3rd February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

8/9/2019 3rd February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-Newsletterwww.ricepluss.com

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Daily Exclusive ORYZA Rice Newsletter

Volume 5, Issue IFebruary 03, 2015


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Pakistan Rice Sellers Lower Some of TheirQuotes; Other Asia Rice Quotes UnchangedTodayFeb 02, 2015

Pakistan rice sellers lowered their quotes for 25% broken rice and 100% broken rice by about$10 per ton each to around $310 - $320 per ton and around $280 - $290 per ton respectivelytoday. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is quoted at around $405 - $415 per ton, about $50 per ton premium onVietnam 5% rice shown at around $355 - $365 per ton. India 5% rice is quoted at around $395 -$405 per ton, about $40 per ton premium on Pakistan 5% rice quoted at around $355 - $365 perton.

25% Broken Rice

Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium onVietnam 25% rice shown at around $325- $335 per ton. India 25% rice is quoted at around $360

- $370, about $50 per ton premium on Pakistan 25% rice quoted at around $310 - $320 per ton,down about $10 per on from Friday.

Parboiled Rice

Thailand parboiled rice is quoted at around $410 - $420 per ton. India parboiled rice is quoted ataround $390 - $400 per ton, about $10 per ton discount to Pakistan parboiled rice quoted ataround $400 - $410 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 $295 - $305 per ton, about $15 per ton premium on Pakistan broken sortexed rice quoted at around $280 - $290 per ton, down about $10 per on from Friday.


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Pakistan Should Frame Strategies to ClearAbout One Million Tons of Basmati RiceStocksFeb 02, 2015

Pakistan's basmati rice stocks have been increasingsince 2011 due to increasing production anddeclining exports, according to local sources.TheSouth Asian country has been consistently

producing around one million tons of basmati rice

annually, but is unable to export all the producedoutput due to a competition from India. Pakistans

basmati rice exports have declined to around630,035 tons in 2014 from around 968,941 tons in

2012 and from around one million tons in 2011. Local sources say the unsold stock is beingaccumulated as stocks. Currently, Pakistan has around 600,000 tons of basmati stocks and tradersare expecting to add another 400,000 tons this year taking the stock level to about one milliontons by the end of this year.

Iran, Iraq and Saudi Arabia are biggest buyers of basmati rice in Asia. However, Pakistans shareof rice exports to these countries has been declining due to various reasons. Therefore, Pakistanis urged to frame strategies to increase exports to these countries in order to clear the surplusstocks. Experts say the Ministries of Food Security and Research, Finance and Commerce aswell as local governments and stakeholders should work together through mutual cooperation,understanding and policy development.

Necessary action is called for keeping in view the amount of foreign exchange earned by basmatirice exports and the role played by them in ensuring food security in the country.An official fromthe Paksitan Basmati Growers Association (BGA) noted in an email to Oryza that thegovernment has been failing to tap the earning potential worth billions of dollars from basmatirice exports, while it falls short of funds for developmental activities. He also noted that theInstitutions meant for the purpose are not getting enough encouragement from the governmentand consequently farmers are suffering with poor incomes and living standards.


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South Korea May Face Rice Oversupply in2015, Say Agriculture Ministry OfficialsFeb 02, 2015

South Korea is likely to face an oversupplyof rice this year due to an expected increasein production and a decline inconsumption, according to the AgricultureMinistry officials.The Ministry sources

told local media reporters that this year, thecountry is likely to reach about 97% self-sufficiency in rice production and theSoutheast Asian nation's 2015 rice outputmay exceed last year's production of about4.24 million tons.

However, the country's consumption needs have been declining since last few years. Korea'sannual consumption has fell below 4 million tons last year, according to the AgricultureMinistry. According to data from Statistics Korea, per capital rice consumption in South Koreafell to all time low of about 65.1 kilograms in 2014, down about 3% from around 67.2 kilogramsin 2013 due to people preferring other non-rice alternatives. The Ministry sources are expectingthe consumption levels to fall further this year.Added to the increase in production, thegovernment's obligation to import around 408,700 tons of rice (about 9% of its annualconsumption needs) under WTO rules is likely to further increase rice supply in the country.

