9th March,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

8/9/2019 9th March,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-Newsletter

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Daily Exclusive ORYZA Rice Newsletter

Volume 5, Issue I

March 09, 2015


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Vietnam May Reconsider Provincial Stock

Allocations as Businesses Oppose Current

Plan

Mar 06, 2015

Vietnam businesses in the Mekong River Delta (MRD) region but are opposing the government's

stock allotment to various provinces in the region, according to local sources. They have started

purchasing for the 2015 rice stockpiling plan, which the government approved to prevent pricesfrom falling during the harvest of the winter-spring crop.The Vietnam Food Association (VFA)

has allotted stock collection quotas to various provinces based on the storage capacities of

businesses in a particular province, their capacity to export as well as their participation in large-

scale rice fields, according to the VFA Vice-Chairman.


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He noted that the VFA allocated 251,433 tons for An Giang Province, 175,696 tons for Can Tho

City, 155,474 tons for Dong Thap Province, 118,757 tons for Long An Province, over 83,000

tons for Tien Giang Province, 79,000 tons for Kien Giang Province, 2,400 tons for Ca Mau

Province and 8,000 tons for Bac Lieu. He added that the allocations for only two provinces hadincreased compared to that in last year and allocations of others have considerably

declined.Businesses have been expressing concern over reducing allocations for local firms in

many provinces. For instance, in An Giang province, of the total allotted stocks of about 251,433

tons, local firms are allowed to buy only 137,000 tons and the remaining is allotted to outside

enterprises. The same is the case with many other provinces, they said.Firms also noted that the

VFA has allotted smaller volumes to firms with considerably big storage capacities while it

allotted reasonably big volumes to new firms which had not participated in last year's stockpiling

program. Exporters have therefore urged the VFA to reconsider increasing stock allocations to

provinces as well as local firms. The VFA Vice-Chairman hinted that the VFA may reconsider

increasing stock allocations for provinces.

Vietnam Rice Exports to Asian Destinations

Decline Sharply in January 2015

Mar 06, 2015

Vietnam has exported around 320,750 tons of rice in January 2015, down about 12% from

around 366,130 tons exported in December 2014, and down about 3% from around 331,480 tons

exported in January 2014, according to USDA. While share of Vietnam's rice exports to Asia and

Australia declined m/m in January 2015, its share of exports to , Africa, Europe and Americas

increased.

Asia accounted for around 132,097 tons (about 41% of total rice exports by Vietnam in January

2015), down about 47% from around 247,999 tons exported in December 2014, and down about

54% from around 286,135 tons exported in January 2014.

Vietnam exported around 114,912 tons of rice to Africa (about 36% of total January 2015

exports), up about 49% from around 76,888 tons exported in December 2014, and about 7 timeshigher from around 16,022 tons exported in January 2014.

Vietnam exported around 62,625 tons of rice to American destinations (about 20% of January

2015 exports), up about 98% from around 31,684tons exported in December 2014, and about 2.5

times more from around 25,148 tons exported in January 2014.Vietnam's exports to Australia

(about 0.4% of January 2015 exports) declined about 77% to around 1,429 tons in January 2015


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from around 6,375 tons exported in December 2014 and increased about 77% from around 804

tons exported in January 2014.Vietnam's exports to Europe and CIS countries (about 3% of total

January 2015 exports) accounted for around 9,687 tons, about 3 times higher than around 3,164

tons exported in December 2014 and about 2.8 times higher than around 3,371 tons exported in

January 2014.In terms of grade, 5% broken rice exports accounted for around 127,905 tons (or,

about 40% of total January 2015 exports); Jasmine rice exports accounted for around 100,052

tons (or, about 31% of total January 2015 exports); 15% broken rice exports accounted for

around 34,709 tons (or, about 11% of total exports in January 2015); 25% broken rice exports

accounted for around 14,091 tons (or, about 4% of total exports in January 2015); glutinous rice

exports accounted for around 13,116 tons (or, about 4% of total January 2015 exports); and 10%,

100% and other varieties accounted for around 30,877 tons (or, about 10% of total exports in

January 2015).


