18th July, 2014 Daily Exclusive ORYZA E-Newsletter by Riceplus Magazine

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.
com
News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874

18
th
July, 2014

TOP Contents - Tailored for YOU
Latest News Headlines
Indonesia to Record 4.2 Million Tons of Surplus Rice in 2014 Despite
2% Decline in Production; Deputy Agriculture Minister Rules Out Imports
Global Rice Weather Outlook
Oryza Afternoon Recap - Chicago Rough Rice Futures Rally as
Technical Signals Trigger Aggressive Buying
Oryza Global Rice Quotes
Oryza Overnight Recap - Chicago Rough Rice Futures Continue to
Mount Recovery Despite Weaker Grains This Morning
Oryza Rice Currency Analysis for Today Brazil Real Plunges 1.5%;
Mexico Peso Down 0.6%
Thailand Anti-Graft Body Recommends Criminal Charges Against
Former PM
Thailand, Vietnam Rice Sellers Increase Some of Their Quotes Today;
Other Asia Rice Quotes Unchanged
UN Prescribes New Regulations for Arsenic in Rice
How Is India Reviving Indigenous Rice Varieties, And Why?
USDA Post Forecasts Philippines to Import 1.45 Million Tons of Rice
in MY 2013-14; Down 28% from Official Estimates due to Expected Decline in
Unofficial Imports
Preference to Fine Rice Increasing Nepal Rice Imports Despite
Surplus Paddy Production, Says MoAD Official

News Detail
Indonesia to Record 4.2 Million Tons of Surplus Rice in 2014 Despite 2%
Decline in Production; Deputy Agriculture Minister Rules Out Imports

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com

Jul 17, 2014

Indonesia is likely to record around 4.2 million tons of surplus rice, milled basis, in 2014, despite a likely 2%
decline in paddy rice production, according to the Agriculture Ministry's forecasts, report local sources.In the
beginning of this month, the country's Central Statistics Agency (BRS) has estimated Indonesia's 2014 paddy
rice production to reach around 69.8 million tons, down about 2% from an estimated 71.28 million tons in the
previous year.The Acting Director General at the Agriculture Ministry told local sources that the output of
around 69.87 million tons of paddy rice is more than sufficient for a population of around 252.165 million, and
the country would still be left with a surplus of around 4.2 million tons this year.
The Deputy Agriculture Minister ruled out the need to import any rice in 2014 saying the domestic production
is sufficient to meet domestic demand.While analysts are expecting Indonesia to double rice imports this year to
around 1.5 million tons amid a general election and an impending El Nino, the government noted that the
decision would be taken based on the production figures. The government is keen on raising rice stockpiles to
around 2.7 million tons this year in order to ensure food security, according to the former Economic Chief
Minister.


USDA estimates Indonesia to produce around 37.355 million tons of rice, basis milled, and import around 1.5
million tons of rice in 2014. It estimates 2014 Indonesia's rice imports to more than double from around
650,000 tons in 2013, while 2014 production is expected to increase by just 2% from 36.55 million tons in
2013. Consumption in 2014 is expected to increase by 1% to around 38.65 million tons from 38.127 million
tons in 2013

Global Rice Weather Outlook
Heavy rainfall is expected in Southern part of Lampung, Banten, Northern and Western part of Central Sulawesi
and Northern part of West Papua in Indonesia during the next two days.Heavy rainfall is likely to occur in most
parts of India during the next three days. In eastern India, rice farms benefited from consistent rainfall, although
rainfall has been lower than that of last year.In the US, 24% of this years rice crop was at or beyond the
heading stage by week end July 13, 12% ahead of last year, according to the USDA. In Arkansas, rice producers
are applying herbicides to late-planted rice. Overall, 70% of the rice crop was reported to be in good to
excellent condition.

Oryza Afternoon Recap - Chicago Rough Rice Futures Rally as Technical
Signals Trigger Aggressive Buying
Jul 17, 2014
Oryza.com -
Chicago rough rice futures for Sep delivery settled 29 cents per cwt (about $6 per ton) higher at $13.280 per cwt
(about $293 per ton). Rough rice futures continued to rally today as technicals as well as outside forces both led
to sharp gains across the board. Technically the market had become firmly oversold, along with a large gap
created on the open of Mondays trading session, both factors that led to a bullish move today. The other grains
were mostly higher as well today, led by a nearly 2.5% gain in wheat; soybeans closed about 0.7% lower at
$10.9400 per bushel; wheat finished about 2.4% higher at $5.5075 per bushel, and corn finished the day about
0.1% higher at $3.8725 per bushel.
U.S. stocks declined on Thursday, with the Dow retreating from its record, after reports that a Malaysian plane
had been shot down over Ukraine. After wavering near unchanged, stock indexes turned decisively lower after
the reports involving Malaysia Airlines Flight 17 with 295 people aboard. The price of gold surged and
Treasury yields fell. The Dow Jones Industrial Average fell as much as 93 points, and was lately down 61.46


