25th February,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

8/20/2019 25th February,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-Newsletter

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www.ricepluss.com www.riceplusmagazine.blogspot.com

February 25,2016

Vol 7,Iss


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Cuba Signs New Credit Agreements with

China to Develop Rice Sector

Feb 24, 2016

The government of Cuba has signed new credit agreements with the Export-Import Bank ofChina (Eximbank) to receive support from the East Asian nation for the development ofagriculture and railroad programs, according to local sources.

The amounts would be used to purchase medium and high power tractors to boost rice production and railroad passenger cars.

This is the fourth line of credit that Cuba obtains from China, and is mainly aimed at increasing

local rice production, according to the Cuban Deputy Minister of Finance and Prices. He alsonoted that the credit would be used for other joint projects linked to the country's strategic programs.

Cuba currently produces only half of its annual rice consumption needs and imports the rest.USDA estimates Cuba to produce around 395,000 tons of milled rice and import around 500,000tons 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.

FAO Forecasts Iran to Import 1.2 Million

Tons of Rice in 2015-16 Despite 17% y/y

Increase in Production

Feb 24, 2016

The UN's Food and Agriculture Organization (FAO) forecasts Iran to import about 1.2 milliontons of rice in 2015-16 (April-March) despite an increase in 2015 paddy rice production. It

forecasts the country's total cereal imports to decline about 35% y/y to around 10 million tons.

The FAO estimates Iran's 2015 paddy rice production to increase by about 17% to around 2.7million tons from around 2.3 million tons during the previous year.

Planting for 2016 paddy rice crop will begin in May.


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EU Imports 572,619 Tons of Rice in

September 1, 2015 - February 16, 2016; Up

23% from Previous YearFeb 24, 2016

According to the latest data issued by the European Union (EU), rice imports by the EUincreased sharply since the beginning of the crop year 2015-16 (September 1, 2015 - August 31,2016).

The EU imported about 572,619 tons of rice during the period September 1, 2015 - February 16,2016, up about 22.5% from around 467,256 tons imported during the same period last year.

Japonica rice imports increased about 43% to around 59,570 tons in September 1, 2015 -February 16, 2016 period from around 41,741 tons during the same period last year. Indica riceimports increased about 20.6% to around 513,049 tons during the said period from around425,515 tons last year.

The UK remained the largest importer in September 1, 2015 - February 16, 2016 period witharound 127,867 tons followed by France (95,218 tons), The Netherlands (64,495 tons), Germany(60,871 tons), Poland (41,907 tons), , and Italy (40,210 tons). Other EU countries imported142,051 tons.


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During the week ended February 16, 2016, the EU imported around 42,196 tons of rice, up about43% from around 29,564 tons imported during the week ended February 9, 2016.

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.

Global Rice Quotes

February 24th, 2016

Long grain white rice - high quality

Thailand 100% B grade 365-375 ↔

Vietnam 5% broken 350-360 ↔

India 5% broken 360-370 ↔

Pakistan 5% broken 335-345 ↓

Myanmar 5% broken 420-430 ↔

Cambodia 5% broken 410-420 ↔

U.S. 4% broken 455-465 ↓

Uruguay 5% broken 445-455 ↑

Argentina 5% broken 435-445 ↑

Long grain white rice - low quality

Thailand 25% broken 345-355 ↔


Pakistan 25% broken 305-315 ↔

Cambodia 25% broken 395-405 ↔

India 25% broken 325-335 ↔

U.S. 15% broken (sacked) 440-450 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 365-375 ↔


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Pakistan parboiled 5% broken stxd NQ ↔

India parboiled 5% broken stxd 350-360 ↔

U.S. parboiled 4% broken 480-490 ↔

Brazil parboiled 5% broken 520-530 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 670-680 ↓

Vietnam Jasmine 415-425 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 760-770 ↔

Brokens

Thailand A1 Super 325-335 ↔


Pakistan 100% broken stxd 285-295 ↔

Cambodia A1 Super 335-345 ↔

India 100% broken stxd 260-270 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 280-290 ↔

Brazil half grain NQ ↔

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

Oryza CBOT Rough Rice Futures Recap -

Chicago Rough Rice Futures Rebound


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Slightly as Mixed U.S. Grains Provide Little

in the Way of Price Guidance

Feb 25, 2016

Chicago rough rice futures for Mar delivery settled 6.5 cents per cwt (about $1 per ton) higher at$10.660 per cwt (about $235 per ton). The other grains finished the day with mixed results;Soybeans closed about 0.1% lower at $8.7250 per bushel; wheat finished about 1% lower at$4.5125 per bushel, and corn finished the day about 0.6% lower at $3.6450 per bushel.

