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

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

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Vol 5.Issue XIII

2nd September,2015

Daily Exclusive ORYZA Rice E-Newsletter

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Bangladesh to Allow Aromatic Rice Exports

Until December 31, 2015

Sep 01, 2015

The government of Bangladesh has extended the time limit for aromatic rice exports until

December 31, 2015 in order to enhance the share of the country's brands in foreign markets,

according to local sources.The time limit for aromatic rice exports expired on June 30 this year,

but the Commerce Ministry issued a notice on August 31, 2015 extending the time frame till

December 31.

However, some exporters expressed concern that the government should have extended the time

limit until June 30, 2016 to strengthen exports. They noted that a delay in the announcement had

led to losses to some exporters as they had to either cancel the orders or hold off shipments. The

added that the most of their orders were taken up by the Indian and Pakistan exporters.

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In June 2015, the government extended the time frame for aromatic rice exports by an year but

maintained ban on parboiled rice exports in order to keep prices stable. The government actually

banned exports of all kind of rice in November 2008, but resumed aromatic rice exports in mid-

2012.

Exporters reportedly wanted the government to resume aromatic rice exports as the grain is quite

popular among Bangladeshis and other South Asians living in Europe, North America, Australia

and the Middle East. Fragrant rice exports earned about $7.34 million in FY 2013-14 , up about

51% from the previous year.

Italian Expo to Focus on Boosting Organic

Rice Yields

Sep 01, 2015

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The Second International Conference on Systems of Organic Rice Production (ORP), which is to

begin today in Italy as part of the Milan Rice Expo, will focus on boosting organic rice yields in

Italy, according to local sources.

The conference will particularly highlight on various methods of cultivation that will increase

organic rice production in the country. It will also highlight the latest research, technological and

agronomic innovations related to organic rice sector.

The organic rice sector is reportedly growing very fast in Italy. The area under the organic rice in

Italy has reached around 9,000 hectares especially in Lombardy and Piedmont. Also

consumption of organic rice and organic rice products such as pasta and bread substitutes

increased about 73% between 2012 and 2014.

The Conference is being sponsored by the University of Milan and the Local Action Group

Lomellina.

EU Trade Commissioner Defends Zero Duty

Rice Imports from Asian LDCs

Sep 01, 2015

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Responding to a written interrogation by an Italian MEP, the EU Trade Commissioner defended

the EU's stance to import rice at zero-per cent duty from the Asian Least Developed Countries

(LDCs) under the Everything But Arms (EBA) agreement.

She noted that the EBA initiative was meant to help LDCs integrate in the global economy. The

main aim of the EBA was to increase exports and thereby help generate growth and reduce

poverty in the LDCs.

The Commissioner noted that the European Commission (EC) is well aware of the importance of

the EU rice industry in the light of imports from the LDCs. However, she said the increasing

imports from the Asian LDCs should be assessed considering the overall situation in the rice

market. She stated that imports from LDCs such as Myanmar have replaced EU rice imports

from non-EBA origins meaning that the EU market has so far been able to absorb these

additional rice import volumes. She reiterated that the EU has been importing only those

qualities of rice, for which the demand exceeds production.

She also noted that the EU price levels are currently high and there are no signs of serious

disturbances to the EU rice market. However, she assured that the EC will continue to monitor

the EU rice market in close cooperation with the member states' customs authorities.

The Association Italian Rice Milling sector (AIRI) have replied to the Commissioner's response

saying that only multinational companies that have invested in those countries are substantially

benefiting from the EBA rule. The Association also noted that Cambodian and Myanmar rice

growers are not getting any positive consequence from increased exports. It reiterated that the

Cambodian press has repeatedly reported that the EBA agreement has encouraged the

circumvention of rules of origin, with a flow of rice from other countries where there is no

exemption of duty to EU.

Responding to a written interrogation by an Italian MEP, the EU Trade Commissioner defended

the EU's stance to import rice at zero-per cent duty from the Asian Least Developed Countries

(LDCs) under the Everything But Arms (EBA) agreement.

