Rice export prices rise to 3.5-month high
Vietnam exported 1.48 million tons of rice worth $715 million in the first three months this year, up 24 percent in volume and 10.5 percent in value against the same period last year, according to the Ministry of Agriculture and Rural Development.
The ministry said stable global demand and high transportation costs resulted in March’s price hike.
Vietnam’s 5 percent broken rice was sold at $415-420 per ton in late March, up $20 per ton from the beginning of the month. On average, the rice has cost $414 per ton in the world market in March, up $16 per ton against February.
Meanwhile, Thailand’s 5 percent broken standard rice was sold at $408-412 a ton, down $16 from the beginning of the month as the baht continued to drop against the dollar.
Vietnam exported over 6.2 million tons of rice for nearly $3.3 billion last year, according to the General Department of Vietnam Customs.
The average export price of Vietnamese rice rose 5.5 percent in 2020 to $526.8 per ton in 2021, according to the agriculture ministry.
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Prices for long grain milled are priced at or just above $650 pmt, whereas prices in South America are at least $100 pmt below that. South America is in the peak of their harvest season, with several questions swirling around the drought situation in Brazil. We know that Uruguay has crested the high point, and is on the downhill slope of the last 20% of their crop. Argentina is just ahead of them. Brazil and Paraguay are the big swings that will be coming to light in the next few weeks.
In Asia, prices have held steady despite the inflationary rise that so many other commodities have seen. For more than a quarter now, prices in Thailand and Vietnam have oscillated around $400 pmt, while India and Pakistan have been around $360 pmt. This can in large part be attributed to India, who hasn’t slowed exports over the COVID-19 pandemic, and has been responsible for its third record crop in as many years.
India’s farm subsidies, which many speculate have led to their record crop, has blunted the inflationary impacts of rice world-wide. With rice being the most basic food calorie for human consumption that prevents hunger for the poorest nations, this can be viewed as a positive in the global environment. However, India’s rice subsidy violations have put a burden on many rice producers around the globe; these violations were front-and-center this week with the World Trade Organization (WTO).
India has been called out by the U.S. rice industry and others to stop creating an unfair playing field with their rice subsidy program. It is making rice from the United States and other origins uncompetitive on a global scale, and can have severe detrimental impacts on food security world-wide in the future.
Prices on the ground show Texas in the lead at $17/cwt. Louisiana is strong at $15.25/cwt, while prices in Mississippi, Arkansas, and Missouri are fluctuation between $14.75-$15.75 based on variety and qualities.
The weekly USDA Export Sales report shows net sales of 8,300 MT this week, a marketing-year low, down 51% from the previous week and 81% from the prior 4-week average. Increases primarily for Mexico (13,700 MT), Haiti (7,300 MT), Jordan (4,000 MT), the Dominican Republic (2,000 MT), and Honduras (1,500 MT), were offset by reductions primarily for Colombia (22,000 MT).
Exports of 80,300 MT were up noticeably from the previous week and up 98% from the prior 4-week average. The destinations were primarily to Mexico (32,700 MT), Colombia (22,300 MT), Haiti (15,300 MT), El Salvador (4,100 MT), and Canada (2,000 MT).In the futures market, May 22 prices are down just over 1% this week to $16.010. May 23 contracts are about flat from last week, now at $16.615. Average Daily Volume registers at 411, down 23% from last week, while open interest is flat at 9,701.
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The rice is being offered under a credit line of $1 billion to Sri Lanka announced by India recently towards the purchase of food, medicine and other essential commodities. Of this credit line, $150 million is earmarked for rice supplies to Sri Lanka.

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Mwea scheme rice farmers vow not to pay Warma charges
Rice farmers from Mwea Irrigation scheme have vowed not to pay the Sh15,000 levies imposed by the Water Resource Management Authority terming it exploitative.
The farmers argue that the new regulations which were gazetted this year will increase the levies from the current Sh3,000 repair and maintenance fee paid to National Irrigation Authority to Sh15,000 Warma. If the new regulations will be fully implemented, the Authority is set to collect Sh450 million from the 30,000 acres under irrigation at the expansive Mwea Irrigation scheme. Led by their Chairman Morris Mutugi, the farmers have vowed not to pay a single cent to the authority, saying the regulations were published in the Kenya gazette secretly without proper public participation “The irrigation authority has failed on its mandate to ensure farmers have adequate water for irrigation as well as environmental conservation and has resulted in harassing farmers who fail to pay water levies,” he said. Currently, Mutugi said, farmers are grappling with a lack of adequate water for irrigation due to the drought that the country is facing. “Where will farmers get such a huge amount of money, with the high cost of fertilizers, pesticides and other costs of production, this is exploitation,” he said. Local leaders led by Mwea MP Kabinga Wachira have castigated the authority for continued burdening of farmers with punitive charges.Inflation pulls down demand for cooking oil, Basmati, chicken

