Jackson Son & Co - LRI - Jun 03, 2011

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Ema i l : i n fo@l i v e r i c e i ndex . c om | Webs i t e : www. l i v e r i c e i ndex. c om | T e l : +44 ( 0 ) 1252 741 403 - © Copy r i gh t 2011 J ac k s on Son & Co . ( London) Ltd .

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Issue Date: 03/06/2011



We want to encourage you to take an active role in theprice assessment process and help us to ensure thatthe price assessments become increasingly accurateand robust. Have your say. Don’t be left out. You cancall us or email us with the information that you wouldlike us to take into account.

We will continue to develop our list of priceassessments and our methodology, listening carefullyto the participants in the rice industry in order to keepthem relevant to the international rice market. Updateswill be published in our report and on our website.

We hope that this will become a useful and reliableresource for the industry.

IntroductionWelcome to the new “Live Rice Index” Reportproduced by Jackson Son & Co (London) Ltd. Thisreport will be published weekly and will include marketcommentary and our weekly price assessments.

We are also developing a new website that will beavailable soon. We expect it to become a valuableresource for up to date information and historical data,catering to all sectors of the industry from farmers tothe point of sale.

All our price assessments will be determined in linewith the “LRI Methodology” with particular attentionto those that we have chosen to be benchmarks,marked with this symbol: For more information onour benchmarks and assessment principles pleaserefer to our methodology statement available on ournew web site:

www.livericeindex.com


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B

Report Date: 03/06/2011



THAILAND - LONG GRAIN WHITE RICE + / - PRICE

100% Grade B 10 $495

5% Broken 17 $477

10% Broken 13 $468

15% Broken 13 $463

25% Broken 13 $453 A1 Super Broken 5 $410

THAILAND - LONG GRAIN FRAGRANT RICE + / - PRICE

Hom Mali White Rice 100% Grade B New -20 $945

Hom Mali White Rice 100% Grade B Old - n/a

Hom Mali White Rice A1 Super 9 $474

Pathumthani Fragrant 100% Grade B 65 $710

THAILAND - LONG GRAIN PARBOILED RICE + / - PRICE

Parboiled Milled Rice 100% STX 15 $500

Parboiled Milled Rice 100% 15 $490



PAKISTAN - LONG GRAIN WHITE RICE + / - PRICE

IRRI-6 5% Broken -5 $495




386 2% Broken - n/aBroken Rice - n/a

VIETNAM - LONG GRAIN FRAGRANT RICE + / - PRICE

Fragrant Rice 5% Broken New 5 $595

Fragrant Rice 5% Broken Old - n/a

PAKISTAN - LONG GRAIN PARBOILED RICE + / - PRICE

IRRI-6 Parboiled Milled Rice 5% Broken STX -10 $540

IRRI-6 Parboiled Milled Rice 15% Broken STX -10 $530

IRRI-9 Parboiled Milled Rice 5% Broken - n/a

PAKISTAN - BASMATI RICE + / - PRICE

385 Long Grain White Basmati Rice 2% -10 $860

D-98 Long Grain White Basmati Rice 2% 0 $825

Super Kernel White Basmati Rice 2% 0 $980

Super Kernel Parboiled Milled Basmati Rice 2% -5 $1,015

INDIA - LONG GRAIN WHITE RICE + / - PRICE

IR 64 5% Broken - n/a

IR 64 25% Broken - n/a

PR 106 5% Broken - n/a

PR 106 25% Broken - n/a

1001 / PANT 4 25% Broken - n/a

INDIA - BASMATI RICE + / - PRICE

Traditional White Basmati Rice 2% 180 $1,410

Traditional Brown Basmati Rice 2% 30 $1,090Traditional Parboiled Milled Basmati Rice 2% 40 $1,090

