16th May,2014 Daily Exclusive ORYZA E-Newsletter by Riceplus Magazine

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TOP Contents - Tailored for YOU

Latest News Headlines…

California Drought Forces Rice Farmers to Explore Alternatives

Oryza Global Rice Quotes

European Union Imports 670,618 Tons of Rice September 1 to May 6, Up 11% from Last Year

Oryza U.S. Rough Rice Recap - Market Holds Firm Despite Lackluster Export Sales

Thailand BAAC Unions Oppose Doubling Rice Farmer Fund

Oryza Rice Currency Analysis for Today – Brazil Real Down 0.8%

Oryza Afternoon Recap - Chicago Rough Rice Futures Close with Mixed Results; Old Crop Makes

Technical Bounce While New Crop Weighed Down by Falling Grain Complex

Increased Use of Hybrid Seeds can Boost Rice Productivity in Eastern India, Says IRRI

Oryza Overnight Recap - Chicago Rough Rice Futures Remain Silent Overnight as Market Drifts

Sideways

USDA Forecasts 2014-15 Global Milled Rice Production at Record 480.7 Million Tons; Up 1% from

Previous Year

Asia Rice Quotes Unchanged Today

USDA Estimates 2015 Global Rice Trade at 41.3 Million Tons, Up 1% from Previous Year

News Detail…

California Drought Forces Rice Farmers to Explore Alternatives

May 15, 2014

The state of California started measuring and recording its rainfall measurement in 1849 – the legendary Gold

Rush year, a year before California officially became a state – and in all those 165 years, the driest year on

record was 2013, according to the University Corporation for Atmospheric Research (UCAR).On January 17,

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2014, California’s Governor declared a drought emergency, and the dry conditions are having a very real and

negative effect on California agriculture producers.

The USDA reports that as of March 4, over 94% of California’s agricultural sector – a $45 billion industry –

was experiencing severe, extreme, or exceptional drought. This water shortage has led some rice farmers in the

Sacramento Valley to fallow land normally used to grow rice. Other farmers are growing crops that require less

water.The Sacramento Bee recently interviewed a rice farmer who is normally allocated 2 acre-feet of water per

acre and this year has been told he’ll only receive half that amount. In response, he’s planting popcorn on 190

acres usually reserved for rice, effectively increasing his popcorn acreage by 30%. Another farmer describes

his decision to fallow over a third of his operation – 1,800 acres of his 5,000 acre farm.

The California Rice Commission estimates that about 100,000 of the 566,000 rice-growing acres will likely be

fallowed this year, leaving many farmers with decreased income and some farmworkers without jobs. The shift

might have other consequences, too: millions of waterfowl and other migratory birds use the flooded rice fields

as surrogate wetlands when traveling through the region, and they’ll have fewer options this year.

Tags: california drought, Drought, birds, water scarcity, water shortage, farming, waterfowl, fallow, popcorn

Oryza Global Rice Quotes

May 15th, 2014

Long grain white rice - high quality

Thailand 100% B grade 385-395 ↔

Vietnam 5% broken 405-415 ↔

India 5% broken 420-430 ↔

Pakistan 5% broken 420-430 ↔

Cambodia 5% broken 435-445 ↔

U.S. 4% broken 580-590 ↔

Uruguay 5% broken 620-630 ↔

Argentina 5% broken 615-625 ↔

Long grain white rice - low quality

Thailand 25% broken 340-350 ↔

Vietnam 25% broken 365-375 ↔

Pakistan 25% broken 370-380 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 380-390 ↔

U.S. 15% broken 555-565 ↔

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Long grain parboiled rice

Thailand parboiled 100% stxd 405-415 ↔

Pakistan parboiled 5% broken stxd 435-445 ↔

India parboiled 5% broken stxd 395-405 ↔

U.S. parboiled 4% broken 660-670 ↔

Brazil parboiled 5% broken NQ ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 935-945 ↔

Vietnam Jasmine 525-535 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Malis 865-870 ↔

Brokens

Thailand A1 Super 300-310 ↔

Vietnam 100% broken 335-345 ↔

Pakistan 100% broken stxd 325-335 ↔

Cambodia A1 Super 350-360 ↔

India 100% Broken stxd 300-310 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 470-480 ↔

