7th 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 7 2015


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Asia Rice Quotes Unchanged Today

Apr 06, 2015

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. 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 $355 - $365 per ton, about a $15 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.

Farmers in Indian State Punjab Urged to Cut

Down Basmati Rice Acreage in 2015


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Apr 06, 2015

Agricultural officials in the Indian state of Punjab have recommended to the rice farmers to cut

the basmati rice acreage this year as falling basmati rice prices have left many millers and traders

in the state insolvent, according to local sources.Based on above-normal returns received from

basmati output in 2013, many farmers switched to basmati production from the regular non-

basmati variety in 2014. Slow start of monsoon season in June 2014 also prompted the state's

Agriculture Department to encourage farmers to opt for high-yielding and less water-consuming

basmati instead of non-basmati paddy.

Accordingly, India's basmati rice acreage in the 2014 kharif rice season (June - December)

increased about 40% to around 3.5 million hectares from around 2.5 million hectares last year.

The Indian Agriculture Ministry estimates 2014-15 basmati rice output at around 8.5 million

tons, up about 40% from around 6.25 million tons produced last year.

As part of efforts to increase basmati rice trading, the government also announced a waiver of

4% tax (2% market fee and 2% rural development fund) on the purchase of basmati. Due to this


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move, the state government reportedly suffered a loss of over Rs.550 crore (around $88.4

million). On the other hand, the market committees which purchased huge quantities of basmati

paddy are struggling to sell the same. However, prices of basmati rice declined by about 46% to

around Rs.2,400 per quintal (around $386 per ton) this year from around $4,500 per quintal

(around $724) per ton due to declining export demand, especially from Iran. Consequently, these

committees have incurred losses between Rs.20 - Rs.40 crore (around $3.2 - 6.4 million), due to

lack of sales, according to local sources.

The committees are also not in a position to pay farmers and millers for the paddy they

purchased five months ago. Therefore, they are urging the government to cut down basmati rice

acreage and production this year. Some market agents have even advised the farmers not to

basmati rice in the 2015 kharif season.

Punjab is the most important rice producing state in India and accounts for about 11% of total

rice production in India. Punjab produced around 11.374 million tons of rice in FY 2012-13

(October – September), up about 8% from around 10.54 million tons produced in FY 2011-12,

according to the Directorate of Economics and Statistics under the Agriculture Ministry.

Global Rice Quotes

April 6th, 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 355-365 ↔


Pakistan 25% broken 325-335 ↔

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 ↔


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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 ↔


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

Cambodia Exports 149,464 Tons of Rice in

January - March 2015; Up 77% from Last

Year

Apr 06, 2015

Cambodia exported around 149,464 tons of rice in the first three months of 2015, up about 77%

from around 84,331 tons exported during the same period in 2014, according to data from the

Secretariat of One Window Service for Rice export Formality (SOWS-REF). Cambodia exported

387,061 tons of rice in 2014.

In March 2015, Cambodia exported around 75,867 tons of rice, up about 101% from about

37,676 tons of rice exported in February 2015 and up about 112% from about 35,758 tons of rice

exported in March 2014. Cambodia exported about 40,178 tons of long-grain white rice, about

25,320 tons of jasmine rice, about 6,347 tons of fragrant rice and about 4,022 tons of long-grain

parboiled rice in March 2015.


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China was the major export destination for Cambodian rice so far this year followed by France,

Poland, Malaysia and Netherland. Cambodia rice exports to China have increased sharply in

March due to the relaxation of import restrictions by the Chinese government. China imported

about 36,081 tons of Cambodian rice (about 48% of the total rice export of Cambodia) in March

2015.

In August 2014, Cambodia signed a 12-month agreement with China to export 100,000 tons of

rice. As of March 2015, Cambodia had already exported about 80,000 tons of this quota and the

export deal is expected to complete in April or May 2015, according to the president of the

Cambodia Rice Federation (CRF).


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China Procures 28.07 Million Tons of 2014-15

Middle to Late-Season Rice as of March 31,

2015; Up 4.6% from Last Year

Apr 06, 2015

The government of China has procured about 28.07 million tons of 2014-15 middle to late-

season rice for reserves as of March 31, 2015, up about 4.6% from around 26.84 million tons

procured last year, according to Reuters.

