23rd january,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Global Rice Quotes

January 22nd, 2015

Long grain white rice - low quality

India 25% broken 360-370 ↔

Daily ORYZA Rice E-Newsletter www.ricepluss.com

January 23, 2015 Volume 5, Issue I

U.S. 15% broken 485-495 ↓

Thailand 25% broken NQ ↔

Vietnam 25% broken 340-350 ↔

Pakistan 25% broken 320-330 ↔

Cambodia 25% broken 430-440 ↔

Brokens

Cambodia A1 Super 355-365 ↔

India 100% broken stxd 300-310 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 405-415 ↔

Brazil half grain NQ ↔

Thailand A1 Super 320-330 ↔

Vietnam 100% broken 315-325 ↔

Pakistan 100% broken stxd 290-300 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 405-415 ↔

Pakistan parboiled 5% broken stxd 400-410 ↔

India parboiled 5% broken stxd 390-400 ↔

U.S. parboiled 4% broken 550-560 ↓

Brazil parboiled 5% broken 570-580 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain white rice - high quality

Thailand 100% B grade 415-425 ↔

Vietnam 5% broken 365-375 ↔

India 5% broken 395-405 ↔

Pakistan 5% broken 360-370 ↔

Cambodia 5% broken 440-450 ↔

U.S. 4% broken 495-505 ↓

Uruguay 5% broken NQ ↔

Argentina 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 920-930 ↔

Vietnam Jasmine 500-510 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 805-815 ↔

All prices USD per ton, FOB vessel, oryza.com

India Government Receives

Recommendations for FCI Restructuring

Jan 22, 2015

The High Level Committee set up the Government of India to look into the present structure and

operational aspects of the Food Corporation of India (FCI) and make necessary

recommendations has today submitted its recommendations to the Prime Minister, according to a

press release by the Ministry of Consumer Affairs, Food & Public Distribution. The government

is keen on making the food grain procurement and management more efficient by streamlining

the role of FCI in procurement, storage and distribution of grains under Targeted Public

Distribution System (TPDS). The Committee recommends that the FCI hand over all

procurement operations of paddy, rice and wheat to states, including Andhra Pradesh,

Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab, that have requisite infrastructure;

and focus on procurement in states such as Eastern Uttar Pradesh, Bihar, West Bengal, Assam,

where farmers suffer from distress sales.

It also suggested that surplus in any state should be moved to deficit states.It suggested the

Centre to enter into agreement with states before every procurement season regarding costing

norms and procurement rules, including bonus over minimum support price (MSP) and statutory

levies and commissions. It recommends to remove levy rice procurement. The Committee also

recommended the government to relook at the commitments and implementation of the National

Food Security Act (NFSA).It recommends to set up Negotiable Warehouse Receipt System

(NWRs) on a priority basis. The system allows farmers to deposit their output with registered

warehouses and get 80% advance from banks against their output valued at MSP, and later sell at

prices agreeable to them. It also suggested the government to reframe the basis for MSP

formulation.

It suggested the FCI to outsource stocking operations through competitive bidding process to

create competition and bring down costs. It recommended proper liquidation process for the

buffer stocks of the FCI as well as proper streamlining of worker policies, including the number

of permanent and contract workers and their pay.The Committee recommended that the

government provide direct cash subsidies to farmers rather than subsidies on fertilizers in order

to help them deal with cash crunches. Finally, it recommended a total computerization of all FCI

operations for effective implementation of policies and monitoring for any deviations.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Slide as Dollar Strength

Punishes US Grain Prices

Jan 22, 2015

Chicago rough rice futures for Mar delivery settled 21 cents per cwt (about $5 per ton) lower at

$11.160 per cwt (about $247 per ton). Rough rice futures erased gains earned yesterday and once

again confirming a bearish tilt to the market. Prices are now within 10 cents per cwt (about $2

per ton) of the contract low of $11.060 per cwt (about $244 per ton), and appear prepared to

ultimately test the psychologically significant $11.000 per cwt (about $243 per ton) level.

Rice futures felt downward pressure from the other grains as announcements made by the ECB

pulled the Euro lower and strengthened the USD, making US grain exports effectively more

expensive; Soybeans closed about 0.7% lower at $9.7775 per bushel; wheat finished about 0.6%

lower at $5.3475 per bushel, and corn finished the day about 1.1% lower at $3.8475 per

bushel.U.S. stocks climbed on Thursday, extending gains into a fourth session, after the

European Central Bank unfurled expanded stimulus. ECB President Mario Draghi said the

central bank would make monthly bond purchases of as much as $70 billion starting in March,

and running through September of next year.

Draghi's announcement came after the ECB held benchmark rates unchanged at record lows.

After falling 71 points and jumping 155, the Dow Jones Industrial Average was lately up 150.72

points, or 0.9 percent, at 17,705.00. The S&P 500 gained 17.82 points, or 0.9%, to 2,049.94, with

financials leading sector gains and telecom faring the most poorly among its 10 major industries.

The Nasdaq rose 45.81 points, or 1%, to 4,713.24. Gold is trading about 0.6% higher, crude oil is

seen trading about 3.8% lower, and the U.S. dollar is seen trading about 1.2% higher at

about 1:00pm Chicago time.Wednesday, there were 240 contracts traded, down from 312

contracts traded on Tuesday. Open interest – the number of contracts outstanding – on

Wednesday increased by 49 contracts to 8,756.

