13th 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 13, 2015


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Pakistan rice Quotes Mixed Today; Other

Asia Rice Quotes Unchanged

Apr 10, 2015

Pakistan rice sellers increased their quotes for 5% broken rice by about $10 per ton to around

$370 - $380 per ton and lowered their quotes for 25% broken rice by about $5 per ton to around

$330 - $340 per ton today. Other Asia rice sellers kept their quotes 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 $5 per ton premium on Pakistan 5% rice shown at around $370 - $380 per

ton, up about $10 per ton from yesterday.

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

$345 - $355, about a $15 per ton premium on Pakistan 25% rice shown at around $330 - $340

per ton, down about $5 per ton from yesterday.

Parboiled Rice

Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is

indicated at around $360 - $370 per ton, about a $35 per ton discount to Pakistan parboiled rice

shown at around $395 - $405 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 $10 per ton discount to

Pakistan broken sortexed rice shown at around $285 - $295 per ton.


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Global Rice Quotes

April 13th, 2015

Long grain white rice - high quality

Thailand 100% B grade 395-405 ↔

Vietnam 5% broken 360-370 ↔

India 5% broken 370-380 ↓

Pakistan 5% broken 370-380 ↔

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 330-340 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 345-355 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 385-395 ↔

Pakistan parboiled 5% broken stxd 380-390 ↓

India parboiled 5% broken stxd 360-370 ↔


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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 470-480 ↔

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 285-295 ↔

Cambodia A1 Super 345-355 ↔

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

Iran Adopts Codex Plus Standard for

Basmati Rice Imports, Says India Commerce

Secretary

Apr 10, 2015


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India’s Commerce Secretary and a high level delegation visited Iran this week to discuss ways to

boost trade, including revival of the rice trade between the two nations.Iran has assured the

delegation about reviving basmati rice imports from India soon, local sources quoted India's

Commerce Secretary, who led a team of delegation to Iran in the beginning of this week, as

saying.He noted that the delegation had discussed issues regarding the revival of basmati rice

imports from India as well as high import duty and stringent standards with the Iranian

authorities.The Secretary also noted that Iran has adopted the Codex plus standard and they are

expecting all rice suppliers, including Indian exporters to comply with the standard. Codex is an

international standard for food trade for safety and quality.

Iran is a major destination for India's basmati rice exports and accounts for nearly 40% of India's

total basmati rice exports. 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


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November 2014.Iran has also proposed a free trade agreement with India to boost bilateral trade

and investment with India.

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.

Pakistan Basmati Rice Export Prices

Increase for Second Consecutive Month

Apr 10, 2015

Pakistan basmati rice prices, which have been declining since September 2014 have reversed and

increased sharply in February 2015 with the increase continuing in March 2015 as well,

according to data from the UN's Food and Agriculture Organization (FAO). The increase can be

attributed to concerns over a likely reduction in 2014-15 production.

In the February Crop Monitoring System Bulletin, the National Space Agency of Pakistan

(SUPARCO) and UN’s Food and Agriculture Organization (FAO have estimated Pakistan FY

2014-15 (July - June) paddy rice production to decline about 19% to around 8.437 million tons

(around 5.65 million tons, basis milled) from around 10.04 million tons (around 6.72 million

tons, basis milled) produced last year.

In March 2015, Pakistan's basmati rice export prices have increased slightly to around $985 per

ton from around $978 per ton in February 2014, and down about 28% from their year-ago levels

of around $1,362 per ton.


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In terms of local currency, average Pakistan basmati rice prices in March 2015 declined to

around PKR 99,485 per ton (using historical exchange rates), down about 13% from around PKR

99,512 per ton in February 2015, and down about 25% from around PKR 131,978 per ton in

March 2015.Average Pakistan basmati rice prices stood at around $946 per ton in the first three

months of 2015 (January - March), down about 31% from around $1,369 per ton recorded during

the same period last year.

Average basmati rice prices increased between August and September 2014 and peaked to

around $1,450 per ton in September 2014 due to fears of a fall in production as floods affected

large area of basmati rice acreage in Punjab. However, the overall production of basmati rice has

not been significantly affected by floods. Pakistan basmati growers associations have been

urging the government to provide adequate support to increase competitiveness of Pakistan's

basmati rice in the global market.


