11th february,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com

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Daily Exclusive ORYZA Rice

Newsletter

Volume 5, Issue I

February 11, 2015


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Indonesia Develops Superior Rice Seedlings

Using Nuclear Technology

Feb 11, 2015

Indonesia's National Atomic Energy Agency (BATAN) has developed two varieties of rice

seedlings, which can withstand pests and

yield about 10.5 tons per hectare, using

nuclear technology, according to local

sources. BATAN is planning to release one

of the two varieties, Tropiko, once they get

an approval from the Agriculture Ministry.

The Head of the BATAN Radiation and

Isotopic Application Center told local

sources that since Tropiko has been

developed using different applications of

nuclear technology such as gamma rays

and electron radiation, huge volumes of seedlings can be grown compared to traditional methods

of growing seedlings.

He added that Tropiko can meet up to 10% of the national rice seedling demand.Some farmers

who demonstrated Tropiko noted that the Tropiko seedlings grew faster than usual and had

strong roots with a survival rate of 95%.BATAN developed 17 superior rice seedlings from 1982

to 2014.The Indonesian government is keen on achieving self-sufficiency in rice production and

ending rice imports within the next two years. In line with its targets, the government is planning

to rehabilitate around one million hectares of tertiary irrigation channels for paddy production

and distribute 25,000 tons of subsidized seeds and subsidized fertilizer for around one million

hectares of paddy fields.

The government has allocated around Rp 2 trillion ($163.8 million) for the purpose. Last year,

Indonesia imported 425,000 tons of rice from Thailand and Vietnam.USDA estimates Indonesia

to produce around 36.5 million tons of rice, basis milled (around 57.48 million tons, basis

paddy), and import around 1.3 million tons of rice in MY 2014-15 (January 2014 - December

2014. Consumption in 2015 is estimated at around 39.2 million tons.


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Brazil Paddy Rice Index Declines 1% from

Last Week

Feb 10, 2015

The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied

Economics (CEPEA) reached around 38.07 real per 50 kilograms as of February 09, 2015, down

about 1% from around 38.43 real per 50 kilograms recorded on February 02, 2015.In terms of

USD per ton, the index reached around $273 per ton on February 09, 2015, down about 4.8%

from around $286.9 per ton recorded on February 02, 2015

Global Rice Quotes


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February 11th, 2015

Long grain white rice - high quality

Thailand 100% B grade 415-425 ↔

Vietnam 5% broken 350-360 ↔

India 5% broken 395-405 ↔

Pakistan 5% broken 345-355 ↔

Myanmar 5% broken 410-420 ↔

Cambodia 5% broken 425-435 ↔

U.S. 4% broken 495-505 ↔

Uruguay 5% broken NQ ↔

Argentina 5% broken NQ ↔

Long grain white rice - low quality

Thailand 25% broken 365-375 ↔


Pakistan 25% broken 305-315 ↓

Cambodia 25% broken 410-420 ↔

India 25% broken 360-370 ↔

U.S. 15% broken 485-495 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 405-415 ↔

Pakistan parboiled 5% broken stxd 385-395 ↓

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 fragrant rice

Thailand Hommali 92% 920-930 ↓

Vietnam Jasmine 445-455 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 785-795 ↔

Brokens

Thailand A1 Super 320-330 ↔


Pakistan 100% broken stxd 275-285 ↓

Cambodia A1 Super 335-345 ↔

India 100% broken stxd 295-305 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 405-415 ↔

Brazil half grain NQ ↔


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

Italy Needs General National Paddy Pricing

System, Says Antitrust Agency

Feb 10, 2015

Italy's National Antitrust Agency, which is

responsible for market liberalization in the

country, has urged the Ente Nazionale Risi

(ENR), the National Agency for Rice, to

formulate common paddy pricing rules as the

current paddy pricing system does not provide

balanced pricing acceptable to both farmers and

millers, according to local sources.

