Professional Documents
Culture Documents
Volume 5, Issue I
Daily Exclusive
ORYZA Rice
Newsletter
The Brazilian paddy rice index maintained by the CEPEA reached around 38.24 real per 50
kilograms as of February 03, 2015, down about 0.34% from around 38.37 real per 50 kilograms
recorded on January 27, 2015.In terms of USD per ton, the index reached around $282.7 per ton
on February 03, 2015, down about 5% from around $297.4 per ton recorded on January 27,
2015.
The FAO All Rice Price Index declined to around 222 points in January 2015, down about 1%
from around 224 points in December 2014 due to decline in the Higher and Lower Quality Indica
as well as Japonica sub-indices.The Japonica sub-index registered the highest decline of about
1.4% or 4 points to around 279 points this month from around 283 points last month. Higher
Quality Indica sub-index declined by about 1 point, or about 0.5% to around 194 points in
January 2015, from around 195 points last month. Lower Quality Indica sub-index declined by
about 2 points, or about 1% to around 189 points this month from around 191 points last
month.However, the Aromatic sub-index increased about 1% to around 189 points in January
2015 from around 187 points last month.
In January 2014 - January 2015, the FAO All Rice Price Index averaged 222 points, down about
2% from around 227 points during the same period last year. Sub-index for higher quality Indica
rice prices declined about 8.6% y/y and sub-index for lower quality Indica rice prices declined
Chicago rough rice futures for Mar delivery are currently listed 8.5 cents per cwt (about $2 per
ton) lower at $10.300 per cwt (about $227 per ton) during early floor trading in Chicago. The
other grains are all seen lower as well: soybeans are currently seen about 1.2% lower, wheat is
listed about 0.8% lower and corn is currently noted about 1.2% lower.U.S. stocks opened lower
on Wednesday as oil reversed its recent rally and markets digested mixed overseas news from
China and Greece.
China's central bank increased its economic stimulus measures even further Wednesday by
cutting the reserve requirement ratio (RRR) amid growing concerns about the rate of expansion
in the world's second-largest economy. The 50 basis points reduction to 19.5 percent, effective
Thursday, is the first such cut since May 2012. This will lower the amount of deposits that each
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Chicago rough rice futures for Mar delivery settled 13.5 cents per cwt (about $3 per ton) lower at
$10.250 per cwt (about $226 per ton). Rough rice futures continued on their downward
trajectory, closing at a fresh contract low after failing at an early attempt to add to gains earned
yesterday. The market remains firmly entrenched in a bearish trend with traders expecting
another testing of the psychologically significant $10.000 per cwt (about $220 per ton) level,
again dragging prices to levels not seen since mid-2010. Todays action confirms the current
bearish outlook and forecasts lower prices in coming sessions.
A break down and close below the previously mentioned level of support would likely trigger
additional selling on the part of specs and could initiate another leg to the downside. The
question now becomes at what point the market represents an attractive value to commercial
interests and when do they step in to take on or add to a long position to fill basic demand. The
other grains gave back a portion of yesterdays gains today; Soybeans closed about 1.5% lower
at $9.7200 per bushel; wheat finished about 0.5% lower at $5.1100 per bushel, and corn finished
the day about 0.6% lower at $3.8350 per bushel.
U.S. stocks pared gains to trade narrowly mixed on Wednesday as low oil prices continued to
weigh on the energy sector, putting pressure on the S&P 500. Crude oil futures touched a low for
the day of below $50 a barrel, down more than 6% and near Monday's settlement level. Oil
prices have fallen around 50% from a high of $114 a barrel last June on the back of an oversupply and lack of demand. This week's rebound sparked hopes that prices had hit a bottom after
a seven-month rout, but growth concerns in China have prompted renewed concern for global oil
demand. The Greek debt situation remained unclear as finance minister Yanis Varoufakis met
with European Central Bank President Mario Draghi. The Dow Jones Industrial Average came
off highs to trade 37 points higher, or 0.21%, at 17,702.
The S&P 500 traded down 5 points, or 0.24%, at 2,045, with consumer discretionary leading 4 of
the 10 sectors, and energy the greatest laggard. The Nasdaq rose 0.44 points, or 0.01%, to 4,728.
Gold is trading about 0.3% higher, crude oil is seen trading about 7.7% lower, and the U.S.
dollar is seen trading about 0.5% higher at about 1:00pm Chicago time.Tuesday, there were 811
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A report released by the Ghana Trade and Livelihood Coalition (GTLC), a trade and agriculture
advocacy, research and practice organisation, has found that small scale rice farmers need
government support in land acquisition, training in using latest agricultural farming equipment as
well as financial support from banks. A study conducted by the GTLC covering about 660 rice
farmers in about 10 small-scale rice areas in nine administrative regions found that farmers are
seeking government support in the above mentioned areas in order to increase yield per hectare.
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A Senior Lecturer from the Department of Economics of the University of Ghana commented on
the results of the study saying that the government needs to recognize the financial needs of the
small-scale farmers and should consider facilitating financing through banks. He noted that due
to inadequate support from the government, farmers are forced to take loans from microfinance
institutions at high interest rates consequently impacting their incomes.
The study also found that farmers are willing to accept new methods of cultivation and it is high
time for the government to react. The government should ensure that policies are properly
implemented to get desired results.GTLC has been collecting data on agriculture to assess the
implementation of the agriculture sector policies and their impact on small scale farmers in
Ghana since 2009 and the report was released in 2014.
Earlier, the Ghana Rice Inter-Professional Body (GRIB) also urged the government to adopt new
strategies, including providing access to quality seeds, fertilizers, irrigation facilities, modern
rice farming technologies, milling units as well as drying and storage units, to boost rice
production in the country.Ghana produces only 30% of its annual consumption needs of around
one million tons and imports the rest. The government is currently planning to increase rice
production by about 20% per annum over the next four years to make the country self-sufficient
in rice and subsequently ban rice imports.According to the USDA, Ghanas rice production is
estimated at about 330,000 tons (milled basis) in MY 2014-15 (October - September). The U.S.
agency expects Ghana to import 620,000 tons of rice during the year to meet consumption needs
of around one million tons of rice.
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