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Daily Exclusive ORYZA Rice E-Newsletter www.ricepluss.com
1
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 prices
from 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 had
increased 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 times
higher 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 garden
into 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 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 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 Health
Benefits
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 in
a 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 and
Harvesting 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 adequate
infrastructure, 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 week
ago, 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 to
cheaper 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 week
ago, 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 Rough
Rice 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 more
than 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 Thursday
increased 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 need
simplification.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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The farmers union also stressed for the revision of the whole sanctioning system. The existing
rules seek a lot of information from farmers when they apply for aid from the EC and the farmers
may face difficulty in this regard. Therefore, the COPA-COGECA requested the EC to provide
opportunities for famers to correct errors in such cases, said its Secretary-General.He also noted
that in the long-term producers need to analyze how the new CAP affects the EU's production
potential as well as the associated environmental benefits. This is important in the light of rising
food demand and limited resources, he said.
Asia Quotes Unchanged Today
Mar 06, 2015
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 $45 per ton premium on Pakistan 5% rice quoted at around $345 - $355 per
ton.
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%
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.
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