA), the Philippines paddy rice production in 2013 is estimated at about 18.58 million tons, down about 7% from the targeted 20 million tons under the government‘s Food Staples Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  19. 19. Sufficiency Program (FSSP). In 2014, paddy rice production is now estimated at about 19.32 million tons, down about 8% from the targeted 21 million tons. Meanwhile, FAO expects that the rice imports by the Philippines will increase about 20% to about 1.2 million tons. However, trade sources say that rice imports could increase to about 2 million tons in 2014. Separately, total rice stocks in the Philippines as of October 1, 2013 (and before the devastation caused by typhoon Haiyan) stood at about 1.7 million tons, down about 11% from about 2 million tons recorded during the same time last year, and down about 16% from September 2013, according to the Bureau of Agricultural Statistics (BAS). Other Markets: According to FAO, North Korea‘s rice production in 2013-14 (November – October) is expected to reach about 1.915 million tons, which is likely to meet a major part of the consumption demand of about 1.930 million tons in North Korea this year. Meanwhile Rice yields are likely to increase about 11% from last year due to favorable weather conditions, while acreage in 2013 is estimated at about 546,697 hectares, down about 3% from about 563,237 hectares in the previous year. Iraq‘s rice planting area in 2013 stands at about 80,000 hectares, down about 24% from the 106,000 hectares target set by the Ministry of Agriculture (MOA), according to local sources. The USDA expects that Iraq will produce about 180,000 tons of rice (milled basis) in 2013-14, and import about 1.4 million tons to meet domestic demand for about 1.5 million tons of rice. According to Statistics Korea (KOSTAT), South Korea‘s rice production is estimated to reach about 4.24 million tons in 013, up about 234,000 tons or about 6% from about 4 million tons produced in 2012, due to favorable weather, which helped boost yield by about 8%, despite a 2% decline in rice area. However, rice consumption is expected to decline to about 4.5 million tons in 2013-14, down about 2.5% from the previous year. South Korea imports about 408,700 tons of milled rice equivalent under its WTO obligations. Indonesia, the world‘s third largest rice producer, will be self-sufficient in rice next year as paddy rice production is expected to increase to about 76.57 million tons (about 48 million tons, basis milled), up about 6% from an estimated 72.06 million tons in 2013, the country‘s rice purchasing agency Bulog said. According to the Bulog chief, rice consumption in the country stands at about 36-37 million tons per year and the government is targeting a surplus of about 10 million tons in 2014 to ensure food security. At present, there is a surplus of about 6 million tons, he added. The government of Egypt awarded export licenses to 39 companies for export of about 102,000 tons of white medium grain rice by January 15, 2014. According to trade sources, the lowest awarded price is about EGP 321 (about $46) per ton, and exporters will have to pay an export fee of about EGP 1,000 (about $144) per ton. Since then the government has again banned rice exports. According to the USDA, Egypt‘s rice production in 2013-14 is expected to reach around 4.85 million tons against a consumption of around 4 million tons. The government requires around 1.2 million tons of rice annually for its rice subsidy program and plans to purchase Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  20. 20. around 220,000 tons of rice at prices of around $405 - $420 per ton to run the rice subsidy program in November and December. 2013 Industry Forecasts Research by USDA and and FAO: Development: In a research, IRRI found that the Spike gene could help to increase yields by up to 36% in India rice varieties. For more details please read: http://oryza.com/news/new-rice-gene-spike-can-boost-yield-36-says-irri India‘s Kerala Agricultural University (KAU) has developed new hybrid rice varieties that have higher yields and are more nutritious compared to other rice varieties in the southern state of Kerala. http://oryza.com/news/india-develops-two-new-hybrid-rice-varieties October Tenders: Iraq issued a tender to purchase 30,000 tons of long grain and medium grain rice from different origins. http://oryza.com/news/tenders/iraq-tenders-purchase-30000-tons-rice South Korea issued a tender to buy about 33,300 tons of non-glutinous long-grain brown (indica type) rice. http://oryza.com/news/south-korea-tenders-buy-33300-tons-rice Tags: Monthly Market Review pdf: Table.pdf Oryza Quick Glance at World News Dec 06, 2013 Financial Times – *Nelson Mandela, the inspirational former South African president who guided his nation through the dramatic transition that marked the end of apartheid, died on Thursday. Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  21. 