17th april,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

April 17, 2015


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Government of Indonesia Needs Adequate

Farm Land to Achieve Rice Self-Sufficiency,

Says Former Bulog Official

Apr 16, 2015

The government of Indonesia should garner adequate land for rice cultivation to achieve self-

sufficiency in rice production, local sources quoted a former Bulog official as saying.The

government is aiming to achieve self-sufficiency in rice production over the next few years and

end rice imports. It is keen on increasing 2015 paddy rice production by about 4% to around 73.4

million tons (around 48.44 million tons, basis milled) from an estimated 70.61 million tons

(around 46.65 million tons, basis milled) in 2014.

The government has been adopting several measures to achieve its target such as converting

between 100,000 to 110,000 hectares of land into farming areas, improving irrigation channels to

cover 1 million hectares of cultivated area as well as enhance distribution of seeds, fertilizers and

farming equipment. Agrarian and Spatial Planning Minister said the government was planning to

use unproductive land in forests and idle land in various places for rice cultivation. He noted that

acquiring land from owners could be a major challenge for the government.


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The National Coordinator of the Alliance for Prosperous Villages (ADS) that focuses on food

and rural issues suggested that the government should prevent conversion of farm land for other

purposes such as infrastructure under Law No. 41/2009 in order to ensure the self-sufficiency

target. He noted that the government has so far not taken any measures to curb these conversion

activities.USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled

(around 57.165 million tons, basis paddy) and import around 1.25 million tons of rice in MY

2014-15 (January 2015 - December 2015).

Vietnam Rice Exports to African Destinations

Decline Sharply in February 2015

Apr 16, 2015

Vietnam has exported around 182,400 tons of rice in February 2015, down about 43% from

around 320,750 tons exported in January 2015, and down about 45% from around 331,439 tons

exported in February 2014, according to USDA. While share of Vietnam's rice exports to Asia,


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Africa and Americas declined m/m in February 2015, its share of exports to Europe and

Australia increased m/m during the month.

Asia accounted for around 112,818 tons (about 62% of total rice exports by Vietnam in February

2015), down about 15% from around 132,097 tons exported in January 2015 and down about

63% from around 300,886 tons exported in February 2014.Vietnam exported around 14,798 tons

of rice to Africa (about 8% of total February 2015 exports), down about 87% from around

114,912 tons exported in January 2015, and down about 29% from around 20,970 tons exported

in February 2014.

Vietnam exported around 33,587 tons of rice to American destinations (about 18% of February

2015 exports), down about 46% from around 62,625 tons exported in January 2015, and about

6.5 times more from around 5,188 tons exported in February 2014.Vietnam's exports to Australia

(about 0.2% of February 2015 exports) increased about 2.5 times to around 3,659 tons in

February 2015 from around 1,429 tons exported in January 2015 and increased about 3.8 times

from around 941 tons exported in February 2014.Vietnam's exports to Europe and CIS countries

(about 10% of total February 2015 exports) accounted for around 17,538 tons, about 81% higher

than around 9,687 tons exported in January 2015 and about 5 times higher than around 3,454

tons exported in February 2014.

In terms of grade, 5% broken rice exports accounted for around 70,848 tons (or, about 39% of

total February 2015 exports); Jasmine rice exports accounted for around 37,239 tons (or, about

20% of total February 2015 exports); 15% broken rice exports accounted for around 24,622 tons

(or, about 13% of total exports in February 2015); 25% broken rice exports accounted for around

6,278 tons (or, about 3% of total exports in February 2015); glutinous rice exports accounted for

around 8,489 tons (or, about 5% of total February 2015 exports); and 10%, 100% and other

varieties accounted for around 34,924 tons (or, about 19% of total exports in February 2015).

Oryza Afternoon Recap - Chicago Rough

Rice Futures Break through Support at

$10.000 as Technical Bearishness Drives

Market Action

Apr 16, 2015


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Chicago rough rice futures for May delivery settled 13 cents per cwt (about $3 per ton) lower at

$9.965 per cwt (about $220 per ton). The other grains finished the day higher; Soybeans closed

about 0.1% higher at $9.6600 per bushel; wheat finished about 0.8% higher at $4.9450 per

bushel, and corn finished the day about 0.1% higher at $3.7625 per bushel.U.S. stocks reversed

to trade mildly higher on Thursday as oil held near highs for the year and investors digested

domestic data and earnings reports. Crude oil gained to hit $57 for the first time since Christmas

Eve. The commodity reversed earlier losses on reports of increased tension in Yemen that could

pressure supply. Brent crude extended gains to trade above $64 a barrel.

