26th February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

8/9/2019 26th February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-Newsletter

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Daily Exclusive ORYZA Rice Newsletter

Volume 5, Issue I

February 26, 2015


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EU Imports 442,433 Tons of Milled Rice from

Non-EU Nations in September 1, 2014 -

February 17, 2015; Up 2% from Last Year

Feb 25, 2015

Union (EU) has imported around 442,433 tons of milled rice from non-EU nations in September

1, 2014 - February 17, 2015, up about 2% from around 433,770 tons imported during the same

period last year, according to the EU data.The U.K remained the biggest buyer of non-EU rice

with 88,918 tons (accounting for about 20% of EU's total imports from the non-EU nations

during the September 1, 2014 - February 17, 2015 period). France imported 84,358 tons (19%),

Netherlands imported 63,138 tons (14%), Germany imported 36,188 tons (8%), Poland imported28,496 tons (6%), Belgium imported 23,876 tons (5%) and Italy imported 21,022 tons

(5%) during the said period.

The EU milled Indica rice imports from non-EU nations increased slightly to around 238,155

tons during September 1, 2014 - February 17, 2015 from around 236,695 tons imported during

the same period in 2013-14 crop year. Most of the milled Indica rice was imported from the

Asian Least Developed Countries (LDCs) such as Cambodia and Myanmar under the Everything

But Arms (EBA) agreement. The EU imports of Japonica variety also increased slightly to

around 41,741 tons during the said period from around 41,104 tons imported last year.However,

the EU broken rice imports increased about 24% to around 187,250 tons in September 1, 2014 -

February 17, 2015 from around 150,613 tons imported during the same period in 2013-14.

Global Rice Quotes

February 26th, 2015

Long grain white rice - high qualityThailand 100% B grade 415-425 ↔Vietnam 5% broken 360-370 ↔

India 5% broken 390-400 ↔Pakistan 5% broken 335-345 ↔Myanmar 5% broken 410-420 ↔

Cambodia 5% broken 425-435 ↔U.S. 4% broken 475-485 ↓


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Uruguay 5% broken NQ ↔Argentina 5% broken NQ ↔

Long grain white rice - low quality

Thailand 25% broken 365-375 ↔Vietnam 25% broken 335-345 ↔

Pakistan 25% broken 305-315 ↔Cambodia 25% broken 410-420 ↔India 25% broken 355-365 ↔

U.S. 15% broken 465-475 ↓

Long grain parboiled rice

Thailand parboiled 100% stxd 405-415 ↔Pakistan parboiled 5% broken stxd 385-395 ↔India parboiled 5% broken stxd 385-395 ↔

U.S. parboiled 4% broken 555-565 ↔Brazil parboiled 5% broken 570-580 ↔Uruguay parboiled 5% broken NQ ↔

Long grain fragrant riceThailand Hommali 92% 920-930 ↔

Vietnam Jasmine 445-455 ↔India basmati 2% broken NQ ↔Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 785-795 ↔

BrokensThailand A1 Super 320-330 ↔Vietnam 100% broken 305-315 ↔Pakistan 100% broken stxd 275-285 ↔

Cambodia A1 Super 345-355 ↔India 100% broken stxd 280-290 ↔Egypt medium grain brokens NQ ↔

U.S. pet food 380-390 ↔Brazil half grain NQ ↔

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


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Indonesia President Begins Rice Distribution

Operations

Feb 25, 2015

The Indonesian President Joko Widodo has formally

begun the operations for distributing Bulog rice in the

market in line with the government's decision to control

price hikes, according to local sources. The distribution

operations were formally launched at Bulog's Warehouse

in North Jakarta.The government has planned to distribute

over 300,000 tons of rice across the country at about

7,400 per kilogram (around $576 per ton).