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Italy's Fashion City to Catch A Glimpse of

Rice Fields

Mar 06, 2015

Rice is all set to steal the show during the International Expo Fair in Italy's fashion city Milan

from May 1 to October 31, 2015. Italian artist Michelangelo Pistoletto is designing a rice field on

the roof top of Superstudio Più located in Milan under a project called "Terzo paradiso - vivere la

città" (Third paradise - living the city).The project seeks to transform a town vegetable gardeninto a real rice field. A rice straw hut is also being planned, which will be used for hosting

cultural events as well as serve as a meeting and training place for artists and creatives, architects

and designers, and social community workers.


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Oryza Overnight Recap – Chicago Rough

Rice Futures Continue to Sell Off as US

Dollar Rallies

Mar 06, 2015

Chicago rough rice futures for May delivery are currently listed 8 cents per cwt (about $2 per

ton) lower at $10.490 per cwt (about $231 per ton) during early floor trading in Chicago. The

other grains are seen trading mixed this morning: soybeans are currently seen about 0.4% lower,

wheat is listed about 0.5% higher and corn is currently noted about 1.2% lower.U.S. stocks

traded lower on Friday amid corporate news, as investors digested February's jobs report that

indicated an interest rate hike could come sooner rather than later. The jobs report showed a gainof 295,000, above expectations of 240,000 in February, down from 257,000 in January.

The unemployment rate fell to 5.5 percent, while hourly wages ticked up 0.1 percent, below

consensus and off the surprise 0.5 percent gain in January. Bond yields rose, with the U.S. 10-

year Treasury note yield at 2.20 percent, on increased anticipation of an interest rate hike sooner

rather than later. The U.S. dollar rose 1% against major world currencies. The Dow briefly fell

more than 100 points in the open, down 0.54% at 18,039. The S&P 500 opened down 9 points,

or 0.43%, at 2,091, with utilities leading all sectors except financials lower. The Nasdaq opened

down 10 points, or 0.22%, at 4,972. Gold is currently trading about 1.9% lower, crude oil is seen

trading about 0.7% lower, and the U.S. dollar is currently trading about 1.2% higher at 9:30am

Chicago time.

Oryza U.S. Rough Rice Recap - Slightly

Weaker Market as Export Bids Drop on

Firming USD

Mar 06, 2015

The U.S. cash market was slightly weaker today as bids continue to fall, especially bids on the

river as the dollar firms, however sellers show little interest in letting go at these prices.Analysts

note that most farmers are still hoping to net around $11.11 per cwt fob farm (about $245 per

ton) and there are some domestic buyers paying close to that for small quantities for prompt


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shipment however most of the buy interest is about $1.00 per cwt (about $22 per ton) below that

level.

Eating Rice With Chopsticks Holds HealthBenefits

Mar 06, 2015

A study carried out by the Singapore Institute for Clinical

Sciences, the National University of Singapore and the Clinical

Nutrition Research Centre (CNRC) found that eating rice with

chopsticks rather than with spoons or hands can control

blood sugar level. The a team of local nutrition experts

investigated the eating habits of 11 people to analyze the

differences between those who use chopsticks, spoons and

hands to eat rice. They observed significantly lower glucose

response in those who used chopsticks to eat rice compared

to those who ate rice with spoons or their hands. The CNRC

Director explained that when one uses chopsticks, they pick

up less amount of rice compared to that when they use

spoons or hands and as a result of that they tend to eat less ina mouthful and take more time to eat the food. This tendency

helps in better digestion of carbohydrate particles leading to a lower increase in blood sugar after

eating. He added that a slower rate of glucose response was more effective in reducing the risk of Type

2 diabetes.He advised people who do not have a habit of using chopsticks to eat less in each mouthful

and enjoy their food slowly to avoid the risk of diabetes.He also noted that basmati rice is low in

glycemic index (GI), the extent to which a carbohydrate rich food increases level of blood glucose, and it

can be considered to lower glucose response. Other ways to lower glucose response is to eat rice with

vegetables or meat and not eating very hot rice, he said.

