2nd 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 02, 2015


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FAO Estimates Peru's 2015 Paddy Rice

Production to Increase 2% y/y to 2.93 Million

Tons

Apr 01, 2015

The UN's Food and Agriculture Organization (FAO) estimates Peru's 2015 paddy rice production

to increase about 2% to around 2.93 million tons (around 2.05 million tons, basis milled) from

around 2.875 million tons (around 2.01 million tons, basis milled) last year.

Planting of the main 2015 rice crop (December - August) is almost complete. Planting for the

main rice crop could not be increased significantly from last year's due to low water levels in

irrigation reservoirs at the beginning of the sowing period. The FAO expects paddy acreage in

2015 to be slightly higher than last year. Unseasonal rains in the second half of March have

benefitted water levels in irrigation reservoirs.


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The FAO estimates Peru's 2014 rice imports at a slightly higher level compared to last year due

to reduced output in 2014. It estimates Peru's total cereal imports in 2014, including rice, to

increase about 8% y/y to around 4.5 million tons .

Prices of rice declined slightly in March 2015 due to increased supplies in the market from large

import quantities in the previous two months. Average wholesale rice prices in March 2015

stood at around 2,110 Nuevo Sol (around $680) per ton, slightly down from around 2,120 Nuevo

Sol (around $690) per ton in February 2015.

USDA estimates Peru's 2014-15 (January - December 2015) paddy rice production at around 3

million tons (around 2.1 million tons, basis milled). It estimates Peru to import around 220,000

tons of rice in 2015.

Fiji Agriculture Minister Calls for Increased

Investment in Local Rice Sector

Apr 01, 2015


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Fiji is a net importer of rice and spends about FJD 45 million (around $21 million) yearly on

importing rice. The country's Minister for Agriculture, Rural and Maritime Development told

local sources that the government should rather consider spending the amount spent in importing

rice for developing local rice sector, which will in turn improve the economy.

He noted that the government has already stepped up efforts to improve rice production in the

country. It has sought the assistance of the UN's Food and Agricultural Organization (FAO) and

the Chinese government to train and educate farmers to boost rice production in the country. He

noted that the cooperation with China specifically aims at increasing hybrid rice production in

the country.The Minister added that the Chinese are also supporting the Fiji government to

enhance rice research to develop improved rice varieties especially drought-tolerant and climate

resilient varieties.

He noted that though cost of importing rice works out to be lesser than producing locally,

increasing local rice production is strategically correct from achieving food security point of

view. He stressed that traders should consider buying from local farmers instead of importing as

it would increase the money circulation within the economy.He added that the government is

planning to put in more funds in selected areas such as Viti Levu and Vanua Levu to boost rice

production in the country.According to data from the Agriculture Ministry, Fiji imports about

70% of its rice consumption needs of around 44,000 tons annually. The island imports rice from

Asian exporters like Thailand and India as well as Australia

Global Rice Quotes

April 1st, 2015

Long grain white rice - high quality

Thailand 100% B grade 395-405 ↔

Vietnam 5% broken 360-370 ↓

India 5% broken 375-385 ↔

Pakistan 5% broken 350-360 ↔

Myanmar 5% broken 410-420 ↔

Cambodia 5% broken 435-445 ↔

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 370-380 ↔

Vietnam 25% broken 340-350 ↔

Pakistan 25% broken 325-335 ↔


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Cambodia 25% broken 410-420 ↔

India 25% broken 340-350 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 385-395 ↔

Pakistan parboiled 5% broken stxd 385-395 ↔

India parboiled 5% broken stxd 370-380 ↔

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 460-470 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 810-820 ↔

Brokens

Thailand A1 Super 320-330 ↔

Vietnam 100% broken 310-320 ↔

Pakistan 100% broken stxd 280-290 ↔

Cambodia A1 Super 340-350 ↔

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

Oryza Afternoon Recap - Chicago Rough

Rice Futures Add to Losses despite

Supportive Grain and Crude Action

Apr 01, 2015

Chicago rough rice futures for May delivery settled 9.5 cents per cwt (about $2 per ton) lower at

$10.780 per cwt (about $238 per ton). Rough rice futures continue to take a beating following

yesterday’s selloff that saw prices break through nearby technical and psychological support.

Today’s action appears to be follow-through technical selling spurred by the reversal pattern

charted in the previous session, and likely signals that a continuation lower will follow with


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prices not seeing significant support above the recent low noted in the $10.500 per cwt (about

$231 per ton) range.

Excluding a significant change in the fundamental outlook price will likely continue to trend

sideways in the broader $10.400-$11.150 per cwt (about $229-$246 per ton) trading range which

has held for past few weeks. The other grains all rallied today, as traders have had more time to

evaluate yesterday’s USDA reports; Soybeans closed about 1.7% higher at $9.8975 per bushel;

wheat finished about 3.3% higher at $5.2850 per bushel, and corn finished the day about 1.5%

higher at $3.8175 per bushel.U.S. stocks halved losses to trade moderately lower on Wednesday

as investors eyed softness in economic data ahead of Friday's important jobs report. The Dow

Jones industrial average fell as much as 191 points soon after the open before trading off about

100 points. The other indices declined about half a percent, with the Nasdaq composite falling

below its 50-day moving average of 4,866.25.