Pusa White Basmati Rice 2% 35 $1,115

Pusa Brown Basmati Rice 2% 75 $975

Pusa Parboiled Milled Basmati Rice 2% 40 $1,090

1121 White Basmati Rice 2% -20 $1,020

1121 Parboiled Milled Basmati Rice 2% -20 $1,070

INDIA - LONG GRAIN PARBOILED RICE + / - PRICE

IR 64 Parboiled Milled Rice 5% STX - n/a

PR 106 Parboiled Milled Rice 5% STX - n/a

U.S.A. - GULF LONG GRAIN RICE + / - PRICE

U.S. #2, 4% Broken, Hard Milled 0 $520



U.S. #1, Parboiled Milled 4% Broken 0 $610

U.S. #2, Paddy, 55/70 Yield (ex-spout) 0 $280Southern Flour Quality Broken Rice 0 $330

Southern Pet Food Quality Broken Rice 0 $300

U.S.A - CALIFORNIAN MEDIUM GRAIN RICE + / - PRICE

U.S. #1, 4% Broken 0 $865

U.S. #1 Paddy, 58/69 Yield 0 $550

S. AMERICA - LONG GRAIN WHITE RICE(FOB FCL)

+ / - PRICE

Uruguayan 5% Broken 0 $525

Argentine 5% Broken 0 $520

Brazilian 5% Broken -5 $565

Brazilian Broken Rice (1/2 Grain Brokens) 0 $415

EGYPT - WHITE RICE + / - PRICE

Medium Grain #2 6% Broken - n/a

Medium Grain #3 12% Broken - n/a

Round Grain #2 6% Broken - n/a

Round Grain #3 12% Broken - n/a

Broken Rice Grade 0 -3 $470

S. AMERICA - LONG GRAIN PARBOILED RICE(FOB FCL)

+ / - PRICE

Brazilian Parboiled Milled Rice 5% Broken STX 0 $500

Uruguayan Parboiled Milled Rice 5% Broken STX 0 $530

THAILAND - LONG GRAIN GLUTINOUS RICE + / - PRICE

White Glutinous Rice 10% Broken -10 $860

White Glutinous Rice 10% Broken (Sanpathong) -20 $980

White Glutinous Broken Rice A1 5 $755

VIETNAM - LONG GRAIN WHITE RICE + / - PRICE

5% Broken 8 $468

10% Broken 8 $460

15% Broken 8 $450

25% Broken 6 $435

Broken Rice 3 $408

Live Rice Index


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B

B

B

B

B

B = INDICATES BENCHMARK

B

B




Perhaps the biggest story in Thailand

at the moment is that of the upcoming

elections, due to be held on July 3rd.

The two major parties, the Pheu ThaiParty and the Democrat Party are locking

horns over rice policies in attempts to

win the votes of the largest group in the

electorate; the farmers. The Pheu Thai

Party is proposing that they will re-

introduce a crop-mortgage programme to

support farmers, increasing the payments

made to farmers to 15,000 Baht for

regular paddy and 20,000 Baht for Hom

Mali paddy. Additionally, the Pheu Thai

Party have proposed a credit card scheme

for farmers for purchasing key inputssuch as seeds, fertilisers and farming

equipment. The credit card programme is

similar to the Kisan credit card scheme in

India but, unlike the Indian scheme, Thai

farmers will not be charged interest for

purchases and will be restricted to using

the cards for farm-related purchases.

The Democrat Party aims to maintain the

existing crop insurance programme, with

the aim of increasing farmer’s earnings by

25%. We have put together a table of the

key policies of each party for our reader’s

review.

Local prices have strengthened and

export prices for white rice varieties have

increased. The market has reacted to the

increase in prices with a signicant drop

in enquiries. The farmers will not mind

holding on to their rice for a little longer

given the upcoming elections and the

CURRENCY THB

1 USD $ 30.35

INVERSE 0.033

Export Statistics:

Unocial Thai rice exports from the

16th of May 2011 to the 22nd of May

2011 were 182,380 MTS, excluding

fragrant rice. This represents a

decrease of 12,470 MTS from the

previous week.

