15th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

www.ricepluss.com www.riceplusmagazine.blogspot.com [email protected]

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Daily Exclusive ORYZA

Rice E-Newsletter

April 15,2016 Vol 7,Issue IV


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Cuba Hopes to Import Arkansas Rice; Looks

Forward to Removal of U.S. Trade Embargo

Apr 14, 2016

Cuba is keen on importing rice from the U.S. state of Arkansas, but is looking forward to the

U.S. government to lift the trade embargo with the Caribbean nation, according to a news release

by the University of Arkansas citing a Cuban diplomat.

One of the officials of a Cuban delegates, who visited the University of Arkansas System

Division of Agriculture officials, that the trade embargo is constricting rice imports from

Arkansas.

"Rice produced in Arkansas has a long grain variety that is a favorite of the Cuban country. We

are ready to import this variety from Arkansas. The only problem we have is according to the

restriction that's still in place by the Congress, the so-called embargo, trade between Arkansas

and Cuba cannot be supported by commercial credits," said the Deputy Chief of Mission at the

Cuban Embassy in Washington.

Currently, under the embargo provisions, Cuba must pay cash to import American products.

However, the official noted that commercial credits are necessary to support high levels of

international trade. "We really need the support of Arkansas companies to put away all these

restrictions and to start with no more trade conditions, an important change for important

commerce between Arkansas and Cuba," he added.

Recently, the U.S. agreed to ease the existing financing and banking restrictions with Cuba

allowing for the revival of rice and other agricultural trade with the Caribbean nation.

Cuba imports about 50% of its annual rice consumption needs. USDA estimates Cuba to produce

around 395,000 tons of milled rice and import around 500,000 tons of rice in MY 2015-16 (July

- June) to meet a consumption demand of around 895,000 tons. Cuba currently imports rice from

Brazil, India and Thailand. Cuba's rice production in 2016 is likely to fall significantly due to on-

going drought conditions.


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3 EU Imports 747,104 Tons of Rice in

September 1, 2015 - April 5, 2016; Up 15%

from Previous Year

Apr 14, 2016

According to the latest data issued by the European Union (EU), rice imports by the EU nations

increased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31,

2016).

The EU imported about 747,104 tons of rice during the period September 1, 2015 - April 5,

2016, up about 15% from around 648,098 tons imported during the same period last year.

Japonica rice imports increased about 4% to around 57,197 tons in September 1, 2015 - April 5,

2016 period from around 54,923 tons during the same period last year. Indica rice imports

increased about 16% to around 689,907 tons during the said period from around 593,175 tons

last year.


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The UK remained the largest importer in September 1, 2015 - April 5, 2016 period with around

167,857 tons followed by France (126,304 tons), The Netherlands (87,161 tons), Germany

(58,724 tons), Poland (55,807 tons) and Italy (54,525 tons). Other EU countries imported

196,726 tons.

During the week ended April 5, 2016, the EU imported around 29,670 tons of rice, up about 69%

from around 15,763 tons imported during the week ended March 29, 2015.

The EU imported around 1.143 million tons of rice in the crop year 2014-15, up about 12.7%

from around 1.013 million tons imported in the crop year 2013-14.

EU Exports 135,740 Tons of Rice in

September 1, 2015 - April 5, 2016; Down 16%

from Previous Year

Apr 14, 2016


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According to the latest export data issued by the European Union (EU) for the crop year 2015-16

(September 1, 2015 - August 31, 2016), the EU exported about 135,740 tons of rice during the

period September 1, 2015 - April 5, 2016, down about 16% from around 160,655 tons exported

during the same period last year.

Japonica rice exports declined about 18% to around 113,271 tons in September 1, 2015 - April 5,

2016 period from around 138,272 tons during the same period last year. Indica rice exports

increased slightly to around 22,469 tons during the said period from around 22,383 tons last year.

Italy remained the largest exporter in September 1, 2015 - April 5, 2016 period with around

72,024 tons followed by Spain (17,990 tons), Greece (16,507 tons), and Portugal (10,114 tons).

Other EU countries imported 19,105 tons.During the week ended April 5, 2016, the EU exported

around 6,188 tons of rice, about twice from around 6,188 tons exported during the week ended

March 29, 2016.

EU Exports 135,740 Tons of Rice in

September 1, 2015 - April 5, 2016; Down

16% from Previous Year

Apr 14, 2016

According to the latest export data issued

by the European Union (EU) for the crop

year 2015-16 (September 1, 2015 -

August 31, 2016), the EU exported about

135,740 tons of rice during the period

September 1, 2015 - April 5, 2016, down

about 16% from around 160,655 tons

exported during the same period last

year.Japonica rice exports declined about

18% to around 113,271 tons in

September 1, 2015 - April 5, 2016 period

from around 138,272 tons during the

same period last year. Indica rice exports

increased slightly to around 22,469 tons during the said period from around 22,383 tons last

year.Italy remained the largest exporter in September 1, 2015 - April 5, 2016 period with around

72,024 tons followed by Spain (17,990 tons), Greece (16,507 tons), and Portugal (10,114 tons).

