Home
|
Sitemap
|
FAQs
|
Contact Us
Product
Country
Menu
About Agri Exchange
Introduction
Apeda Agri Exchange
The Vision
Benefits / Facilities
To Exporters
To Buyers
Product Profile
Floriculture
Floriculture
Fruits & Vegetables Seeds
Fresh fruits & Vegetables
Fresh Onion
Other Fresh Vegetables
Walnuts
Fresh Mangoes
Fresh Grapes
Other Fresh Fruits
Others (Betel Leaves & Nuts)
Processed Fruits & Vegetables
Cucumber and Gherkins (Prepd. & Presvd.)
Processed Vegetables
Mango Pulp
Processed Fruits,Juices & Nuts
Pulses
Animal Products
Buffalo Meat
Sheep/ Goat Meat
Other Meat
Processed Meat
Animal Casing
Poultry Products
Dairy Products
Natural Honey
Caseins
Albumin (Eggs & Milk)
Other Processed Foods
Groundnuts
Guar Gum
Jaggery & confectionery
Cocoa Products
Cereal Preparation
Milled Products
Alcoholic Beverages
Miscellaneous Preperations
Cereals
Basmati Rice
Non Basmati Rice
Wheat
Maize
Other Cereals
Country Profile
United Arab Emirates
Saudi Arabia
Malaysia
Bangladesh
United States
Vietnam
Kuwait
Iran
United Kingdom
Indonesia
...View more country profiles
FTA's
Analytical Report on FTAs
Tariff Concession under FTAs
Statistics
International Trade
India's Export
India's Import
Production
International Production
India Production
Market Intelligence
e-Bulletin
Global Analytical Report
India's Export Analytical Report
Comparative Report On APEDA Products
Comparative Report On Principal Commodities
Import Tariffs
Import Regulations
SPS Notifications
DGFT : Public Notice, Notifications, Circular and Trade Notice
India Food Safety & Standards
Market Reports
Foreign Trade Policy 2023
Chapter 01 - Legal Framework and Trade Facilitation
Chapter 02 - General Provisions Regarding Imports and Exports
Chapter 03 - Developing Districts as Export Hubs
Chapter 04 - Duty Exemption Remission Schemes
Chapter 05 - Export Promotion Capital Goods (EPCG) Scheme
Chapter 06 - Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs)
Chapter 07 - Deemed Exports
Chapter 08 - Quality Complaints and Trade Disputes
Chapter 09 - Promoting Cross Border Trade in Digital Economy
Chapter 10 - Scomet: Special Chemicals, Organisms, Materials, Equipment and Technologies
Chapter 11 - Definitions
Newsletters
Latest News
Latest Newsletter
Archives
Directory
Exporters
Service Providers
Logistics
Trade Leads
Submit New lead
Buy Leads
Sell Leads
Indian Mission Login
Market News
Strong Asian rice demand for animal feed sparks food supply worries.
Mar 16, 2022
A surge in wheat and corn prices is boosting demand for low-grade rice in animal rations across Asia, pushing up prices of the world's most important staple at a time when global food inflation is already hovering near record highs.
Global crop importers are scrambling for supplies after Russia's invasion of Ukraine severed grain shipments from the two countries, which together account for around 25% of world wheat and 16% of world corn exports.
Chicago wheat futures hit a record high last week while corn climbed to its highest in a decade after war-torn Ukraine shut its ports and Western sanctions hit Russian exports.
The price spikes in wheat and corn in turn pushed buyers to seek alternatives, including in China, by far the world's largest feed market. Importers there are in talks to buy extra volumes of broken rice - inferior rice where the grains have been fractured during the milling process - to fatten hogs and other animals, traders and analysts said.
Rice typically trades at a steep premium to wheat, but wheat's blistering 50% price surge from a month ago has sharply cut the difference between the two grains, and even made wheat more expensive than some lower grades of rice.
Benchmark food-grade rice from Thai exporters made its biggest weekly gain since October 2020 last week on the back of firmer food and feed demand, climbing 5% to around $421.50 a tonne.
That's the highest since last June, and sources say prices may keep rising if the disruption to Black Sea flows persists. Export prices from Vietnam and India have also climbed.
'There could be greater interest in broken rice for animal feed if the strength currently dominating wheat and corn markets persists,' said Rome-based FAO rice economist Shirley Mustafa.
'It is not just animal feed, there could also be a substitution in other use sectors, such as more people turning to rice for their meals.'
CORN CUT
China had booked up to two million tonnes of Ukrainian corn imports for this year, but most of those shipments are now in jeopardy given the disruption to Ukraine's logistics chains.
To replace those lost volumes, China is expected to import around three million tonnes of broken rice, up from about two million tonnes annually in the past two years, said a Beijing-based rice trader.
One importer in Guangdong is looking to buy broken rice from Thailand, while others have recently bought Indian broken rice for feed, according to another source briefed on the matter.
'Demand for Indian broken rice has gone up because of higher corn prices. Feed makers are trying to replace corn with rice,' B.V. Krishna Rao, president of India's Rice Exporters Association, told Reuters.
Prices of 100% Indian broken rice have moved up to $320 per tonne this month from $290 in February, he added.
Further underpinning rice prices, feed makers in Thailand are also looking at using more broken rice to replace corn, pushing up domestic prices across the country, said Bangkok-based traders.
'There is tremendous increase in demand for lower quality rice from Thailand's animal feed industry,' said one trader in Bangkok. 'In fact, much of Thailand's broken rice is likely to be consumed in the domestic market.'
FOOD FEARS
Global rice prices could rise further in the second quarter if wheat consumers in India - the second largest rice user after China - switch to rice due to record high domestic wheat prices , which would accelerate any decline in rice inventories, said Chookiat Ophaswongse, honorary president of Thai Rice Exporters Association.
While global rice inventories are set to hit a record 190 million tonnes this year, according to the U.S. Department of Agriculture, global rice output is expected to exceed world consumption by less than 5 million tonnes in 2022, so a sudden climb in worldwide demand could quickly start to deplete those inventories and reinforce bullish sentiment in the market.
In turn, an increase in rice prices will intensify food security worries for some of the poorest nations in Africa and Asia, where millions rely on cheap availability of the staple.
'As of now, broken rice is mainly for the feed sector, but as the war gets prolonged and buyers are not able to get hold of adequate wheat, then it comes to food security,' said one Singapore-based grains trader.
'Buyers will do whatever they can to replace expensive wheat with rice or other alternatives.'
reuters
Archive