10th march,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

March 10, 2015


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Thailand Rice Exports Decline Sharply in

January 2015

Mar 09, 2015

Thailand has exported around 610,504 tons of rice in January 2015, down about 59% from

around 1.47 million tons exported in December 2014, and down about 12% from around 696,558

tons exported in January 2014, according to data from Thai Rice Exporters Association

(TREA). In value terms, Thailand’s rice exports earned about $336.75 million from total rice

exports in January 2015, down about 51% from around $693.75 million earned in December

2014, and down about 11% from around $376.51 million earned in January 2014.

In January 2015, white rice exports accounted for around 311,161 tons (about 51% of total

January 2015 exports), Hom Mali rice accounted for about 122,892 tons (about 20% of total


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January exports), brokens accounted for 34,942 tons (about 6% of total January exports),

glutinous variety accounted for 12,011 tons (about 2% of total January exports), parboiled rice

accounted for about 124,050 tons (about 20% of total January exports) and husked/brown rice

accounted for about 5,448 tons (about 0.1% of total January exports).

Average export prices of white, Hom Mali, and brokens varieties increased m/m in January 2015

, while prices of parboiled, glutinous and husked rice varieties remained at December 2014

levels. Average export prices of glutinous rice witnessed the highest increase of about 6%

month-on-month in January 2015.

Philippines Chief Economist Urges

Government to End Rice Import Restrictions

to Stabilize Prices

Mar 09, 2015

The Philippines Chief Economist has urged the

government to remove quantitative restrictions (QRs)

on rice imports to stabilize rice prices in the country,

according to local sources.The country's Economic

Planning Secretary, who is also the Director General

of the National Economic and Development

Authority (Neda), was reacting to the inflation figures

released by the Philippine Statistics Authority (PSA).

He noted that rising rice prices are partly responsible

for the high inflation and increased poverty incidence in the country.He slammed the

government's decision to seek extension of the QRs on rice imports at the World Trade

Organization (WTO) in order to protect the local rice sector from foreign competition. QRs

apparently allow the government to import a stated amount of rice at lesser duty and imports

over and above the quota can attract higher duties. Last year, the WTO allowed the Philippines to

extend the QRs until 2017. Under the new QR policy, the Philippines can import 805,200 tons of

rice under the minimum access volume (MAV) at 35% duty. Imports above the MAV will attract

50% duty.

In 2013, the government's decision to curb imports coupled with its rice self-sufficiency slogan

had led to increase in rice prices as well as unofficial rice imports. This experience had prompted

the government to act proactively last year and this year and import sufficient quantities of rice


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before the lean season (July-September).The National Food Authority (NFA) has decided to

import 200,000 tons of rice from Thailand and 300,000 tons of rice from Vietnam under

government-to-government (G2G) deals to ensure adequate stocks ahead of the lean season as

well as to curb price hikes. The NFA imported over 1.4 million tons of rice last year.

According to a latest report released by the PSA, the domestic rice stocks were sufficient for 69

days as of February 1, 2015. NFA stocks, which comprise of about 96.7% imported rice, were

sufficient for 15 days.USDA estimates Philippines 2014-15 milled rice imports at around 1.6

million tons, up about 10% from last year. On the other hand, the FAO has forecasted the

Philippines 2015 rice imports to remain at last year's level of around 1.8 million tons reflecting

the government's efforts to stabilize domestic rice prices and replenish public stocks.

Philippines Rice Stocks Continue to Decline

for Third Consecutive Month

Mar 09, 2015

The Philippines rice stocks have continued to decline for the third consecutive month in February

2015, according to the Bureau of Agricultural Statistics (BAS).Total rice stocks in the

Philippines as of February 1, 2015 reached around 2.35 million tons, down about 12% from

around 2.66 million tons recorded in January 2015, and up about 17.5% from around 2 million

tons recorded during the same period last year.

According to the BAS, household stocks (which account for about 44.5% of total rice stocks in

the country) have reached around 1.05 million tons as of February 1, 2015, down about 2% from

year-ago levels of around 1.07 million tons. Commercial warehouse rice stocks (which account

for about 32.8% of total stocks) have reached around 770,000 tons as of February 1, 2015, up

about 64% from their year-ago levels of around 470,000 tons. The rice stocks with the National

Food Authority (NFA) (which account for 22.5% of total stocks) stood at around 530,000 tons,

up about 15% from around 460,000 tons recorded in February 2014.Month-on-month, household

rice stocks are down about 21%, commercial warehouse rice stocks are down about 5% and NFA

rice stocks - in which about 96.7% are imported rice - are up about 2%, according to the BAS.

