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Today's Rice News
Thursday, August 17, 2000
CBOT Futures Down Thurs
Rice futures closed down in trading Thursday. September contract closed down $0.04 to $5.86 per cwt. November equaled contract lows at $5.88, down $0.04 per cwt. January, March, and July all set new lows closing off $0.02-0.03 per cwt. This week's USDA Export Sales Report showed an overall sales reduction of 200 MT, after a 15,000 MT reporting error for Iraq was corrected. The error, together with already low weekly sales, helped send futures contracts lower.
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India Prices Stable Thurs
Prices for Indian rice were stable on Thursday on low overseas export demand. India 25% broken quoted in the $218-222 per ton range.
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Awards for CCC Tender Announced
The KCCO awarded a total of 22,160MT for tender 080B, due 8/15/00. Eight suppliers received contracts from the tender for different loading ports in the South. Prices for loading out of Houston ports range from $219.58-250.22 per MT for 2/7 quality long grain rice in 50kg bags, while the prices for rice of the same specification loading out of Lake Charles range from $239.17-241.38 per MT. The shipment period for inland plants extends from Sept. 6 through Oct.5 and from Sept. 21-Oct. 20 for plants located at the port. Mills are currently running near capacity from the Title II tonnage.
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Japan May Not Purchase Domestic Rice
The USDA-FAS reported that Japan's MAFF might not purchase domestic rice this year because of large existing Government stocks. Currently rice stock in Japan is estimated at around 3 million MT, a four-month supply.
Some analysts believe that political pressure will force the agency to justify at least minimum purchases with the arrival of the new crop in September.
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Viet Prices Unchanged Thurs
Viet prices were steady on Thursday on slow demand. Viet 25% quoted in the $155-156 per ton range.
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Unstable Asian Currency Affect Trade
Fluctuations in leading Asian currencies has slowed the trading of rice and other commodities in Asia. In Thailand, the baht has fallen more than 7.8% since the beginning of the year.The current instability of the currency, coupled with a decreased global demand for rice has made many rice buyers confused and hesitant to make purchasing decisions. A drop in currency rate should itself make buying more attractive, but many commodity traders are waiting for currencies to stabilize.
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No Bids on CCC Domestic Tender
The KCCO announced that they did not receive any offers on the August 14 domestic tender for 336,000 pounds of medium grain U.S. #1 milled, and medium grain brown rice.
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Mercosur to Consider Joint Export
At a Mercosur rice conference in Brazil, a committee formed to consider the possibility of joint management and export of rice from Mercosur countries. The committee will also consider the possibly of branding the product as "Mercosur rice" to improve marketability. The meeting was held to reach agreement on decreasing rice production in 2001, and to resolve rice disputes between Mercosur countries.
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400,000 MT Potential Thai Sales Lost
Bangladesh and Sri Lanka have indicated to Thai officials that they have given up plans to purchase 400,000 MT of rice from Thailand. Both countries currently hold ample domestic supplies.
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Thai Prices Unchanged Thurs
The price of Thai rice has remained steady over the last week on very slow export demand. Traders have indicated that they are not likely to reduce prices further because of production cost barriers. Thai 25% quoted Thursday in the $162-165 per ton range.
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Mercosur 2001 Rice Acreage to Drop
Growers in Mercosur estimate that rice acreage in 2001 will decline by 40% in Argentina, 25-30% in Uruguay, and by nearly 10% in the state of Rio Grande do Sul in Brazil.
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U.S. Export Sales Reduced
Net sales reductions of 200 MT resulted because of a reporting error of 15,000 MT for Iraq. Exports for the period Aug 4-10 were 35,900 MT, down by 10% from last week. View report
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Wednesday, August 16, 2000
CBOT Rice Futures Mostly Down Wed
Rough rice futures closed mostly lower in trading Wednesday. September contract closed down $0.04 to $5.90 per cwt. November contract remained unchanged at $5.92 per cwt. All months traded within a very narrow range. January, March, and May all closed down $0.01 per cwt.
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U.S. Mills Busy with Tender Business
Mills in the South are busy with Title II Tender business. Today, winners of tender 080B for 22,160 were announced. Tonnage for this tender should keep mills running from September into the second half of October. Bagged U.S. 2/4 milled rice quoted in the $11.20-11.60 per cwt range, FAS Lake Charles.
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S. Korea Buys 20,000 MT in Tender
South Korea's Agriculture and Fisheries Marketing Group (AFMC) purchased 20,000 MT of long grain non-glutinous brown rice of Thai origin at a price of $205.40 per ton CIF for shipment before November 30. The purchase will apply towards South Korea's 114,016-ton rice import quota agreement with the WTO.
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India Prices Flat Wed
Rice prices in India were flat Wednesday on limited demand and large on-hand supplies. Non-basmati 5% broken quoted at $265 per ton fob. New crop in India arrives in October.