Earlier, mixed economic data and remarks by Federal Reserve officials weighed slightly as

equities held to the flatline. The Dow Jones industrial average and S&P 500 tried for gains. U.S.

March housing starts showed a 0.926 million unit rate, below expectations but above February's

0.908 million unit rate. The usual weekly initial jobless claims came in at 294,000, above

expectations and a slight increase from the prior week. The Philadelphia Fed's business outlook

index for April showed 7.5, above expectations. European Central Bank chief Mario Draghi was

questioned about Greece at his regular press conference on Wednesday, after the central bank

opted to keep interest rates unchanged.

Draghi said he was unready to "contemplate" a default by Greece and dismissed fears of a bubble

in bond markets. The Dow Jones Industrial Average traded down 5 points, or 0.03%, at 18,107.

The S&P 500 traded down 1 point, or 0.05%, at 2,105, with utilities the greatest of six laggards

and consumer sectors leading advancers. The Nasdaq traded down 1 point, or 0.01 percent, at

5,010. Gold is trading about 0.2% lower, crude oil is seen trading about 1.4% higher, and the

U.S. dollar is seen trading about 0.8% lower at about 1:15pm Chicago time.

Wednesday, there were 1,516 contracts traded, down from 2,412 contracts traded on Tuesday.

Open interest – the number of contracts outstanding – on Wednesday decreased by 154 contracts

to 11,014

Oryza U.S. Rough Rice Recap - Softer Prices

as Export Sales Disappoint

Apr 16, 2015

The U.S. cash market was softer today after the USDA reported disappointing export sales

leading buyers to drop their further.Analysts note that the market will likely continue to fall until

the U.S. gets some significant export demand however most in the industry are not very

optimistic about landing some of the Iraqi business.


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

April 9th

, totaled 34,300 tons, which was 44% lower than last week and 53% lower than the prior

4-week average.Increases were reported for the following destinations including: 14,000 tons to

Costa Rica including 7,000 tons switched from unknown destinations, 6,700 tons to Mexico,

5,800 tons to Guatemala which was switched from unknown destinations, 5,100 tons to Panama,

and 4,700 tons to Haiti while decreases of 12,200 tons and 1,800 tons were reported for unknown

destinations and Colombia, respectively.

U.S. rice exporters shipped 82,600 tons, which was 37% higher than last week and 35% higher

than the prior 4-week average. The primary destinations included: 32,200 tons to Colombia,

12,100 tons to Costa Rica, 11,800 tons Haiti, 5,900 tons to Guatemala, and 5,100 tons to

Panama.

Argentina Exports 12,762 Tons of Rice in

January 2015; Down 75% from Previous

Year

Apr 16, 2015


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Argentina has exported around 12,762 tons of rice in January 2015, down about 75% from around 50,783

tons exported during the same period in 2014, according to data from the Ministry of Agriculture in

Argentina. Month-on-month, Argentina's rice exports increased about 9% from around 11,700 tons

exported in December 2014.

In January 2015, Argentina exported around 4,092 tons of rice to Chile (about 32% of total

January 2015 exports), around 3,086 tons of rice to Bolivia (about 24% of January 2015 exports),

around 2,582 tons of rice to Brazil (about 20% of January 2015 exports), and around 1,300 tons

of rice to Costa Rica (about 10% of January 2015 exports). It exported the remaining 14% or

around 1,702 tons of rice to Angora (25 tons), Algeria (799 tons), Canada (516 tons), Denmark

(79 tons), the U.S. (154 tons), Italy (50 tons), Paraguay (27 tons), the U.K. (20 tons), Germany

(12 tons) and Ukraine (20 tons).

USDA estimates Argentina's milled rice production at about 975,000 tons in MY 2014-15 (April

– March), against consumption of around 500,000 tons. It estimates Argentina to export around

580,000 tons of rice in MY 2014-15.