Indonesia Plans Rice Planting andHarvesting Cycle to Ensure Continuous

Stocks and Curb Imports


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Mar 06, 2015

The government of Indonesia is planning to design a cycle of rice plant of harvesting covering

the entire nation to maintain continuous stocks in the country, according to Reuters.The

President was quoted as saying that simultaneous harvesting across the country has been leading

to excessive stocks during the harvesting season leading to price falls. A cycle of rice planting

and harvesting will help to increase farmers' yields, maintain continuous stocks throughout the

year thus stabilize rice prices. Such as system will also help to curb rice imports, he said.He also

urged the farmers to increase the paddy yields from the current 5 tons per hectare to 9-10 tons

per hectare. He noted that the government would support the farmers by providing the adequateinfrastructure, including irrigation systems, seeds and rice machinery.The President also noted

that the government would announce the paddy price next week and it would be in line with

market conditions and farmers' expectations.USDA estimates Indonesia to produce around 36.5

million tons of rice, basis milled (around 57.4 million tons, basis paddy), and import around 1.3

million tons of rice in MY 2014-15 (October - September).


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Weekly Recap: Index Steadies as Quotes

Firm

Mar 06, 2015

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes,

ended the week at about $422 per ton, up about $3 per ton from a week ago, up about $2 per ton

from a month ago and down about $35 per ton from a year ago.The UN’s FAO has forecasted

2014-15 global rice production to be about 495.9 million tons, down slightly from both last year

and previous forecasts for this year. The FAO estimates global rice utilization at around 500

million tons, up about 1.7% from 2013-14, and global rice stocks at about 176.2 million tons,

down about 2% from last year. The FAO expects 2014-15 global rice trade to reach around 41.4

million tons, down about 1.4% from last year but up about 1% from earlier forecasts for this

year.The FAO All Rice Price Index continued its six-month decline, reaching about 220 points in

February, down about 1% from January due to declines in the Higher and Lower Quality Indica

and Japonica sub-indices.

Thailand

Thailand 5% broken rice is today shown at about $405 per ton, unchanged from a week and a

month ago and down about $15 per ton from a year ago.

Thailand has received 45 bids for the one million tons of rice it plans to auction on March 6.

Thailand may sell poor quality rice after August 2015, as local and overseas buyers are looking

to buy it for use in the non-food sector.

A delegation of Thai rice exporters met with Namibia’s President to discuss ways the country

can help the South West African nation start and sustain rice production.

Vietnam

Vietnam 5% broken rice is today shown at about $370 per ton, up about $5 per ton from a weekago, up about $20 per ton from a month ago and down about $15 per ton from a year ago.

The Deputy Head of the Department of Cultivation stated that dry weather and crop diseases are

expected to reduce the rice output in Vietnam’s northern provinces, and salt water intrusion is

likely to impact rice production in the southern Mekong River Delta.


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The Vietnam Food Association has cut the floor price (minimum export price) of lower quality

25% broken rice exports to around $350 per ton.

Businesses in the country have started purchasing and stockpiling one million tons of winter-

spring crop in Vietnam’s Mekong Delta during March 1 to April 15, in line with the

government’s directions to control price falls during the harvest season.


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In January, Vietnam exported about 320,750 tons of rice, a decrease of about 12% from

December and about 3% from January 2014. The decline is due to decreased exports to Asia and

Australia; exports to Africa, Europe and the Americas increased.

India

India 5% broken rice is today shown at about $395 per ton, unchanged from a week ago, down

about $5 per ton from a month ago and down about $25 per ton from a year ago.