points, or 0.4%, to 17,076.74. It had risen 13 points to an intraday record of 17,151.56. Industrials led sector
declines on the S&P 500, lately off 10.73 points, or 0.5%, at 1,970.84. The Nasdaq lost 31.92 points, or 0.7%, to
4,394.05. The United States and Europe announced penalties late Wednesday against Russia for its role in
destabilizing neighboring Ukraine. Russian President Vladimir Putin responded by saying that relations
between the U.S. and Russia were nearing a "dead end," which could damage U.S. business interests in his
country, according to reports.
Economic reports offered differing messages on the housing and labor markets, with housing starts
unexpectedly falling in June, applications for jobless benefits declining last week and a gauge of manufacturing
activity in the Philadelphia region expanding in July. Gold is trading about 1.4% higher, crude oil is seen
trading about 2% higher, and the U.S. dollar is seen trading about 0.1% lower about 1:00pm Chicago
time.Wednesday, there were 592 contracts traded, down from 822 contracts traded on Tuesday. Open interest
the number of contracts outstanding on Wednesday increased by 200 contracts to 8,812.
Oryza Global Rice Quotes
July 17th, 2014
Long grain white rice - high quality

Thailand 100% B grade 435-445
Vietnam 5% broken 430-440
India 5% broken 435-445
Pakistan 5% broken 435-445
Cambodia 5% broken 440-450
U.S. 4% broken 550-560
Uruguay 5% broken 625-635
Argentina 5% broken 620-630

Long grain white rice - low quality

Thailand 25% broken NQ
Pakistan 25% broken 380-390
Cambodia 25% broken 410-420
India 25% broken 390-400
U.S. 15% broken 530-540

Long grain parboiled rice
Thailand parboiled 100% stxd 440-450
Pakistan parboiled 5% broken stxd 435-445
India parboiled 5% broken stxd 420-430
U.S. parboiled 4% broken 630-640


Brazil parboiled 5% broken NQ
Uruguay parboiled 5% broken NQ

Long grain fragrant rice
Thailand Hommali 92% 1000-1010
Vietnam Jasmine 590-600
India basmati 2% broken NQ
Pakistan basmati 2% broken NQ
Cambodia Phka Malis 845-855

Brokens
Thailand A1 Super NQ
Pakistan 100% broken stxd 335-345
Cambodia A1 Super 350-360
India 100% Broken stxd 315-325
Egypt medium grain brokens NQ
U.S. pet food 470-480
Brazil half grain NQ

Oryza Overnight Recap - Chicago Rough Rice Futures Continue to Mount
Recovery Despite Weaker Grains This Morning
Jul 17, 2014
Chicago rough rice futures for Sep delivery were paused 3.5 cents per cwt (about $1 per ton) higher at $13.025
per cwt (about $287 per ton) during the trading break in Chicago. The other grains are seen lower this morning
ahead of floor trading in Chicago: soybeans are currently seen about 0.4% lower, wheat is listed about 0.2%
lower and corn is noted about 0.6% lower. U.S. stock index futures traded lower on Thursday, as word of
sanctions against Russia hit global markets. Stock futures maintained losses after economic reports offered
differing messages on the housing and labor markets, with housing starts unexpectedly falling in June while
applications for jobless benefits fell last week.
Both the U.S. and the European Union announced new penalties late on Wednesday against the country for its
role in destabilizing neighboring Ukraine. Russian President Vladimir Putin responded by saying that relations
between the U.S. and Russia were nearing a "dead end", which could damage U.S. business interests in his
country, according to reports. US stock index futures are currently trading about 0.4% lower, gold is currently
trading about 0.5% higher, crude oil is seen trading about 1.7% higher, and the U.S. dollar is currently trading
about 0.1% lower at 8:45am Chicago time.


