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Volume 5, Issue I
Daily Exclusive
ORYZA Rice
Newsletter
USDA Post has estimated India's MY 2014-15 (October - September) rice exports at around 9
million tons (around 5.8 million tons of basmati and 3.2 million tons of non-basmati), down
about 13% from an estimated 10.3 million tons last year due to anticipated decline in supplies
from low production and competition from other rice exporting countries.The Post reports that
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The Philippines Department of Agriculture (DA) is planning to increase hybrid rice acreage in
the country in order to achieve self-sufficiency in rice production, according to local sources.The
DA is aiming to plant hybrid rice in around 72,563 hectares by 2014-15 dry season and to more
than double the hybrid rice acreage to around 147,626 hectares by 2015-16 dry season. It has
earmarked a total of about P1.3 billion (around $30.1 million) - around P362.815 million (around
$8.2 million) for 2014-15 dry season, around P229.1 million (around $5.2 million) for 2015 wet
season, around P738.13 million (around $16.7 million) for 2015-16 dry season - for the
development of irrigation facilities as well as to subsidize hybrid rice production in the country.
The Philippines, which aimed to achieve rice self-sufficiency in rice production in 2013 had
missed the target due to two devastating typhoons. The country's 2014 paddy rice output has
increased about 2.87% to around 18.97 million tons (around 11.95 million tons, basis milled)
from around 18.44 million tons (around 11.62 million tons, basis milled) in 2013, according to a
report by the Philippine Statistics Authority (PSA).The PSA is estimating the Philippines to
Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to around $400 $410 per ton today. Vietnam rice sellers increased their quotes for 25% broken rice by about $5
per ton to around $345 - $355 per ton. Other Asia rice sellers kept their quotes mostly
unchanged.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $40 per ton premium on
Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is quoted at around $390 $400 per ton, about $55 per ton premium on Pakistan 5% rice quoted at around $335 - $345 per
ton.
25% Broken Rice
Thailand 25% rice is quoted at around $365 - $375 per ton, about $20 per ton premium on
Vietnam 25% rice shown at around $345- $355 per ton, up about $5per ton from Friday. India
25% rice is quoted at around $355 - $365, about $50 per ton premium on Pakistan 25% rice
quoted at around $305 - $315 per ton.
Parboiled Rice
Chicago rough rice futures for May delivery are currently listed 5.5 cents per cwt (about $1 per
ton) higher at $10.800 per cwt (about $238 per ton) during early floor trading in Chicago. The
other grains are seen moving higher this morning: soybeans are currently seen about 0.3%
higher, wheat is listed about 0.1% higher and corn is currently noted about 0.1% higher.U.S.
stocks traded mildly higher on Monday as investors digested Chinese economic news and
awaited U.S. manufacturing data. ISM Manufacturing for February and construction spending
data are due at 10 a.m. ET.
The People's Bank of China (PBOC) cut benchmark interest rates by 25 basis points to 5.35% on
Saturday as deteriorating economic conditions forced the central bank to shorten the time gap
between policy moves. In the United States, personal income increased of 0.3%, while personal
spending fell 0.2% in January. Asian markets were trading higher Monday following the move to
stimulate the world's second largest economy. In Europe, stocks turned lower with oil prices.
Earlier, investors cheered data showing that deflation in the euro zone eased in February while
the rate of unemployment fell in January.
Chicago rough rice futures for May delivery settled 5 cents per cwt (about $1 per ton) higher at
$10.795 per cwt (about $238 per ton). Rough rice futures showed impressive strength throughout
the session, rallying to within 10 cents per cwt (about $2 per ton) of psychological resistance
noted at $11.000 per cwt (about $243 per ton) during mid-day trading. However, during
afternoon trading the market backed off of session highs as bearishness from a steep selloff in the
other grains weighed on rice prices.
Todays market action is seen as a positive development and could trigger additional followthrough buying in coming sessions. The other grains came under renewed selling pressure and
saw closing prices well off of session highs noted during morning trading; Soybeans closed
about 1.7% lower at $10.1375 per bushel; wheat finished about 2.5% lower at $5.0000 per
bushel, and corn finished the day about 1.3% lower at $3.8800 per bushel.U.S. stocks gained on
Monday, with the Nasdaq briefly touching the psychologically important level of 5,000 and the
Dow reached a new intraday record as investors cheered U.S. economic data and an interest rate
cut in China.
The Nasdaq Composite last hit 5,000 during the tech bubble peak in March 2000. The index
tumbled in the months following to land at 1,108.49 in October 2002. The Nasdaq has only
closed above 5,000 twice, once on March 9, 2000, and once on March 10, 2000. The Dow Jones
industrial average also rose more than 100 points to set a new intraday record of 18,260.31
following mostly encouraging U.S. economic reports. In economic news, the U.S. manufacturing
sector had its best gains since October, according to Markit's final Manufacturing Purchasing
Managers' Index that rose to 55.1 in February from 53.9 in January. ISM Manufacturing for
February was 52.9, its slowest pace in 13 months. Construction spending fell 1.1% in January.
Indian rice exporters are expecting 2015 rice exports to decline by about 20% to around 8 million
tons (about 5 million tons of non-basmati and about
3 million tons of basmati) from around 10 million
tons in 2014 due to competition from cheaper
supplies from Thailand, which is planning to sell
about 10 million tons of rice this year from its
stockpiles, according to Reuters.Some exporters
expressed fear the government of Thailand may
resort to lowering of prices to sell the old rice in its
stockpiles.
They reminded that the Thai government sold 5% broken rice from old stocks at around $236$378 per ton in the latest tender compared to the market price of around $405. On the other hand,
export prices of India 5% rice currently stand at around $395 per ton.Reuters quoted some Thai
exporters as saying that the value of old rice depreciates and s always lower than the new rice.
Thailand is planning to auction about one million tons of rice on March 5, 2015. The government
sold about 500,000 tons of rice of the one million tons auctioned earlier this year.
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