She noted that the EBA initiative was meant to help LDCs integrate in the global economy. The

main aim of the EBA was to increase exports and thereby help generate growth and reduce

poverty in the LDCs.

The Commissioner noted that the European Commission (EC) is well aware of the importance of

the EU rice industry in the light of imports from the LDCs. However, she said the increasing

imports from the Asian LDCs should be assessed considering the overall situation in the rice

market. She stated that imports from LDCs such as Myanmar have replaced EU rice imports

from non-EBA origins meaning that the EU market has so far been able to absorb these

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additional rice import volumes. She reiterated that the EU has been importing only those

qualities of rice, for which the demand exceeds production.

She also noted that the EU price levels are currently high and there are no signs of serious

disturbances to the EU rice market. However, she assured that the EC will continue to monitor

the EU rice market in close cooperation with the member states' customs authorities.

The Association Italian Rice Milling sector (AIRI) have replied to the Commissioner's response

saying that only multinational companies that have invested in those countries are substantially

benefiting from the EBA rule. The Association also noted that Cambodian and Myanmar rice

growers are not getting any positive consequence from increased exports. It reiterated that the

Cambodian press has repeatedly reported that the EBA agreement has encouraged the

circumvention of rules of origin, with a flow of rice from other countries where there is no

exemption of duty to EU.

The European Commissioner for Agriculture also reassured the EU rice sector that rice imported

under the EBA agreement won't affect the EU rice sector. "I think we had a reasonable outcome

on rice, that in no way will damage the market situation neither in Italy and in Spain, which is

another of those producers of rice. I dont'hear those vices resulting on the market place

anticipated, arising from the modest amount of import of rice into the European Union as parte

of this agreement,” he said.

Indonesia Allocates $258 Million to Support

Rice Production During Drought

Sep 01, 2015

The government of Indonesia has allocated about Rp 3.5 trillion (around $258 million) to support

rice production during the drought conditions, local sources quoted the Finance Ministry's

Director General for Budgeting.The official told local sources that the fund would be used in

case the drought conditions worsen leading to a drop in rice production. He noted that of the

allocated amount, around Rp 1.5 trillion (around $105 million) would be used to ramp up the rice

reserves at Bulog and use the remaining Rp 2 trillion (around $153 million) to help stabilize

prices.

The Central Statistics Agency (BPS) estimated the El Nino-induced drought to peak from

October to the beginning of next year. Paddy rice planting in Indonesia usually begins in October

followed by harvests in January next year.The state logistics agency Bulog has ruled out any rice

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shortages within the country until December 2015. Bulog reportedly has a rice reserve of 1.5

million tons. The reserves are expected to reach 2 million tons by the end of the year.

One of the Bulog officials noted that the agency is continuing to procure rice and targets to buy

between 15,000 and 20,000 tons of rice every day.Meanwhile, the government is optimistic of

achieving surplus rice production in 2015 despite concerns of drought affecting the rice output

and has ruled out imports this year. The BPS is estimating 2015 paddy rice output to reach

around 75.55 million tons (around 47.6 million tons, basis milled) in 2015. The government is

keen on achieving self-sufficiency in rice production and stop imports over the next few

years.USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled

(around 57.17 million tons, basis paddy), and import around 1.25 million tons of rice in MY

2014-15 (October - September). Some analysts are forecasting imports to reach about 1.6 million

tons.

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Oryza Overnight Recap – Chicago Rough

Rice Futures Tumble along with Corn and

Beans

Sep 01, 2015

Chicago rough rice futures for Nov delivery are currently trading 26 cents per cwt (about $6 per

ton) lower at $11.900 per cwt (about $262 per ton) during early floor trading in Chicago. The

other grains are seen trading mostly lower in early morning action; soybeans are currently seen

trading about 1.4% lower, wheat is listed about 0.7% higher and corn is currently noted about

0.9% lower.