Tags: U.S. rice prices; U.S. rice market; Chicago rough rice futures
Oryza Rice Currency Analysis for Today Brazil Real Plunges 1.5%; Mexico
Peso Down 0.6%
Jul 17, 2014
U.S. dollar index was weaker -0.06% from the open today, when it traded at 80.509 at the close.
Euro was stronger +0.01% by the close, trading around 1.3527 by end of day, after trading between an
intraday high of 1.3540 and low of 1.3517.
Thai baht was weaker -0.25%, trading at 32.189 at the close of business.
Indian rupee was weaker -0.07% weaker at 60.1775.
Brazilian real was weaker -1.45% at 2.2560 reais per dollar.
Pakistan rupee was -0.06% weaker at 98.8375.
Vietnamese dong was unchanged at 21198.
Mexican peso was weaker -0.61% today, when it traded at 12.9956 pesos per dollar by the close of
business.
Chinese yuan was stronger +0.01% at 6.2042.
Argentine peso was weaker -0.02% at 8.1559 pesos per dollar.
Thailand Anti-Graft Body Recommends Criminal Charges Against Former
PM
Jul 17, 2014
Thailand's National Anti-Corruption Commission (NACC) has recommended criminal charges against the
former Prime Minister (PM) Yingluck Shinawatra after finding her guilty of being negligent in heeding to
warnings against corruption in the Rice Paddy Pledging Scheme, introduced in October 2011, according to
Bloomberg.The NACC Commissioner told media sources that the former PM was found to have failed in
stemming losses, which grew to about 500 billion baht (around $15.5 billion) from the rice pledging scheme.

He said all the seven commissioners dealing with the case were convinced that the former PM should have
halted the Rice Pledging program after repeated warnings of likely corruptions in it.The Commissioner noted
that the NACC would forward its opinion to the Attorney General, which could then file a suit with the
Supreme Court's Criminal Division for Political Office Holders.The former PM was forced to step down on
May 7 and faces a possible five-year political ban after the Constitutional Court found her guilty of abusing
power regarding transfer of an official.


Thailand, Vietnam Rice Sellers Increase Some of Their Quotes Today; Other
Asia Rice Quotes Unchanged
Jul 17, 2014
Thailand rice sellers increased their quotes for Hommali rice by about $15 per ton to around $1,000 - $1,010 per
ton today. Vietnam rice sellers increased their quotes for Jasmine rice and broken rice by about $5 per ton each
to around $590 - $600 per ton and around $340 - $350 per ton respectively. Other Asia rice sellers kept their
quotes mostly unchanged.
5% Broken Rice
Thailand 5% rice (of new crop) is quoted at around $420 - $430 per ton, about $10 per ton discount to Vietnam
5% rice (of new crop) quoted at around $430 - $440 per ton. India 5% rice is quoted at around $435 - $445 per
ton, on par with Pakistan 5% rice quoted at around $435 - $445 per ton.
25% Broken Rice

Thailand 25% rice (of the old crop) was last quoted at around $350 - $360 per ton, about $35 per ton discount to
Vietnam 25% rice (of new crop) quoted at around $385 - $395 per ton. India 25% rice is quoted at around $390
- $400 per ton, about $10 per ton premium on Pakistan 25% quoted at around $380 - $390 per ton.
Parboiled Rice
Thailand parboiled rice (of the old crop) is quoted at around $440 - $450 per ton. India parboiled rice is quoted
at around $420 - $430 per ton, about $15 per ton discount to Pakistan parboiled rice quoted at around $435 -
$445 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, (of the old crop) was last quoted at around $310 - $320 per ton, about $30 per
ton discount to Vietnam broken rice (of new crop) quoted at around $340 - $350 per ton, up about $5 per ton
from yesterday. India broken sortexed rice is quoted at around $315 - $325 per ton, about $20 per ton discount
to Pakistan broken sortexed rice quoted at around $335 - $345 per ton.


UN Prescribes New Regulations for Arsenic in Rice
Jul 17, 2014

The United Nations (UN) food standards body Codex Alimentarius Commission (CAC) has prescribed new
regulations for acceptable level of arsenic in rice, according to Reuters.In its annual meeting this week, the
Codex has prescribed a maximum level of 0.2 milligrams of arsenic per a kilogram of rice. The CAC noted that
it will also develop a new code of practice that will serve as a guidance to countries comply with the maximum
level set and provide producers with good agricultural and manufacturing techniques to prevent and reduce
contamination.Too much exposure to arsenic is likely to cause cancer, skin lesions, developmental effects, heart
diseases, diabetes, as well as damage nervous system and brain. Rice crops absorb arsenic from soil and water.
Researh shows rice absorbs more arsenic than any other crop and it being a staple food in many countries, high
levels of arsenic in rice could harm a large proportion of people across the world. Paddy fields that are irrigated
with groundwater containing arsenic-rich sediments are more prone to arsenic contamination.The CAC, which
is jointly run by the UN Food and Agriculture Organization (FAO) and the World Health Organization (WHO),
formulates international food safety and quality standards to promote safer and more nutritious food for
consumers across the world.
How Is India Reviving Indigenous Rice Varieties, And Why?
Jul 17, 2014