In a document on rice growing sector, the agency noted that the current paddy pricing system is

controlled by selected millers' commissions and sets prices favorable to them and is damaging

the interests of rice growers. The agency reportedly drafted the document after taking into

account the prevailing prices in the main rice growing regions of Novara, Vercelli, Pavia,

Mortara and Milan. It found that paddy rice prices have been varying across different regions and

has recognized the need for a general telematic quotation system to help generate a common

national price thereby reducing the influence of millers on the pricing system.

The draft also noted that rice growers have been preferring a common national price in order to

attain a balanced presence of the farming and milling sectors.However, the General Manager of

the ENR denied the role of some millers in setting the paddy prices and the Board of Directors

act independently in this regard. He reiterated that the ENR always ensures a balance between

the farming and milling sector and no sector is allowed to prevail on the pricing aspects.

Oryza Overnight Recap - Chicago Rough

Rice Futures Slightly Lower Overnight as

Market Awaits Release of USDA S&D Report


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Feb 10, 2015

Chicago rough rice futures for Mar delivery are currently listed 3.5 cents per cwt (about $1 per

ton) lower at $10.560 per cwt (about $229 per ton) during early floor trading in Chicago. The

other grains are seen trading mostly lower ahead of today’s release of the latest USDA S&D

update: soybeans are currently seen about 0.3% lower, wheat is listed about 0.7% lower and corn

is currently noted about 0.4% lower.U.S. stock index futures signaled a higher open on Tuesday,

as negotiations over Greece's bailout program continue to keep investors cautious.

Rumors of a possible six-month extension for Greece briefly sent futures to session highs.

Concerns over the Greek debt negotiations continue to weigh on market sentiment. Speaking

from Washington, German Chancellor Angela Merkel said she was looking for a "viable

recommendation" from Greece on Monday, after Prime Minister Alexis Tsipras reiterated his

pledge to end Greece's current bailout Sunday. The bodies making sure Greece sticks to the

bailout's rules —the troika of the European Central Bank, International Monetary Fund and

European Commission – have said Greece will not receive a final tranche of aid under the

current bailout plan.

The ECB has also refused Greece's request for a bridging loan to tide it over once its bailout

officially ends February 28. European equities were mixed on Tuesday as the impasse between

Greece and its international creditors continues. The week continues with a fairly light data

schedule Tuesday, when wholesale inventories figures for December are due at 10:00 am ET.

JOLTS job opening data for December, also released at 10:00 am ET, may be of interest in the

context of last week's robust labor market data. US stock index futures are currently noted about

0.7% higher. Gold is currently trading about 0.3% lower, crude oil is seen trading about 1.1%

lower, and the U.S. dollar is currently trading about 0.3% higher at 8:30am Chicago time.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Continue Lower as Tumbling

Crude Weighs on US Grain Prices and USDA

S&D Provides Little in Way of Support

Feb 10, 2015

Chicago rough rice futures for Mar delivery settled 20 cents per cwt (about $4 per ton) lower at

$10.235 per cwt (about $226 per ton). Rough rice futures suffered another round of selling as the

USDA S&D update did little to provide support to prices and was more or less seen as a non-


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even by market participants. Although the net effect on all rice ending stocks was a 1m cwt

increase, long-grain stocks were lowered by 1m cwt thanks solely to an increase in estimated

exports for the product. Despite the release of what was seen as a neutral report, prices charted

another leg lower as outside markets weighed down on prices and as technical indicators

continue to forecast lower prices.

Some analysts are calling for a testing of the spike low of $10.010 per cwt (about $221 per ton)

in coming sessions. The other grains finished the day lower as the USDA S&D update was seen

as bearish to neutral and as a fresh round of crude selling exerted downward pressure on grain

prices; Soybeans closed about 1% lower at $9.6900 per bushel; wheat finished about 1.5% lower

at $5.2175 per bushel, and corn finished the day about 0.8% lower at $3.8800 per bushel.U.S.

stocks traded higher on Tuesday despite renewed uncertainty in developments in the Greece-euro

zone standoff.

The Dow Jones Industrial Average recovered to trade more than 100 points higher after falling to

single-digit gains on Tuesday morning reports that said the German Finance Minister would not

agree to a new Greek debt program on Wednesday. Investors are watching closely for a possible

Greek debt deal when the euro group of finance ministers meets in Brussels on Wednesday

where Greece's Finance Minister Yanis Varoufakis is expected to detail new reform proposals.