Syria Tenders to Buy 6,360 Tons of White

Rice

Apr 16, 2015

A state purchasing agency in Syria has issued an international tender to purchase 6,360 tons of

white rice, according to Reuters.The last date for the tender is May 18, 2015 and the delivery is

sought 30 days after the issuing of a letter of credit to finance the deal with the General Foreign

Trade Organization, according to the European traders.

Oryza Global Weather Outlook

Apr 16, 2015

Rain is expected across eastern South China, the Yangtze Valley, and much of the North China

Plain this week.

Rain showers are expected across Southern and Eastern India this week. Last week rain in across

India slowed rabi rice harvesting there.


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Rain is expected across Bangladesh this week.

Widespread rain is expected in most parts of Indonesia this week, which will slow main crop

harvesting there.

A bit of rain is expected in Vietnam this week.

In the Philippines, light rain is expected across Luzon this week.

Rain is expected in most parts of Brazil this week.

Rain is expected across Argentina as well as Western Uruguay this week.

In the U.S., rain showers are expected across the Delta and Coastal Bend this week, which will

slow rice planting there.

Japan Supports Ghana Rice Sector with $2.5

Million in Agriculture Machinery

Apr 16, 2015


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The government of Japan is supporting the Ghana rice sector with agricultural machinery worth

GHÂ¢9.7 million (around $2.5 million) under the Grant Assistance, according to local

sources.The donated machinery comprises of 77 agricultural tractors with matching implements,

49 power tillers, 20 rice threshers, 11 rice reapers and six rice mills. The support is aimed at

helping Ghana increase rice production and reducing dependence on imports.

The Deputy Chief of Mission Counsellor, Japan Embassy, told local sources that the Japanese

government is keen on extending necessary support to Ghana's rice sector as part of efforts to

enhance relationship between the two countries. He noted that Ghana's rice sector needs

immediate attention given the importance of rice in the economy. In the light of increasing

consumption for rice in the country, there is an urgent need to strengthen domestic rice

production and distribution system.

"The agricultural machinery would make it possible for small holder farmers to achieve timely

field cultivation, high level of field bed preparation, planting and harvesting, which are important

in rice production," added Ghana's Agriculture Minister.Ghana's annual rice import bill stood at

$306 million in 2013 and the government is planning to increase rice production by about 20%

per annum over the next four years to make Ghana self-sufficient in rice.According to the

USDA, Ghana’s rice production is estimated at about 300,000 tons (milled basis) in MY 2014-15

(October - September). The U.S. agency expects Ghana to import 650,000 tons of rice during the

year to meet consumption needs of around 960,000 tons.

Oryza Overnight Recap – Chicago Rough

Rice Futures Continue to Drift Lower as

Market Lacks Fundamental Support and

Technicals Forecast Continued Bearishness

Apr 16, 2015

Chicago rough rice futures for May delivery are currently noted 5 cents per cwt (about $1 per

ton) lower at $10.045 per cwt (about $221 per ton) ahead of floor trading in Chicago. The other

grains are seen trading mixed overnight: soybeans are currently seen unchanged, wheat is listed

about 0.7% higher and corn is currently noted unchanged.U.S. stock index futures indicated a

lower open on Thursday, as financial earnings continue to dominate news flow and economic

data continued to indicate tepid growth. U.S. March housing starts showed a 0.926 million unit

rate, below expectations but above February's 0.908 million unit rate. The usual weekly initial


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jobless claims came in at 294,000, above expectations and a slight increase from the prior week.

The Philadelphia Fed's business outlook index for April is due at 10 a.m.

Meanwhile in Europe, equities fell in early trading on Thursday after mixed first-quarter earnings

reports and concerns that Greece's economic outlook has deteriorated further. Standard & Poor's

cut the country's credit rating to "CCC+" from "B-" with a negative outlook on Wednesday.

European Central Bank chief Mario Draghi was questioned about Greece at his regular press

conference on Wednesday, after the central bank opted to keep interest rates unchanged. Draghi

said he was unready to "contemplate" a default by Greece and dismissed fears of a bubble in

bond markets. Gold is currently trading about 0.3% higher, crude oil is seen trading about 1.1%

lower, and the U.S. dollar is currently trading about 0.4% lower at 8:30am Chicago time.