The government decided to open its rice import market from the beginning of this year to particularly deal with this situation as another waiver from the WTO would have increased thecountry's obligatory rice imports under the WTO rules. The government will impose a tariff of513% on imports over and above its obligatory import volume of around 408,700 tons.a

Oryza U.S. Rough Rice Recap - PricesContinue to Steadily Decline amid LimitedBuying Interest


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Feb 02, 2015

The U.S. cash market continued its steady price decline today with prices at the farm gate

sinking roughly $0.30 per cwt (about $7 per ton) amid limited demand and increased sellinterest.Analysts note that without fresh demand most buyers are well covered at least throughFebruary however many sellers are hoping to move their rice this month and some are willing totake lower prices to do so.

Thailand Plans to Slash Rice Production toManage Surplus and Boost PricesFeb 02, 2015

Thailand's military-led government is planning toreduce paddy rice production to about 33.73 milliontons by 2016-17, down about 4% from an averageof about 35.11 million tons over the last six years tomanage surplus rice stocks and boost prices, whichhave declined significantly since the begnning of2013, according to Bloomberg.The government is

planning to encourage rice farmers to quit ricecultivation and adopt cultivation of crops likesugarcane or mixed farming with livestock,

according to the Vice-Minister for farming. He noted that the government is planning to provideincentives including soft loans to move away from rice farming.

The Vice-Minister also noted that over the next two years, the government is planning to shiftabout 112,000 hectares of rice land to sugarcane and about 176,000 hectares to mixed farming.The government is also planning to eliminate rice planting in dry season across 64,000 hectaresof land.

The government wants rice production to be just equal to projected local consumption and exportneeds. It aims to cut down the surplus (the excess of output over local demand and export needs)to just 200,000 tons by 2019-2020 from an expected 1.1 million tons in 2016-17. However, thegovernment's plan is to be approved by the Rice Policy Committee.Export prices of Thai 5%

broken rice declined about 5% to around $405 per ton from about $425 per ton in the beginningof 2014. They declined about 26% from about $550 per ton in the beginning of 2013. Similarly,export prices of Thai 100% broken rice declined about 3% from January 2014 and about 25%


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from around $435 per ton in January 2013.The government is currently keen on selling the 17million stocks accumulated from the rice pledging scheme introduced by the previousgovernment.

The Nan Model: New Hope for Thai RiceFarmersFeb 02, 2015

The "sufficiency economy philosophy" initiativeundertaken by the Pid ThongLang Phra (doing goodwithout any intention ofgetting anything back)foundation in the Nan provinceof Northern Thailand hasraised hope for several ricefarmers, who have to often

bear losses in rice cultivationdue to droughts andunavailability of water.Theinitiative, sponsored by the

King, aims to tackle the problems of deforestation, flooding and poverty. It also aims to promotereforestation and crop diversity to maintain soil quality. Under this initiative, the project and thefarmers communities jointly work to develop requisite water facilities.

The first phase of the project was implemented in the three districts of Song Khwer, The WangPha and Chalerm Prakiat covering around 40,000 hectares and about 8,588 farmers. Three weirscovering around 6,676 hectares were planned during the first phase to ensure adequate watersupply for the farmers.

The project is now building 420 weirs worth 200 million baht (around $6.1 million) coveringaround 16,000 hectares in Nan. They are scheduled to be complete by April/May this year.The

Nan project helped farmers to earn more income, repay their debts and rehabilitate the forests.The secretary-general of the Pid Thong Lang Phra project noted that Nan model well suited forsufficiency economy development and forest rehabilitation. He also told local sources that the


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project is calling for support from big business houses to create a fund as well as educate farmerson how to increase quality and productivity.

The government is planning to implement the project in 19,000 other villages and theAgricultural Ministry will oversee the project while the Industry and Commerce Ministries willinvolve in marketing of the agricultural products and expanding market access.

Global Rice QuotesFebruary 3rd, 2015Long grain white rice - high qualityThailand 100% B grade 415-425 Vietnam 5% broken 355-365 India 5% broken 395-405 Pakistan 5% broken 355-365 Myanmar 5% broken 410-420 Cambodia 5% broken 440-450 U.S. 4% broken 495-505 Uruguay 5% broken NQ Argentina 5% broken NQ

Long grain white rice - low qualityThailand 25% broken 365-375 Vietnam 25% broken 325-335 Pakistan 25% broken 310-320 Cambodia 25% broken 420-430 India 25% broken 360-370 U.S. 15% broken 485-495