Exports of white and parboiled rice

from January 1st until May 22nd 2011

totaled 3,901,194 MTS, which is an

increase of 67.9% from the same

period last year.

Source: Thai Rice Exporters.

Thailand


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opportunity to earn more money for their

paddy, should there be a change of policy.

As anticipated, prices for Pathumthani

rice have risen sharply as demand picksup.

Pheu Thai Party Rice Policy Democrat Party Rice PolicyReinstate the crop-mortgage programme. Maintain the income guarantee programme, with a plan to

increase farmer’s earnings by 25%.

Introduce credit cards for farmers. Allocate community land deeds for 250,000 farmers growingon state-owned property.

3-year debt moratorium for farmers with less than 500,000Baht debt. Debt restructuring for farmers with debt within

500,000 – 1 million Baht.

Expand the social security system to cover 25 millionfarmers and informal workers.

1 million Baht allocated per village in addition to the existingvillage fund.

Standardise production and distribution chains byestablishing farm economic zones.

THAILAND - LONG GRAIN WHITE RICE + / - PRICE

100% Grade B 10 $495

5% Broken 17 $477

10% Broken 13 $46815% Broken 13 $463

25% Broken 13 $453

A1 Super Broken 5 $410

THAILAND - LONG GRAIN FRAGRANT RICE + / - PRICE

Hom Mali White Rice 100% Grade B New -20 $945Hom Mali White Rice 100% Grade B Old - n/a

Hom Mali White Rice A1 Super 9 $474

Pathumthani Fragrant 100% Grade B 65 $710

THAILAND - LONG GRAIN PARBOILED RICE + / - PRICE





THAILAND - LONG GRAIN GLUTINOUS RICE + / - PRICE

White Glutinous Rice 10% Broken -10 $860

White Glutinous Rice 10% Broken (Sanpathong) -20 $980

White Glutinous Broken Rice A1 5 $755

B

B

B

B

B





USA

Farmers have taken to the elds in the

mid-south as the rains nally halted al-

lowing for some last-minute planting and

re-planting of crops. More than 3.5 millionacres of farmland have been aected by

the oods, including an estimated 40%

of this year’s rice crop. Of the aected

states, Arkansas and Missouri appear to

have suered the most signicant delays

to planting as recent USDA statistics sug-

gest that, as of May 29th, Arkansas had

planted 93% of their crop and Missouri

had planted 88% of their crop, compared

to their respective 5 year averages of

99% and 97%. Consequently, the delayed

planting means that both these states aresignicantly behind their 5 year averages

for emerged rice. Specically, in Missouri

only 57% of the rice has emerged, where

the 5 year average is 90% and this time

last year, 100% of the state’s rice crop

had emerged. Farmers who either could

not plant or have lost crops due to the

oods are seeking federal funding from

the government for lost revenue.

The market in the South is still quiet with

thin demand for exports but domestic

market prices are stable on account of

steady domestic demand. The outcome

of the latest Iraqi tender is still unclear.

Export Statistics:

The next USDA Export Sales Report is

due for release later today due to the

Memorial Holiday.

Ema i l : i n fo@l i v e r i c e i ndex . c om | Webs i t e : www. l i v e r i c e i ndex . com | T e l : +44 ( 0 ) 1252 741 403 - © Copy r i gh t 2011 J ac k s on Son & Co . ( London) L td .

