20th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

8/18/2019 20th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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1Daily Exclusive ORYZA

Rice E-Newsletter

April 20,2016

Vol 7,Issu


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2Brazil Paddy Rice Index Increases Slightlyfrom Previous Week

The Brazilian paddy rice index maintained by the Center for Advanced Studies on AppliedEconomics (CEPEA) reached around 39.7 real per 50 kilograms as of April 15, 2016, up about0.25% from about 39.6 real per 50 kilograms recorded a week ago.

In terms of USD, the index reached around $227.3 per ton on April 15, 2016, up around 1% fromaround $225.6 per ton recorded a week ago.

Month-on-month, the index has decreased around 1% from around 39.99 real per 50 kilogramsrecorded month ago. In terms of USD, the index increased around 7% during the month.


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3Thailand Rice Sellers Increase Their Quotes

Today; Vietnam Rice Quotes Mixed

Thailand rice sellers increased their quotes for 5% broken rice, 25% broken rice and A1 superrice by about $5 per ton each to around $380-$390 per ton, $365-$375 per ton and $340-$350 perton respectively today. Vietnam rice sellers increased their quotes for Jasmine rice by about $20 per ton to around $460-$470 per ton and lowered their quotes for 100% broken rice by about $5 per ton to around $335-$345 per ton today. India Pakistan rice sellers kept their quotesunchanged.

5% Broken Rice

Thailand 5% rice is indicated at around $380 - $390 per ton, about $15 per ton premium onVietnam 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 perton.

25% Broken Rice

Thailand 25% rice is indicated at around $365 - $375 per ton, about $15 per ton premium onVietnam 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 is indicated at around $380 - $390 per ton. India parboiled rice isindicated at around $335 - $345 per ton, about $70 per ton discount to Pakistan parboiled ricelast shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $340 - $350 per ton, about $5 per ton premium on

Vietnam 100% broken rice shown at around $335 - $345 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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4Oryza U.S. Rough Rice Recap – Prices Firmas Grains Rally

Apr 20, 2016

The U.S. cash market was firmer today with offers from resellers increasing with the futuresmarket which got a lift from large gains in soybeans and wheat today as well as support from astronger Brazilian Real.

Analysts note that with farmer’s planting their crop well ahead of last year and the prior 5 yearaverage it increases the likelihood that this year’s crop will be substantially larger than last year

however if the bean rally continues we could see some marginal rice acreage shift to beans.

In the end, the market will need greater export demand to move old crop to make room for a larger newcrop although a few more sales to Iraq or Venezuela could help relieve that pressure.

Percentage of Defects in Grains Needed to

Determine Quality of Rice Under Italian

Laws

Italian laws specify that along with the values of overall yield and whole grains, the percentages

of different types of defects in the grains should be considered to determine the quality and thevalue of each batch of paddy rice, according to local sources.

Laws specify several defects that should be considered. Also, the percentage of each defect must be determined on the entire milled rice batch; then its percentage weight is specified for each 100grams. The laws also specify a maximum tolerance rate for each defect.

The following defects are listed under the Italian laws: red striated grains, natural deformities,varietal impurities, damaged grains, not completely gelatinized grains and pecked grains.

Local sources say under Italian laws, determining the presence of varietal impurities is easier,

because the mixtures of different varieties were forbidden, and rice can only be marketed withthe name of the variety on the package.

Domestic Rice Prices Fall on Weak Chinese

Demand


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5Apr 19, 2016Vietnam domestic prices, which increased earlier this month on higher demand from China andconcerns of drought cutting the output, have started to fall over the last two weeks, reports

Bloomberg citing local sources.

The price of IR50404 rice fell to around 6,700-6,800 dong per kilogram (around $304 - $308)from around 7,200-7,300 dong per kilogram (around $327 - $331) two weeks ago. The price ofIR50404 paddy fell to around 4,500-4,600 dong per kilogram (around $204 - $209) from around5,000-6,000 dong per kilogram (around $227 - $272) two weeks ago.

Traders say earlier price increases have prompted Chinese companies to cut purchases againleading to a fall in prices.

Rice Area in Vietnam's Mekong DeltaDeclined 16.7% Over Last One Year, Show

Satellite Reports

Apr 19, 2016

Reports by Europe’s Sentinel-1A satellite have shown that rice area in Vietnam's Mekong River

Delta (MRD) has declined about 276,000 hectares or about 16.7% between mid-March 2015 andmid-March 2016 due to the impact of El Nino phenomenon, according to www.spacedaily.com quoting an official from France's CESBIO institute.

According to the official, rice fields at different growth stages have been mapped by Sentinel-1Anearly every 12 days since October 2014 and rice area data between mid-March 2015 and mid-March 2016 was compared to assess the impact of El Nino on MRD.

Since the end of 2015, dry conditions associated with El Nino have severely impacted South EastAsia, in particular in Vietnam's Mekong Delta. River water levels have reached their lowestlevels in last 90 years in many places, causing more severe and earlier salt water intrusion than

previous years.

The Sentinel-1 mission is helping to map and monitor rice production. It carries an advancedradar that can see through all weather conditions - essential in cloud-prone South East Asia - andis highly sensitive to changes in waterlogged ground such as rice paddies.

"The frequent observations by Sentinel-1 over the main rice production areas and its free accessmake the mission an indispensable asset for rice monitoring in the region," said the official.

http://www.spacedaily.com/http://www.spacedaily.com/http://www.spacedaily.com/http://www.spacedaily.com/


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6Sentinel-1 is a two-satellite mission. The first satellite, Sentinel-1A, studies the rice areas forevery 12 . Its sister Sentinel-1B will be launched on 22 April, 2016 allowing for more frequentupdates on rice.