Futures touched session highs on speculation that the European Commission could be ready to

table a compromise on Greece's bailout program and propose a six-month extension to the

country's bailout which is due to end on February 28. The Athens stock exchange was trading up

about 8% on Tuesday.

The Dow Jones Industrial Average traded up 76 points, or 0.46%, to 17,805. The S&P 500

gained about 13 points, or 0.63%, to 2,059, with health care leading all sectors higher except

energy. The Nasdaq gained 42 points, or 0.91%, to 4,768. Gold is trading about 0.8% lower,

crude oil is seen trading about 4.8% lower, and the U.S. dollar is seen trading about 0.3% higher

at about 1:00pm Chicago time.Monday, there were 795 contracts traded, down from 1,055

contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday

increased by 144 contracts to 10,546.

Oryza U.S. Rough Rice Recap - Prices Fall

despite Decreasing Ending Stocks

Feb 10, 2015


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The U.S. cash market was weaker today despite a slightly neutral to bullish WASDE report as

selling interest continues to mount amid limited buy interest.Today’s USDA WASDE report

showed a 1.0 million cwt (45,359 tons) increase in U.S. long grain exports which in turn

decreased U.S. long grain ending stocks by the same amount, putting their 2014/2015 carry over

projection at 28.1 million cwts (1,274,596 tons).

Public Invited to Try GM Rice to Prove It's

Safe

Feb 10, 2015

A science website in China had organized an event on Sunday, February 8, 2015, to promote the

safety of genetically modified (GM) rice amid concerns that it is harmful to humans and the

environment.As part of the event hundreds of people were invited to taste GM rice in restaurants

in 23 cities across the country. The idea behind this campaign is remove certain misconceptions

among the public over the GM rice.The restaurants reportedly used the rice grown from the

genetically modified Bt 63 strain developed by the Huazhong Agricultural University in Wuhan,

Hubei province. The Bacillus thuringiensis gene embedded in the plant is known to produce a

natural pesticide that protects the plant.

Safety certificates for Bt 63 and Huahui 1 were renewed in January for another four year from

the bio safety committee of the Agriculture Ministry. However, the Ministry has not given its

nod for commercial production of these varieties.Last month, the Communist Party of China

Central Committee reportedly noted that China "will strengthen research and manage the safety

of GM foods."The Deputy Director of Central Rural Work Leading Group, noted that the science

has proved the safety of GM rice, it is the turn of the public to trust the science.

Philippines to Decide Over Rice Import

Volume on February 13, 2015

Feb 10, 2015

The National Food Authority (NFA) Council is likely to decide over this year's rice importation

volume on February 13, 2014, Business World quoted the Presidential Assistant for Food

Security and Agricultural Modernization as saying.The NFA planned to import rice this year also

to ensure adequate stocks in the lean season (June – August).

However, the Presidential Assistant, who is also the NFA Council Chairman, did not specify the

actual volume of rice that the NFA will import but noted that the NFA is authorized to import


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500,000 tons of rice in government-to-government (G2G) deals from Thailand, Vietnam and

Cambodia, with whom the Philippines has import agreements.

He noted that revealing the figure would impact prices as

Philippines is a major importer of rice.He noted that the

actual import figure will depend on the last harvest volume

and the current supply. The Philippines imported more than

1.8 million tons of rice (including 1.5 million tons of 2014

imports and 300,000 tons of 2013 residual imports) in 2014

to replenish rice stocks and control price hikes.

Turkey to Reduce VAT on Milled Rice to 1%

to Control Price Hikes, Says USDA Post

Feb 10, 2015

The government of Turkey has announced on December 9, 2014 that it would reduced the value

added tax (VAT) on milled rice to 1% from the existing 8% and make it equal with the VAT on


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paddy rice, according to the USDA Post. However, the Post reports that the government has so

far not announced the effective date. The tax reduction is expected to discourage unregistered

millers from undertaking milling activities as well as reduce retail prices.The Post reports that

Turkish millers and retailers have been facing problems due to high taxes.