The Trade Minister was quoted as saying that the government would initially distribute 1,600

tons of Bulog rice in Jakarta and its satellite towns of Bogor, Depok, Tangerang and Bekasi

(Jabodetabek).The President also simultaneously launched the rice distribution operations under

this year's Rice for the Poor (Raskin) program at around 1,600 Rupiah per kilogram (around

$125 per ton). The government will reportedly distribute 19,000 tons of rice through the Raskin

program by March this year. He noted that Bulog currently has 1.4 million tons of rice stocks

and they would be sufficient until the arrival of rice from the ongoing harvest in March and

April. He added that stocks would be sufficient despite a rise in demand.

Domestic rice prices have been surging since September 2014. According to data from the UN's

Food and Agricultural Organization (FAO), local rice prices currently stand at around 9.78

million Rupiah (around $761) per ton, up about 10% from around 8.93 million Rupiah (around

$750) per ton in September 2014, and up about 9% from their year ago levels.The government

has ruled out any immediate imports of rice ahead of the harvest season in March.

New Port Contract Brings Relief to

California Rice SectorFeb 25, 2015

Problems between dock workers and terminal operators in the U.S. West Coast ports seems to be

over with the signing of a new contract signed by the dockworkers' union and the terminal

operators at 29 West Coast ports, including the Port of Oakland, in the beginning of this week,


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according to local sources.It is certainly a good

news to the California rice exporters who have

been bearing huge losses due to delay in

shipments as well as cargos piled up on docksduring the month-long slowdown. California's rice

sector lost about half the regular volume of

exports in December and January, according to

the President and CEO of the California Rice

Commission. "The haemorrhaging has stopped

and now we can start to get healthy again," he was

quoted as saying. He added that actual losses cannot be calculated until the existing backlog of

shipments are settled.

Nearly 80% of the rice grown in California is medium-grain rice and is exported through the portof West Sacramento and Oakland port to the countries in the south Pacific.California is the

second largest rice producing state in the U.S. after Arkansas, and contributes to around 2 million

tons of paddy rice annually or about 25% of the total rice grown in the U.S. The state's rice

sector employs about 25,000 people and most of rice grown here is exported.California rice

sector had been impacted by drought last year. The state's paddy rice acreage in 2014 had

declined to around 420,000 hectares, down about 25% from around 525,000 hectares planted in

2013 due to prolonged dry conditions and water shortages.

Lao PDR Plans to Strengthen SanitaryMeasures to Boost Rice Exports

Feb 25, 2015

The government of Lao Peoples Democratic Republic (PDR) is planning to strengthen sanitary

and phyto-sanitary measures as part of efforts to boost rice exports, according to a notice on the

government web portal.Laos is almost self-sufficient in rice production and consumes almost all

of the output domestically. The South East Asian nation exports about 300,000 tons of rice

annually to Vietnam, Thailand and China.

But the government is keen on boosting rice exports by increasing production. It is planning to

increase the paddy rice production by about 70% y/y to around 4.2 million tons (around 2.65

million tons, basis milled) in 2015.In line with its targets, the government is stepping up efforts

to increase awareness about sanitary and phyto-sanitary issues among the rice producers and

millers. The Ministry of Agriculture hosted a knowledge dissemination meeting last week to


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apprise the exporters and producers the demands of various trade partners over the sanitary and

phyto-sanitary measures.The Vice Minister of Agricultural and Forestry told rice stakeholders

that the government has signed agricultural and crop production agreements with Thailand,

Vietnam and China, and according to the agreements, Laos needs to follow the conditions offood safety and plant sanitary measures.

He also noted that the

government has signed a rice

export contract with China,

which includes an agreement on

phyto-sanitary measures. He

said China wants the

government to follow the

standards of the WTO withregard to protocols of bio-safety

and Sanitary and Phyto-Sanitary

measures (SPS Protocol). He

added that the agreement

specifically focuses on the

phytosanitary and pest

management measures required, the methods of processing, packaging, transport and other

important measures. Earlier, the Vice-Minister noted that there is huge demand for Laos’ sticky

rice among the Chinese. USDA estimates Laos to produce around 1.55 million tons of milled

rice (around 2.46 million tons, basis paddy) in MY 2014-15 (January 2015 - December 2015)

and import around 10,000 tons of rice to meet consumption needs of around 1.58 million tons.