The USDA Post estimates India’s MY 2014-15 (October-September) rice exports at about 9

million tons (about 5.8 million tons of basmati and 3.2 million tons of non-basmati), a decrease

of about 13% from last year, due to anticipated decline in supplies from low production and

competition from other countries.

Planting for the 2014-15 rabi (secondary) rice crop (November-May) has reached 3.2 million

hectares as of March 5, down about 14% from the same period last year. The decrease is mostly

due to untimely rains in rabi rice growing regions.

The government is working hard to ensure that rice and wheat farmers are paid the minimum

support price as specified by the government, according to the Minister of State and Consumer

Affairs, Food and Public Distribution.

Indian rice exporters expect 2015 rice exports to decline by about 20% from last year to 8

million tons (about 5 million tons of non-basmati and about 3 million tons of basmati), due tocheaper supplies from Thailand.

During the period from July 1, 2014 to March 3, 2015, Bangladesh imported 875,350 tons of

rice, more than double the amount imported in all of 2013-14 fiscal year. Meanwhile, the

government of Bangladesh plans to procure one million tons of 2015 Boro (January-May) paddy

and 100,000 tons of Boro rice between May 1 and August 31.

Pakistan

Pakistan 5% broken rice is today shown at about $350 per ton, up about $10 per ton from a weekago, unchanged from a month ago and down about $50 per ton from a year ago.

Central & South America

Brazil 5% broken rice is today shown at about $550 per ton, unchanged from a week ago, up

about $10 per ton from a month ago and down about $115 per ton from a year ago.


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The Brazilian paddy rice index maintained by the Center for Advanced Studies on Applied

Economics (CEPEA) reached around 36.13 real per 50 kilograms as of March 02, 2015, down

about 2% from around 36.78 real per 50 kilograms recorded on February 23, 2015. In terms of

USD per ton, the index reached around $252 per ton on March 02, 2015, down about 1.23%from around $255.4 per ton recorded on February 23, 2015.

The USDA Post forecasts Peru’s MY 2014-15 (April-March) rice imports at around 220,000

tons, up about 22% from 2013-14, but down about 8% from USDA’s official estimates.

U.S.

U.S. 4% broken rice is today shown at about $485 per ton, up about $5 per ton from a week ago,

down about $15 per ton from a month ago and down about $100 per ton from a year ago.

The U.S. cash market was mostly unchanged this week with buyers and sellers still failing to

come to an agreement on prices.

Chicago rough rice futures for May delivery were mostly sideways this week, finding underlying

support at $10.600 per cwt (about $234 per ton) and overhead resistance around $10.800 per cwt

(about $238 per ton). They hit a high on Monday, reaching $10.910 per cwt (about $241 per

ton), before hitting the weekly low of $10.395 per cwt (about $229 per ton) on Friday and

closing just up from that at $10.515 per cwt (about $232 per ton).

Other Markets

Cambodia 5% broken rice is today shown at about $435 per ton, unchanged from a week ago

and a month ago and down about $20 per ton from a year ago. Separately, the Cambodia Rice

Federation (CRF) has asked the government to strictly implement the Code of Conduct, devised

in February 2014, in order to prohibit local trading firms from exporting cheap rice from

neighboring countries under the Cambodian brand.

Total rice acreage in Italy for crop year 2015 (September-August) is expected to increase

slightly to about 220,150 hectares in CY 2014, according to the Ente Nazionale Risi. Separately,

Italy’s rice exports to EU countries in the first three months of the crop year 2014-15(September-August) are up about 8.6% from the same period last year, reaching about 143,861

tons.

The government of Ghana has received a grant of about $145 million (with $100 million of it

coming from World Bank and $45 million coming from the United States Agency for


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International Development) for the development and commercialization of the country’s rice

sector.

