23rd 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 23, 2015


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Australia May Produce 700,000 Tons of

Paddy Rice in 2015, Say Growers

Apr 22, 2015

Australian rice growers are confident that the country's paddy rice output would reach 700,000

tons (around 504,000 tons, basis milled) in 2015 due to favorable weather conditions, according

to ABC.net.One of the senior rice growers told reporters that growers are producing three

varieties of long-grain and one variety of short-grain this year. He noted that harvesting of the

2015 rice crop is underway.He however noted that fears of El Nino and less water allocation

continue to threaten Australian rice growers.


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The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)

estimates Australia's MY 2014-15 (April 2014 - March 2015) at around 684,000 tons (around

492,000 tons, basis milled), down about 18% from an estimated 833,000 million tons (around

600,000 tons, basis milled) in MY 2013-14 due to a decline in planting area reflecting reduced

supplies of irrigation water in the main rice producing region of New South Wales.USDA

estimates Australian paddy rice production to decline to around 700,000 tons (around 504,000

tons of rice, basis milled) in MY 2014-15 (April - March), down about 15% from an estimated

833,000 tons of paddy rice (around 600,000 tons of rice, basis milled) produced last year.

Global Rice Quotes

April 23rd, 2015

Long grain white rice - high quality

Thailand 100% B grade 395-405 ↔

Vietnam 5% broken 355-365 ↔

India 5% broken 370-380 ↔

Pakistan 5% broken 375-385 ↔

Myanmar 5% broken 410-420 ↔

Cambodia 5% broken 430-440 ↔

U.S. 4% broken 480-490 ↔

Uruguay 5% broken 565-575 ↔

Argentina 5% broken 555-565 ↔

Long grain white rice - low quality

Thailand 25% broken 355-365 ↔


Pakistan 25% broken 330-340 ↔


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Cambodia 25% broken 410-420 ↔

India 25% broken 345-355 ↔

U.S. 15% broken 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 380-390 ↔

Pakistan parboiled 5% broken stxd 380-390 ↔

India parboiled 5% broken stxd 365-375 ↔

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% 895-905 ↔

Vietnam Jasmine 485-495 ↔

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 ↔


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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

FAO Forecasts Vietnam 2015 Rice Exports at

6.5 Million Tons, Unchanged from Last Year

Apr 22, 2015

The UN's Food and Agriculture Organization (FAO) has forecasted Vietnam's 2015 rice exports

to remain at last year's below-average level of 6.5 million tons. Vietnam exported about 1.144

million tons of rice in January 1 - April 13, 2015, down about 35% from about 1.76 million tons

of rice exported in first four months of 2014, according to data from the Vietnam Food

Association (VFA).The FAO forecasts Vietnam's 2015 total paddy production at a record 44.8


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million tons (around 28.9 million tons, basis milled), slightly down from last year's 44.99 million

tons (around 29 million tons, basis milled).

Harvesting of the 2014-15 winter/spring paddy crop, which accounts for about 45% of annual

production, began in late March and will continue till July in the north. Planting for 2015

summer/autumn crop is underway. Prolonged poor rains in the Central Highlands and Southern

Coastal provinces are expected to slightly affect the output of the winter/spring and

summer/autumn crops in these regions. However, their impact on the national production is

likely to be very minimal as the two regions contribute to only 5% of the total area planted. The

FAO forecasts the 2015 winter/spring rice harvest at 20.6 million tons, down 1% from the record

level in 2014.

Wholesale rice prices of rice in Vietnam were generally stable in March 2015. The downward

pressure from the 2014-15 winter/spring crop was offset by the government supported

procurement program at increased prices and strong export demand. However the prices were

below their year-ago levels.USDA estimates Vietnam to produce around 28 million tons of rice,

basis milled (around 45 million tons, basis paddy) and export around 6.7 million tons in 2014-15

(January 2015 - December 2015).

Pakistan FY 2014-15 Paddy Rice Production

Estimated to Decline 19% y/y to 8.437

Million Tons

Apr 22, 2015

In the March 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 USDA estimates Pakistan's MY 2014-15

(November - October) milled rice production to increase about 3% to around 6.9 million tons

(around 10.35 million tons, basis paddy) from around 6.7 million tons (around 10.05 million

tons, basis paddy) in MY 2013-14.


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Oryza Overnight Recap – Chicago Rough

Rice Futures Attempt a Bullish Reversal;

Will Price Support Hold at $10.000?

Apr 22, 2015

Chicago rough rice futures for May delivery are currently noted 7 cents per cwt (about $2 per

ton) higher at $10.050 per cwt (about $222 per ton) ahead of floor trading in Chicago. The other

grains are seen trading mostly lower: soybeans are currently seen about 0.4% lower, wheat is

listed about 0.2% higher and corn is currently noted 0.5% lower.U.S. stock index futures pointed

to a flat to higher open on Wednesday, ahead of more major earnings releases and some key

housing data. Housing data will also be in focus, with the FHFA house price index for February

showing a 0.7% increase from the previous month.

Analysts polled by Reuters expected a 0.3% gain. Existing home sales data for March at 10:00

a.m. ET is expected to show a second consecutive monthly increase, to just over 5 million,

broadly matching the average monthly reading since last summer. In an encouraging sign that the

housing market is picking up, total mortgage application volume rose 2.3% week to week on a

seasonally adjusted basis for the week ending April 17th, according to the Mortgage Bankers

Association (MBA).

U.S. stocks closed mixed on Tuesday, mostly failing to hold momentum from Monday, as

investors reacted to earnings reports. The trend of earnings beats and revenue misses continued

after the close. European stocks turned lower in morning trade on Wednesday, as investors

digested a slew of earnings from European companies. Gold is currently trading about 0.5%

lower, crude oil is seen trading about 0.1% higher, and the U.S. dollar is currently trading a

touch higher at 9:30am Chicago time.