Brazil half grain NQ ↔

Medium grain milled

U.S. Calrose 4% broken 1070-1080 ↔

Egypt medium grain 6% NQ ↔

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

- See more at: http://oryza.com/news/rice-news/italy-paddy-prices-descend-their-peak-supplies-

dwindle#sthash.O0vTlstw.dpuf

European Union Imports 670,618 Tons of Rice September 1 to May 6, Up 11% from

Last Year

May 15, 2014

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The European Union (EU) has imported 670,618 tons of milled rice since the beginning of the crop year

(September 1,2013) up until May 6, 2014; that’s up about 11% from 602,764 tons imported in the same period

a year earlier.According to EU data, the United Kingdom remains the biggest importers of foreign rice,

importing 149,932 tons since September. The second biggest importer is France with 113,947 tons since

beginning of crop year. The Netherlands follows with 86,223 tons. Italy's imports since September total 44,796

tons. Most of the rice imported to the EU is indica rice, both milled and half milled. Milled Indica rice imports

advanced from 535,326 tons of one year ago to 614,690 tons year to date, up 14.8% y/y; most of this rice was

imported with zero import duties from Less Developed Countries (LDCs) Cambodia and Myanmar, under the

Everything but Arms (EBA) agreement. Imports of broken rice declined from 223,590 tons of one year ago to

207,663 tons this year.

Tags: EU rice imports, european rice imports, Everything But Arms (EBA), Less Developed Countries (LDCs)

Oryza U.S. Rough Rice Recap - Market Holds Firm Despite Lackluster Export Sales

May 15, 2014

As of today, old crop offers could still be found around $16.11 per cwt fob farm (about $355 per ton) for May-

June shipment although most sellers are holding out for at least $16.66 per cwt fob farm (about $367 per ton) or

better.Bids from most larger mills increased today around $15.15 per cwt (about $334 per ton) for May-June

delivery while bids for exporters could still be found around $16.00 per cwt (about $353 per ton), for the same

delivery period, and there were reports of rice trading as low as $16.00 per cwt (about $353 per ton) delivered

barge facility for prompt shipment.

In the meantime, today the USDA reported that cumulative net export sales for the week ending on May 8th,

totaled 14,100 tons, which was 57% lower than last week and 60% lower than the prior 4-week average.

Increases were reported for the following destinations including: 35,800 tons to Venezuela (including 30,000

tons switched from unknown destinations), 7,500 tons to Honduras (including 7,200 tons switched from

unknown destinations), 3,100 tons to Haiti, 1,500 tons to Canada, and 1,100 tons to Saudi Arabia while

decreases of 37,200 tons were reported for unknown destinations as well as 200 tons to Guatemala.U.S. rice

exporters shipped 86,600 tons, which was 96% higher than the previous week and 49% higher than the prior 4-

week average. The primary destinations included: 65,800 tons to Venezuela, 7,400 tons to Honduras, 3,500 tons

to Mexico, 2,800 tons to Canada, and 2,000 tons to Taiwan.

Tags: U.S. rice prices; U.S. rice market

Thailand BAAC Unions Oppose Doubling Rice Farmer Fund

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May 15, 2014

The state union and employee association of the Bank for Agriculture and Agricultural Cooperatives (BAAC) in

Thailand disagreed with the political sector’s idea of doubling the Rice Farmer Fund to 40 billion baht (USD

1.22 billion), especially as the fund has been expanding, albeit slowly. While opposing an increase in the

benchmark rate, they also said they were apprehensive about the government’s ability to sell stored rice before

the year end.

The associations said that BAAC’s customers would lose faith in the financial body if the ministry fails to pay

back the Finance Ministry’s loan within the deadline and that BAAC would have to bear the brunt if there is any

delay or defaults in loan repayment.The Rice Farmer’s Fund was established in March this year, through

contributions from customers and local funds; it was set up to pay farmers as an interim relief while they await

the government funds from rice sales.

Tags: Thailand Bank for Agriculture and Agricultural Cooperatives (BAAC), thaialnd rice mortgage scheme, Thailand rice stocks, Thailand rice

sales, Thailand rice exports

Oryza Rice Currency Analysis for Today – Brazil Real Down 0.8%

May 15, 2014

U.S. dollar index was down -0.06% from the open today, when it traded at 80.024 at the close.

Euro was weaker -0.04% by the close, trading around 1.3710 by end of day, after trading between an intraday

high of 1.3732 and low of 1.3648.

