Bangladesh to import 250,000 tonnes of rice from Vietnam at raised prices.

Bangladesh is set to buy 250,000 tonnes of white and parboiled rice from Vietnam at prices $50-$90 higher per ton than the previous month, to maintain immediate availability of stock in the market, as well as reserves. The government will be importing 200,000 tonnes of white rice at $430 per ton, though the price per ton was $380 in the last month. The ministry is also planning on procuring 50,000 tonnes of parboiled rice at a cost of $470 per ton, while the price had been less than $450 just a week ago. In addition, in a recent international tender by the food ministry, parboiled rice was listed at $ 427.85 per tonne and white rice was at $406.48. The country rice stock has hit a 5 year low, at 193,000 tonnes.

NCDEX coriander up on low supply, domestic demand.

Coriander futures were up on the NCDEX as arrivals in Rajasthan declined, and demand from local stockists rose. The most active July contract was at 4,870 rupees per 100 kg, up 0.6% from the previous settlement. In Kota, the benchmark market, the Badami variety of coriander was sold at 5600-5,650 rupees per 100 kg, while the Eagle variety was quoted at 5,800-5,850 rupees, both up 100 rupees from previous close. Arrivals in Rajasthan stood at 4,400 bags (1bag=40kg), down 1,100 bags from the previous day.

US Arkansas wheat forecast falls 8 percent.

USDA adjusted its forecast for the 2017 Arkansas wheat production, dropping by 8 percent between May 1 and June 1 to about 6.05 million bushels. The yield forecast dropped from 60 bushels per acre in May to 55 bu/ac in June. The state total acreage for winter wheat dropped by about 5,000 acres from 2016 to about 110,000 acres in 2017, but remained unchanged from May to June.

Ukraine Corn planting is 99% complete.

Planting of spring cereals and pulses was completed on an area of 7154 Th ha (99% of the plan). This is 1.2% less than planted at the same time last year (7242 Th ha). In particular, spring barley was sown on 1580 Th ha (96%) against 1824 Th ha in 2016, spring wheat on 176 Th ha (99%) against 169 Th ha in 2016, oats on 198 Th ha (96%) against 213 Th ha a year ago. Peas were seeded on 385 Th ha (116%) compared to 229 Th ha as of June 9, 2016. Corn planting in Ukraine is 99% complete. The crop was sown on 4474 Th ha as of the reporting date against 4411 Th ha as of June 9, 2016. Ukrainian farmers planted 151 Th ha of buckwheat (104% of the plan) against 142 Th ha by the same time last year. Millet planting is complete on 54 Th ha (66% of the planned) against 95 Th ha in 2016.

FAO says India non-basmati rice Jan-May export prices up 6.3% on year.

The average export price of 25% broken non-basmati rice from India rose 6.3% on year to $347 per tonne during Jan-May. India non-basmati rice prices had fallen during 2016 due to weak demand from Iran and other buyers. During May, 25% broken non-basmati rice from India was exported at $360 a tonne, while that from competitors Thailand and Pakistan was sold at $394 a tonne and $367 a tonne, respectively. Prices of 25% broken rice from Thailand fell by 2.7% on year to $371 a tonne, while rice from Vietnam declined 3.6% on year to $328 a tonne.

India Grain importers may get more time to meet tighter fumigation norms.

The government is likely to give importers some more time to comply with mandatory methyl bromide fumigation of all grain cargo at the port of origin. The current exemption from the compliance will expire on Jun 30. Indian plant quarantine norms stipulate methyl bromide fumigation of all cargoes at the port of loading to prevent foreign insects and pests from reaching Indian shores. In 2005, the government had relaxed this norm, allowing importers to either use alternative fumigants or fumigate imported grain shipments with methyl bromide once they enter Indian waters. The move had helped India import wheat and pulses from the US, Canada, Australia and European countries, where use of methyl bromide is banned due to environmental and health concerns. The government now wants to re-instate the mandatory use of methyl bromide at the port of origin, as the chemical is the best bet so far against eggs and pupae of insects, which other fumigants fail to tackle. There are concerns that India move to tighten fumigations norms would slow the import of pulses and wheat from Australia, Canada, France, Ukraine, Russia and a host of other countries that have banned the use of methyl bromide. The government has already issued a draft notification allowing the use of phosphine on grain shipments from Canada.

FCI orders probe into shortage of 111 tonne wheat from PDS stocks.

The Pune district office of Food Corp of India has ordered a probe into shortage of 111 tonne of wheat stocks meant for supply through public distribution system. We are likely to have received 111 tonne less wheat from 3,500 tonne of wheat bought from the Patti region in Punjab, and the fault is probably from dispatching end. The Food Corp official in Pune has advised food storage depot in-charge of Ahmednagar and storage superintendent Maharashtra State Warehousing Corp, Ahmednagar, to freeze the stocks and update all records pertaining for investigation. A committee of three officers has been formed for conducting the physical verification of stocks. The wheat rake (1rake=60,000-70,000bags) was placed for unloading in Ahmednagar depot of the FCI in Maharashtra.

USDA ups India 2017-18 cotton ending stock estimate to 13.3 million bales.

USDA has scaled up its estimate for ending stocks of cotton in India for 2017-18 (Aug-Jul) to 13.34 million bales (1USbale=480pound) from 13.24 million bales projected in May. Global ending stocks of cotton for 2017-18 are seen at 87.71 million bales, up from 87.14 million bales estimated a month ago. The department has kept its estimate for the world largest producer of cotton, India year-to-July 2018 crop unchanged at 28.00 million bales, while it has lowered its forecast for exports to 4.2 million bales from 4.5 million bales estimated in May. Global cotton production in 2017-18 is seen at 114.73 million bales, against 113.22 million bales estimated earlier, due to higher output in Pakistan, China, and Mexico. For 2017-18, cotton imports by India are seen at 1.75 million bales, unchanged from the previous estimate.