How do we save the precious traditional rice
varieties that India is so proud of? How do we
stop farmers from going in only for the high
yielding varieties completely ignoring the
indigenous varieties? The question haunts
every farmer, researcher and rice professional.
As an answer to this concern, the MS
Swaminathan Research Foundation (MSSRF)
in Kerala, India, has devised a model called
C4 to ensure the sustenance of traditional
rice varieties.The model incorporates specific
farming and seeding techniques to ensure that
traditional rice varieties are grown along with


high yielding varieties.
The seed programme that features the 4Cs of cultivation, consumption, commerce and conservation is expected
to conserver the rice variety that is on the verge of extinction.The institute identified ten villages in Kerala and
asked each village to cultivate two to eight varieties of traditional rice breeds. Two acres of paddy land was
exclusively used for growing ten selected traditional varieties (Chennellu, Jeerakasala etc) and the seeds were
given to farmers outside the ten villages to cultivate in the next season. Over the last two years, the C4 model
ensured that traditional rice varieties were cultivated, consumed (by farmers themselves), sold and conserved.
The MSSRF also set up a seed management committee to ensure the seeds reached the farmers and that
cultivation took place on time. Previously, the traditional paddy seeds were sold at Rs. 14/kg and now because
of the model's success, it is in demand and sold at Rs.35 40 /kg. In just one year, the farmers managed to sell
2.5 tonnes of traditional varieties and currently cultivating traditional varieties in 71 acres. The numbers speak
for the success of the C4 model.
USDA Post Forecasts Philippines to Import 1.45 Million Tons of Rice in MY
2013-14; Down 28% from Official Estimates due to Expected Decline in
Unofficial Imports

Jul 17, 2014
The USDA Post estimates the Philippines to import around 1.45 million tons of rice in MY 2013-14 (July 2013
- June 2014), down about 28% lower than the USDA official estimates of around 2 million tons, but up about
3.5% from around 1.4 million tons imported in MY 2012-13.The Post lowered estimates for the Philippines
milled rice imports as an ongoing investigation on rice smuggling by the Philippines government has reduced
the entry of unofficial imports into the country. The Post lowered its estimates for the unofficial imports in MY


2013-14 to around 250,000 from its previous estimate of around 500,000 tons. It has also lowered its estimates
for legitimate imports to 1.2 million tons from its previous estimate of around 1.45 million tons.

Meanwhile, as local rice prices continue to increase, some local organizations and media blame lesser legitimate
imports in 2013 and delayed shipments from Vietnam this year for rise in prices. The Post estimates the
Philippines MY 2014-15 rice imports to increase about 10% to around 1.6 million tons.The Post estimates the
Philippines to produce around 11.813 million tons of rice, milled basis, in MY 2013-14, up about 3% from
around 11.428 million tons produced in the previous year, and slightly lower than the USDA official estimates
of around 11.89 million tons. It estimates the Philippines MY 2014-15 rice production to increase about 3% to
around 12.2 million tons.
Preference to Fine Rice Increasing Nepal Rice Imports Despite
Surplus Paddy Production, Says MoAD Official
Nepalese preference to fine rice, or
long-grain milled rice, over
medium and coarse rice is
increasing the country's
dependence on imports despite
surplus paddy production, says a
statistician at the Ministry of
Agricultural Development,
according to local sources. The
Officer says most of the rice
produced domestically is used to
make local alcohol. According to
data from the MoAD, paddy
production in Nepal is likely to
increase by about 12% to around
5.04 million tons in 2013-14
(August - July). Nepal is projected to produce around 700,000 tons of surplus rice this year. But import data
from the Trade and Export Promotion Center (TEPC) shows the country had been importing Rs.1 billion
(around $10.2 million) worth of rice every month. According to data from the MoAD, Nepal produced around
2.46 million tons of milled rice in 2012-13.USDA estimates Nepal to produce 3.36 million tons of rice in MY
2013-14 (October 2013 - September 2014), up about 12% from about 3 million tons produced in MY 2012-13.
Nepal is expected to import about 250,000 tons of rice in 2013-14, down about 29% from about 350,000 tons
imported in 2012-13. Country's consumption needs in 2013-14 are estimated at 3.61 million tons, up about 8%
from about 3.35 million tons in 2012-13.

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