Other EU countries imported 19,105 tons.During the week ended April 5, 2016, the EU exported

around 6,188 tons of rice, about twice from around 6,188 tons exported during the week ended

March 29, 2016.


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6 USDA Post Forecasts Taiwan 2016 Rice

Imports at 126,000 Tons, Up 3% from

Previous Year

Apr 14, 2016

The USDA Post forecasts Taiwan 2016 milled rice imports at around 126,000 tons (around

144,720 tons brown equivalent), up about 3% from around 122,000 tons imported in 2015. It

forecasts 2017 rice imports to remain unchanged at 126,000 tons.

The Post reports all the imports are under the WTO TRQ with country specific quota (CSQ)

allocations, and Taiwan's rice TRQ is divided into two portions: 35% or 44,000 (50,652 tons

brown equivalent) is reserved for private sector imports and 65% or 82,000 (94,068 tons brown

equivalent) is set for public sector imports.

The quota for private sector imports is divided among three separate auctions. Bidding is

scheduled each year during the months of November, February, and April.

The quota for public sector imports is divided by both country of origin and tender type: SBS

and normal tender. SBS tendering is subject to a mark-up price (a floor price), and normal

tendering is subject to a pre-set ceiling price calculated on the basis of delivery and duty paid

(DDP) terms for delivery to designated Council of Agriculture (COA) warehouses.


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In its previous report, the Post reported that Taiwan has completed the 2016 U.S. rice

Simultaneous Buy and Sell (SBS) tender of 35,600 tons at the first scheduled held on February

18.Taiwan also completed the 2016 Thai SBS tender for 6,500 tons on the same day. This year,

Taiwan authorities held only one SBS tender of 2016 U.S. tariff rate quota (TRQ) rice imports

instead of the usual two tranches of SBS tenders. The SBS delivery term is between May 1, 2016

to April 30, 2017.

Based on Taiwan Custom's 2015 data, the Post reports that Taiwan imported 122,000 of rice on a

milled basis, of which the U.S. supplied 53,000 tons accounting for 43% share, followed by

Vietnam (27%), Thailand (21%), Australia (5%), Myanmar (2%) and other countries combined

2%.

The Post forecasts Taiwan's 2015-16 (January - December 2016) rice production at around 1.144

million tons, up from around 1.136 million tons last year due to an increase in acreage. Local

production caters to 90% of the annual rice consumption needs of around 1.23 million tons and

the remaining 10% is imported.

Government of China to Facilitate New GM

Crops in Thirteenth Five Year Plan

Apr 14, 2016

The government of China has decided to facilitate cultivation of new genetically modified (GM)

crops in the thirteenth five year plan (2016-2020), according to the Economic Times quoting a

senior official from the Chinese Agriculture Ministry.

The official informed a press conference on Wednesday that the five year plan will push forward

with the commercialization of anti-pest GM corn. He noted that the government will continue

research on GM rice and wheat over the next five years. However, he ruled out planting of GM

rice on an industrial scale in the short term.

Though China government supports cultivation of GM crops for ensuring food security in the

country, large-scale cultivation of GM crops remains sensitive as environmentalists and some

scientists have been warning against the technology's long-tern consequences for biodiversity

and human health.

Currently, only two GM crops - a type of cotton approved in 1996 and a virus resistant papaya

authorized in 2006 - are commercially cultivated in China. However, the government allows for

the import of GM soya, corn, cotton and rape to be used as ingredients in processed products.

According to official data, corn is the largest grown crop in China, followed by rice and wheat.


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The official also noted the government has decided to crackdown on illegal cultivation of GM

crops. "Sporadic illegal planting of (GM crops) does exist in some area and we will crack down

harshly on it," he said.

Oryza U.S. Rough Rice Recap - Prices Firm

after IGB Purchases 150,000 Tons

Apr 15, 2016

The U.S. cash market was materially firmer today after it was reported that the Iraqi Grain Board

purchased 90,000 tons from the U.S. and 60,000 tons from Uruguay.

Analysts note that this is a welcome shot-in-the-arm for the market and will likely help stabilize

prices; however, the market needs more rough rice exports if price increases are to be

sustainable.

In the meantime, the USDA reported that cumulative net export sales for the week that ended on

April 7 totaled 41,600 tons, a decrease of 54% from the previous week and 2% lower than the

prior 4-week average.