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In California, the recent tenders oated

by Korea and Japan were cause for

some excitement but only one cargo of

US medium grain was sold and bids inthe market returned to previous levels of

around US $13 per hundredweight over

loan. Planting in California has gained

momentum and as of May 29th planting is

now ahead of the 5 year average (but still

behind re: emerged rice), 80% of the crop

U.S.A. - GULF LONG GRAIN RICE + / - PRICE




U.S. #1, Parboiled Milled 4% Broken 0 $610

U.S. #2, Paddy, 55/70 Yield (ex-spout) 0 $280

Southern Flour Quality Broken Rice 0 $330

Southern Pet Food Quality Broken Rice 0 $300

U.S.A - CALIFORNIAN MEDIUM GRAIN RICE + / - PRICE

U.S. #1, 4% Broken 0 $865

U.S. #1 Paddy, 58/69 Yield 0 $550




In Brazil, prices for brokens, and to

a lesser extent parboiled brown rice,

shot up recently as a result of urgent

enquiries from certain parties whowere caught short. Prices for brokens

rocketed up by about US $40 - $50

PMT but this level is by no means

sustainable. The Brazilian government

recently announced their R$ 1 billion

PEP (Premium for Marketing of

Products) campaign and in the auction

on May 26th, of the 133,000 MTS of

paddy that was oered, commitments

were made for only 58% of this volume.

Most of the rice supply from Guyana

is committed to Venezuela as partial

payment for the oil that Guyana receives

under Venezuela’s 2005 PetroCaribe

accord. Peru have been active buyers

in the market and, similarly to Chile, are

expected to almost double their imports

this year.

In Uruguay exporters are struggling to

secure containers for their shipments

with shipping lines reporting that there is

a shortage. Milling time is still available

in Uruguay for parts of July and August.The outcome of the latest Iraqi tender is

still unknown. Although there are reports

suggesting that South American bids

were unsuccessful, we believe that the

nal awards are not yet known.

CURRENCY BRL ARS UYU

1 USD $ 1.576 4.091 18.450

The monsoon has arrived in good time,

reaching southern Kerala and Tamil Nadu

on May 29th. The monsoon brings more

than 70’s of India’s annual rainfall andirrigates around 60% of India’s farms. The

monsoon is expected to advance through

the rest of Kerala and Tamil Nadu into

Karnataka and the south Bay of Bengal

over the coming days before blanketing

the entire country by mid-July.

Early forecasts suggest that the monsoon

may bring 98% of the 50 year average

rainfall, boosting hopes that India will

produce a bumper crop. Rice production

may increase by around 7% this year

to a record level if the monsoon does

provide favourable growing conditions.

Monsoon-sown rice production could

reach 86 million MTS, which may further

encourage the government to remove the

ban on rice exports. There is currently no

proposal to end the ban.

The government’s rice procurement plans

are stuttering throughout the country as

drastic measures are now being taken to

store rice. With storage within the state

at full capacity, administrators in WestGodavari have instructed ocials to make

use of 120 schools and colleges to store

paddy. The schools and colleges are due

to re-open later this month.

India

CURRENCY INR

1 USD $ 44.870

INVERSE 0.0223

South America


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INDIA - BASMATI RICE + / - PRICE

Traditional White Basmati Rice 2% 180 $1,410

Traditional Brown Basmati Rice 2% 30 $1,090

Traditional Parboiled Milled Basmati Rice 2% 40 $1,090Pusa White Basmati Rice 2% 35 $1,115

Pusa Brown Basmati Rice 2% 75 $975

Pusa Parboiled Milled Basmati Rice 2% 40 $1,090

1121 White Basmati Rice 2% -20 $1,020

1121 Parboiled Milled Basmati Rice 2% -20 $1,070

S. AMERICA - LONG GRAIN WHITE RICE(FOB FCL)

+ / - PRICE

Uruguayan 5% Broken 0 $525

Argentine 5% Broken 0 $520

Brazilian 5% Broken -5 $565

Brazilian Broken Rice (1/2 Grain Brokens) 0 $415

S. AMERICA - LONG GRAIN PARBOILEDRICE (FOB FCL)

+ / - PRICE

Brazilian Parboiled Milled Rice 5% Broken STX 0 $500

Uruguayan Parboiled Milled Rice 5% Broken STX 0 $530





Offering A Grain

Of Truth...


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Jackson Son & Co - LRI - Jun 03, 2011