The BAS says that the Philippines' rice stocks as of February 1, 2015 are enough to last for 69

days (household stocks are enough for 31 days, commercial warehouses stocks are enough for 23

days and stocks with NFA are enough for 15 days).In its latest paddy production estimates, the

PSA forecasts the Philippines paddy production for the first quarter of 2015 (January - March) at


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around 4.46 million tons, up about 3.6% from around 4.31 million tons, and down about 2.8%

from last month's forecast of around 4.59 million tons.

The PSA estimates paddy acreage to decline to around 1.16 million hectares during the three-

month period from around 1.17 million hectares last year. Yield is also expected to decline about

2% to around 3.84 tons per hectare from last year's 3.93 tons per hectare.The NFA has decided to

import 500,000 tons of rice (200,000 tons from Thailand and 300,000 tons from Vietnam) under

government-to-government deals in 2015 to ensure adequate stocks in the lean season (June –

September). It imported more than 1.8 million tons of rice (including 1.5 million tons of 2014

imports and 300,000 tons of 2013 residual imports) in 2014 to replenish rice stocks and control

price hikes.USDA estimates Philippines MY 2014-15 (July - June) paddy rice production at

around 19.365 million tons (around 12.2 million tons, basis milled), up about 3% from around

18.822 million tons (around 11.86 million tons, basis milled) produced in the previous year.

Philippines Approves G2G Rice Import Deals of Vietnam, Thailand

Mar 09, 2015


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The National Food Authority (NFA) Council of the Philippines has approved the government-to-

government (G2G) deals of Vietnam and Thailand, according to Reuters. The two top exporting

nations bid for the Philippines rice imports of around 500,000 tons on February 27, 2015.While

Vietnam will supply 300,000 tons of rice, Thailand will supply 200,000 tons of rice before May

31, 2015. The imports are to ensure adequate stocks ahead of the lean season (July - September)

as well as to curb price hikes.

Sources at the NFA told reporters that further imports may not be ruled out but there is no

immediate clarity on the same. However, they noted that the government is not under pressure to

speed up imports as the total rice stocks are sufficient for 69 days (household stocks are enough

for 31 days, commercial warehouses stocks are enough for 23 days and stocks with NFA are

enough for 15 days), according to the Bureau of Agricultural Statistics (BAS). The NFA

imported over 1.7 million tons of rice last year.The government is also planning to procure

around 189,845 tons of paddy rice from farmers before June this year.


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The Philippines Statistics Authority (PSA) is estimating the Philippines to produce around 8.55

million tons of paddy rice in the first half-part (January - June) of 2015, up about 2.02% from

around 8.38 million tons produced during the same period in 2014.

Pakistan Rice Sellers Lower Some of Their

Quotes; Other Asia Rice Quotes Unchanged

Today

Mar 09, 2015

Pakistan rice sellers lowered their quotes for $5 broken rice by about $5 per ton to around $340 -

$350 per ton today. Other Asia rice sellers kept their quotes unchanged today.

5% Broken Rice

Thailand 5% rice is quoted at around $405 - $415 per ton, about $35 per ton premium on

Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is quoted at around $390 -

$400 per ton, about $50 per ton premium on Pakistan 5% rice quoted at around $340 - $350 per

ton, down about $5 per ton from Friday.

25% Broken Rice

Thailand 25% rice is quoted at around $365 - $375 per ton, about $20 per ton premium on

Vietnam 25% rice shown at around $345- $355 per ton. India 25% rice is quoted at around $355

- $365, about $50 per ton premium on Pakistan 25% rice quoted at around $305 - $315 per ton.

Parboiled Rice

Thailand parboiled rice is quoted at around $400 - $410 per ton. India parboiled rice is quoted at

around $385 - $395 per ton, about $5 per ton discount to Pakistan parboiled rice quoted at around

$390 - $400 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $5 per ton

premium on Vietnam 100% broken rice shown at around $315 - $325 per ton. India's 100%


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broken rice is shown at around $280 - $290 per ton, about $10 per ton discount to Pakistan

broken sortexed rice quoted at around $290 - $300 per ton.

Oryza U.S. Rough Rice Recap - Quiet

Market Ahead of USDA WASDE Report

Mar 09, 2015

The U.S. cash market was unchanged today ahead of the USDA’s World Agriculture Supply and

Demand Estimate report due out Tuesday morning.

