Professional Documents
Culture Documents
February 25,2016
Vol 7,Issue II
www.ricepluss.com
www.riceplusmagazine.blogspot.com
The government of Cuba has signed new credit agreements with the Export-Import Bank of
China (Eximbank) to receive support from the East Asian nation for the development of
agriculture and railroad programs, according to local sources.
The amounts would be used to purchase medium and high power tractors to boost rice
production and railroad passenger cars.
This is the fourth line of credit that Cuba obtains from China, and is mainly aimed at increasing
local rice production, according to the Cuban Deputy Minister of Finance and Prices. He also
noted that the credit would be used for other joint projects linked to the country's strategic
programs.
Cuba currently produces only half of its annual rice consumption needs and imports the rest.
USDA estimates Cuba to produce around 395,000 tons of milled rice and import around 500,000
tons of rice in MY 2015-16 (July - June) to meet a consumption demand of around 895,000 tons.
Cuba currently imports rice from Brazil, India and Thailand.
The UN's Food and Agriculture Organization (FAO) forecasts Iran to import about 1.2 million
tons of rice in 2015-16 (April-March) despite an increase in 2015 paddy rice production. It
forecasts the country's total cereal imports to decline about 35% y/y to around 10 million tons.
The FAO estimates Iran's 2015 paddy rice production to increase by about 17% to around 2.7
million tons from around 2.3 million tons during the previous year.
Planting for 2016 paddy rice crop will begin in May.
According to the latest data issued by the European Union (EU), rice imports by the EU
increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31,
2016).
The EU imported about 572,619 tons of rice during the period September 1, 2015 - February 16,
2016, up about 22.5% from around 467,256 tons imported during the same period last year.
Japonica rice imports increased about 43% to around 59,570 tons in September 1, 2015 February 16, 2016 period from around 41,741 tons during the same period last year. Indica rice
imports increased about 20.6% to around 513,049 tons during the said period from around
425,515 tons last year.
The UK remained the largest importer in September 1, 2015 - February 16, 2016 period with
around 127,867 tons followed by France (95,218 tons), The Netherlands (64,495 tons), Germany
(60,871 tons), Poland (41,907 tons), , and Italy (40,210 tons). Other EU countries imported
142,051 tons.
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Vietnam 5% broken
350-360
India 5% broken
360-370
Pakistan 5% broken
335-345
Myanmar 5% broken
420-430
Cambodia 5% broken
410-420
Uruguay 5% broken
445-455
Argentina 5% broken
435-445
345-355
340-350
305-315
325-335
440-450
365-375
NQ
480-490
520-530
Vietnam Jasmine
415-425
NQ
NQ
760-770
325-335
Brokens
Thailand A1 Super
285-295
335-345
NQ
280-290
Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Rebound
Chicago rough rice futures for Mar delivery settled 6.5 cents per cwt (about $1 per ton) higher at
$10.660 per cwt (about $235 per ton). The other grains finished the day with mixed results;
Soybeans closed about 0.1% lower at $8.7250 per bushel; wheat finished about 1% lower at
$4.5125 per bushel, and corn finished the day about 0.6% lower at $3.6450 per bushel.
U.S. stocks traded mostly lower Wednesday, with financials leading declines, as investors
watched for stabilization in oil prices. The major U.S. averages came well off session lows in
midday trade as oil recovered from a sharp overnight decline to trade near $32 a barrel.
Financials traded about 1% lower to lead S&P 500 decliners, while energy and materials
reversed losses to trade higher. The S&P briefly fell below the psychologically key 1,900 level,
although the index traded more than 10% below its 52-week intraday high, in correction territory
along with the Dow and Nasdaq composite.
Traders said there was not a fundamental reason for the decline in stocks following the services
PMI given the light trade volume and the relative newness of the indicator. European stocks
closed about 2% lower or more. The STOXX Europe 600 fell nearly 3%, ending almost 40%
below its 52-week intraday high. Overnight, the Chinese yuan midpoint fix was also set slightly
weaker against the dollar. However, the Shanghai composite closed about 0.9% higher while
most Asian equities declined. In midday trade, the Dow Jones industrial average fell 120 points,
or 0.73%, to 16,311. The S&P 500 declined 11 points, or 0.58%, to 1,910, with financials
leading nine sectors lower and telecommunications the only decliner. The Nasdaq composite fell
11 points, or 0.27%, to 4,491. Gold is seen trading about 1.3% higher, crude oil is seen trading
about 0.1% higher, and the U.S. dollar is seen trading about 0.1% lower at about 1:30pm
Chicago time.