U.S. stocks traded mostly lower Wednesday, with financials leading declines, as investorswatched for stabilization in oil prices. The major U.S. averages came well off session lows inmidday trade as oil recovered from a sharp overnight decline to trade near $32 a barrel.Financials traded about 1% lower to lead S&P 500 decliners, while energy and materials

reversed losses to trade higher. The S&P briefly fell below the psychologically key 1,900 level,although the index traded more than 10% below its 52-week intraday high, in correction territoryalong with the Dow and Nasdaq composite.

Traders said there was not a fundamental reason for the decline in stocks following the servicesPMI given the light trade volume and the relative newness of the indicator. European stocksclosed about 2% lower or more. The STOXX Europe 600 fell nearly 3%, ending almost 40% below its 52-week intraday high. Overnight, the Chinese yuan midpoint fix was also set slightlyweaker against the dollar. However, the Shanghai composite closed about 0.9% higher whilemost Asian equities declined. In midday trade, the Dow Jones industrial average fell 120 points,or 0.73%, to 16,311. The S&P 500 declined 11 points, or 0.58%, to 1,910, with financials

leading nine sectors lower and telecommunications the only decliner. The Nasdaq composite fell11 points, or 0.27%, to 4,491. Gold is seen trading about 1.3% higher, crude oil is seen tradingabout 0.1% higher, and the U.S. dollar is seen trading about 0.1% lower at about 1:30pmChicago time.

Tuesday, there were 3,959 contracts traded, up from 3,243 contracts traded on Monday. Openinterest – the number of contracts outstanding – on Tuesday increased by 189 contracts to12,773.

Higher Domestic Prices May Increase

Japanese Rice Imports, Say TradersFeb 24, 2016

Japanese rice traders are expecting the country to import more rice this year due to an increase indomestic prices, according to Asian Nikkei.


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Domestic prices are said to have increased about 10% y/y to around 227 yen per kilogram(around $2,021 per ton) excluding taxes in January this year due to higher demand from theanimal feed industry. The government is keen on increasing the use of rice for animal feed andreduce the use of corn and wheat.

They told reporters that meanwhile export prices of medium-grain polished Californian rice,which many Japanese restaurants use together with domestic rice, has declined about 17% y/y toaround $775 per ton (around 87 yen per kilogram) in January this year. Californian rice pricesincreased over the last few years due to four consecutive years of drought. Traders attributed thefall in prices to a likely increase in California rice supply this year due to resumption of rainsallowing farmers to plant more rice. They also noted that Californian rice prices have declineddue to a fall in demand from the Middle East countries due to drought-related high prices.

The domestic prices are nearly two-and-half times the Californian rice, up from less than twicethe price in 2014. A trader noted that due to a short supply of low-priced rice for commercial use,most of the restaurants are considering imported rice.

Therefore, traders are opining that the widening gap between the domestic and imported pricescould prompt more rice imports this year.

Japan's imports under the "simultaneous buy-sell" system have doubled so far in FY 2015-16

(April-March) to 22,000 tons. But they are below the maximum annual import threshold of 100,000 tons

Thailand Sets 2016 Rice Export Target at 9.5

Million Tons, Down 5% from Last YearFeb 24, 2016

The government of Thailand has set its 2016 rice export target at around 9.5 million tons, downabout 5% from around 10 million tons exported in 2015, due to a likely impact of extendingdrought conditions on this year's production, Reuters quoted a senior official from the ThaiCommerce Ministry.

The Director-General of the Ministry's Foreign Trade Department noted that lower supplies from

this year's crop may lead to an increase in Thai rice prices.

She also noted that the Commerce and Agriculture Ministries have prepared 10 billion baht(around $278 million) worth of measures to stabilize prices. Some of the measures include buying rice from farmers and storing it temporarily, she said.


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Separately, the Thai Prime Minister reportedly urged farmers to cultivate less rice to cope withthe intensifying water crisis. "We have to find measures to motivate rice farmers to change toother crops (than rice)," he was quoted.

The military government currently holds about 12 million tons of rice in its stockpiles and is

keen on clearing the stocks by the end of next year.

In a recent report, the USDA Post forecast Thailand's MY 2015-16 (January - December 2016) paddy rice production at around 24 million tons, down from last year's 29.4 million tons. Itforecast Thai off-season paddy production to decline about 57% y/y to around 3.1 million tons.

Thailand, Pakistan Rice Sellers Lower Some

of Their Quotes Today; Other Asia Rice

Quotes UnchangedFeb 24, 2016

Thailand rice sellers lowered their quotes for Hommali rice by about $10 per ton to around$670-$680 per ton today. Pakistan rice sellers lowered their quotes for 5%broken rice by about$5 per ton to around $335-$345 per ton. Other Asia rice sellers kept their quotes unchangedtoday.