U.S. stocks fell about 2% on Tuesday, the first day of trade for September, as weak Chinese data

pressured global markets. The Dow Jones industrial average briefly traded more than 400 points

lower in correction territory. The Nasdaq Composite wiped out gains for 2015 and struggled to

stay out of correction. The index traded about 1.9% lower after earlier falling more than 2%.The

S&P 500 was within 0.5% of correction territory. Two sets of key Chinese data disappointed

traders on Tuesday.

The official manufacturing purchasing managers' index (PMI) edged down to 49.7 in August

from 50 in July, while the final Caixin/Markit manufacturing PMI came in at 47.3 in August, the

lowest reading since March 2009. Even more worrying, China's services sector, which has been

one of the lone bright spots in the sputtering economy, also showed signs of cooling, a similar

business survey said. In U.S. economic news, the August ISM manufacturing index fell to 51.1

from 52.7 the prior month for its weakest read in over two years, according to Reuters. Also in

focus will be a speech on the economic outlook on the U.S. economy from Boston Fed President

Eric Rosengren in New York at 1:10 p.m. ET. Gold is currently trading about 0.8% higher, crude

oil is seen trading about 5% lower, and the U.S. dollar is currently trading about 0.3% lower

at 9:15am Chicago time.

Myanmar to Resume Rice Exports from Mid-

September, Says MRF

Sep 01, 2015

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Myanmar, which has imposed a temporary ban on rice exports after heavy rains and floods hit

the northern and western regions of the nations, is likely to resume rice exports in mid-

September, local sources quoted sources from the Myanmar Rice Federation (MRF).Myanmar

temporarily halted rice exports in the first week of August until mid-September when the new

harvest is expected to reach the markets. The decision was also taken to prevent price hikes in

the flood-affected areas. However, since about 15% of paddy fields or about 400,000 hectares

were expected to be damaged by the floods, analysts expected the government to extend the ban

until November 2015 in order to ensure sufficient stocks for domestic consumption as well as

stabilize prices.

“New rice will come onto the market as next month is harvest season, then the market price will

be stable,” the Joint Secretary of the MRF was quoted. “There is enough for local consumption

now, that’s why we will resume exports as scheduled,” he added.The MRF is expecting this

year's rice exports to be lower than last year. “Though we expected to export about 2 million tons

of rice this year, we won’t reach that [target]. Now we expect to export less than 1.5 million

tons,” said the MRF official.

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Myanmar is a net exporter of rice and its exports have been increasing consistently for the past

few years. Myanmar exported around 1.8 million tons of rice in 2014. The MRF expects a paddy

output of around 14 million tons (around 8.96 million tons, basis milled) in 2015.USDA

estimates Myanmar to produce 20 million tons of paddy rice (around 12.8 million tons, milled

basis) and export around 2.2 million tons of rice in MY 2015-16 (January - December 2015).

Oryza Afternoon Recap - Chicago Rough

Rice Futures Fall as Outside Markets Once

Again Weigh on U.S. Grain Prices

Sep 01, 2015

Chicago rough rice futures for Nov delivery settled 29 cents per cwt (about $7 per ton) lower at

$11.865 per cwt (about $262 per ton). The other grains finished the day mostly lower; Soybeans

closed about 1.5% lower at $8.7400 per bushel; wheat finished about 0.3% higher at $4.8625 per

bushel, and corn finished the day about 1.7% lower at $3.6900 per bushel.U.S. stocks fell over

2% on Tuesday, the first day of trade for September, as weak Chinese data pressured global

markets. The Dow Jones industrial average traded about 420 points lower, still in correction,

after briefly falling about 440 points. The Nasdaq composite wiped out gains for 2015 the S&P

500 joined the other indexes in correction territory.