Futures continued to point mildly lower after the morning's ADP employment report for March

showed an increase of 189,000 in monthly private payrolls, below expectations of a modest rise

to around 225,000. The ISM for March posted 51.5, the weakest level on this indicator since last

May. Construction spending fell 0.1% in February, for a second straight month of decline.

Growth in the U.S. manufacturing sector rose to a five-month high in March as output and

employment gained. Markit said its final U.S. Manufacturing Purchasing Managers' Index rose

to 55.7 in March from 55.1 in February. Friday's monthly employment report is expected to

show another increase in nonfarm payrolls of around 250,000 in March. The unemployment rate

is seen unchanged, at a more than six-and-a-half-year low of 5.5%.

In an encouraging sign that the housing market is picking up with the onset of spring, weekly

mortgage application volume increased 4.6% on a seasonally adjusted basis, the Mortgage

Bankers Association (MBA) said. Monthly auto sales come out throughout the day, with

expectations of an increase to 16.9 million from 16.2 million. The Dow Jones Industrial Average

traded down 98 points, or 0.55%, to 17,678. The S&P 500 traded down 11 points, or 0.52%, at

2,057, with health care leading eight sectors lower and energy and telecommunications the only

two advancers. The Nasdaq traded down 39 points, or 0.78%, to 4,862. Gold is trading about

1.9% higher, crude oil is seen trading about 4.7% higher, and the U.S. dollar is seen trading

about 0.2% lower at about 1:15pm Chicago time.Tuesday, there were 1,500 contracts traded, up

from 996 contracts traded on Monday. Open interest – the number of contracts outstanding – on

Tuesday increased by 342 contracts to 9,228.

Oryza U.S. Rough Rice Recap - Prices

Continue to Soften after USDA Reports


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Apr 01, 2015

The U.S. cash market was slightly weaker again today as some sellers decreased their price ideas

after yesterday’s slightly bearish USDA Projected Planting report and Rice Stocks report.

Analysts contend that without an increase in export demand prices will have to drift lower;

however, many sellers will likely hold onto their rice rather than sell it at a loss.

Meanwhile wet weather continues to delay rice planting and had caused river levels to rise which

created some delays for barges on the Lower Mississippi River; however, river levels are falling

and traffic should return to normal.

Oryza Overnight Recap – Chicago Rough

Rice Futures a Touch Higher Overnight as

Market Continues to Weigh Yesterday’s

Stocks Report

Apr 01, 2015

Chicago rough rice futures for May delivery are currently seen 3 cents per cwt (about $1 per ton)

higher at $10.905 per cwt (about $240 per ton) ahead of floor trading in Chicago. The other

grains are seen trading mostly higher overnight: soybeans are currently seen about 0.6% higher,

wheat is listed about 0.3% lower and corn is currently noted about 0.1% higher.U.S. stocks index

futures indicated a lower open on Wednesday, as investors digested the ADP private sector

payroll report, and awaited a key manufacturing survey that will likely show that the harsh

winter weather has continued to hit growth. Futures were little changed after the ADP

employment report for March showed an increase of 189,000 in monthly private payrolls, below

expectations of a modest rise to around 225,000.

The report will be followed by the latest manufacturing ISM for the same month, at 10 a.m.

Construction spending data for February are also due at 10.00 a.m. Wednesday's employment

data is a preview for the labor market report on Friday, the data highlight of the week, with

expectations for another increase in nonfarm payrolls, of around 250,000 in March. The

unemployment rate is seen unchanged, at a more-than-six and a half-year low of 5.5%. In an

encouraging sign that the housing market is picking up with the onset of spring, weekly

mortgage application volume increased 4.6% on a seasonally adjusted basis, the Mortgage


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Bankers Association (MBA) said. Investors are also preparing for a shorter week due to the

Easter vacation; stock markets are also for Good Friday this week and bond markets close early.

European traded higher on Wednesday as fresh economic reports continued to show growth in

the euro zone. Gold is currently trading about 0.7% higher, crude oil is seen trading about 0.1%

higher, and the U.S. dollar is currently trading about 0.1% lower at 8:00am Chicago time.

Pakistan Rice Exporters Urge Government to

Set Up Rice Technical Institute

Apr 01, 2015

The Chairman of the Rice Exporters Association of Pakistan has urged the government of

Pakistan to consider establishing a Rice Technical Institute to help famers use technology in rice

cultivation, according to local sources.Speaking at the 7th Rice Export Trophy Program in

Karachi, he noted that the country could not reach the rice export target of $4 billion due to


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inadequate technological support to rice farmers. The REAP Chairman also reminded that the

country's rice sector has been facing several problems and noted that previous governments had

not paid enough attention to the problems faced by the rice exporters. The government's support

has been very less especially in exploring newer exports markets for Pakistani rice, he said.