The government purchases of middle to late-season rice reached a record high this year,

according to state grain buying agency Sinograin. The agency noted that reserves are aimed at

safeguarding farmers' benefit.


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Sinograin has reportedly auctioned around 44.6 million tons of middle to late-season rice since

the beginning of last year in major production regions to make room for new grains and also

increased storage capacity by about 3.8 million tons to accommodate increased stocks.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Weighed Down by Softer

Grains

Apr 06, 2015

Chicago rough rice futures for May delivery settled 4 cents per cwt (about $1 per ton) lower at

$10.825 per cwt (about $239 per ton). The other grains finished the day lower as well; Soybeans

closed about 0.8% lower at $9.7850 per bushel; wheat finished about 1.6% lower at $5.2775 per

bushel, and corn finished the day about 0.4% lower at $3.8500 per bushel.U.S. stocks reversed to

trade higher on Monday amid softer data that renewed hopes of an interest rate hike later rather

than sooner.

The major averages turned positive in early trade as the morning's service sector and

manufacturing data continued to indicate moderate growth. Traders took the lack of significant

growth as a sign of further dovish policy from the Federal Reserve. Investors also found

encouragement from the U.S. dollar, which held steady while the euro traded near $1.10. The

greenback is down nearly 2% for April after rapid advances earlier in the year.

The Dow Jones industrial average traded about half a percent higher on Monday, holding in the

black for the year. The blue chip index gained more than 150 points after falling triple digits in

the open. Markets were closed on Friday and stocks opened sharply lower on Monday, following

futures that plunged after the monthly employment report showed the addition of 126,000 jobs,

far below the estimated 245,000 from a Reuters poll. The ISM nonmanufacturing Index was 56.5

in March, its lowest level in three months but in line with estimates. The Markit Purchasing

Managers Index rose to 59.2 in March, the highest level since August. Pressure from the strong

dollar weighed on corporate profits last quarter and is expected to continue to be a headwind.

Alcoa reports quarterly results this Wednesday in the unofficial start to the earnings season.

European markets were closed for both Good Friday and Easter Monday. Asian stocks outside

Japan gained on hopes the weak jobs report would push out a rate hike by the Federal Reserve.

The Dow Jones Industrial Average traded up 150 points or 0.84%, at 17,912. The S&P 500


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traded up 16 points, or 0.81%, at 2,083, with energy leading all 10 sectors higher. The Nasdaq

traded up 31 points, or 0.65%, at 4,918. Gold is trading about 1.4% higher, crude oil is seen

trading about 5.9% higher, and the U.S. dollar is seen trading about 0.1% higher at

about 1:15pm Chicago time.Thursday, there were 560 contracts traded, down from 957 contracts

traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday

increased by 112 contracts to 9,479.

Vietnam Exports About 904,954 Tons Rice in

First Three Months of 2015

Apr 06, 2015


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Vietnam exported about 904,954 tons of rice in first three months (January – March) of calendar

year 2015, down about 26% from about 1.22 million tons of rice exported during same time last

year, according to data from the Vietnam Food Association (VFA). Average rice export price so

far in this year stands at about $422 per ton (FOB), down about 2.5% per ton from same time last

year.

In March 2015, Vietnam rice export increased sharply from last month. Vietnam exported about

480,490 tons of rice in March 2015, up about 139% from about 200,814 tons rice exported in

February 2015, but down about 18% from about 583,294 tons rice exported in March 2014.

Average export prices in March 2015 stands at about $396.5 per ton, down about 10% from a

year ago, and down about 13% per ton from a month ago.

USDA Post Estimates South Korea to Import

560,000 Tons of Rice in MY 2014-15; Up 79%

from Last Year

Apr 06, 2015


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The USDA Post estimates 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 Minimum

Market Agreement (MMA) quota in the 2015 calendar year. The Post expects U.S. rice exports

to stand at around 150,000 tons, including 34,000 tons contracted under the 2014 MMA and the

remaining to be contracted under the 2015 MMA. South Korea plans to complete its 2015 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, 2015.

So far under the 2015 TRQ plan, South Korea imported around 112,897 tons of brown rice

(around 101,607 tons, milled basis), or 26% of the total 2015 TRQ. 2015 TRQ imports include

27,000 of medium grain brown rice (around 24,300 tons, milled basis) from the U.S., 55,897 tons

of short grain brown rice (about 50,307 tons, milled basis) from China and 30,000 tons of long

grain brown rice (around 27,000 tons, milled basis) from Vietnam.