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Iran Expected to Buy 15,000 MT Paki Rice
The Iran Government Trading Corp. is expected to make a letter of credit operative for the purchase of 15,000 tons of IRRI-6 from Pakistan for $224.50 per ton Inspection of the rice has been completed. Loading and shipment from Karachi is scheduled for the end of August.
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CCC Tender Offers Firm
Bids for Tuesday's Title II tender for 22,160 MT of milled rice were firm. Eleven suppliers offered 98,780 MT. Prices ranged from $218.26-263.01 per metric ton, FAS Lake Charles for 2/7-quality rice in 50kg bags. The tender calls for various destinations, quality, and packing sizes. The KCCO is expected to offer tonnage to different load ports tomorrow.
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Indian Rice Farmers Explore Other Crops
Due to a surplus of rice and wheat in India, farmers in the states of Haryana and Punjab will likely shift to the cultivation of oilseed crops. Indian officials are planning to give farmers in the area incentives to change crops. India currently imports edible oil to meet demand, while rice stocks totaled 15.12 million tons at the end of June.
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Thai Rice Exports 3.69 Million Tons
Thailand's Department of Foreign Trade announced rice exports January 1-Aughust 13 at 3,553,237 MT, a 138,526 MT decrease from the same period in 1999. Rice exports Aug 1-13 totaled 188,620 MT. Exports for the week ending August 20 are projected at 100,000-110,000 MT. In order to reach the 2000 export target of 6 million MT, Thailand will need to average approximately 658,850 MT monthly August-December.
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CCC Announces 3,750 MT Tender
The CCC announced tender invitation 080D. The tender calls for bids on 3,000 tons of U.S. #2 long grain brown rice for the Ivory Coast, and 750 tons of U.S. #2 long grain milled rice for Russia. The tender is scheduled for August 29 for shipment in September -October (mill points) or October (port points).
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Tuesday, August 15, 2000
China Interested in Thai-Viet Pool
China recently approached Thai officials to join a rice pool organized by Thai and Viet governments. Thai and Viet government agencies have been working on a plan to sell 200,000 tons of 25% broken white rice with each country contributing 100,000 tons each. Pool has not made any sales so far. There was speculation last week that Viet may pull out of the pool.
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U.S. Co-op Donates Rice to Cuba
In late July a U.S. rice cooperative donated rice to the drought-hit province of Guantanamo in Cuba. Local distribution will be managed by a Cuban charity. The U.S. Department of Commerce granted the co-op a special license making the donation legally possible.
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More Milling Capacity in Thailand
A Thai rice company announced plans to build a 100,000 tons rice mill in Ayutthaya, Thailand. Company claims that it will be one of the most modern rice mills in Thailand focusing on high quality rice exports.
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CBOT Rice Futures Mixed Tues
Rough rice futures closed mixed in trading Tuesday. September contract closed up $0.06 to $5.94 per cwt. November closed down $0.01 to $5.92 per cwt. All other months closed down $0.01-$0.02 per cwt in light trading. Abundant international supplies together with expectations of a solid U.S. harvest continue to put negative pressure on the futures market.
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Syria Purchases 12,000 Tons
A Thai exporter sold 12,000 tons of Thai 25% B white rice to the Syrian government at $253.80 C&F for October shipment.
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Mills Waiting for Commercial Business
Even though there are CCC Title I and Title II tenders to support the milled rice market and milling capacity for the next 3 months, mills still in need to have more business commercially to keep the market at the current level after the next 90 days. A CCC Title II Tender for approximately 20,000MT was due today. Results will be available to the public Thursday. We expect that prices for the tender will be firm. The brewers market has fallen off, and we are seeing increasingly cheaper prices on the market.
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Viet Projects 500,000 MT Aug Export
The Vietnam Ministry of Trade projected that rice export will reach 500,000 tons in August. July rice exports were estimated at 500,000 tons, bringing Jan-July totals to 2.07 million tons. In order to reach the 2000 export target of 4.6 million MT, Vietnam will need to average 500,000 tons monthly through the end of the year.
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World Market Price Unchanged
There were no changes in the world market price estimates released by the USDA-FSA on Tuesday. World market price remains $6.53 for long grain, $5.38 for medium grain, and $5.34 per cwt for short grain, milled value. Corresponding LDP rates were also unchanged.
View Report
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Macedonian Rice Production 22,000 MT
The USDA-FAS estimates that production in Macedonia will reach 22,000 MT in marketing year 2000, up from 17,000 MT in 1999. Domestic consumption in Macedonia is expected to rise from 13,000 MT in 1999 to 17,000 MT in 2000. The total estimated rice export from Macedonia in 2000 is 5,000 MT.
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Croatia Rice Imports 9,000 MT
The USDA-FAS estimated that Croatia's marketing year 2000 rice imports will reach 9,000 MT, equal to total estimated domestic consumption. Rice imports and domestic consumption have remained steady at 9,000 MT since marketing year 1997.