Oryza CBOT Rough Rice Futures Recap -Chicago Rough Rice Futures Find Support

from Broad Based Rally across U.S. Grain

Prices

Apr 20, 2016

Chicago rough rice futures for May delivery settled 10 cents were cwt (about $2 per ton) higherat $10.360 per cwt (about $228 per ton). The other grains finished the day sharply higher led by acontinued rally in soy; Soybeans closed about 3.3% higher at $9.9475 per bushel; wheat finishedabout 2.8% higher at $4.9425 per bushel, and corn finished the day about 1.2% higher at $3.8950 per bushel.

U.S. stocks traded in a range Tuesday, amid a rise in oil prices, as declines in tech stocksweighed after major earnings reports. U.S. crude oil futures for May delivery held more than2.5% higher near $41 a barrel as of 12:47 p.m. ET. After the settle Wednesday, the contract rollsto June, which was trading near $42.25 a barrel. European stocks were more than 1% higher,with the German DAX outperforming with gains of more than 2%. Germany's ZEW institute's

latest Indicator of Economic Sentiment rose for the second month in a row in April to 11.2 points. In Asia, the Nikkei 225 rebounded with gains of more than 3.5%, while the Hang Sengrose 1.3% and the Shanghai composite closed about 0.3% higher. In economic news, housingstarts fell a more-than-expected 8.8% in March to a seasonally adjusted annual pace of 1.09million units, the lowest level since October, according to Reuters, citing the CommerceDepartment. Building permits dropped 7.7% to a 1.09 million-unit rate last month, the lowestlevel since March last year. In midday trade, the Dow Jones industrial average declined 16 points, or 0.09%, to 17,987. The S&P 500 declined 2 points, or 0.12%, to 2,091, withinformation technology leading five sectors lower and energy the top advancer. The Nasdaqcomposite declined 43 points, or 0.88%, to 4,916. Gold is seen trading about 1.6% higher, crudeoil is seen trading about 2.7% higher, and the U.S. dollar is seen trading about 0.6% lower at

about 1:00pm Chicago time.

Monday, there were 2,204 contracts traded, up from 2,203 contracts traded on Thursday. Openinterest – the number of contracts outstanding – on Monday decreased by 227 contracts to12,098.


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7Vietnam Rice Exports Expected to ReachEight Year Low Due to Drought

Drought in Vietnam is threatening the country's rice production in turn affecting its ability to export riceto its traditional importers such as the Philippines. According to an article in Bloomberg, Vietnam's rice

exports are expected to fall about 10% y/y to below 6 million tons reaching an eight-year low.

The article quoted the Head of the General Statistics Office (GSO) as saying that the rice outputfrom the Mekong Delta fell 6.2% y/y in the first quarter of the year.

While the Philippines is planning to import 500,000 tons of rice to ensure adequate suppliesduring the lean season, experts are expressing concern if Vietnam can cater to the needs of itstraditional buyers.

Output in four other major rice producing countries , including Thailand, India, Pakistan and theU.S., is also likely to decline this year due to drought. “People in Indonesia and the Philippineswill go hungry if the Thais and Vietnamese don’t produce enough rice,” said the Director of theSoutheast Asia Program at the Stimson Center in Washington.

Water shortages in reservoirs on the Mekong river in Southern Vietnam are likely to cutwatersupplies for irrigating crops by about 50% this year, according to a UN report. Experts areexpressing concern that dams built by China, Vietnam and Laos on the river are depriving theMekong Delta region of the critical sediments needed to replenish soil. A study submitted to theMekong River Commission noted that eleven dams planned in Thailand, Laos and Cambodiacould result in fish and farming losses of $750 million in Vietnam and $450 million inCambodia.

Experts are suggesting the Vietnam government, which relied heavily on rice production allthese years, to encourage farmers to shift to more profitable crops.

Decide on Appropriate Time for 2016 Main

Rice Crop Planting Next Week

The government of Thailand will decide the appropriate time for this year's main rice crop

planting next week, according to Bangkok Post.The Permanent-Secretary of the Agriculture andCooperatives Ministry told reporters that he will meet with the representatives from stateagencies, including the Department of Royal Irrigation, the Department of Water Resources andthe Meteorological Department, under his Ministry to discuss the appropriate timing for the firstrice crop planting. He noted that the Ministry would reveal the decision to the farmers by the endof this month.


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8The meeting will assess when farmers can return to planting in-season rice crops after evaluatingthe water situation in the country and the weather forecast on the rainy season. "We need thatinformation to fix the right period for farmers to begin their seasonal rice plantation. If we letthem know in advance, they will have more time to prepare themselves. We have no policy tolimit the scale of rice plantation during the rainy season," he said.

However, the official noted that the Ministry has not yet come up with likely measures to assistfarmers if they suffer from losses as they are expecting enough water for paddy fields during therainy season. Around 58 million rai (around 9.28 million hectares) of land will be planted withrice during the rainy season.

He noted that the Ministry has decided to limit additional crops this year also, especially in theChao Phraya River basin, if there is not enough water for farming. He added that the Ministryhas decided on providing lucrative measures, including soft loans and occupation training, forfarmers to grow less water requiring crops.

Global Rice QuotesApril 19th, 2016

Long grain white rice - high quality

Thailand 100% B grade 390-400 ↑

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 365-375 ↑

Vietnam 25% broken 350-360 ↔

Pakistan 25% broken 310-320 ↔


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9Cambodia 25% broken 425-435 ↔India 25% broken 325-335 ↔

U.S. 15% broken (sacked) 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 380-390 ↔

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% 665-675 ↔

Vietnam Jasmine 460-470 ↑

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 760-770 ↔

Brokens

Thailand A1 Super 340-350 ↑

Vietnam 100% broken 335-345 ↓

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

20th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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