Increases were reported for the following destinations: 14,000 tons to Honduras, 10,600 tons to

Mexico, 7,400 tons to Canada, 3,000 tons to Costa Rica, and 2,600 tons to Guatemala.

U.S. rice exporters shipped 109,200 tons, an increase of 30% from last week and 53% higher

than the prior 4-week average.

Increases were reported for the following destinations: 32,600 tons to Mexico, 25,800 tons to

Colombia, 25,400 tons to Japan, 10,300 tons to Saudi Arabia, and 8,700 tons to Canada.

Philippines Stops Auction of Old Rice Stocks

to Avoid Price Falls During Harvest Time

Apr 14, 2016

The National Food Authority (NFA) of the Philippines has decided to stop the auction of the

remaining 3% of the 2014 imported rice stocks to avoid price falls during the harvest time,

according to Bloomberg.

"It would be unfair to our farmers for the NFA to unload stocks into the commercial market at

this time that they are selling their harvest,” the NFA Administrator was quoted. He added that

the auction process would send wrong signals in the market unduly distorting the price and

supply situation even though the volume is relatively low.


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The NFA usually auction rice stocks that are more than six months old and it is mandatory for

the buyers to get the rice re-processed to ensure that it is fit for human consumption.

The official noted that the government was still considering imports of around 500,000 tons

despite sufficient stocks. The NFA is also reportedly considering private sector imports under the

WTO minimum access volume (MAV).

USDA Post Forecasts China MY 2015-16

Rice Stocks to Increase on Lower Demand

Apr 14, 2016

The USDA Post forecasts China's MY 2015-16 (July - June) ending stocks to increase to around

50.61 million tons, up about 5% from an estimated 47.64 million tons in MY 2014-15 and down

from USDA's official estimates of around 47.76 million tons due to lower demand. It forecasts

stocks to further increase to around 52.91 million tons in MY 2016-17. The government has been

facing severe problem in selling the rice stocks.

The Post forecasts China's MY 2015-16 rice consumption to around 148 million tons, down from

USDA's official estimates of around 150.3 million tons due to shifting consumer preferences, the

economic slowdown, and lower feed use. It forecasts consumption to further fall to around 147.4

million tons in MY 2016-17.


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Meanwhile, the Post estimates China's MY 2015-16 rice imports at around 5 million tons, up

from last year's 4.7 million tons and unchanged from USDA's official estimates. Chinese traders

will continue to import rice as long as local rice prices are higher (due to high support prices)

compared to the neighboring countries. They mostly import rice from Vietnam and Thailand due

to their competitive prices and geographical proximity. The Post also reports that Chinese rice

processors are increasingly seeking high quality imported rice as they suspect the quality of rice

from state reserves. It forecasts imports to remain stable at 5 million tons in MY 2016-17.

The Post forecasts China's MY 2015-16 paddy rice production at around 208.243 million tons,

slightly up from last year's 206.51 million tons and unchanged from USDA's official estimates of

around 208.24 million tons. The government is planning to continue with the current rice

subsidies and procurement policy as part of its food security strategy as reiterated in the

Communist Party’s 2016 “No. 1 Document.”

California Rice Acreage Expected to Increase

1% y/y to 170,800 Hectares in 2016

Apr 14, 2016

Californian rice acreage is expected to reach around 427,000 acres (around 170,800 hectares) in

2016, up about 1% from around 422,770 acres (around 169,108 hectares) last year due to

reduced prices of other crops, according to Capital Press citing a government report.

According to the report based on the National Agricultural Statistics Service (NASS) survey,

acreage for the medium-grains varieties is likely to reach around 390,000 acres (around 156,000

hectares), up about 3% from last year.

One of the executives of the USA Rice Federation noted that reduced prices for some crops, such

as hay, oats and upland cotton, and continuing water shortages could push up rice acreage.

He, however, stated that excess acreage could in turn lower farm level paddy rice prices. He

noted that average farm gate paddy prices have been following a declining trend. Currently,

average farm gate paddy prices are quoted at around $370 per ton, down from around $373.19

per ton last year, and down from a peak of $600 per ton.

Meanwhile, rice growers in Northern California are expected to their full allocations of surface

water this year.

California mostly produces medium-grain rice and is the second largest rice producing state in

the U.S. after Arkansas, and typically contributes to about 25% of the total rice grown in the U.S.


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annually. The state's rice sector employs about 25,000 people and most of the rice grown here is

exported.

Sellers Lower Some of Their Quotes; Other

Asian Rice Quotes Unchanged Today

Apr 14, 2016

India rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $325-

$335 per ton today. Vietnam and Pakistan rice sellers kept their quotes unchanged. Thailand rice

sellers are out today due to a public holiday.

