Professional Documents
Culture Documents
Volume 5, Issue I
Daily Exclusive
ORYZA Rice
Newsletter
The UN's Food and Agriculture Organization (FAO) estimates Malaysia 2014-15 (July - June)
rice imports to increase to 1.1 million tons due to strong consumption demand and the
government's efforts to replenish stocks. In 2014, Malaysia's rice imports increased about 24%
y/y from their below-average level in 2013.It estimates Malaysia's total cereal imports, including
rice, to increase about 6% to around 6.4 million from around 5.99 million tons last year.The FAO
estimates Malaysia's 2015 paddy rice production at around 2.6 million tons (around 1.69 million
tons, basis milled
), slightly above last year's production of about 2.5 million tons (around 1.62 million tons, basis
milled) due to favorable weather conditions and continued government support to the rice sector,
The UN's Food and Agricultural Organization (FAO) has forecasted Laos 2015 paddy rice
production to increase about 3% y/y to around 3.4 million tons (around 2.1 million tons, basis
milled) from an estimated 3.3 million tons (around 2 million tons, basis milled) last year.
Planting for India 2014-15 rabi (secondary) rice crop (November - May) has reached around
4.066 million hectares as of April 24, 2015; down about 9% from around 4.485 million hectares
planted during the same period last year, according to preliminary data released by the Indian
Agriculture Ministry.The decline is reportedly due to untimely rains in some part of the rabi rice
growing areas.
The government of India, in its second advance estimates for major crops, has estimated India's
rice production for 2014-15 marketing year (October 2014 - September 2015) at around 103.04
million tons, down about 3% from an estimated 106.65 million tons in 2013-14, according to a
The U.S. cash market was unchanged today with very little trading to report as most sellers
remain unconcerned about falling bids and limited demand despite burdensome stocks.Analysts
note that the prospect of the U.S. being awarded a piece of the latest Iraqi tender has some in the
industry hopeful that it would lead to firming prices. However, as of now, most believe that the
chance is no better than 50/50.
The Central Rice Research Institute (CRRI) has developed a protein-rich rice variety by crossing
a protein-rich germplasm with a high-yielding local rice variety called "Naveen", according to
local sources.The Director of the CRRI told local sources that the new variety has 10.5% protein
content, which is about 3% higher than that found in normal varieties. He noted that the new
variety is high-yielding as well as tolerant to certain diseases. He added that the scientists are
planning to increase the protein content as well as yield of the new variety by cross breeding it
with high-yielding varieties. Presently, the new variety yields about 5.5 tons per hectare and is
well-suited to grow in the Indian eastern states, said the CRRI Director.
The CRRI Director also noted that normally farmers are not that inclined to adopt such new
varieties as the yield provided by them is very low. He added that the institute is planning to
carry out an awareness drive to encourage the farmers to adopt the new protein-rich variety. He
expressed confidence that farmers would be easily convinced as "Naveen" rice variety was quite
popular among farmers in eastern states.The new variety, which is yet to get a name, is cleared
by the Variety Identification Committee under the Ministry of Agriculture. The CRRI is planning
to release the new variety for cultivation within the next two months.The CRRI is also working
towards developing flood and saline-resistant rice varieties as well. So far, the institute
developed 115 rice varieties, according to the CRRI Director.
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buyers, including Indonesia and the Philippines, are likely to be significant. The IGC expects
China to remain largest importer in 2015 with about 3.9 million tons. On the exports side, the
IGC estimates Thailand to export around 11 million tons of rice and Vietnam to export 6.1
million tons of rice in 2015. However, it expects India's exports to fall by about 21% y/y to
around 8.8 million tons amid falling supplies and stiff competition from Thailand, Vietnam and
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Chicago rough rice futures for May delivery settled 8 cents per cwt (about $2 per ton) lower at
$9.980 per cwt (about $220 per ton). The other grains finished the day sharply lower led by a
steep decline in wheat; Soybeans closed about 0.9% lower at $9.7075 per bushel; wheat finished
about 2.5% lower at $4.8850 per bushel, and corn finished the day about 1.7% lower at $3.6450
per bushel.
U.S. stocks traded mostly higher on Friday on continued momentum from Thursday's high levels
as investors cheered major earnings reports. The Nasdaq held gains after opening more than 30
points higher, and the S&P touched a new intraday high, while the Dow attempted to shake off a
decline as its top-weighted stocks lagged. The Nasdaq Composite outperformed the other major
indices on Thursday to set an all-time closing record, topping the previous high of 5,048.62 set in
March 2000. While the Dow Jones industrial average still has about 1% before surpassing its
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The government of South Korea is planning to procure 77,000 tons of locally produced rice in
May this year to prevent prices from falling due to increasing supplies, Reuters quoted a ruling
party Committee as saying.A statement released today noted that supply of rice has exceeded
demand and has been impacting prices significantly. South Korea produced around 4.24 million
tons of rice in 2014 over and above the government's projected 4.18 million tons as well as
above the demand of around 4 million tons. The domestic price of rice declined to around
159,300 won per 80 kilograms (around $1,848 per ton) in April 2015, down about 6% from
around 169,468 won per 80 kilograms (around $1,967 per ton) last year.
The government had opened the rice import market from January this year and proposed to
impose a tariff of 513% on imports over and above the mandatory rice imports of around
408,700 tons under WTO minimum market agreement (MMA) rules. The WTO is yet to approve
the government's proposal regarding the tariff. Declining consumption of rice and the obligation
to import 408,700 tons of rice under the WTO rules have also been contributing to oversupplies
in the market, according to the Agriculture Ministry.USDA estimates South Korea's milled rice
production at around 4.24 million tons in MY 2014-15 (November - October), slightly up from
an estimated 4.23 million tons in MY 2013-14. It estimates South Korea to import around
410,000 tons of rice in MY 2014-15, up about 31% from 313,000 tons imported in MY 2013-14.
USDA estimates South Koreas 2014-15 domestic consumption for rice to decline to around 4.45
million tons from around 4.46 million tons in 2013-14.
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