Korea purchased a total of 408,700 tons of milled rice from the U.S., China, Thailand, Australia,

Vietnam and India. The Post estimates Korea's 2015-16 rice imports at about 410,000 tons

(milled, basis), including 408,700 tons under the WTO MMA allocations.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 estimates South Korea's milled rice production

to decline about 6% y/y to around 4 million tons in MY 2015-16 due to an expected 1.8% y/y

decline in area planted to around 801,000 hectares.

The USDA Post reports that the government provides two types of income support payments

under the Rice Income Compensation Act (RICA) - an area payment, which is made on a 'per

hectare' basis, and a deficiency payment, which is made when the market prices are lower than

the target prices. In 2014, rice farmers received both area and deficiency payments. In 2014, the

government made an area payment of about 900,000 won (around $856) per hectare. It allocate a

total of about 192 billion won (around $182 million) towards the deficiency payment. The Post

reports that the deficiency price is calculated as follows:

[(Target Price in Won/kg - Average Harvest Price in W/kg) x 0.85] - Area Payment per HA

/Average National Yield per Hectare

It expects the country's MY 2014-15 consumption to increase slightly to around 4.448 million

tons from an estimated 4.422 million tons in MY 2013-14. It expects consumption to decline to

around 4.355 million tons in MY 2015-16.The country's ending stocks are estimated to increase

to around 1.25 million tons in MY 2014-15, up about 40% from an estimated 899,000 tons in

2013-14 due to an increase in supply from production and imports and a decline in consumption.

It estimates 201516 ending stocks at around 1.303 million tons.


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USDA Post Estimates Taiwan to Import

126,000 Tons of Rice in 2015, Down 6% from

Last Year

Apr 06, 2015

USDA Post estimates Taiwan to import about 126,000 tons of rice (milled basis), down about

6% from around 134,000 tons imported in 2014. The imports are as per the WTO accession

agreement and account for approximately 10% of domestic rice consumption of about 1.28

million tons.The Post reports that Taiwan's tariff rate quota (TRQ) for rice is divided into two

portions: 35% or about 44,000 tons is reserved for private sector imports and 65% or about

82,000 tons is reserved for public sector imports. All rice imports are made under the WTO

Country Specific Quota (CSQ) allocations.

In 2014, Taiwan imported 104,000 tons of milled rice with the U.S. accounting for 44% share,

followed by Vietnam (28%), Thailand (16%), Australia (8%) and Myanmar (2%). According to

the Post, in 2014, imports from the U.S. were slightly lower due to delayed U.S. rice CSQ tender

schedule and contracts for later delivery. Taiwan fulfilled their Simultaneous Buy and Sell (SBS)

tender commitments for 26,000 tons of U.S. rice. However, of the 38,634 tons imports (brown


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basis) under CSQ normal rice tender, only 20,100 tons were successfully awarded. The

remaining 18,534 tons failed three U.S.-origin tender offers and was therefore opened for global

contract.

Taiwan exported about 19,000 tons of rice in 2014, of which 16,000 tons was dedicated to

humanitarian food aid with the balance sold on a commercial basis. The Post expects Taiwan's

exports to remain unchanged at 19,000 tons in 2015, with about 3,000 tons for commercial

exports.The Post estimates Taiwan to produce around 1.2 million tons of rice, basis milled, in

2015, up about 9% from an estimated 1.1 million tons in 2014. It reports that Taiwan's rice

production is minimally impacted by the ongoing drought and the existing stock will be suffice

to meet the consumption demand and Taiwan will not need any supplementary imports.The Post

estimates total rice consumption to remain are around 1.28 million tons, including 100,000 tons

for feed use.

Senegal Plans to Limit Rice Imports at

500,000 Tons to Boost Domestic Production

Apr 06, 2015

The government of Senegal is planning

to limit annual rice imports at 500,000

tons as part of its efforts to boost

domestic production and achieve rice

self-sufficiency, Bloomberg quoted local

sources as saying. The country's

Commerce Minister reportedly about the

plan to the local sources.Senegal is a net

importer of rice and imports over one

million tons of rice or about 80% of

around 1.4 million tons of rice needed

for its domestic consumption. The

government has been keen on reducing dependence on imports by increasing rice production. In

this direction, the President had recently launched an ambitious $148 million program to achieve

self-sufficiency in rice production by 2017. The Prime Minister also hinted at imposing taxes and

duties on rice imports to protect local rice sector.


