2nd November ,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-NewsletterContents are published with permission of ORYZA.com

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Vol 5.Issue 1

November 02, 2

Daily Exclusive ORYZA Rice E-Newsletter



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Heavy Rains Disrupt Main Paddy Crop

Planting Operations in BrazilOct 30, 2015

Continuously heavy rains over the last several weeks in Brazil's main rice-growing area RioGrande do Sul are disrupting 2015-16 major/main rice planting operations, according to localsources.

Latest data from the Rio Grande do Sul Rice Institute (IRGA) shows that about 285,000 hectaresor 26% of the rice has been planted in the state this season compared to a five-year average ofaround 46%. The IRGA noted that more than 18,300 hectares need to be replanted due to heavy

rains.

Rice farmers in the state are planning to plant rice in around 1.08 million hectares during the2015-16 rice season. However, IRGA expects the total acreage to be lower than planned due tothe slow pace of planting. Planting operations can be carried out until November 10.

Disruption of planting activities in Rio Grande do Sul is likely to impact the total rice acreage inthe country. Local sources say farmers may also face difficulty in implementing weed and insectcontrols due to continuous wetness. The state is expected to receive above average rains over thenext few months.

Brazil’s National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddyrice production at around 12.449 million tons (around 8.6 million tons, basis milled), up about2.7% from around 12.121 million tons (around 8.24 million tons, basis milled) in 2013-14.Conab has estimated Brazil's 2014-15 paddy rice acreage at around 2.295 million hectares, downabout 3.3% from around 2.373 million hectares in 2013-14.

Asian Rice Export Quotes Remain

Unchanged Today

Oct 30, 2015

Asian rice sellers kept their quotes unchanged today.

5% Broken Rice



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Thailand 5% rice is indicated at around $355 - $365 per ton about $15 per ton discount onVietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $350- $360 per ton, about $45 per ton premium on Pakistan 5% rice shown at around $305 - $315 perton.

25% Broken Rice

Thailand 25% rice is indicated at around $330 - $340 per ton, about $25 per ton discount onVietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around$330 - $340 per ton, about $50 per ton premium on Pakistan 25% rice shown at around $280 -$290 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $360 - $370 per ton. India parboiled rice isindicated at around $340 - $350 per ton, about $65 per ton discount to Pakistan parboiled rice

last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $305 - $315 per ton, at par withVietnam 100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice isshown at around $285 - $295 per ton, about $10 per ton premium on Pakistan broken sortexedrice shown at around $275 - $285 per ton

Government of Bangladesh Plans to LowerPrice of Rice Under Open Market Sale

Program

Oct 30, 2015

The government of Bangladesh is planning to lower the price of rice sold under the open marketsale (OMS) program from next month to speed up the disposal of stocks, according to local

sources.

The Food Minister was quoted as saying that: "We will re-fix the prices of rice and atta so thatwe could bring more people under the on-going OMS programme." Currently, rice is sold underOMS at Tk 24 per kilogram (around $299 per ton).



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It is understood that the government is keen on disposing off the existing stocks before the newharvest comes up. "The country's public warehouses have the capacity to store 2 million (20lakh) tons of food grains. We have to make space of the warehouses from December so that wecould store Aman rice and paddy," he said.

Currently, the government's stocks stand at around 1.7 million tons, up about 300,000 tons fromlast year.

He noted that the Food Planning and Monitoring Unit (FPMU) will also decide the procurement price of upcoming Aman (July – December) rice on November 12, 2015. The decision was takenat the meeting of the FPMU on October 29, 2015.

Oryza Weekly: Global Rice Prices Remain

Firm as El Nino Strengthens

Oct 31, 2015

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,ended the week at about $395 per ton, unchanged from a week ago, up about $6 per ton from amonth ago and down about $62 per ton from a year ago.