Analysts note that the market is extremely quiet with little buy or sell interest as sellers are still

hoping to get higher prices while buyers remain hand to mouth.

Pakistan Basmati Rice Export Prices

Increase Sharply in February 2015

Mar 09, 2015

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

increased sharply in February 2015, 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 January 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.


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In February 2015, Pakistan's basmati rice export prices have increased about 12% to around $978

per ton from around $876 per ton in January 2014, and down about 27% from their year-ago

levels of around $1,348 per ton.

In terms of local currency, average Pakistan basmati rice prices in February 2015 increased to

around PKR 99,512 per ton (using historical exchange rates), up about 13% from around PKR

88,305 per ton in January 2015, and down about 29% from around PKR 140,731 per ton in

February 2014.

Average Pakistan basmati rice prices stood at around $927 per ton in the first two months of

2015 (January - February), down about 32% from around $1,372 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


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

basmati rice in the global market.

Global Rice Quotes

March 10th, 2015

Long grain white rice - high quality

Thailand 100% B grade 410-420 ↓

Vietnam 5% broken 365-375 ↓

India 5% broken 390-400 ↔

Pakistan 5% broken 345-355 ↑

Myanmar 5% broken 415-425 ↑

Cambodia 5% broken 425-435 ↔

U.S. 4% broken 480-490 ↔

Uruguay 5% broken NQ ↔

Argentina 5% broken NQ ↔

Long grain white rice - low quality

Thailand 25% broken 365-375 ↔

Vietnam 25% broken 345-355 ↔

Pakistan 25% broken 310-320 ↑

Cambodia 25% broken 410-420 ↔

India 25% broken 355-365 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 400-410 ↔

Pakistan parboiled 5% broken stxd 395-405 ↑

India parboiled 5% broken stxd 385-395 ↔

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% 920-930 ↔

Vietnam Jasmine 465-475 ↑

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 790-800 ↔

Brokens

Thailand A1 Super 325-335 ↑


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Vietnam 100% broken 310-320 ↓

Pakistan 100% broken stxd 280-290 ↓

Cambodia A1 Super 345-355 ↔

India 100% broken stxd 280-290 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 380-390 ↔

Brazil half grain NQ ↔

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

Guyana Secures Venezuela Rice Export Deal,

Says Agriculture Minister

Mar 09, 2015

The government of Guyana has

secured the deal to export

around 200,000 tons of paddy

and rice in 2015, according to

local sources.Guyana's

Agriculture Minister told local

sources that the Venezuelan

authorities have confirmed the

continuation of the Petro-

Caribe deal that was signed

between the two countries in

2009. Under the deal, Guyana

will export rice to Venezuela

and import oil from the

neighboring country. The deal

is valued at around $120 billion

he said. The export prices of

rice and paddy are understood

to be at 2014 levels.He also noted that the first shipment to Venezuela would take place just

before the harvesting of the first crop of 2015 begins.

With an expected increase in production, the government has been exploring new markets for its

rice. The Agriculture Minister noted that the government has struck deals with new markets in

Central America and Africa apart from the existing markets.Guyana aims to produce about


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618,000 tons of milled rice and export around 521,000 tons in 2015. Guyana has exported around

501,208 tons of rice in 2014, up about 27% from around 394,000 tons exported in 2013,

according to the Agriculture Minister.

FAO Estimates Indonesia to Import 1.2

Million Tons of Rice in 2014-15

Mar 09, 2015

The UN's Food and Agriculture Organization (FAO) estimates Indonesia's rice imports to return

to more normal quantities and reach around 1.2 million tons in 2014-15 (April - March) due to a

reduction in 2014 aggregate rice production.The FAO estimates Indonesia's 2014 aggregate

paddy rice production at around 70.61 million tons (around 45 million tons of rice, basis milled),

slightly down from an estimated 71.28 million tons (around 45.3 million tons of rice, basis

milled) in 2013 due to a slight contraction in paddy acreage. A reduction in paddy acreage is


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attributed to a shift from paddy to other crops as well as occurrence of floods from mid-January

to late-February disrupting planting activities in major rice growing regions.Harvesting of the

2015 main wet season paddy crop has started and will continue till mid-July.

The rice producing regions Java and Sulawesi received above-average rains between November

and late February. But below-average rains between January and early March over parts of

Sumatera Island reduced soil moisture.