Oryza Afternoon Recap – Chicago Rough

Rice Futures Recover from Early Losses but

off of Session Highs as Rallying Crude

Weighs on Grain Prices

Feb 25, 2015

Chicago rough rice futures for May delivery settled 6 cents per cwt (about $1 per ton) higher at

$10.770 per cwt (about $237 per ton). After falling overnight and into the morning session rough

rice futures made a big rally during mid-day trading. However, the buying interest quickly


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subsided and prices drifted much closer to the unchanged line during afternoon trading. Despite

prices closing off of the highs the fact that they did manage to hold out for a gain despite

bearishness in the other grains is seen as a positive sign for the market. Traders will now focus

on yesterday’s settlement price of $10.710 per cwt (about $236 per ton) as a key signal of futuretrade direction.

A higher close tomorrow will complete an outside up pattern and signal that the recent

bearishness is indeed over and that a recover is underway, likely triggering additional buying. On

a move higher traders will keep an eye on the recent high of $11.160 per cwt (about $246 per

ton) as a key point of resistance. The other grains finished lower but off of session lows;

soybeans closed about 0.8% lower at $10.1075 per bushel; wheat finished about 1.3% lower at

$4.9725 per bushel, and corn finished the day about 0.5% lower at $3.8375 per bushel.U.S.

stocks traded mostly higher on Wednesday after closing at records on Tuesday, amid firming oil

prices, moderate housing data and no news out of Fed Chair Janet Yellen's second congressionaltestimony.

Yellen's remarks to the Senate on Tuesday were mostly dovish but added little weight on either

side to analyst expectations on the timing of an interest rate hike. The Fed chair repeated the

remarks on Wednesday in front of the House Financial Services Committee. Stocks were little

changed after morning housing data and earnings. New U.S. single-family home sales in January

fell a less-than-expected 0.2% to 481,000 and supply rose to its highest level since 2010, hopeful

signs for the sluggish housing market.

The U.S. Energy Information Administration reported that weekly crude inventories rose 8.4million barrels, more than expected. The figures were in-line with Tuesday's American

Petroleum Institute report of 8.9 million barrels. The Dow Jones Industrial Average traded up 14

points, or 0.08%, to 18,224. The S&P 500 traded up 0.56 points, or 0.03%, to 2,116, with

consumer discretionary leading four sectors higher and utilities the greatest laggard. The Nasdaq

gained 8 points, or 0.16%, to 4,976. Gold is trading about 0.4% higher, crude oil is seen trading

about 2% higher, and the U.S. dollar is seen trading about 0.2% lower at about 1:00pm Chicago

time.Tuesday, there were 1,505 contracts traded, down from 1,053 contracts traded on Monday.

Open interest – the number of contracts outstanding – on Tuesday increased by 132 contracts to

9,180.

Myanmar Signs 100,000 Ton Rice Export

Contract with China

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The Myanmar Rice Federation (MRF) has signed

a contract with the China's state run China National Cereals, Oils and Foodstuffs

Corporation (COFCO) to export 100,000 tons of

rice to China is separate monthly shipments in

accordance with market prices at the time of

shipment, local sources quoted an official from

the (MRF) was quoted as saying. According to

the Joint Secretary of the MRF, It has been agreed

to export rice in separate monthly shipments at

the prevailing prices at the time of shipment to

ensure a fair trade for both parties. He also notedthat the Myanmar rice exporters do not have enough capacity to export all 100,000 tons of rice at

one go. Officials from the MRF have been working to sign this contract for last few months in

order to legalize rice exports to China.