The Philippines plans to increase hybrid rice acreage in efforts to achieve self-sufficiency in rice production, according to the Department of Agriculture.

Thailand Receives Bids for 780,000 Tons of

Rice

Mar 06, 2015

The government of Thailand received bids for around 780,000 tons from 40 firms for the one

million tons it auctioned today, Reuters quoted the Commerce Ministry as saying.The Deputy

Director of Foreign Trade Department was quoted as saying that all the bids were above the floor

price set by the government and that the Department is expecting to raise more than 8 billion


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baht (around $247 million) from today's auction.She noted that the response to today’s tender

signifies a strong demand for stockpiled rice and that the result of the auction would be finalized

next week.

The military government sold about 1.18 million tons of rice from five auctions raising around

17.21 billion baht (around $528 million) since it seized power in May 2014.The government

currently holds 17.8 million tons and is planning to sell around 10 million tons this year and

around 7 million tons next year.Meanwhile, the government is planning to sell the degenerated

rice after August 2015 when the investigation against those involved in the sales of low-grade

rice is expected to be over. Local and foreign companies are reportedly interested in buying the

low grade rice for use in non-food industries.

Oryza Afternoon Recap - Chicago RoughRice Futures End the Week on a Bearish

Note as Market Breaks Below Technical

Support

Mar 06, 2015

Chicago rough rice futures for May delivery settled 12 cents per cwt (about $3 per ton) lower at

$10.475 per cwt (about $231 per ton). The other grains finished the day with mixed results;

Soybeans closed about 0.1% lower at $9.8500 per bushel; wheat finished about 0.4% higher at

$4.8250 per bushel, and corn finished the day about 1.2% lower at $3.8600 per bushel.U.S.

stocks traded lower on Friday as investors digested February's jobs report that indicated an

interest rate hike could come sooner rather than later. The jobs report showed a gain of 295,000,

above expectations of 240,000 in February, down from 257,000 in January.

The unemployment rate fell to 5.5%, while hourly wages ticked up 0.1%, below consensus and

off the surprise 0.5% gain in January. The Dow briefly fell more than 275 points, down morethan 1.5% to below 18,000. The Dow Utilities fell below its 200-day moving average for the first

time since January 2014. In the S&P 500, utilities fell more than 3% as the greatest laggard. The

U.S. dollar rose more than 1 percent against major world currencies. On the other hand, the euro

breached $1.09 after the report, extending Thursday's decline from quantitative easing news in

the euro zone. The S&P 500 traded down 23 points, or 1.12%, at 2,077, with utilities falling

more than 3% to lead all sectors lower.


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The Nasdaq traded down 42 points, or 0.86%, to 4,939. Gold is trading about 2.5% lower, crude

oil is seen trading about 2.2% lower, and the U.S. dollar is seen trading about 1.2% higher at

about 1:00pm Chicago time.Thursday, there were 598 contracts traded, up from 517 contracts

traded on Wednesday. Open interest – the number of contracts outstanding – on Thursdayincreased by 31 contracts to 9,099.

EU Farmer Unions Seek More Clarity in New

Common Agricultural Policy

Mar 06, 2015

In response to the European Commission's (EC) call to European Union's (EU) producers and

other key stake holders to provide suggestions for improving and simplifying the new Common

Agricultural Policy (CAP), the COPA-COGECA, the federation of farmers unions and of agri

cooperatives has sent a letter to the EU Farm Commissioner highlighting the areas that needsimplification.The COPA-COGECA Secretary-General noted that they have specifically sought

clarity in implementing the new CAP, especially the greening rules, and to address some gaps in

the existing rules. He noted that due to lack of clarity in certain rules, some unintentional errors

may crop up in their implementation during the first three years and may consequently lead to

lesser payments to farmers. A tolerance is needed both for the farmers during the initial years of

implementation, he added.


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9th March,2015 Daily Exclusive ORYZA Rice E_Newsletter by Riceplus Magazine

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