The International Grains Council (IGC) forecasts 2015-16 global rice production to be around474 tons, down about 1% from 2014-15. The IGC forecasts 2015-16 global rice trade at around42 million tons, unchanged from last year. The IGC forecasts 2015 global rice consumption toincrease about 1% y/y to about 487 million tons. The IGC forecasts global rice ending stocks ataround 94 million tons in 2015-16, down about 1% from 2014-15.

Thailand

Thailand 5% broken rice is today shown at about $360 per ton, unchanged from a week ago, upabout $10 per ton from a month ago and down about $60 per ton from a year ago.

The government has approved the sale of 2 million tons of rotten rice from stockpiles toindustries starting in November, according to the Commerce Ministry Permanent Secretary.

The government plans to encourage farmers to store rice during the harvest period in order to protect rice prices from falling.

The government has allocated about 40 billion baht (about $1.13 billion) to provide supportmeasures to rice farmers affected by drought. The Thai Rice Exporters Association (TREA) has



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agreed to finance the storage costs of around 100,000 tons of fragrant rice from the new crop as

part of measures to protect prices during the harvest time,

Thailand’s Supreme Court Criminal Division for Holders of Political Positions will beginexamination of witnesses in the trial of the former Prime Minister Yingluck Shinawatra onJanuary 15, 2016.

Vietnam

Vietnam5% broken rice is today shown at about $375 per ton, unchanged from a week ago, upabout $40 per ton from a month ago and down about $65 per ton from a year ago.



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Vietnam exported about 4.48 million tons of rice in the period January 1 - October 20, a decreaseof about 17% from the first ten months of 2014, according to the Vietnam Food Association.The average rice export price so far this year stands at about $418.7 per ton (FOB), about 4%less than the same period last year.

Unreasonable government policies are hindering Vietnam rice exports, experts say.

Cambodia

Cambodia 5% broken rice is today shown at about $420 per ton, unchanged from a week andmonth ago, and down about $50 per ton from a year ago.

India

India 5% broken rice is today shown at about $355 per ton, unchanged from a week ago, downabout $5 per ton from a month ago, and down about $60 per ton from a year ago.

The government is allowing private traders to procure about one million tons of rice during the2015-16 kharif marketing season in the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal,and Assam.

The Agricultural Products Export Development Authority plans to promote basmati rice exportsin retail packs with Indian brands in key markets in order to boost the country’s basmati rice

exports.

Pakistan

Pakistan 5% broken rice is today shown at about $310 per ton, unchanged from a week and amonth ago and down about $90 per ton from a year ago.

Central & South America

Brazil 5% broken rice is today shown at about $500 per ton, unchanged from a week and a month

ago and down about $50 per ton from a year ago.

The Brazilian paddy rice index maintained by CEPEA reached around 40.6 real per 50 kilogramsas of October 26, 2015, slightly up from around 40.38 real per 50 kilograms recorded on October18, 2015. In terms of USD per ton, the index reached around $208.01 per ton on October 26,2015, slightly down from around $208.33 per ton recorded on October 18, 2015. Month-on-

month, the index has increased about 3% from about 39.38 real per 50 kilograms. In terms ofUSD, the index increased about 7% during the month.

Continuously heavy rains over the last several weeks in Brazil's main rice-growing area RioGrande do Sul are disrupting 2015-16 main rice planting operations.



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Five percent broken rice from Uruguay and Argentina is today shown at about $535 per ton,unchanged from a week ago, down about $5 per ton from a month ago and down about $65 perton from a year ago.

The USDA Post forecasts Mexico’s MY 2015-16 (October-September) paddy rice production at

around 197,000 tons, a decrease of about 25% from MY 2014-15 and down about 18% from theUSDA’s official estimation, due to an expected decline in acreage. The decreased acreage is

attributed to a lack of new varieties and lack of access to financing.

Since Venezuela has decided to discontinue the PetroCaribe deal with Guyana, the government

of Guyana is looking for new markets.

U.S.