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USDA estimates Senegal to produce about 289,000 tons of rice and import around 1.15 million

tons in MY 2014-15 (October - September) to meet a consumption demand of around 1.45

million tons.

'Thai Rice: Thainess' Fair Generates

$218,968 Trade, Says Agriculture Ministry

Official

Apr 06, 2015

The 'Thai Rice: Thainess' fair, organized by the government to promote Thai rice and provide

trading opportunity for farmers has been a great success and has generated about 7 million baht

(around $218,968) worth trade, local sources quoted an Agriculture Ministry official as

saying.The fair, which ran for about one month had attracted around 46,000 visitors, and has

served as a platform for trade negotiations between farmers and private companies. Rice strains


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from about 20 farmers have been selected to be presented at the Makro Samsen shopping center

between 6-30 April, 2015.

The Permanent Secretary of Agriculture and Cooperatives Ministry, who presided over the

closing ceremony of the fair, noted that the event had increased awareness on the importance and

value of Thai rice as well as demonstrated the dedication of farmers among the public.

Separately, the Ministry of Agriculture and Cooperatives has planned a new scheme, which is

aimed at improving the quality of Thai sticky rice. The Ministry has selected around 40 rice

farmers from about 15 provinces in the Northeast, where sticky rice is mostly grown, and will

encourage them to dedicate about 25% of their rice field to sticky rice. About 10,000 rai or 1,600

hectares of land is expected to be used for growing the crop initially. The results would be

monitored over a period of three years and the results would be stored in a database, according to

local sources.

Indian Commerce Ministry Officials Visit

Iran; Revival of Basmati Rice Exports on

Agenda

Apr 06, 2015


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India's Commerce Secretary and a high level delegation are visiting Iran this week to discuss

ways to boost trade, including revival of rice trade, between the two nations, according to local

sources.

The Indian officials' visit to Iran is particularly significant as the Middle East nation had banned

rice imports in November 2014 citing excess stocks from last year's imports and a bumper crop

in 2014, a move which has significantly affected India's basmati rice exports. Iran is a major

destination for India's basmati rice exports and accounts for nearly 40% of India's total basmati

rice exports. Last month, some exporters expressed confidence that India’s basmati rice exports

to Iran would resume from the beginning of new financial year (2015-16) in April 2015.

The delegation will meet the Iranian Commerce Secretary and Trade Minister according to local

sources. They are understood to particularly seek for the removal of ban on rice imports as well

as focus on increasing project exports to Iran. India is a major importer of crude oil from Iran but

its imports had declined significantly in March 2015 due to pressures from western nations. The

delegation is also likely to discuss means to solve the oil import issue.

India's new Foreign Trade Policy has reportedly retained the Rupee-Riyal payment mechanism,

which was initiated a couple of years ago to facilitate trade between India and Iran.The bilateral

trade between India and Iran increased by about 2% to around $15.27 billion in 2013-14 as

against $14.94 billion in 2012-13.While Iran's basmati rice imports from India increased about

33% y/y to around 1.44 million tons in 2013-14, the Middle East nation's imports have declined

in 2014-15 primarily due to its stance to revise the accepted level of arsenic content in basmati

rice from 150 parts per billion (ppb) to 120 ppb in March 2014. Later in September 2014, Iran

also increased import duty on basmati rice from 22% to 45% before banning rice imports in

November 2014.

India exported around 767,697 tons of basmati rice to Iran in the first ten months of FY 2014-15

(April - January), according the Agricultural and Processed Food Products Export Development

Authority (APEDA). At this pace, rice market analysts expect India's basmati rice imports to Iran

to decline by about 15-20% to around 1.15 - 1.2 million tons in 2014-15.India exported around

9.57 million tons of rice (including 2.92 million tons of basmati and 6.65 million tons of non-

basmati) in the first ten months of FY 2014-15 (April - March), up about 7% from around 8.96

million tons (including 3.09 million tons of basmati and 5.87 million tons of non-basmati)

exported during the same period in FY 2013-14, according to provisional data released by the

APEDA.

7th april,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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