5% Broken Rice

Thailand 5% rice is indicated at around $355 - $365 per ton, about $5 per ton premium onVietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360- $370 per ton, about $25 per ton premium on Pakistan 5% rice shown at around $335 - $345 perton.

25% Broken Rice

Thailand 25% rice is indicated at around $345 - $355per ton, about $5per ton premium onVietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around$325 - $335 per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 -

$315 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice isindicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled ricelast shown at around $405 - $415 per ton.


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100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, on par with Vietnam100% broken rice shown at around $325 - $335 per ton. India's 100% broken rice is shown ataround $260 - $270 per ton, about $25 per ton discount to Pakistan broken sortexed rice shown at

around $285 - $295 per ton.

World Bank Economist Advises Philippines

to Open Rice Import Market

Feb 24, 2016

The World Bank Lead Economist advised the government of the Philippines to removequantitative restrictions on rice imports and open the rice import market to avoid unnecessary price increases and enhance the efficiency of the rice sector, according to the Manila Times.

Speaking at the Manila Times’ 3rd Business Forum, he noted that the government's current policy of monopolizing the rice imports is not in the interest of the farmers and the country. Healso noted that the policy will not work to increase the net income of the farmers or check theretail rice prices.

He stated that the government is failing to achieve the rice self-sufficiency due to a significantgap between production and consumption. He said the government's policy of “buying high”from farmers and “selling low to the poor” suggests increasing inefficiency". He stressed that

opening the rice import market would correct these inefficiencies as traders have sufficient timeto import and thus domestic rice price increases can be avoided.

He suggested that the government should remove the QRs and tariff quotas in the medium term,and should "progressively reduce" tariffs in the long term to achieve desired results.

He also noted that investments in agricultural productivity, specifically on research anddevelopment, agricultural extension, rural infrastructure such as roads irrigation andelectrification; secure property rights; and farmers’ health and education are important toincrease the efficiency of the rice sector.

Myanmar Commerce Ministry Estimates

2015-16 Rice Exports to Decline Sharply

Feb 24, 2016


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Myanmar's Ministry of Commerce is estimating the country's rice exports to fall sharply in FY2015-16 (April - March) based on the current pace of exports, according to Irrawaddy News.TheMinistry data shows that Myanmar has so far in this fiscal year exported about 1.037 milliontons, down about 17% from around 1.255 million tons exported during the same period last year.Myanmar exported 1.84 million tons of rice in FY 2014-15, with China accounting for about

70% of the country's exports.

“We won’t match last year’s record, with the major reasons being the floods last year [in July

and August] and the fact that some rice exporters and traders are concerned about not having ricefor the summer [because of El Niño], so they’re storing rice,” the Director of the Ministry ofCommerce was quoted. He also noted that traders are prepared for higher rice prices due to likelylow production.Last week, the Myanmar Rice Federation (MRF) has urged the government to prepare rice reserves due to likely lower output from extending dry conditions.According toofficial figures, Myanmar produced about 13 million tons of milled rice in FY 2014-15 fromaround 57.5 million hectares of land. USDA estimates Myanmar to produce about 12.2 milliontons of rice in MY 2015-16 (January – December 2016). It estimates Myanmar to export about

1.8 million tons in 2016.

Uganda Needs Improved Farming Tools to

Boost Rice Production, Say Experts

Feb 24, 2016

Experts emphasized the need for improved and modernized farming tools to boost Uganda's rice production, according to All Africa.The Director of the National Crops Resources Research

Institute (NaCRRI) noted that Uganda's rice production is currently characterized by traditional,rudimentary and obsolete technologies. The official who attended the demonstration ofagricultural machinery for small-scale farmers noted that an increasing demand for rice calls forintensive production of high-yield rice."We have achieved rice production self-sufficiency. National rice production is 306,000 tonnes today. But the increase in population and increasingdemand, especially in urban areas, means new farmers need to be engaged in rice production andthose farmers who are already producing rice should adopt better farming methods to increasetheir rice yields," he said.

The country's national rice development strategy aims to increase rice production to 443,800 tonsin 2018. The Promotion of Rice Development (PRiDe) project, which is being implemented by

Japan International Cooperation Agency (JICA), ministry of Agriculture, Animal Industry andFisheries, and National Agricultural Research Organization, and National Agricultural AdvisoryServices (Naads) is reportedly supporting Uganda to achieve its national rice productiontargets.The Chief Advisor of PRiDe project noted that broken grains and stones in rice are majordrawbacks of Uganda rice. He stressed for the need of affordable threshing machines to increasethe quality of rice.

Exclusive News have been shared with written permission of ORYZA.com with thanks

25th February,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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