Thai baht was weaker -0.30%, trading at 32.518 at the close of business.

Indian rupee was stronger +0.64% at 59.2900.

Brazilian real was weaker -0.80% at the close of trading today, trading at 2.2201 reais per dollar.

Pakistan rupee was +0.03% stronger at 98.6342.

Vietnamese dong was weaker -0.07% at 21123.

Mexican peso was weaker -0.43% today, when it traded at 12.9541 pesos per dollar by the close of business.

Chinese yuan was weaker -0.01% at 6.2296.

Argentine peso was weaker -0.30% at 8.0560 pesos per dollar.

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Tags: foreign exchange rates, rice currencies, Global rice trade

Oryza Afternoon Recap - Chicago Rough Rice Futures Close with Mixed Results;

Old Crop Makes Technical Bounce While New Crop Weighed Down by Falling

Grain Complex

May 15, 2014

Chicago rough rice futures for Jul delivery settled 10 cents per cwt (about $2 per ton) higher at $15.380 per cwt

(about $339 per ton). Rough rice futures reversed direction today with old crop prices firming while new crop

contracts were flat to slightly lower. Today’s move has once again added to the premium being paid for nearby

delivery as traders continue to question the accuracy of the latest ending stocks estimate provided in last

Friday’s S&D report. Many trade insiders feel that the reported number is too high and should be taken with a

grain of salt. The question that remains is whether destination markets will be willing to pay nearly $1 per cwt

(about $22 per ton) more for prompt shipment or if they will cut back to bare bones demand and wait for the

cheaper new crop rice.

Today’s bounce is seen as a positive development, and is likely technical in nature as the market had reached

the bottom of a multi-week trading range around $15.300 per cwt (about $337 per ton) and was likely due for a

bit of a recovery. The other grains finished the day sharply lower as overall market weakness dragged on US

grain prices; soybeans closed about 1.1% lower at $14.7025 per bushel; wheat finished about 1.7% lower at

$6.7825 per bushel, and corn finished the day about 2.3% lower at $4.8425 per bushel.U.S. stocks were under

heavy selling pressure Thursday, falling further from all-time highs, weighed down by disappointing earnings

from a handful of retailers and weak economic reports. Meanwhile, the 10-year yield broke below the

psychologically-important 2.50% mark for the first time since last October. The Dow Jones Industrial Average

fell more than 200 points.

The S&P 500 and the Nasdaq were down more than 1% each. The S&P 500 broke a key technical level,

slipping below its 50-day moving average. The Russell 2000 index entered correction territory, falling more

than 10% from its all-time high of 1,212 reached in March. Most key S&P sectors were in the red, led by

consumer discretionary and energy. On the economic front, consumer prices ticked up 0.3%, as expected,

recording their largest increase in 10 months in April, signaling some inflation in the economy. And industrial

production in April slid 0.6%, versus estimates for a gain of 0.2%. The bad news seemed to outweigh the

positives: jobless claims declined 24,000 to a seasonally adjusted 297,000, according to the Labor Department.

That was the lowest reading since May 2007 and brought claims back to their pre-recession level. Economists

polled by Reuters had expected a reading of 320,000. Gold is trading about 0.8% lower, crude oil is seen trading

about 0.8% lower, and the U.S. dollar is seen trading about 0.1% lower at about 1:00pm Chicago

time.Wednesday, there were 296 contracts traded, down from 311 contracts traded on Tuesday. Open interest –

the number of contracts outstanding – on Wednesday decreased by 20 contracts to 8,188.

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Tags: U.S. rice prices; U.S. rice market; Chicago rough rice futures

Increased Use of Hybrid Seeds can Boost Rice Productivity in Eastern India, Says

IRRI

May 15, 2014

Rice farmers in India's Eastern states of

Bihar, West Bengal, Jharkhand and

Odisha lag behind other Indian states in

the use of high-yielding hybrid seeds

and this is the main reason for low

paddy rice productivity in those states,

according to an International Rice

Research Institute (IRRI)

scientist. According to India's

Directorate of Economics and Statistics

under the Ministry of Agriculture, the

four Eastern states contribute to about

30% of total India's rice production. In

2012-13, Bihar and Odisha each

accounted for 7% of the total India's

production, West Bengal accounted for

14% and Jharkhand accounted for

3%.Speaking at the inaugural session of

the two-day Summit on "Enhancing the

Seed Supply Chain in Eastern India",

the IRRI scientist organized by the

Cereal Systems Initiative for South Asia

(CSISA) in Patna, the IRRI scientist

noted that most of the Indian rice

farmers, including those in Eastern India, are not adopting high-yielding hybrid rice varieties as they do not like

their taste and cooking quality.