Long grain parboiled riceThailand parboiled 100% stxd 405-415 Pakistan parboiled 5% broken stxd 400-410 India parboiled 5% broken stxd 390-400 U.S. parboiled 4% broken 550-560 Brazil parboiled 5% broken 570-580 Uruguay parboiled 5% broken NQ Long grain fragrant riceThailand Hommali 92% 925-935 Vietnam Jasmine 450-460 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 280-290


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Cambodia A1 Super 350-360 India 100% broken stxd 295-305 Egypt medium grain brokens NQ U.S. pet food 405-415

Brazil half grain NQ

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

USDA Post Estimates South Korea to Import560,000 Tons of Rice in MY 2014 -15

Feb 02, 2015

The USDA Post has estimated South Korea to import around 560,000 tons of rice in MY 2014-15 (November - October), including 408,000 tons of rice imports under the WTO's MinimumMarket Agreement (MMA) quota in the 2015 calendar year.South Korea plans to complete its2015 rice imports under the 2015 Tariff Rate Quota (TRQ) purchasing plan between January -October 2015 through public open tenders. The delivery is expected to be done by December 31,


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2015.In 2015, the Post expects imports from the U.S. at around 150,000, including 34,000 tonsfrom the 2014 MMA.

South Korea imported around 313,419 tons of rice in MY 2013-14, including 122,574 tons ofrice imports under the 2013 MMA quota and around 190,845 tons under the 2014 MMA quota.USDA Post estimates South Korea's 2014 (January - December) imports at around 379,000 tons,down about 35% from an estimated 580,000 tons in 2013.

The Post estimates South Korea to produce around 4.24 million tons of milled rice in MY 2014-15, slightly up from an estimated 4.23 million tons in MY 2013-14. It expects the country's MY2014-15 consumption to decline to around 4.356 million tons, down about 2% from an estimated4.434 million tons in MY 2013-14.The country's ending stocks are estimated to increase toaround 1.33 million tons in MY 2014-15, up about 50% from an estimated 887,000 tons in 2013-

14 due to an increase in supply from production and imports and a decline in consumption.

Vietnam Exports About 169,358 Tons of RiceDuring January 129, 2015Feb 01, 2015

Vietnam exported about 169,358 tons of rice in January 1-29, 2015, down about 45% from about307,255 million tons of rice exported in full month of January 2014 and down about 64% from


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about 472,575 tons of rice exported in full month of December 2014, according to data from theVietnam Food Association (VFA). Average rice export price so far in this month stands at about$457 per ton (FOB), up about 10% per ton from same time last year and down about 4% fromlast month.

Vietnam Agrees to Export 240,000 Tons ofRice to MalaysiaFeb 01, 2015

Vietnam has agreed to export about 240,000 tons of5% broken rice to Malaysia between April -

November 2015, Reuters quoted a state-runnewspaper as saying.The price of the deal has not been disclosed, according to some exporters.However, they have estimated the deal to be struckat around $385 per ton (FOB). The Vietnam FoodAssociation (VFA) has not commented on the deal,according to Reuters.

Traders say the deal may not have a significant impact on global rice export prices, which have been declining for the past few months. Vietnam is hopeful of winning the Philippines contract

for 500,000 tons for delivery between March and May 2015.Vietnam's 5% broken rice pricestood at around $360 per ton towards the end of last week, compared to around $405 per ton onThai 5% rice, around $400 per ton of India 5% rice, around $415 per ton of Myanmar 5% riceand around $360 per ton of Pakistan 5% rice.

Experts are expecting a tough year for Vietnamese rice exports due to a stiff competition thisyear from Thailand, India and Pakistan. With concerns over weak export demand, last month,Vietnam has cut floor prices of 10%, 15% and 25% broken rice to about $375 per ton, $365 perton and $360 per ton respectively.Meanwhile, output from Vietnam's main winter-spring cropharvest is likely to reach around 5 million tons, basis paddy (around 3.125 million tons of milled

rice), and most of it is meant for exports.

Malaysia is the third biggest export destination for Vietnam after the Philippines and China.Vietnam exported around 470,000 tonnes of rice to Malaysia in 2014, up 1.5% from around463,054 tons exported in 2013.USDA estimates Vietnam to export around 6.7 million tons ofrice in 2015, up about 3% from around 6.5 million tons exported in 2014.

All contents have been published with permission of ORYZA.com

3rd February,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

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