U.S. 4% broken rice is today shown at about $500 per ton, unchanged from a week ago, downabout $35 per ton from a month ago and down about $45 per ton from a year ago.Chicago rough rice futures for January delivery fell steadily this week after opening at $12.140

per cwt (about $268 per ton) on Monday. They reached the weekly low on Thursday at $11.550 per cwt (about $255 per ton) before rebounding slightly to close at $11.895 per cwt (about $262 per ton).

Early in the week the U.S. cash market was slightly weaker as it moved in tandem with thefalling futures market and farmers remained on the sidelines. Later in the week, though, cash prices firmed up after the USDA reported that U.S. weekly export sales hit a marketing yearhigh. Cumulative net export sales for the week ending October 22 totaled 112,600 tons, anincrease of 68% from the previous week.

Taiwan has completed tenders for 40,750 tons or about 63% of the 2015 U.S. rice country

specific quota, according to the USDA Post.

Other Markets

The government of South Korea plans to purchase about 590,000 tons of locally produced rice as part of its efforts to stabilize rice prices. This is more than a 200,000 ton increase over previous plans to purchase about 360,000 tons.

Italian paddy rice prices, which were quite low during the last week of September and the firstweek of October, have increased in the second week of October and are continuing to increase inthe third week of October too. Meanwhile, the Italian government has agreed to ban the use ofglyphosate pesticide in agriculture as it is considered to be a carcinogen by the World Health

Organization.

ONG Foodwatch, an independent, non-profit research and analysis organization, based in Berlin,

Paris and Amsterdam is urging the European Commission (EC) to frame new legislation on food

packaging to reduce risk from packaging materials to consumer health.



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The Sustainable Rice Platform, convened jointly by the International Rice Research Institute and

the United Nations Environmental Program in 2011, has launched the worlds’ first global

standard for sustainable rice cultivation in Manila today.

The government of Indonesia may soon give the green light for rice imports to arrive in the

country as stocks are depleting and extending dry conditions are likely to affect local rice outputand prices, according to local sources. Indonesia’s state logistics agency Bulog should import at

least 1.1 million tons of rice to maintain adequate year-end stocks, according to the USDA Post.

The USDA Post estimates Australia’s MY 2015-16 (March-February) rice production to be

around 470,000 ton (basis milled), down about 10% from earlier estimates but unchanged fromUSDA’s official estimates. Continuing water shortages are a major factor in the decline.

Rice utilization in Japan’s feed industry reached about 1.068 million tons in the first elevenmonths of MY 2014-15, marking the first time utilization has crossed one million tons.

Typhoon Koppu, which hit the Philippines’ Luzon region last week, has reportedly resulted in a

loss of around 360,000 tons of paddy.

The government of Bangladesh is planning to lower the price of rice sold under the open marketsale (OMS) program from next month to speed up the disposal of stocks

Independent Organization Pushes for New

Legislation on European Food Packaging,

Including Rice

Oct 30, 2015

ONG Foodwatch, an independent, non-profit research and analysis organization, based inBerlin, Paris and Amsterdam is urging the European Commission (EC) to frame new legislationon food packaging to reduce risk from packaging materials to consumer health, according tolocal sources.

Based on the research conducted on 120 products purchased in Dutch, German and Frenchstores, Foodwatch found that about 43% of the products contain products called aromatichydrocarbons from mineral oils (moah). Moah are said to be carcinogenic and are likely todamage the DNA structures in humans.

The organization noted that the contamination was mostly found in products such as pasta, rice,cereals and chocolate sprinkles. It says the contamination is due to the usage of recycled packaged paper. "Packaging made from recycled paper is an important source of thiscontamination. These packages often contain mineral oils from the printing inks, for example,coming from old newspapers. But they often also contain numerous other hazardous substancesthat may enter via the packaging in the food," it said.



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Foodwatch therefore appealed to the EC to propose legislation on so-called 'functional barrier'required for food packaging made from paper or cardboard. It also noted that the legislationshould specify the maximum limits for the presence of mineral oils and other harmfulsubstances.

The organization has initiated an e-mail campaign in this regard.