Indonesian Minister Criticizes Bulog for Slow

Rice Procurement

Apr 22, 2015


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Indonesia's State-owned Enterprises Minister criticized the state logistics agency Bulog for its

inefficiency in procuring rice from the ongoing harvest, according to local sources.The Minister

noted that the agency has failed in collecting rice from farmers in several areas in Central and

East while the Ministry expected Bulog to monitor the distribution of harvest yields across the

country more proactively.She also stated that prices have not been stabilized yet owing to

Bulog's slow and inefficient procurement process. She added that if this continues, farmers

would be impacted by sharp fluctuations in rice prices and increasing supplies.

The Minister urged the agency to visit all the rice producing regions and monitor the condition of

paddy harvests in those regions and support farmers.Bulog is expecting to procure between 2.5 -

2.75 million tons of rice from local farmers, down about 14 - 22% from its target of 3.2 million

tons. The government's recent hiking of the rice purchasing price/Harga pokok penjualan (HPP)

by about 10% to around Rp7,260 per kilogram (around $577 per ton) from the current Rp6,600

per kilogram (around $524 per ton) is unlikely to have a positive effect on rice procurement.The

government of Indonesia is keen on increasing 2015 paddy rice production by about 4% to

around 73.4 million tons (around 48.44 million tons, basis milled) from an estimated 70.61


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million tons (around 46.65 million tons, basis milled) in 2014; and avoid imports. Indonesia

imported 425,000 tons of rice from Thailand and Vietnam in 2014.According to the UN's FAO,

average domestic rice prices in Indonesia have been increasing since September 2014 and

reached a high of around 10.375 million Rupiah (around $790) per ton in March 2015. The

prices reversed slightly in April 2015 due to the ongoing procurement activity by the

government.

Philippines Plans to Import Rice from

Myanmar

Apr 22, 2015

The Philippines is planning to import rice from Myanmar, India and Pakistan to cater to the

increased demand following a recent cyclone, Reuters quoted local sources as saying.The south-


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east Asian nation is also planning to import rice from India and Pakistan. It already struck

government-to-government (G2G) contracts with Thailand and Vietnam to import 500,000 tons

of rice before May 2015 to ensure adequate stocks ahead of the lean season as well as to curb

price hikes.The National Food Authority (NFA) of the Philippines imported over 1.7 million tons

of rice last year, including 300,000 tons of 2013 residual imports.USDA estimates the

Philippines to produce around 12.2 million tons of rice, basis milled, in MY 2014-15 (July -

June) and import around 1.6 million .

Vietnam Rice Sellers Lower Some of Their

Quotes Today; Other Asia Rice Quotes

Unchanged

Apr 22, 2015

Vietnam rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around

$330-$340 per ton today. Other Asia rice quotes are unchanged today.

5% Broken Rice

Thailand 5% rice is indicated at around $380 - $390 per ton, about a $25 per ton premium on

Vietnam 5% rice shown at around $355 - $365 per ton. India 5% rice is indicated at around $370

- $380 per ton, about a $5 per ton discount to Pakistan 5% rice shown at around $375 - $385 per

ton.

25% Broken Rice

Thailand 25% rice is shown at around $355 - $365 per ton, about a $25 per ton premium on

Vietnam 25% rice shown at around $330- $340 per ton, down about $5 per ton from yesterday.

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.

Parboiled Rice

Thailand parboiled rice is indicated at around $380 - $390 per ton. India parboiled rice is

indicated at around $365 - $375 per ton, about a $15 per ton discount to Pakistan parboiled rice

shown at around $380 - $390 per ton.

100% Broken Rice


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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.

Water Shortages in California to Cut Rice

Acreage Again

Apr 22, 2015

Rice farmers in U.S. state of California are again facing water shortages that producers say will

reduce production in 2015, after a reduction in production in 2014 . California produces about

80% of the nation's medium grain rice.The agriculture sector in the state has also been receiving

criticism for consuming much of state's water resources. The figure most often cited is that

agriculture - including rice - uses 80% of California’s water, but the California Rice Commission

points out that this statistic is misunderstood.

The 80% refers to “developed water," that is “water held behind dams, put in canals and

pump[ped] across the state,” according to the commission. However, California also receives

“200 million acre feet of water annually from precipitation and imports from the states Colorado,

Oregon and Mexico. Agricultural water use totals about 33 million acre-feet in an average year,

which is about 17% of the water received in the state,” the commission writes. The commission

goes on to say that while 23% of California’s rice acreage was left fallow in 2014 and that figure

will likely jump to 30-35% in 2015.The water cutbacks imposed on agriculture, and specifically

rice, also have far reaching implications on the environment since paddy rice fields support the

habitat for snakes, fish and waterfowl.

South Korea Buys 72,000 Tons of Non-

Glutinous Rice from U.S. and China in

Tender

Apr 22, 2015

South Korea's state run Agro Fisheries & Food Trade Corporation (KAFTC) has purchased

72,000 tons of non-glutinous brown rice of the U.S. and Chinese origins for delivery between

August and September 2015, according to a statement on its website.The tonnage and price


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details of the various varieties of rice purchased are as below.KAFTC originally sought to

purchase about 87,000 tons of non-glutinous rice via 9 tenders but will open tenders for 10,000

tons of non-glutinous short-grain brown rice and 5,000 tons of non-glutinous medium-grain

brown rice after sample tests are complete, according to the website.The international tender for

the above qualities of rice closed on April 20, 2015 and electronic bidding for the same took

place on April 21, 2015.