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India 2014-15 Rabi Rice Planting Reaches

4.056 Million Hectares as of April 10, 2015;

Down 7% from Last Year

Apr 10, 2015

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

4.056 million hectares as of April 10, 2015; down about 7% from around 4.355 million hectares

planted during the same period last year, according to preliminary data released by the Indian

Agriculture Ministry.

The decline is reportedly due to untimely rains in some part of the rabi rice growing areas.The

government of India, in its second advance estimates for major crops, has estimated India's rice

production for 2014-15 marketing year (October 2014 - September 2015) at around 103.04


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million tons, down about 3% from an estimated 106.65 million tons in 2013-14, according to a

statement from the Agriculture Ministry. It estimates around 88.02 million tons from kharif rice

crop and around 15.02 million tons from rabi rice crop.

Oryza U.S. Rough Rice Recap - Prices Steady

as Sellers Hold Firm

Apr 10, 2015

The U.S. cash market was mostly unchanged today despite weakness in the futures market as

most sellers put their foot down and would not come off of their price ideas despite seeing

decreasing bids.Analysts note that the cash market is being supported by domestic buyers who

are willing to pay roughly $0.50 per cwt (about $11 per ton) more than exporters, who for the

most part have gone quiet amid limited demand.

Pignoracion Program" Transforms Rice


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Sector in Dominican Republic, Says USDA

Post

Apr 10, 2015

USDA Post reports that the "Pignoracion Program" established by the government of Dominican

Republic in 2005 has played a significant role in transforming the country's rice sector while

stabilizing rice market prices and supply.The Post reports that under the program, the

government will underwrite the storage costs and allows rice producers and millers to pledge

stored rice as collateral for interest-free loans. For participants in the program, the cost of

storage, interest and insurance costs are covered by the government. Currently, the program

benefits about 30,000 producers and about 140-150 processors annually.

The program is financed by a Renewable Pignoracion Fund, which is funded by an annual

allocation from the government budget; 2) a contribution from producers and/ or processors of

0.25% of the amount of loans provided through the program; and 3) other contributions and

donations.The program has since its implementation has led to a increase in rice production and

stocks, a decline in rice imports as well as stability in local rice prices, at levels significantly

higher than import prices. It also led to increased credit available for the rice sector.USDA

estimates Dominican Republic to produce about 552,000 tons of milled rice and import about

15,000 tons in MY 2014-15 (July - June).

U.S. Rice Trade Expected to Increase in MY

2014-15, Says USDA Report

Apr 10, 2015

In its April World Agricultural Supply and Demand Estimates (WASDE) report, the USDA has

forecasted U.S. MY 2014-15 all rice exports to increase to around 4.76 million tons, up about

12% from around 4.24 million tons last year and slightly up from its last month's forecasts of

4.72 million tons due to an increase in U.S. long grain exports to the Western Hemisphere.USDA

forecasts the U.S. long-grain exports to increase to around 3.31 million tons, up about 16% from

last year's 2.86 million tons and up about 1.2% from last month's forecast of around 3.27 million

tons.the USDA has forecasted U.S. MY 2014-15 all rice imports to increase to around 1.07

million tons, up about 3% from around 1.04 million tons last year and up 3% from its last

month's forecasts of 1.04 million tons due to an increase in imports from Thailand.Accordingly,

USDA increased its estimates for U.S. MY 2014-15 all rice ending stocks by about 3% to around


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1.92 million tons from its last month's estimates of around 1.86 million tons. It estimates U.S. all

rice ending stocks to increase about 29% y/y in MY 2014-15.USDA increased estimates for U.S.

MY 2014-15 long-grain ending stocks by about 1.6% to around 1.25 million tons from last

month's estimate of around 1.23 million tons. It estimates U.S. long-grain rice ending stocks to

increase about 29% y/y in MY 2014-15. USDA increased estimates for U.S. MY 2014-15

combined medium & short-grain ending stocks by about 10% to around 0.57 million tons from

last month's estimate of around 0.52 million tons. It estimates U.S. combined medium & short-

grain rice ending stocks to increase about 12% y/y in MY 2014-15.USDA estimates U.S. all rice

farm prices to increase slightly to around $308.64 - $317.46 per ton from last month's estimates

of around $308.64 - $321.87. It lowered estimates for long-grain rice farm prices to around

$266.76 - $275.58 per ton and increased estimates for combined medium and short-grain farm

prices to around $405.65 - $414.47.The USDA has kept its forecasts for U.S. all rice production

unchanged from last month.