However, more awareness about hybrids and access to improved varieties of hybrid rice can help boost rice

productivity in the country, he says.Indian rice yields at around 3 tons per hectare, nearly half of yields

produced in Southeast Asian countries like Thailand, Vietnam, Cambodia and Indonesia, says the scientist. He

noted that Indian rice farmers are still using hybrid seed varieties developed some two to three decades ago and

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are not exposed to better and improved high-yielding varieties developed most recently.A Senior Research

Fellow from the US-based International Food Policy Research Institute (IFPRI) noted that despite taste and

cooking quality hindrances, high-yielding hybrid rice varieties can provide food security cover to a billion

people in India. He expressed hope that Indian rice farmers would slowly adapt to the newer hybrid rice

varieties.

The two-day summit aims at highlighting the importance of increased hybrid seed breeding in India to ensure

continuous supply of seeds to farmers during planting season.

The Indian government estimates India's rice production in the 2013-14 (October 2013 - September 2014)

marketing year at 106.2 million tons, up about 1% from about 105.24 million tons produced in 2012-13.

However, the USDA estimates India's production in MY 2013-14 (October - September) at 105 million tons,

marginally down from an estimated 105.24 million tons produced in 2012-13.

Tags: hybrid rice seeds, rice breeding, rice genetics, rice taste

Oryza Overnight Recap - Chicago Rough Rice Futures Remain Silent Overnight as

Market Drifts Sideways

May 15, 2014

Chicago rough rice futures for Jul delivery were paused 0.5 cents per cwt (about $0.11 per ton) higher overnight

at $15.285 per cwt (about $337 per ton) as of 8:00am Chicago time. The other grains are seen mostly lower this

morning ahead of floor trading in Chicago: soybeans are currently seen about 0.2% higher, wheat was paused

about 0.4% lower, and corn is noted about 0.6% lower. U.S. stock index futures shaved their losses Thursday,

helped by better-than-expected jobless claims report, though disappointing earnings from Wal-Mart weighed.

On the economic front, jobless claims declined 24,000 to a seasonally adjusted 297,000, according to the Labor

Department.

That was the lowest reading since May 2007 and brought claims back to their pre-recession level. Economists

polled by Reuters had expected a reading of 320,000. Meanwhile, consumer prices ticked up 0.3%, as expected,

recording their largest increase in 10 months in April, signaling some inflation in the economy. And New York

manufacturers posted a strong growth in activity in May, with the index rising to 19.01 in May, after it slowed

to 1.29 in April, according to the Federal Reserve Bank of New York's monthly Empire State Manufacturing

Survey. The Philadelphia Federal Reserve report for May will be reported at 10 am ET. Other data out include

industrial production figures for April, the NAHB housing market index and weekly natural gas inventories.

Fed Chair Janet Yellen is scheduled to address the U.S. Chamber of Commerce after the market closes. U.S.

stocks declined on Wednesday after a five-day winning streak, suggesting an uptick in risk-off market

sentiment. . U.S. stock index futures are currently trading about 0.2% lower, gold is currently trading about

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0.8% lower, crude oil is seen trading about 0.3% lower, and the U.S. dollar is currently trading about 0.3%

higher at 8:00am Chicago time.

Tags: U.S. rice prices; U.S. rice market; Chicago rough rice futures

USDA Forecasts 2014-15 Global Milled Rice Production at Record 480.7 Million

Tons; Up 1% from Previous Year

May 15, 2014

Assuming normal weather

conditions, the USDA has

forecasted 2014-15 global milled

rice production at a record 480.7

million tons, up 1% from an

estimated 476.1 million tons in

2013-14, in its May Rice Outlook

report. Global rice production has

been continuously increasing since

last five years, according to the

USDA.USDA attributes the

increase to an increase in rice

acreage to a record 161.6 million

hectares in 2014-15, up 70,000

hectares from 160.9 million

hectares in 2013-14. USDA

estimated 2014-15 average global

paddy yield at 4.44 tons per, up about 1% from about 4.4 tons per hectares in 2013-14.

