3rd february,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

February 03, 2015


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Pakistan Rice Sellers Lower Some of Their

Quotes; Other Asia Rice Quotes Unchanged

Today

Feb 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 respectively

today. 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 on

Vietnam 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 per

ton.

25% Broken Rice

Thailand 25% rice is quoted at around $365 - $375 per ton, about $40 per ton premium on

Vietnam 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 at

around $390 - $400 per ton, about $10 per ton discount to Pakistan parboiled rice quoted at

around $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 Clear

About One Million Tons of Basmati Rice

Stocks

Feb 02, 2015

Pakistan's basmati rice stocks have been increasing

since 2011 due to increasing production and

declining exports, according to local sources.The

South Asian country has been consistently

producing around one million tons of basmati rice

annually, but is unable to export all the produced

output due to a competition from India. Pakistan’s

basmati rice exports have declined to around

630,035 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 being

accumulated as stocks. Currently, Pakistan has around 600,000 tons of basmati stocks and traders

are expecting to add another 400,000 tons this year taking the stock level to about one million

tons by the end of this year.

Iran, Iraq and Saudi Arabia are biggest buyers of basmati rice in Asia. However, Pakistan’s share

of rice exports to these countries has been declining due to various reasons. Therefore, Pakistan

is urged to frame strategies to increase exports to these countries in order to clear the surplus

stocks. Experts say the Ministries of Food Security and Research, Finance and Commerce as

well 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 basmati

rice exports and the role played by them in ensuring food security in the country.An official from

the Paksitan Basmati Growers Association (BGA) noted in an email to Oryza that the

government has been failing to tap the earning potential worth billions of dollars from basmati

rice exports, while it falls short of funds for developmental activities. He also noted that the

Institutions meant for the purpose are not getting enough encouragement from the government

and consequently farmers are suffering with poor incomes and living standards.


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South Korea May Face Rice Oversupply in

2015, Say Agriculture Ministry Officials

Feb 02, 2015

South Korea is likely to face an oversupply

of rice this year due to an expected increase

in production and a decline in

consumption, according to the Agriculture

Ministry officials.The Ministry sources

told local media reporters that this year, the

country is likely to reach about 97% self-

sufficiency in rice production and the

Southeast Asian nation's 2015 rice output

may exceed last year's production of about

4.24 million tons.

However, the country's consumption needs have been declining since last few years. Korea's

annual consumption has fell below 4 million tons last year, according to the Agriculture

Ministry. According to data from Statistics Korea, per capital rice consumption in South Korea

fell to all time low of about 65.1 kilograms in 2014, down about 3% from around 67.2 kilograms

in 2013 due to people preferring other non-rice alternatives. The Ministry sources are expecting

the consumption levels to fall further this year.Added to the increase in production, the

government's obligation to import around 408,700 tons of rice (about 9% of its annual

consumption 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 the

country's obligatory rice imports under the WTO rules. The government will impose a tariff of

513% on imports over and above its obligatory import volume of around 408,700 tons.a

Oryza U.S. Rough Rice Recap - Prices

Continue to Steadily Decline amid Limited

Buying 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 sell

interest.Analysts note that without fresh demand most buyers are well covered at least through

February however many sellers are hoping to move their rice this month and some are willing to

take lower prices to do so.

Thailand Plans to Slash Rice Production to

Manage Surplus and Boost Prices

Feb 02, 2015

Thailand's military-led government is planning to

reduce paddy rice production to about 33.73 million

tons by 2016-17, down about 4% from an average

of about 35.11 million tons over the last six years to

manage surplus rice stocks and boost prices, which

have declined significantly since the begnning of

2013, according to Bloomberg.The government is

planning to encourage rice farmers to quit rice

cultivation and adopt cultivation of crops like

sugarcane or mixed farming with livestock,

according to the Vice-Minister for farming. He noted that the government is planning to provide

incentives 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 shift

about 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 hectares

of land.

The government wants rice production to be just equal to projected local consumption and export

needs. 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, the

government'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 beginning

of 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 17

million stocks accumulated from the rice pledging scheme introduced by the previous

government.

The Nan Model: New Hope for Thai Rice

Farmers

Feb 02, 2015

The "sufficiency economy

philosophy" initiative

undertaken by the Pid Thong

Lang Phra (doing good

without any intention of

getting anything back)

foundation in the Nan province

of Northern Thailand has

raised hope for several rice

farmers, who have to often

bear losses in rice cultivation

due to droughts and

unavailability of water.The

initiative, sponsored by the

King, aims to tackle the problems of deforestation, flooding and poverty. It also aims to promote

reforestation and crop diversity to maintain soil quality. Under this initiative, the project and the

farmers communities jointly work to develop requisite water facilities.

The first phase of the project was implemented in the three districts of Song Khwer, The Wang

Pha and Chalerm Prakiat covering around 40,000 hectares and about 8,588 farmers. Three weirs

covering around 6,676 hectares were planned during the first phase to ensure adequate water

supply for the farmers.

The project is now building 420 weirs worth 200 million baht (around $6.1 million) covering

around 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 for

sufficiency 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 farmers

on how to increase quality and productivity.

The government is planning to implement the project in 19,000 other villages and the

Agricultural Ministry will oversee the project while the Industry and Commerce Ministries will

involve in marketing of the agricultural products and expanding market access.

Global Rice Quotes February 3rd, 2015

Long grain white rice - high quality

Thailand 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 quality

Thailand 25% broken 365-375 ↔


Pakistan 25% broken 310-320 ↔

Cambodia 25% broken 420-430 ↔

India 25% broken 360-370 ↔

U.S. 15% broken 485-495 ↔

Long grain parboiled rice

Thailand 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 rice

Thailand Hommali 92% 925-935 ↔

Vietnam Jasmine 450-460 ↓

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 785-795 ↔

Brokens

Thailand A1 Super 320-330 ↔


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 Import

560,000 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 Minimum

Market Agreement (MMA) quota in the 2015 calendar year.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,


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

from the 2014 MMA.

South Korea imported around 313,419 tons of rice in MY 2013-14, including 122,574 tons of

rice 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 MY

2014-15 consumption to decline to around 4.356 million tons, down about 2% from an estimated

4.434 million tons in MY 2013-14.The country's ending stocks are estimated to increase to

around 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 Rice

During January 1–29, 2015

Feb 01, 2015

Vietnam exported about 169,358 tons of rice in January 1-29, 2015, down about 45% from about

307,255 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 the

Vietnam 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% from

last month.

Vietnam Agrees to Export 240,000 Tons of

Rice to Malaysia

Feb 01, 2015

Vietnam has agreed to export about 240,000 tons of

5% broken rice to Malaysia between April -

November 2015, Reuters quoted a state-run

newspaper as saying.The price of the deal has not

been disclosed, according to some exporters.

However, they have estimated the deal to be struck

at around $385 per ton (FOB). The Vietnam Food

Association (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 price

stood at around $360 per ton towards the end of last week, compared to around $405 per ton on

Thai 5% rice, around $400 per ton of India 5% rice, around $415 per ton of Myanmar 5% rice

and around $360 per ton of Pakistan 5% rice.

Experts are expecting a tough year for Vietnamese rice exports due to a stiff competition this

year 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 per

ton and $360 per ton respectively.Meanwhile, output from Vietnam's main winter-spring crop

harvest 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 around

463,054 tons exported in 2013.USDA estimates Vietnam to export around 6.7 million tons of

rice in 2015, up about 3% from around 6.5 million tons exported in 2014.

All contents have been published with permission of ORYZA.com

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3rd february,2015 daily exclusive oryza rice e newsletter by riceplus magazine