Vietnam Rice Exports Dip Despite Low

Prices, Say Exporters

Apr 10, 2015


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Vietnam rice exporters have expressed concern that Vietnam rice exports have slowed down

despite low prices due to a stiff competition with Thailand, India and Pakistan, report local

sources.The Director of an exporting company told local sources that while Thailand has been

trying to offload its huge rice stockpile by lowering selling prices, India and Pakistan have also

been forced to lower their export prices. He added that Thailand and Pakistan are trying cut into

Vietnam's share in Africa.Vietnam had already lowered floor prices of all rice varieties this year.

In the first week of March, Vietnam had lowered the floor price of lower quality 25% broken rice

exports to around $350 per month from around $360 per ton.

In January, the South-East nation cut export floor prices of higher quality and medium quality

rice such as 5%, 10% and 15% broken rice varieties to around $385 per ton, $375 per ton and

$365 per ton respectively on January 7, 2015.The exporter also noted that Vietnam usually relies

on commercial contracts with China and government-to-government contracts with the

Philippines and Indonesia. But this year, China has modified its import policy and is seeking 5%

broken rice instead of 15-25% broken varieties. The Head of the Mekong River Delta Rice

Institute added that most of the countries are demanding higher quality rice and Vietnam has

been slow in these types of exports.


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However, they still expressed confidence that demand for low quality rice from China would

pick up, and Indonesia and the Philippines also expected to import more rice this year.Vietnam

5% rice stands at $365 per ton compared to Thai 5%, India 5% and Pakistan 5% rice at $390 per

ton, $380 per ton and $375 per ton respectively.Vietnam exported about 904,954 tons of rice in

first three months 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.

Weekly Recap: Global Rice Export Quotes

Stabilize, Indications Higher In Pakistan

Apr 10, 2015

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

ended the week at about $413 per ton, up about $2 per ton from a week ago, down about $7 per

ton from a month ago and down about $39 per ton from a year ago.

Thailand

Thailand 5% broken rice is today shown at about $390 per ton, unchanged from a week ago,

down about $10 per ton from a month ago and up about $5 per ton from a year ago.

The Office of Agricultural Economics estimates the country’s paddy rice output for 2014-15 will

be around 32.6 million tons, down about 11% from last year. The decrease is expected due to a

43% y/y decline in secondary crop output.Rice exports increased sharply in February, reaching

732,151 tons, an increase of about 20% from January and up about 3% from February 2014.

Vietnam

Vietnam 5% broken rice is today shown at about $365 per ton, unchanged from a week ago,

down about $5 per ton from a month ago and down about $20 per ton from a year ago.

Vietnam has exported about 904,954 tons of rice in the first three months of 2015, a decrease of

about 26% from the same period last year. Average rice export price so far this year is around

$422 per ton (FOB), down about 2.5% from the same time last year.

India


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India 5% broken rice is today shown at about $380 per ton, unchanged from a week ago, down

about $15 per ton from a month ago and down about $50 per ton from a year ago.

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

around 4.056 million hectares as of April 10, 2015; down about 7% from around 4.355 million

hectares planted during the same period last year, according to preliminary data released by the

Indian Agriculture Ministry.

Rice stocks in the central pool as of April 1 were around 23.62 million tons, down about 22%

from the same period last year.Farmers in the state of Punjab are being urged by agricultural

officials to cut basmati rice acreage this year due to falling basmati rice prices.

India’s Commerce Secretary and a high level delegation visited Iran this week to discuss ways

to boost trade, including revival of the rice trade between the two nations.

Pakistan


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Pakistan 5% broken rice is today shown at about $375 per ton, up about $20 per ton from a week

ago, up about $25 per ton from a month ago and down about $30 per ton from a year ago.