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Slovenia Rice Imports 8,000 MT
The USDA-FAS estimates that Slovenian rice imports, in marketing year 2000, will reach 8,000 MT. Domestic consumption in Slovenia is 7,000 MT. An estimated 1,000 MT would be re-exported. Slovenia is not a rice producer.
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Bosnia/Herzegovina Imports 9,000 MT
The USDA-FAS estimates that Bosnia and Herzegovina will import 9,000 MT of rice in marketing year 2000. Domestic consumption is estimated at zero, with all rice imports used for re-export.
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Viet Prices Lower Tues
Viet prices were lower on Tuesday because of low demand. Viet 5% broken quoted in the $182-185 per ton range. Viet 25% broken quoted in the $155-156 per ton range.
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Pakistan Prices Down on Low Demand
Domestic rice prices in Pakistan have fallen during the past week because of low demand. Existing unsold rice stock, together with the arrival of new crop in September will likely cause prices to drop further. Export prices for IRRI-6 25% broken quoted in the $160-170 per ton range Tuesday.
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Monday, August 14, 2000
China Rice Exports Up 43%
According to China's Customs Bureau, rice exports in July hit 320,000 MT, bringing Jan-July totals to 1.84 million tons. Rice exports in China have increased by 43% from the same period last year.
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CBOT Rice Futures Up Mon
Rough rice futures closed higher on Monday. September contract closed up $0.06 to $5.88 per cwt. November closed up $0.02 to $5.93 per cwt. All other months closed up $0.01-0.02 per cwt. In activity, November hit a new contract low of $5.86, before rallying $0.07 to close. September matched the contract low set Friday of $5.75 before rebounding.
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U.S. Milled Market Expecting Business
The milled rice market in the South remains unchanged. Prices could rise during the next 2 weeks in anticipation of new business. On Tuesday a CCC Title II tender is due for approximately 19,550 MT. We expect higher prices on the tender. The purchase authorization for Philippines Title I tender was issued today for $30 million. The market should firm in anticipation of this tender. Bagged U.S. 2/4 milled rice quoted in range of $11.20 - $11.60 per cwt FAS Lake Charles.
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Philippines Receives PL 480 Purchase Authorization
The Philippines received authorization to purchase $30 million of U.S. rice under a P.L. 480 agreement. Authorization was issued under the July 27 amendment to the Title I credit sales agreement July 12, 2000. The contracting period is August 21 through September 30 for delivery between September 11 and December 31, 2000.
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Projected 2001 Trade Up 2.4 Million Tons
According to the USDA-FAS, global rice trade for 2001 is projected at 24.4 million tons, up more than two million tons from 2000. World production is forecast to decline by just over one percent in 2000/01 to 591.8 million tons.
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13% of US Rice Crop Harvested
The USDA reported that 13% of the U.S. rice crop had been harvested as of August 13, four percent above the 1995-1999 average for that date. Louisiana (55% complete) and Texas (45% completed) are currently the only states harvesting. The percentage of rice headed as of August 13 is 76%, a 12% increase from last week, but equal to the 1995-99 average. Texas is showing 98% headed, followed by Lousiaia (95%), Arkansas (77%), Mississippi (69%), and California (45%). Crop condition has improved slightly from last week. Rice reporting in good-excellent condition has improved by 2% from 65% to 67%, while rice reporting in poor-fair condition has dropped by 2% from 34% to 32%. Only one percent reports in very poor condition.
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Turkey--Estimated Output 370,000 MT
The Turkish Rice Millers' Association projects upcoming paddy production in Turkey at 370,000 MT. The total is based on crop area of 67,000 hectares, and yield of 5.5 MT per hectare. Harvest of new crop in Turkey should begin mid September.
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S. Korea Buys 20,000 Tons in Tender
On August 11, South Korea's Agricultural and Fishery Marketing Corporation bought 20,000 tons of Thai long grain brown rice at the price of $205.40 per ton CIP basis. South Korea's Supply Administration has scheduled to buy 23,000 tons of medium and short grain rice in a tender August 14. Both tender purchases will apply towards South Korea's 2000-import quota of 114,016 tons of brown rice with the World Trade Organization.
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Philippines Projects Record Rice Crop
Paddy production in the Philippines increased by 170,000 tons during the first half of 2000, compared to the same period in 1999. The Department of Agriculture estimated that paddy output in 2000 would reach a record 12.3 million tons, up from 11.8 million tons in 1999. Paddy production on the island of Mindanao is expected to increase by 272,000 tons above 1999 levels to 3.029 million tons, despite fighting between Moslem separatists and government troops in some southern parts of the island.
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Oryza.com Launches Its Spanish Rice Industry News Portal
The Prime Global Rice Industry Information portal oryza.com is launching on Aug 15, 2000 - its Spanish Language Rice industry and trade news and information portal site - arroz.comThe new site is available at http://arroz.com
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