5% Broken Rice

Thailand 5% rice was last indicated at around $370 - $380 per ton, about $5 per ton premium on

Vietnam 5% rice shown at around $365 - $376 per ton. India 5% rice is indicated at around $370

- $380 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $345 - $355 per

ton.

25% Broken Rice

Thailand 25% rice was last indicated at around $360 - $370 per ton, about $10 per ton premium

on Vietnam 25% rice shown at around $350- $360 per ton. India 25% rice is indicated at around

$325- $335 per ton, about $15 per ton premium on Pakistan 25% rice shown at around $310 -

$320 per ton.

Parboiled Rice

Thailand parboiled rice was last indicated at around $370 - $380 per ton. India parboiled rice is

indicated at around $345 - $355 per ton, about $60 per ton discount to Pakistan parboiled rice

last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super was last indicated at around $330 - $340 per ton, about $10 per

ton discount to Vietnam 100% broken rice shown at around $340 - $350 per ton. India's 100%

broken rice is shown at around $275 - $285 per ton, about $10 per ton discount to Pakistan

broken sortexed rice shown at around $285 - $295 per ton.


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12 Oryza CBOT Rough Rice Futures Recap -

Chicago Rough Rice Futures Surge as

Rumors Circulate of Improved Export

Outlook for U.S. Rice

Apr 15, 2016

Chicago rough rice futures for May delivery settled 33 cents were cwt (about $7 per ton) higher

at $10.220 per cwt (about $225 per ton). The other grains finished the day with mixed results;

Soybeans closed about 0.9% lower at $9.5625 per bushel; wheat finished about 0.2% lower at

$4.6675 per bushel, and corn finished the day about 0.3% higher at $3.7800 per bushel.

U.S. stocks traded in a range Thursday, trying for a third-straight day of gains, amid bank

earnings and choppy trade in oil. U.S. crude oil futures settled down 26 cents, or 0.62%, at

$41.50 a barrel. Ahead of Sunday's highly anticipated meeting of producers in Doha, Qatar, the

International Energy Agency (IEA) trimmed its forecast for demand growth but said a fall in

U.S. oil output was accelerating. European stocks were slightly higher, while in Asia the Nikkei

225 surged 3.2% and the Shanghai composite closed half a percent higher.

In U.S. economic news, weekly jobless claims declined to a seasonally adjusted 253,000,

revisiting a level last seen in 1973. The consumer price index rose 0.1% last month. In the 12

months through March, the core CPI that strips out food and energy costs, rose 2.2% after

gaining 2.3% in February, Reuters said. In afternoon trade, the Dow Jones industrial average

advanced 22 points, or 0.12%, to 17,931. The S&P 500 added 1 point, or 0.06%, to 2,083, with

telecommunications leading five sectors higher and materials the greatest laggard. The Nasdaq

composite traded down 2 points, or 0.03%, to 4,945. Gold is seen trading about 1.7% lower,

crude oil is seen trading about 1% lower, and the U.S. dollar is seen trading about 0.2% higher at

about 2:00pm Chicago time.

Wednesday, there were 836 contracts traded, down from 1,656 contracts traded on Tuesday.

Open interest – the number of contracts outstanding – on Wednesday decreased by 146 contracts

to 12,831.

Iraq Buys 150,000 Tons of U.S., Uruguay Rice

Apr 15, 2016


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Iraq has purchased 90,000 tons of U.S. rice and 60,000 tons of Uruguay rice in a recent tender, Oryza has

learned from trade sources.

Global Rice Quotes

April 15th, 2016

Long grain white rice - high quality

Thailand 100% B grade 380-390 ↔

Vietnam 5% broken 365-375 ↔

India 5% broken 370-380 ↔

Pakistan 5% broken 345-355 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 445-455 ↔

U.S. 4% broken 430-440 ↔

Uruguay 5% broken 435-445 ↔

Argentina 5% broken 415-425 ↔

Long grain white rice - low quality

Thailand 25% broken 360-370 ↔


Pakistan 25% broken 310-320 ↔

Cambodia 25% broken 425-435 ↔

India 25% broken 325-335 ↔

U.S. 15% broken (sacked) 470-480 ↔

Long grain parboiled rice


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Thailand parboiled 100% stxd 370-380 ↔

Pakistan parboiled 5% broken stxd NQ ↔

India parboiled 5% broken stxd 335-345 ↓

U.S. parboiled 4% broken 480-490 ↔

Brazil parboiled 5% broken 490-510 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 670-680 ↔

Vietnam Jasmine 440-450 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 760-770 ↔

Brokens

Thailand A1 Super 330-340 ↔


Pakistan 100% broken stxd 285-295 ↔

Cambodia A1 Super 345-355 ↔

India 100% broken stxd 275-285 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 315-325 ↔

Brazil half grain NQ ↔

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

ORYZA News have been published with permission of ORYZA.com with thanks

15th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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