Initially nine companies were shortlisted to export rice to China but the number is likely to go up

as China sought increase in the number of exporters.According to the agreement, rice exporters

should get their rice inspected and accredited with the China's General Administration of Quality

Supervision, Inspection and Quarantine (AQSIQ) and then seek approval from the China

Certification and Inspection Group before exporting rice to China.The MRF Joint Secretary

noted that they would begin exporting rice to China from April. He noted that the MRF is takingall measures to meet the quality and variety standards in accordance with China's specifications.

Currently export prices of Myanmar 5% broken rice is quoted at around $415 per ton and 25%

broken rice is quoted at around $325 per ton.Around 1.1 million tons of rice have been exported

in the first nine months of 2014-15, of which 800,000 tons comprise of exports to China through

the borders. The Myanmar government is targeting to export around 2.5 million tons of rice in

FY 2015-16 (April - March), up about 67% from an estimated 1.5 million tons in FY 2014-

15.USDA estimates Myanmar to produce 18.98 million tons of paddy rice (around 12.15 million

tons, milled basis) and export around 1.4 million tons of rice in MY 2014-15 (January -

December 2015).


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Oryza U.S. Rough Rice Recap – Unchanged

Market as Snowy Weather Hampers

Movement of Rice

Feb 25, 2015

The U.S. cash market was unchanged today with little trading to report as most buyer and seller

price ideas are roughly $0.50-$1.00 per cwt (about $11-$22 per ton).Icy and snowy weather

continues to hamper movement of rice in the U.S. mid-South causing a headache for some

farmers, mills, and exporters however forecasts are expected to improve by the

weekend.Analysts note that farmers are beginning to make preparations for next year’s crop

however some believe that rice is losing favor with farmers as the softer prices currently seen areat or below their cost of production

Oryza Overnight Recap – Chicago Rough

Rice Futures Sharply Lower Overnight as

Other Grains Turn Bearish

Feb 25, 2015

Chicago rough rice futures for May delivery are currently listed 14 cents per cwt (about $3 per

ton) lower at $10.570 per cwt (about $233 per ton) ahead of floor trading in Chicago. The other

grains are seen trading lower this morning: soybeans are currently seen about 0.4% lower, wheat

is listed about 0.5% lower and corn is currently noted about 0.3% lower.U.S. stock index futures

signaled a flat open on Wednesday as investors digested comments from Federal Reserve Chair

Janet Yellen's speech to Congress which hinted that the central bank was not in a rush to hike

interest rates.

Yellen is set to continue her testimony on Wednesday in front of the House Financial Services

Committee, as new home sales figures for January are due, both at 10.00 a.m. ET. Mortgage

applications to purchase a home rose 5% on a seasonally adjusted basis for the week ending Feb.

20 from the previous week, according to the Mortgage Bankers Association (MBA). Existing

home sales for January reported on Monday slumped to the lowest level in nine months amid a

shortage of properties in the market. Investors will also watch oil inventories at 10:30 a.m. ET

from the U.S. Energy Information Administration for signals on supply build-up. Gold is


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currently trading about 0.7% higher, crude oil is seen trading about 0.3% higher, and the U.S.

dollar is currently trading about 0.2% lower at 8:00am Chicago time.

Asia Rice Quotes Unchanged TodayFeb 25, 2015

Asia rice sellers kept their quotes unchanged today.

5% Broken Rice

Thailand 5% rice is quoted at around $405 - $415 per ton, about $50 per ton premium on

Vietnam 5% rice shown at around $355 - $365 per ton. India 5% rice is quoted at around $390 -

$400 per ton, about $55 per ton premium on Pakistan 5% rice quoted at around $335 - $345 per

ton.

25% Broken Rice

Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on

Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $355

- $365, about $50 per ton premium on Pakistan 25% rice quoted at around $305 - $315 per ton.

Parboiled Rice

Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at

around $385 - $395 per ton, on par with Pakistan parboiled rice quoted at around $385 - $395 per

ton.

100% Broken Rice

Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $15 per ton

premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100%

broken rice is shown at around $280 - $290 per ton, about $5 per ton premium on Pakistan

broken sortexed rice quoted at around $275 - $285 per ton.

26th February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

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