The REAP Chairman urged the new government to take effective measures to restore the

confidence of rice exporters. He also stressed upon the government to release about Rs.136

billion (around $1.3 billion) from the Export Development Fund (EDF) towards the development

of rice export sector. He urged the government to immediately release about Rs.26 billion

(around $255 million) for the purpose.He noted that the government dignitaries, including the

President and the Prime Minister, should consider taking along REAP representatives during

visits to other countries to help increase rice exports to those countries.

The President of Pakistan and a Federal Minister, who were present at the meeting, reportedly

promised to address the issues raised by the REAP Chairman.Pakistan has exported around 2.62

million tons of rice in the first eight months of FY 2014-15 (July 2014 - June 2015), slightly

down from around 2.63 million tons exported during the same period in FY 2013-14. The South

Asian nation exported around 3.16 million tons of rice FY 2013-14, down about 7% from around

3.4 million tons exported in 2012-13.

South Korea Passes On Tenders to Buy

25,000 Tons of Rice Due to High Prices

Apr 01, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has passed on

tenders to purchase 15,000 tons of brown medium-grain non-glutinous rice and 10,000 tons of

brown medium-grain non-glutinous rice for delivery by June 30, 2015 due to higher-than-

expected prices, according to a news release posted on the KAFTC website.

The KAFTC sought to buy about 58,897 of non-glutinous rice in international tenders, which

closed on March 23, 2015, for delivery between June 30 and September 30, 2015. The agency

purchased 33,897 tons of non-glutinous brown rice of the Chinese origin, including 12,000 tons

of brown short-grain non-glutinous rice at $879.85 per ton; 10,000 tons of brown short-grain

non-glutinous rice at $879.95 per ton; and 11,897 tons of brown short-grain non-glutinous rice at

$890 per ton, for delivery by June 30, 2015 in the electronic bidding that took place on March

24, 2015.

http://oryza.com/22034/south-korea-seeks-buy-58897-tons-non-glutinous-rice-international-tenders


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The agency withheld the results for the remaining 25,000 tons of rice on March 24 for

conducting sample tests.

Philippines Farmers Advised to Prepare for

Early Rice Harvesting Due to El Nino

Apr 01, 2015

The Philippines Department of Agriculture (DA) has advised rice farmers to prepare for early

harvesting of the ongoing rice crop to avoid potential losses expected from an El Nino-induced

drought, according to a news release on the government website.Conditions were dry last

September and are expected to remain dry until July this year. A DA official noted that the

farmers were advised to plant early maturing rice varieties, which could be harvested in three

months. She added that harvesting of rice should be completed before the dry spell reaches its

peak. "At this time that the peak of dry spell has started, farmers should now shift from crops

that need less amount of water but still can survive the [drier] weather condition[s] like corn,

legumes, and nuts," she was quoted as saying.

The DA also reportedly set up various programs to address weather phenomenon in various

stages, according to the news release. The DA officials are undertaking training sessions to


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farmers explaining them about the effects of both El Nino and La Nina on agriculture.According

to the Philippines Atmospheric, Geophysical and Astronomical Services Administration

(PAGASA), El Nino-induced dry conditions are likely to affect Region 1 provinces, including La

Union, Ilocos Sur, Ilocos Norte, and Pangasinan.

The PSA is estimating the Philippines to produce around 8.55 million tons of paddy rice in the

first half of 2015 (January - June), up about 2.02% from around 8.38 million tons produced

during the same period in 2014.USDA estimates Philippines MY 2014-15 (July - June) paddy

rice production at around 19.365 million tons (around 12.2 million tons, basis milled), up about

3% from around 18.822 million tons (around 11.8 million tons, basis milled) produced in the

previous year. It estimates Philippines 2014-15 milled rice imports at around 1.6 million tons, up

about 10% from last year.

Vietnam Rice Sellers Lower Some of Their

Quotes Today; Other Asia Rice Quotes

Unchanged Apr 01, 2015

Vietnam rice sellers increased their quotes for 5% broken rice by about $5 per ton to around

$360 - $370 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.

5% Broken Rice Thailand 5% rice is indicated at around $385 - $395 per ton, about a $25 per ton premium on

Vietnam 5% rice shown at around $360 - $370 per ton, down about $5 per ton from yesterday.

India 5% rice is indicated at around $375 - $385 per ton, about a $25 per ton premium on

Pakistan 5% rice shown at around $350 - $360 per ton.

25% Broken Rice Thailand 25% rice is shown at around $370 - $380 per ton, about a $30 per ton premium on

Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around

$340 - $350, about a $15 per ton premium on Pakistan 25% rice shown at around $325 - $335

per ton.

Parboiled Rice Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is

indicated at around $370 - $380 per ton, about a $15 per ton discount to Pakistan parboiled rice

shown at around $385 - $395 per ton.

100% Broken Rice Thailand broken rice, A1 Super, is indicated at around $320 - $330 per 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 $5 per ton discount to Pakistan

broken sortexed rice shown at around $280 - $290 per ton.

2nd april ,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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