Thailand Rice Sellers Lower Some of Their

Quotes Today; Other Asia Rice Quotes

Unchanged

Apr 16, 2015

Thailand rice sellers lowered their quotes for 5% broken rice and parboiled rice by about $5 per

ton each to around $380 - $390 per ton each today. Other Asia rice quotes are unchanged today.

5% Broken Rice

Thailand 5% rice is indicated at around $380 - $390 per ton, down about $5 per ton from Friday

and about a $20 per ton premium on Vietnam 5% rice shown at around $360 - $370 per ton.

India 5% rice is indicated at around $370 - $380 per ton, about a $5 per ton discount to Pakistan

5% rice shown at around $375 - $385 per ton.

25% Broken Rice

Thailand 25% rice is shown at around $355 - $365 per ton, about a $20 per ton premium on

Vietnam 25% rice shown at around $335- $345 per ton. India 25% rice is indicated at around

$345 - $355, about a $15 per ton premium on Pakistan 25% rice shown at around $330 - $340

per ton.

Parboiled Rice


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Thailand parboiled rice is indicated at around $380 - $390 per ton, down about $5 per ton from

Friday. India parboiled rice is indicated at around $365 - $375 per ton, about a $15 per ton

discount to Pakistan parboiled rice shown at around $380 - $390 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $320 - $330per ton, about a $10 per ton

premium on Vietnam 100% broken rice shown at around $310 - $320 per ton.

India's 100% broken rice is shown at around $275 - $285 per ton, about a $10 per ton discount

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

Italian Museums to Showcase Rice Growing

Tradition in International Expo 2015

Apr 16, 2015


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The Italian rice community is planning to open two museums solely dedicated to rice ahead of

the International Expo 2015, which will take place in Milan from May 1 - October 31, 2015,

according to local sources. The whole idea is to promote about the Italian rice sector to the Expo

visitors.

On first museum called the Multimedial Agricultural Museum (MAM) will be hosted in Tenuta

Kyrie, a ceremonial palace located between Novara and Pavia provinces and dates back to XVI

century. The ancient "cascina" (big square farm, typical of Lombardy and Piedmont) of the

palace is dedicated to professional rice growing even today. The farm owners, Costamagna

Family and the a union of private and public subjects capable of getting the European Union

(EU) Common Agricultural Policy (CAP) funds are will sponsor the museum during the

International Expo 2015.

A conference hall, a wide auditorium and two buildings will be reconstructed for the purpose.

They will be used to set up nine big screens to play videos for the visitors as well as hosting an

exhibition showcasing ancient and modern agricultural tools and machines. The videos will

highlight the rice growing culture of Italy.The second museum "Museo della risaia” (Museum of

the rice growing field) is being planned in Livomo Ferraris. It will show the places women used

to work in summers to remove weeds from the rice fields. The museum will also highlight the

living and working conditions of such women who came from different parts of the country. This

museum will open on April 17, 2015. Simultaneously, the Festival of Italian risotto will take

place between April 17 to June 2, every weekend in Biella Fiere, Gaglianico.

Global Rice Quotes

April 16th, 2015

Long grain white rice - high quality

Thailand 100% B grade 395-405 ↔

Vietnam 5% broken 360-370 ↔

India 5% broken 370-380 ↔

Pakistan 5% broken 375-385 ↔

Myanmar 5% broken 410-420 ↔

Cambodia 5% broken 435-445 ↔


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U.S. 4% broken 480-490 ↔

Uruguay 5% broken 575-585 ↔

Argentina 5% broken 565-575 ↔

Long grain white rice - low quality

Thailand 25% broken 355-365 ↔


Pakistan 25% broken 330-340 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 345-355 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 380-390 ↓

Pakistan parboiled 5% broken stxd 380-390 ↔

India parboiled 5% broken stxd 365-375 ↔

U.S. parboiled 4% broken 555-565 ↔

Brazil parboiled 5% broken 570-580 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 890-900 ↔

Vietnam Jasmine 475-485 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 810-820 ↔

Brokens

Thailand A1 Super 320-330 ↔


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 370-380 ↔

Brazil half grain NQ ↔

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

17th april,2015 daily exclusive oryza rice e newsletter by riceplus magazine

Food

tons of rice

rice selfsufficiency

rice cultivation

vietnam rice exports

total rice exports

vietnams rice exports

paddy rice production

end rice imports