The USDA Post estimates Pakistan’s MY 2014-15 rice exports at 3.7 million tons, up 16% from

last year.

Central & South America

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

month ago and down about $115 per ton from a year ago. The USDA Post estimates Brazil’s

MY 2014-15 (April 2015-March 2016) rice exports at around one million tons, up about 10%

from MY 2013-14 and up 10% from USDA’s official estimates. The Post estimates MY2014-15

Brazil rice imports at 700,000 tons, unchanged.

It estimates MY 2014-15 milled rice production at 8.3 million tons, unchanged. It also estimates

consumption will stay consistent and ending stocks will increase about 14% from last year to

828,000 tons. Separately, the Brazilian paddy rice index maintained by the CEPEA reached

around 35.86 real per 50 kilograms as of April 7, 2015, down about 0.03% from around 35.87

real per 50 kilograms recorded on March 31, 2015. In terms of USD per ton, the index reached

around $232 per ton on April 7, 2015, up about 3.5% from around $224 per ton recorded on

March 31, 2015.

Five percent broken rice from Uruguay and Argentina is today shown at about $575 per ton,

unchanged from a week ago, down about $25 per ton from a month ago and down about $50 per

ton from a year ago.

USDA Post reports that the "Pignoracion Program" established by the government of Dominican

Republic in 2005 has played a significant role in transforming the country's rice sector while

stabilizing rice market prices and supply.

U.S.

U.S. 4% broken rice is today shown at about $485 per ton, unchanged from a week and a month

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

The U.S. cash market was weaker this week, falling with the futures market. Trade activity was

limited.

Chicago rough rice futures for May delivery dropped this week, starting at a high of $10.900 per

cwt (about $240 per ton) on Monday before declining to a low of $10.270 per cwt (about $226

per ton) on Friday and closing at $10.400 per cwt (about $229 per ton).


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In its April World Agricultural Supply and Demand Estimates (WASDE) report, the USDA has

forecasted U.S. MY 2014-15 all rice exports to increase to around 4.76 million tons, up about

12% from around 4.24 million tons last year and slightly up from its last month's forecasts of

4.72 million tons due to an increase in U.S. long grain exports to the Western Hemisphere.

Other Markets

Cambodia 5% broken rice is today shown at about $440 per ton, unchanged from a week ago,

up about $10 per ton from a month ago and down about $5 per ton from a year ago. Cambodia

exported about 149,464 tons of rice in the period January-March, up 77% from the same period

last year. Meanwhile, the government of Cambodia is looking to double rice exports to China in

2015-16 (May-April) to about 200,000 tons.

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, an increase of about 4.6% from the amount procured last

year.

The USDA Post estimates that South Korea will import 560,000 tons of rice in MY 2014-15, an

increase of 79% from last year. Separately, South Korea’s state-run Agro Fisheries & Food

Trade Corporation is seeking to buy about 87,000 tons of non-glutinous rice of U.S. origin in

tenders for delivery between August 15 and September 30.

The USDA Post estimates that Taiwan will import 126,000 tons of rice in 2015, a decrease of

6% from last year.

The government of Senegal plans to limit annual rice imports to 500,000 tons in efforts to boost

domestic production.

The European Union has exported about 141,087 tons of milled rice in the first six months of

2014-15 (September-August), an increase of about 45% from the same period last year. Milled

rice imports increased 9% y/y to reach 669,778 tons.

The USDA Post estimates that Indonesia will import 1.25 million tons of rice in MY 2014-15,

up slightly from last year’s numbers.

The Philippines Department of Agriculture plans to plant high-yielding rice varieties in over

560,000 hectares in 2015.

A recent report by the Italy-based Joint Research Center of the European Commission has

identified Precision Agriculture as a potential means to increase rice production in the EU

member states while reducing the environmental ill effects associated with various rice

production systems.

The USDA Post estimates Turkey’s rice imports for MY 2014-15 will be about 300,000 tons,

down about 12% from last year.

Myanmar exported 1.81 million tons of rice in fiscal year 2014-15 (April-March), up about 51%

from 2013-14.

Documents

13th april,2015 daily exclusive oryza rice e newsletter by riceplus magazine