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Farmers selling below MSP of ₹1,960 a quintal
Drop in prices
The drop in prices was attributed to stepped up arrivals at mills which resulted in farmers waiting for their turn for two or three days to dispose of the stocks. The initial arrival of crops that were harvested a fortnight ago which were in smaller quantities fetched good prices for farmers. On the other hand, the Food Corporation of India has refused to accept custom milled rice of 2020-21 rabi season after March 31 though the State government wanted the deadline to be extended by two months.Union Minister of State for Tourism G. Kishan Reddy said that the State government was yet to meet its target of 2020-21 rabi despite several reminders. The Centre will keep its commitment to the State for 2020-21 rabi but not the corresponding season which has triggered the stand-off with the State.
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The influx of demand from feed buyers in the wake of the Russian invasion of Ukraine has raised numerous questions over the direction of the Asian low-quality white rice market.
Rice markets react
But the demand from feed buyers has spiked in both India and other Asian rice markets since the Ukraine conflict began. In India, for example, sources have reported instances of defaulting and low supplies, with one Kakinada-based exporter going so far as to describe the local broken rice market as a "disaster" due to the sudden influx of demand. In rice export origins which are also destination markets for corn and/or wheat, such as Vietnam, many exporters have withdrawn their broken rice offers due to high domestic demand. Vietnamese 100% broken white rice price has increased by $65/mt since the invasion of Ukraine, reaching a high of $370/mt FOB on March 25, according to Platts assessment from S&P Global. However, many sources view broken rice prices from Vietnam as hypothetical, with the country even importing substantial volumes from India to meet demand. In traditional broken rice markets -- notably in West Africa -- the situation is more immediately concerning from a food security perspective. In Senegal, which is a huge market for broken rice for human consumption, a sizable gap is opening up between current retail prices and replacement costs. While in part this is due to Senegal's new retail price cap and high freight rates, the significant rise in Indian broken rice prices in recent weeks has only served to widen this gap. According to one Europe-based trader who buys for the country, this gap has reached $90/mt in recent days, and made it "impossible" to buy for Senegal at present without taking on huge financial risks. However, with sufficient stocks in Dakar for Ramadan and the following weeks, the trader added that it makes no sense to re-enter the market before the religious holiday is over, with hopes that the replacement cost gap will have narrowed in the interim.Unusual price spreads
Because of the massive influx in demand for Asian broken rice, unusual price spreads between different rice grades have emerged. Pakistani 5% and 100% broken white rice were briefly assessed at par earlier in March while the gap was $70/mt a year prior. The spread between Thai 5% and A1 Super 100% broken white rice has narrowed to only $2/mt in recent days, compared to $51/mt a year prior. One major Singapore-based rice trader said that "some 25% [broken white rice] shipments for feed purposes" was seen from Myanmar to Europe. Sources buying from the Myanmar market have reported that offers of low-quality B234 broken white rice have been largely unavailable in recent weeks due to high feed demand, with higher quality broken rice prices also moving up substantially. Despite sources reporting no obvious reason for why feed buyers could not turn to 25% broken white rice if 100% broken white rice was unavailable, or priced uncompetitively, sales of this product for feed purposes so far remain rare. A second Singapore-based trader said that they were advising their traditional broken rice buyers in Africa to accept 25% broken white rice due to supply and price issues for 100% broken white rice. However, the first Singapore-based trader cautioned that this would ultimately "depend on corn prices." FAO's Shirley Mustafa agreed, saying that "because this trend is influenced by factors outside of rice markets, developments in these external markets will have an important bearing." Mustafa added that "current forecasts suggest record-breaking supply availabilities in the major exporters this season, thanks to bumper harvests expected in India, Pakistan and Thailand. If these are realized, they should be more than sufficient to cater to the higher global needs."Outside forces
Despite uncertainty surrounding how this situation will play out, it is almost inevitable that feed demand will take up an unusually large portion of international rice sales in 2022. A third Singapore-based trader said that it will "not be a huge chunk ... But it will not be insignificant either." The questions which remain at this point are whether 25% broken white rice sales for feed will become more widespread and how this demand for cheap rice will impact traditional buyers of 25% and 100% broken white rice for human consumption. However, with rice still a minor player in the massive global feed market, the situation will ultimately remain at the mercy of outside forces.Southeast Asia must close yield gap to remain major rice bowl

Southeast Asia must close yield gap to remain a major rice bowl

Pakistan’s rice production
ASIA RICE Prices rise across major hubs on higher demand for rice
March 10 (Reuters) - Prices of rice exported from top Asian hubs jumped this week on solid demand, while Vietnamese traders also flagged high shipping costs due to the Ukraine crisis.
Thailand's 5% broken rice prices rose to $415-$428 per tonne, on average a peak since late June, from $400-$403 a week ago.
As corn and wheat prices rise, animal feed makers were looking to use more broken rice, pushing up prices across the board, Bangkok-based traders said.
Another trader said he recently received interest from buyers in Europe, the United States, Iraq and Iran for different grades of Thai white rice.
Demand from Hong Kong has also increased, the trader said, with concerns over plans for a city-wide lockdown sparking panic buying by residents.
Thailand exported 459,752 tonnes of rice worth $234 million in January, up 8.92% from the same period last year, the commerce ministry said.
Rates for top exporter India’s 5% broken parboiled variety rose to $371-$378 per tonne from last week's $370-$376, also a peak since mid-June.
"Consumers are trying to build stockpile due to the rally in wheat and corn prices. Demand is improving for rice," said an exporter based at Kakinada in southern state of Andhra Pradesh.
Vietnam's 5% broken rice prices rose to their highest since December at $410-$415 per tonne on Thursday, versus $400 last week, amid higher demand, traders said, with the Ukraine-Russia conflict prompting buyers to place more orders from elsewhere in Asia.
Another trader said shipping costs had surged since the Ukraine-Russia conflict began, with international freight costs rising 50% and domestic freight costs climbing 70%-80%.
"We're concerned costs will keep rising if the conflict continues," the trader said.
Traders said farmers in the Mekong Delta had harvested 20%-25% of the winter-spring crop.
Domestic rice prices in Bangladesh remain high despite good crops and reserves, traders said, adding that the global market was seeing a hike due the Ukraine-Russia conflict.
"It is very much unlikely that local prices will come down soon," a trader said.
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