Stocks hit session lows in afternoon trade after Boston Fed President Eric Rosengren said in a

speech that the central bank's jobs target to raise rates has largely been met, but that its inflation

target is not as clear cut. Rosengren is a nonvoting member. Two sets of key Chinese data

disappointed traders on Tuesday. The official manufacturing purchasing managers' index (PMI)

edged down to 49.7 in August from 50 in July, while the final Caixin/Markit manufacturing PMI

came in at 47.3 in August, the lowest reading since March 2009. Even more worrying, China's

services sector, which has been one of the lone bright spots in the sputtering economy, also

showed signs of cooling, a similar business survey said. In U.S. economic news, the August ISM

manufacturing index fell to 51.1 from 52.7 the prior month for its weakest read in over two

years, according to Reuters.

In Europe, equities accelerated selling after the weak Chinese data, with all major bourses in the

region down about 2%.As of early afternoon Tuesday, the Dow Jones industrial average traded

down 382 points, or 2.34%, at 16,138. The S&P 500 traded down 46 points, or 2.34%, at 1,926,

with financials and energy the greatest decliners. The Nasdaq traded down 96 points, or 2%, at

4,680. Gold is trading about 0.7% higher, crude oil is seen trading about 7.4% lower, and the

U.S. dollar is seen trading about 0.5% lower about 1:45pm Chicago time.

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Monday, there were 2,361 contracts traded, up from 1,939 contracts traded on Friday. Open

interest – the number of contracts outstanding – on Monday increased by 17 contracts to 10,963.

Thailand Rice Sellers Lower Most of Their

Quotes Today; Other Asia Rice Quotes

Unchanged

Sep 01, 2015

Thailand rice sellers lowered their quotes for 5% broken rice, 25% broken rice and Hommali rice

by about $5 per ton each to around $350-$360 per ton, $335-$345 per ton and $825-$835 per ton

respectively today. Other Asia rice sellers kept their quotes mostly unchanged

today.

5% Broken Rice

Thailand 5% rice is indicated at around $350 - $360 per ton, down about $5 per ton from

yesterday and about $25 per ton premium on Vietnam 5% rice shown at around $325 - $335 per

ton. India 5% rice is indicated at around $365 - $375 per ton, about $45 per ton premium on

Pakistan 5% rice shown at around $320 - $330 per ton.

25% Broken Rice

Thailand 25% rice is shown at around $335 - $345 per ton, down about $5 per ton from

yesterday and about $25 per ton premium on Vietnam 25% rice shown at around $310- $320 per

ton. India 25% rice is indicated at around $340 - $350 per ton, about $45 per ton premium on

Pakistan 25% rice shown at around $295 - $305 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $360 - $370 per ton. India parboiled rice is

indicated at around $355- $365 per ton, about $60 per ton discount to Pakistan parboiled rice last

shown at around $415 - $425 per

ton.

100% Broken Rice

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Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about $10 per ton

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

broken rice is shown at around $295 - $305 per ton, about $15 per ton premium on Pakistan

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

Global Rice Quotes

September 2nd, 2015

Long grain white rice - high quality

Thailand 100% B grade 360-370 ↔

Vietnam 5% broken 325-335 ↔

India 5% broken 365-375 ↔

Pakistan 5% broken 320-330 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 425-435 ↔

U.S. 4% broken 485-495 ↔

Uruguay 5% broken 535-545 ↔

Argentina 5% broken 530-540 ↔

Long grain white rice - low quality

Thailand 25% broken 335-345 ↔


Pakistan 25% broken 295-305 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 340-350 ↔

U.S. 15% broken 460-470 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 355-365 ↓

Pakistan parboiled 5% broken stxd 415-425 ↔

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India parboiled 5% broken stxd 355-365 ↔

U.S. parboiled 4% broken 570-580 ↔

Brazil parboiled 5% broken 545-555 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 825-835 ↔

Vietnam Jasmine 455-465 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 830-840 ↔

Brokens

Thailand A1 Super 310-320 ↓


Pakistan 100% broken stxd 280-290 ↔

Cambodia A1 Super 355-365 ↔

India 100% broken stxd 295-305 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 335-345 ↔

Brazil half grain NQ ↔

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

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

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