Also declining consumption levels in recent times are have been leading to lesser sales and have

been forcing millers to operate below their capacities resulting in substantial production

inefficiencies.Turkey produces only 60% of total annual consumption and imports the rest.

USDA Post has estimated Turkey's rice imports at around 300,000 tons in MY 2014-15

(September - August), down about 12% from an estimated 341,000 tons imported in the previous

year. According to data from the Turkish Grain Board (TMO), Turkey imported around 413,932

tons of rice in MY 2013-14. The U.S. was the top exporter to Turkey with around 172,872 tons

followed by India with 67,338 tons.

The Post reports the TMO has not procured any domestic rice since 2013, but has imported

35,000 tons of paddy rice and 33,000 tons of milled rice in 2013. The TMO has opened rice sales

in the retail market in 2014 to control price hikes. As prices of most popular variety Osmancik

again plummeted in January 2015 to around 3,50 TL/ton (around $1,281 per ton) from around

2,300 TL/ton (around $1,161 per ton) in October 2014, the TMO has already imported around

8,000 tons of milled rice and 40,000 tons of paddy in 2015. Prices of imported rice, especially

Calrose rice, have increased to around $1,300 per ton due to high prices in California.

Vietnam Rice Sellers Lower Some of Their

Quotes Today; Other Asia Rice Quotes

Unchanged

Feb 10, 2015

Vietnam rice sellers lowered their quotes for Jasmine rice by about $5 per ton to around $445 -

$455 per ton today. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is quoted at around $405 - $415 per ton, about $55 per ton premium on

Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is quoted at around $395 -

$405 per ton, about $50 per ton premium on Pakistan 5% rice quoted at around $345 - $355 per

ton.


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25% Broken Rice

Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on

Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $360

- $370, about $50 per ton premium on Pakistan 25% rice quoted at around $310 - $320 per ton.

Parboiled Rice

Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at

around $390 - $400 per ton, about $5 per ton discount to Pakistan parboiled rice quoted at around

$395 - $405 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $15 per ton

premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100%

broken rice is shown at around $295 - $305 per ton, about $5 per ton premium on Pakistan

broken sortexed rice quoted at around $290 - $300 per ton.

Vietnam Rice Exports to Africa Decline

Sharply in 2014


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Feb 10, 2015

Vietnam has exported around 6.32 million tons of rice in 2014, down about 5% from around 6.63

million tons exported in 2013, according to USDA. While Vietnam's share of rice exports to

Asian and Australian destinations increased, its share to African, European and American

destinations declined.

Asia accounted for around 4.92 million tons (about 78% of Vietnam's total 2014 rice exports),

down about 20% from around 4.09 million tons exported in 2013. Vietnam exported around

772,537 tons of rice to Africa (about 12% of Vietnam's total 2014 rice exports), down about

57% from around 1.8 million tons exported in 2013. The decline is mainly due to the outbreak of

Ebola Virus Disease (EVD) in West African nations such as Guinea, Sierra Leone and Liberia;

and the decline in oil prices, which has led to decline in export revenues of major rice importing

countries such as Nigeria.

Vietnam exported around 438,197 tons of rice to American destinations (about 7% of Vietnam's

total 2014 rice exports), down about 9% from around 480,033 tons exported in 2013. Vietnam's

rice exports to Australia increased about 2.5 times to around 52,960 tons (about 1% of

Vietnam's total 2014 rice exports) from around 20,776 tons exported in 2013. Vietnam's exports

to Europe and CIS countries accounted for around 26,158 tons (about 2% of Vietnam's total

2014 rice exports), down about 33% from around 206,568 tons exported in 2013.

In December 2014, Vietnam has exported around 366,130 tons of rice, down about 26% from

around 495,457 tons exported in November 2014, and down about 31% from around 526,995

tons exported in December 2013, according to USDA. Month-on-month, Vietnam's rice exports

to Asia declined about 36% to around 247,999 tons; exports to Africa increased about 6% to

around 76,888 tons; exports to Europe and CIS countries declined about 88% to around 3,164

tons; exports to Americas increased about 6.6 times to around 31,684 tons; and exports to

Australia increased about 3 times to around 6,395 tons.