The FAO estimates aggregate paddy rice production in 2015 at around 73.4 million tons (around

46.6 million tons of rice, basis milled), up about 4% from an estimated 70.6 million tons (around

45 million tons of rice, basis milled) in 2014. The government has been aiming to achieve self-

sufficiency in rice production this year and accordingly has been providing support to the sector.

Rehabilitation of irrigation channels as well as distribution of subsidized seeds and fertilizers has

been the government's core agenda in this regard.Average rice prices have been increasing since

September 2014. Currently, average rice prices stand at around 9.94 million rupiah (Around

$780 per ton).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).

Argentina Exports 510,707 Tons of Rice in

2014; Down 5% from Previous Year

Mar 09, 2015

Argentina has exported around 510,707 tons of rice in 2014 (January – December), down about 5% from

around 535,722 tons exported during the same period in 2013, according to data from the Ministry of

Agriculture in Argentina. Argentina exported around 11,700 tons of rice in December 2014, down about

71% more from around 40,067 tons exported in November 2014; and down about 73% from about

42,915 tons exported in December 2013.

In the month of December, Argentina exported around 4,425 tons of rice to Chile (about 38% of

total December 2014 exports), around 2,799 tons of rice to Bolivia (about 24% of December

exports), around 22,76 tons of rice to Brazil (about 19% of December exports), and around 1,400

tons of rice to Costa Rica (about 12% of December exports). It exported the remaining 7% or

around 766 tons of rice to Denmark (181 tons), the U.S. (329 tons), Israel (16 tons), Italy (15

tons), Netherlands (50 tons), the U.K. (20 tons), Germany (108 tons) and Canada (47 tons).


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USDA estimates Argentina's milled rice production at about 975,000 tons in MY 2014-15 (April

– March), against consumption of around 500,000 tons. It estimates Argentina to export around

580,000 tons of rice in MY 2014-15.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Close Higher on Support from

Firmer Grain Prices

Mar 09, 2015

Chicago rough rice futures for May delivery settled 6 cents per cwt (about $1 per ton) lower at

$10.535 per cwt (about $232 per ton). The other grains finished the day higher; Soybeans closed

about 0.8% higher at $9.9325 per bushel; wheat finished about 1.6% higher at $4.9000 per

bushel, and corn finished the day about 0.7% higher at $3.8875 per bushel.U.S. stocks traded


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mostly higher on Monday as investors reevaluated the impact of Friday's strong jobs report on

the timing of a Fed interest rate hike.

Monday is the sixth anniversary of the bull market that began after the recession. The Dow

added more than 170 points and the S&P 500 rose 0.50%, while the Nasdaq added 17 points. In

Europe, equities were modestly lower on Monday amid speculation that Friday's better-than-

expected U.S. jobs report will lead the Fed to hike rates soon. The European Central Bank

launched its 60 billion euro-a-month ($66.3b) bond-buying program on Monday and euro zone

finance ministers also discussed Greece's reform plans. Investors now see a June rate rise as

more likely after February's nonfarm 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 percent, while hourly wages ticked up 0.1%, below consensus

and off the surprise 0.5% gain in January. The Dow Jones industrial average traded up 158

points, or 0.89%, at 18,014. The S&P 500 traded up 11 points, or 0.54%, at 2,082, with

industrials leading all sectors except telecommunications higher. The Nasdaq gained 18 points,

or 0.37%, at 4,945. Gold is trading about 0.2% higher, crude oil is seen trading about 1.1%

higher, and the U.S. dollar is seen trading a tick higher at about 1:00pm Chicago time.Friday,

there were 590 contracts traded, down from 598 contracts traded on Thursday. Open interest –

the number of contracts outstanding – on Friday decreased by 4 contracts to 9,095.

FAO Estimates Japan 2014-15 Rice Imports

at 700,000 Tons

Mar 09, 2015

The UN's Food and Agriculture Organization (FAO) estimates Japan's 2014-15 (April-March)

rice imports at around 700,000 tons.Harvesting of the 2014 paddy crop has been completed in

November. The FAO estimates Japan's 2014 aggregate paddy production at around 10.6 million

tons (around 7.74 million tons, basis milled), down about 1% from around 10.76 million tons

(around 7.85 million tons, basis milled) in 2013 due to a slight decline in planting area.USDA

estimates Japan to produce about 10.548 million tons of paddy (around 7.68 million tons, basis

milled) in MY 2014-15 (November - October) and import around 700,000 tons of rice in 2015.

News & Politics

10th march,2015 daily exclusive oryza rice e newsletter by riceplus magazine