Impact of TPP on Japan's Rice Sector Will be

Limited in Long-Run, Says Ministry

Oct 30, 2015

The impact of the Trans-Pacific Partnership (TPP) on Japan's rice sector would be limited in thelong-term, Bloomberg quoted sources from the Ministry of Agriculture, Forestry and

Fisheries.An analysis report on rice, wheat, barley, vegetables and fruits was presented at anagricultural policy committee meeting this week. Next week, a report on beef, pork and dairy products would be released according to a Ministry official.The official reportedly noted that theTPP would most adversely affect the meat and dairy sectors.

Thai Government, Exporters Announce

Measures to Stabilize Prices During Harvest

TimeOct 30, 2015

The Thai Rice Exporters Association (TREA) has agreed to finance the storage costs of around100,000 tons of fragrant rice from the new crop as part of measures to protect prices during theharvest time, according to Reuters. According to the Head of the TREA, the association would buy about 100,000 tons of fragrant rice from the farmers at around 26,000 baht per ton (around$728 per ton) and store it for next three months. He noted that the association would provideabout $3.1 billion, including 2.6 billion baht (around $73 million) for buying rice and around 50million baht (around $1.41 million) for storage.

The measure is understood to help farmers from selling their output at low prices. "Taking therice off the market for a few months would help stabilise prices," said the CommerceMinister.Last week, the government allocated about 40 billion baht (around $1.13 billion) to provide support measures to rice farmers affected by drought. The government is alsoencouraging traders to buy about 3 million tons of paddy to avoid excess supply and stabilize prices. The Bank for Agriculture and Agricultural Cooperatives (BAAC) will lend 26.5 billion



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baht (around $742 million) to farmers in northern and north-eastern provinces to encourage themto store rice. It will also lend 12.5 billion baht (around $350 million) to cooperatives to store and process rice for about 2.5 million tons.

Oryza CBOT Rough Rice Futures Recap-

Chicago Rough Rice Futures Find Late

Session Buying Interest after Session of Back -

and-Forth Trade; Wheat Continues to Show

Strength

Oct 30, 2015

Chicago rough rice futures for Jan delivery settled 7.5 cents per cwt (about $2 per ton) higher at$11.895 per cwt (about $262 per ton). The other grains finished the day higher as well; Soybeansclosed about 0.6% higher at $8.8575 per bushel; wheat finished about 1.4% higher at $5.2200 per bushel, and corn finished the day about 0.6% higher at $3.8225 per bushel.

U.S. stocks traded in a range Friday, on pace to close out their best month in four years, amidmore earnings and economic reports. The major averages are up nearly 9% or more for October,tracking for their best month since October 2011. In economic news, personal income rose 0.1%in September, while personal consumption rose 0.1%. The employment cost index rose 0.6% inthe third quarter. The Fed's preferred inflation measure, the personal consumption expenditures(PCE) price index, slipped 0.1% in September. The decline marked the first drop since January.The final read for October consumer sentiment came in at 90.0.

European stocks traded narrowly mixed, under some pressure from weak corporate earnings, andcontinued signs of little inflation. The DAX is on track for a gain of about 11.5% for the month.Japan's Nikkei closed nearly 0.8% higher after the Bank of Japan kept monetary policy steady.The Shanghai Composite and Hang Seng both ended lower. In midday trade, the Dow Jonesindustrial average rose 26 points, or 0.15%, to 17,782. The S&P 500 traded up 5 points, or0.11%, at 2,091, with energy leading seven sectors higher and financials leading laggards. The Nasdaq traded up 6 points, or 0.12%, at 5,080. Gold is trading about 0.6% lower, crude oil isseen trading about 1.2% higher, and the U.S. dollar is seen trading about 0.4% lower about1:00pm Chicago time.

Thursday, there were 3,236 contracts traded, up from 2,309 contracts traded on Wednesday.Open interest – the number of contracts outstanding – on Thursday increased by 77 contracts to12,644.

2nd November ,2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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