Oryza U.S. Rough Rice Recap - Prices

Continue Downward Slide amid Limited

Trade Interest

Jan 22, 2015

The U.S. cash market fell today in tandem with the futures market as bids and offers dropped in

lock step; as a result there were no trades to report.Buyers remain hand-to-mouth and are

showing very little interest inland or on the river while most sellers are still hopeful that prices

will recover, especially if the U.S. snags some of the Iraqi Grain Board business.In the

meantime, USDA export sales data will be reported tomorrow instead of today due to the Martin

Luther King, Jr., Holiday on Monday.

Former Thai Premier Impeached in Rice

Case; Faces Criminal Charge

Jan 22, 2015

Thailand's National Legislative Assembly

(NLA) members have voted to impeach the

former Prime Minister (PM) Yingluck

Shinawatra for encouraging corruption in

the controversial rice pledging scheme

introduced by her government in October

2011, according to Reuters. The

government offered to pay 50% above

market prices under the scheme, which

brought losses of about 518 billion baht

(around $16 billion) to the

exchequer.While the decision required

three-fifths of majority , 190 of 220 members voted to impeach the former PM, eighteen voted against her

impeachment and twelve abstained from voting.

The decision of impeachment bans her from politics for five years. Just hours before

impeachment voting, the Office of the Attorney General (OAG) announced that it will file

criminal charge against the former PM for her role in the corruption-plagued rice-pledging

scheme. The Director-General of the OAG's Litigation Department told local sources that the

Attorney General has agreed to prosecute the ex-Premier for her negligence to honour the

NACC's suggestions to halt the program after finding irregularities in it.

The OAG has announced its intention to present Ms.Yingluck before the Supreme Court's

Criminal Division for Political Office Holders. She could face a jail term up to ten years if found

guilty. The former PM also defended herself and the rice pledging scheme twice before the NLA.

Meanwhile, the Thai Prime Minister clarified that he hadn’t influenced any NLA member before

voting. However, Yingluck's supporters blame the NLA for being biased and politically aligned

with the interests of the military coup. The military government has reportedly taken necessary

actions to control protests from Yingluck’s supporters.

IFAD Warns of Acute Food Crisis in Ebola

Affected Countries

Jan 22, 2015

The UN's International Fund for

Agriculture Development (IFAD) has

warned of acute food shortages in

Ebola affected countries such as

Guinea, Liberia and Sierra Leone as

farmers have been abandoning their

agricultural fields fearing spread of the

virus, according to local

sources.Quarantine measures taken by

the respective governments have led to

restricted movements by people and

there by severe shortages of labor.

Due to this large parts of rice fields have been left unharvested in all the three countries.

Agricultural lands growing vegetables and other crops have also been left abandoned in many

areas.These developments have led to a huge increase in the retail prices of rice and other

commodities in the local markets. The Food and Agricultural Organization (FAO) data also

shows that prices of food, including rice, have increased on average from 30% to 75% in the

virus affected regions. The IFAD noted that if the situation continues for a long, time, the virus

affected regions will have to face acute food shortages.Since agriculture accounts for about 20-

40% of gross domestic product (GDP) of the three countries, the IFAD is urging the respective

governments to build food stockpiles to be able to provide food assistance as and when needed.

He noted that the countries should try to increase production in non-affected areas to compensate

for the shortfall. According to the FAO, about $30 million would be needed to provide food

relief to about 90,000 households in the three countries.

Thai Rice Losses Estimated to Cross $21

Billion

Jan 22, 2015

Losses from rice subsidy/pledging schemes between 2004 and 2014 are estimated to cross the

earlier estimations of around $682 billion baht (around $21 billion) if depreciation and missing

rice stocks are also considered, local sources quoted the Finance Permanent Secretary as saying.

The Finance Secretary noted that Subcommittee overseeing accounting affairs of all subsidy

schemes had not taken into account depreciation of rice stocks as well as missing stocks from

warehouses while estimating losses from 11 subsidy schemes covering 15 harvests from 2004-

14. Earlier, the Thai Finance Ministry had estimated that losses from the rice pledging scheme

introduced by the previous government alone account to about 518 billion baht (around $15.8

billion).

The Finance Ministry had issued long-term bonds with three to ten years maturity in the

beginning of this year to clear the debts associated with the rice pledging schemes.According to

the rice stock audit report, of the 17.8 million tons of rice with the government, only about 2.35

million tons are of standard quality, about 14.4 million tons are of sub-standard quality, around

694,000 tons of rice are rotten and the remaining 390,000 tons of rice are missing.

The government is keen on selling the 17 million tons of rice stocks within the next two years. It

already sold around 681,740 tons of rice in four tenders last year after the military government

took over on May 22, 2014. The Commerce Ministry is planning to sell around one million tons

of rice in a tender on January 29, 2015.Thailand exported around 10.8 million tons of rice in

2014, up about 64% from around 6.6 million tons in 2013.

Thai Government Assures Transparency in

Future G2G Rice Deals

Jan 22, 2015

The Thailand government would maintain transparency in all future government-to-government

(G2G) contracts following misdealings that occurred in entering into G2G contracts during the

Yingluck-led government, local sources quoted the Thai Commerce Minister as saying.He told

local sources that the government is striving to ensure that all upcoming G2G contracts would be

conducted legally to provide maximum benefit to the State.

He noted that currently, the military government, which took charge on May 22, 2014, has

finalized G2G contracts with China for exporting 1 million tons of rice. The government has to

finalize G2G contracts for another 2 million tons with China and 200,000 tons with Malaysia,

according to local sources.The Commerce Minister has urged the Department of Foreign Trade

and the Trade Negotiations Department to finalize the pending G2G contracts as soon as

possible.The government is keen on selling the 17.8 million tons of rice in its warehouses within

the next two years while ensuring that there is no downward pressure on prices