21. *Talks to salvage what would be the first global trade deal in almost two decades went into their final day without an agreement on Friday, with India holding firm against heavy pressure to cut a deal. Roberto Azevêdo, director-general of the WTO, convened a meeting of delegation heads from all 159 members gathered in Bali on Friday morning at which he was due to tell them that a deal had yet to be struck. *Palantir Technologies, a big data company that works for the U.S. intelligence services, has been valued at about $9 billion, after keen investor interest in the software maker that was first funded by the CIA. *Royal Dutch Shell has dropped plans for a multibillion-dollar flagship plant in the U.S. that would have converted natural gas into diesel and jet fuel, amid concerns over the costs of the $20 billion-plus project. *George Osborne declared, ―Britain‘s economic plan is working‖ on Thursday as the chancellor raised his growth forecasts and said the U.K. would be running a budget surplus earlier than previously thought. The independent Office for Budget Responsibility raised its growth forecast for this year from 0.6% to 1.4%, and from 1.8% to 2.4% for 2014. However, it also revised down the following three years slightly, to 2.2%, 2.6%, and 2.7% in 2017. *A Dublin-based company at the heart of Facebook‘s international tax structure used a complex tax avoidance scheme to limit its Irish corporation tax bill to €1.9 million last year, despite generating turnover of €1.79 billion. *An overhaul of the stadium that will host the opening of the 2014 football World Cup in Brazil will be ready less than two months before the event, Sepp Blatter, president of world soccer‘s organizing body Fifa, said on Thursday. *Deutsche Bank is pulling out of the bulk of its commodities business in a cost-cutting drive that will shrink the lender‘s balance sheet further. The bank will wind down trading in energy, agriculture, base metals, and dry bulk over the next two years and will cut around 200 jobs worldwide as a result of the move. The lender will keep its trading arms in financial derivatives and precious metals. Wall Street Journal*ECB President Mario Draghi said on Thursday the ECB is "ready and able to act" if inflation shows signs of being too low for too long, as the central bank kept interest rates at record lows. Meanwhile The central bank left the key interest rate that it charges commercial banks for its regular loans at 0.25%, a record low. *U.K. Chancellor of the Exchequer George Osborne on Thursday said that nonresidents who own homes in the U.K. would from April 2015 be taxed on any profits made when they sell the property. *European leaders pressed Ukrainian authorities and protesters camped in Kiev's main square to negotiate a solution to the country's largest political crisis in nearly a decade, sparked by the government's refusal to sign a trade-and-political pact with the EU. *The Japanese government on Thursday unveiled details of a ¥5.5 trillion spending package to mitigate the expected drag on the economy from an upcoming sales tax increase in April, bundling steps to encourage corporate investment and employment, as well as handouts for low-income households. *The U.S. and China both signaled they are backing away from a confrontation over China's new air-defense zone, with both nations moving toward an understanding that the zone will not be policed in ways that threaten the region or endanger the lives of pilots and passengers. * GDP of U.S., the broadest measure of goods and services produced in the economy, grew at a seasonally adjusted annual rate of 3.6% from July through September, the Commerce Department said Thursday. The measure was revised up from an earlier 2.8% estimate and marks the strongest growth pace since the first quarter of 2012. Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
  22. 22. *The Obama administration's standoff with Afghan President Hamid Karzai over a long-term security deal could drag into early next year, according to American officials, as both countries hold fast to demands that could force the U.S. to pull all its troops out of Afghanistan next year. *The U.S. presented Israel with a number of proposals to offset security risks if it pulls back from the West Bank in a future peace deal with Palestinians, Secretary of State John Kerry said during a visit. New York Times*Malaysia's ruling party, stung by an election setback in May, is burnishing its Islamic credentials, aiming to gain ground among majority ethnic Malay voters in a move that could heighten concern over growing religious intolerance in the multi-racial Southeast Asian country. *China appears ready to force nearly two dozen journalists from American news organizations to leave the country by the end of the year, a significant increase in pressure on foreign news media that has prompted the American government‘s first public warning about repercussions. *An attack by Algerian Army helicopters killed a militant identified by some experts as a regional leader of Al Qaeda and four of his associates as they sped through the southern Algerian desert, a local official said Thursday. *Eastern China is suffering from some of the most severe air pollution in recent memory, forcing schools to cancel classes in the city of Nanjing and shrouding Shanghai‘s famous skyline in an acrid haze. On Monday, Shanghai‘s air quality index was over 301 — the threshold for ―severely polluted,‖ the most dangerous level according to China‘s national standards — for more than 10 hours, the official Shanghai Daily newspaper reported. *U.S. employers likely maintained a strong pace of hiring in November, but probably not strong enough for the Federal Reserve to start reducing the amount of money it is pumping into economy. According to a Reuters survey of economists, U.S. Nonfarm payrolls are expected to have increased by 180,000 last month, down from October's gain of 204,000 jobs. *Bowing to the Food and Drug Administration, the genetic testing service 23andMe said Thursday that it would stop providing consumers with health information while its test undergoes regulatory review. The decision was in response to a warning letter sent by the agency two weeks ago saying that the genetic test was a medical device that requires approval. ORYZA NEWS published with permission For Advertising SPECS & RATES Contact: Advertising Department Mujahid Ali mujahid.riceplus@gmail.com +92 321 369 2874 Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874

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