West African Rice Farmers and Millers to

Receive Support Under CARI Initiative

Feb 10, 2015


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About 120,000 small scale rice farmers,

millers and rural service providers from

Nigeria, Burkina Faso, Ghana and Tanzania

will receive support under the Competitive

African Rice Initiative (CARI) initiative,

according to local sources.Bill and Melinda

Gates (BMGF) and the German Development

Cooperation (BMZ) have provided a $3.3

million grant under their CARI initiative to

help rice farmers, millers and other stakeholders increase the quality rice production in the

region.According to the CARI coordinator, they aim to encourage effective coordination and

linkages between the rice value chain actors to ensure quality rice supply as well as better returns

to all the stakeholders. The initiative also aims to provide employment to rural farmers and youth

as well as provide food security. Eventually, the initiative aims to reduce imports in these

countries.

She noted that the CARI would seek support of local private sector to implement the projects.

While the CARI would provide 40% of the funds from the current grant, remaining 60% would

be provided by the local private sectors in the respective countries.The Economic Community of

West African States (ECOWAS) Commissioner for Agriculture also emphasized the need for

building sustainable rice value chains with access to requisite finance, modern technology and

knowledge to help these countries achieve self-sufficiency in rice production

South Korea Buys 35,000 Tons of Rice in

International Tender; Passes On Tender for

5,000 Tons

Feb 10, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased

35,000 tons of non-glutinous rice for delivery between April and June, according to a statement

on its website.KAFTC purchased 15,000 tons of brown long non-glutinous rice of Vietnamese

origin at about $442 per ton (CIP) and for delivery by April 30, 2015; 15,000 tons of brown long

non-glutinous rice of Vietnamese origin at about $449.60 per ton (CIP) and for delivery by June


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30, 2015; and 5,000 tons of brown medium non-glutinous rice of the U.S. origin at about $786

per ton (CIP) and for delivery by May 31, 2015.

The agency originally sought to buy 40,000 ton of non-glutinous rice in four tenders, that closed

on January 27, 2015. But it passed on the tender for 5,000 tons of brown short non-glutinous rice

for delivery by April 30, 2015 as the offers failed to meet specifications and price standards. It is

not clear if the KAFTC would reissue the tender.

USDA Post Estimates Bangladesh to Import

700,000 Tons of Rice in 2014-15; Down 7%

from Last Year

Feb 10, 2015

USDA Post has estimated Bangladesh to import around 700,000 tons of rice in MY 2014-15

(May - April), down about 7% from an estimated 751,000 tons imported in MY 2013-14, and up

about 40% from USDA's official estimates of around 500,000 tons based on the current import

pace. Imports in 2013-14 (mostly by private sector) are said to have increased due to competitive

Indian as well as global rice prices.

According to official media sources, the government of Bangladesh agreed to export 50,000 tons

of coarse tons to Sri Lanka. But the Post reports that it is not clear if an agreement has been

finalized and according to Sri Lankan customs data, no imports are known to have arrived at any

of the ports.

The Post has estimated Bangladesh's 2014-15 milled rice production at around 34.5 million tons,

slightly up from an estimated 34.39, and slightly down from USDA's official estimates of around

34.6 million tons. The Post reports that the ongoing blockades have led to an increase in the

prices fertilizer, fuel and other input costs and have disrupted the rice supply chain in many

cities.

The government has planned to procure around 1.4 million tons of paddy and 200,000 tons of

milled rice in 2014-15. According to official media sources, the government's procurement of

Aman rice from began on November 15, 2014 and will continue till February 28, 2015. The

government is expected to procure about 300,000 tons from the Aman crop at around Tk 32 per

kilogram (around $386 per ton) for husked rice and around Tk 20 (around $257 per ton) for

unhusked rice.


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Last month Post reported that prices of coarse rice have been falling since October 2014 due to

excess supplies from Aman harvest. It says it is unclear if the blockades would further push

down prices in the near future.

11th february,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Documents

tons of rice

rice production

rice imports

superior rice seedlings

varieties of rice seedlings

global rice quotes

brazilian paddy rice

national rice seedling