Tuesday, there were 3,959 contracts traded, up from 3,243 contracts traded on Monday. Open
interest the number of contracts outstanding on Tuesday increased by 189 contracts to
12,773.
Japanese rice traders are expecting the country to import more rice this year due to an increase in
domestic prices, according to Asian Nikkei.
The government of Thailand has set its 2016 rice export target at around 9.5 million tons, down
about 5% from around 10 million tons exported in 2015, due to a likely impact of extending
drought conditions on this year's production, Reuters quoted a senior official from the Thai
Commerce Ministry.
The Director-General of the Ministry's Foreign Trade Department noted that lower supplies from
this year's crop may lead to an increase in Thai rice prices.
She also noted that the Commerce and Agriculture Ministries have prepared 10 billion baht
(around $278 million) worth of measures to stabilize prices. Some of the measures include
buying rice from farmers and storing it temporarily, she said.
Thailand rice sellers lowered their quotes for Hommali rice by about $10 per ton to around
$670-$680 per ton today. Pakistan rice sellers lowered their quotes for 5%broken rice by about
$5 per ton to around $335-$345 per ton. Other Asia rice sellers kept their quotes unchanged
today.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, about $5 per ton premium on
Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360
- $370 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $335 - $345 per
ton.
25% Broken Rice
Thailand 25% rice is indicated at around $345 - $355per ton, about $5per ton premium on
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around
$325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 $315 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is
indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice
last shown at around $405 - $415 per ton.
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The World Bank Lead Economist advised the government of the Philippines to remove
quantitative restrictions on rice imports and open the rice import market to avoid unnecessary
price increases and enhance the efficiency of the rice sector, according to the Manila Times.
Speaking at the Manila Times 3rd Business Forum, he noted that the government's current
policy of monopolizing the rice imports is not in the interest of the farmers and the country. He
also noted that the policy will not work to increase the net income of the farmers or check the
retail rice prices.
He stated that the government is failing to achieve the rice self-sufficiency due to a significant
gap between production and consumption. He said the government's policy of buying high
from farmers and selling low to the poor suggests increasing inefficiency". He stressed that
opening the rice import market would correct these inefficiencies as traders have sufficient time
to import and thus domestic rice price increases can be avoided.
He suggested that the government should remove the QRs and tariff quotas in the medium term,
and should "progressively reduce" tariffs in the long term to achieve desired results.
He also noted that investments in agricultural productivity, specifically on research and
development, agricultural extension, rural infrastructure such as roads irrigation and
electrification; secure property rights; and farmers health and education are important to
increase the efficiency of the rice sector.
Experts emphasized the need for improved and modernized farming tools to boost Uganda's rice
production, according to All Africa.The Director of the National Crops Resources Research
Institute (NaCRRI) noted that Uganda's rice production is currently characterized by traditional,
rudimentary and obsolete technologies. The official who attended the demonstration of
agricultural machinery for small-scale farmers noted that an increasing demand for rice calls for
intensive production of high-yield rice."We have achieved rice production self-sufficiency.
National rice production is 306,000 tonnes today. But the increase in population and increasing
demand, especially in urban areas, means new farmers need to be engaged in rice production and
those farmers who are already producing rice should adopt better farming methods to increase
their rice yields," he said.
The country's national rice development strategy aims to increase rice production to 443,800 tons
in 2018. The Promotion of Rice Development (PRiDe) project, which is being implemented by
Japan International Cooperation Agency (JICA), ministry of Agriculture, Animal Industry and
Fisheries, and National Agricultural Research Organization, and National Agricultural Advisory
Services (Naads) is reportedly supporting Uganda to achieve its national rice production
targets.The Chief Advisor of PRiDe project noted that broken grains and stones in rice are major
drawbacks of Uganda rice. He stressed for the need of affordable threshing machines to increase
the quality of rice.
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