The US agency expects East Asia will produce 158.8 million tons, basis milled, and South Asia to produce

153.9 million tons of rice in 2014-15, up 1% from 152.3 million tons produced in 2013-14. Production is

expected to increase in India, Bangladesh, Pakistan and Sri Lanka, while it is expected to decline in Nepal.

USDA estimates Southeast Asia to produce a record 118.6 million tons in 2014-15, up 1% from 117.4 million

tons produced in 2013-14. While production in major exporters such as Myanmar (Burma) and Cambodia is

expected to increase, that in Thailand and Vietnam is expected to be unchanged from last year. USDA expects

production in major rice importing countries Indonesia, Malaysia and the Philippines also to increase.

The US agency estimates Sub-Saharan Africa to produce 13.1 million tons, up 2% from about 12.8 million

tons produced in 2013-14. While it expects production in Madagascar and Tanzania to increase, it expects

production in Nigeria to decline due to smaller area.

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USDA estimates South America's 2014-15 production at 16.6 million tons, down about 1% from about 16.8

million tons produced in 2013-14. Production in the region's exporters such as Brazil, Argentina, Paraguay and

Guyana is expected to increase. Among the region's importers, production in Venezuela is expected to increase,

while that in Peru is expected to decline. USDA also expects production in Egypt, Australia and the U.S. to

increase.

USDA estimates 2014-15 global rice consumption and residual use at 482.2 million tons, up about 1.5% from

about 475 million tons in 2013-14. Bangladesh, Brazil, Burma, China, India, Indonesia, the Philippines, and the

United States account for the bulk of the projected increase in global consumption and residual use, according

to the USDA.

It estimates 2014-15 global ending stocks at 109.8 million tons, down 1% from about 110.9 million tons in

2013-14. China and India account for most of the decline in global ending stocks. However, USDA expects

Thailand's ending stocks to increase by 16% in 2014-15.

Tags: USDA Rice outlook, global rice production

Asia Rice Quotes Unchanged Today

May 15, 2014

Asia rice sellers kept their quotes mostly unchanged Today.

5% Broken Rice Thai 5% rice (of new crop) is quoted around $370 - $380 per ton, about $35 per ton discount to Viet 5% rice

shown around $405 - $415 per ton.

Indian 5% rice is quoted around $420 - $430 per ton, on par with Pak 5% rice quoted around $420 - $430 per

ton.

25% Broken Rice Thai 25% rice of the old crop is quoted about $340 - $350 per ton, about a $25 per ton discount to Viet 25% rice

shown around $365 - $375 per ton.

Indian 25% rice is quoted around $380 - $390 per ton, about $10per ton premium over Pak 25% quoted around

$370 - $380 per ton.

Parboiled Rice Thai parboiled rice of the old crop is quoted around $405 - $415 per ton.

Indian parboiled rice is quoted around $395 - $405 per ton, about $40 per ton discount to Pak parboiled rice

quoted around $435 - $445 per ton.

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100% Broken Rice Thai broken rice, A1 Super, of the old crop is quoted around $300 - $310 per ton, about a $35 per ton discount

to Viet broken rice shown around $335 - $345 per ton.Indian broken sortexed rice is quoted around $300 - $310

per ton, about a $25 per ton discount to Pak broken sortexed rice quoted around $325 - $335 per ton. Tags: asian rice quotes, Asia rice prices, asia rice trade, Global rice trade

USDA Estimates 2015 Global Rice Trade at 41.3 Million Tons, Up 1% from Previous

Year

USDA has estimated 2015 global rice trade at 41.3 million tons, up 1% from an estimated 40.9 million tons

traded in 2014, in its May Rice Outlook report.USDA attributes the increase to record imports by Sub-Saharan

Africa and China, lower international prices and abundant supplies from Asia.On the exports side, USDA

expects milled rice exports from Thailand, Vietnam and the U.S. to increase in 2015, while those from India to

decline. It expects Pakistan's exports to remain at 2014 levels. Exports from these five countries account for

80% of the world's total rice exports, says USDA.USDA also expects exports from Uruguay, Paraguay, and

Egypt to increase in 2015, while those from Brazil and Australia to decline. It expects exports from Guyana and

Argentina to remain unchanged from 2014 levels.

Tags: Global rice trade, global rice market, Rice exports, Rice imports