Daily Exclusive

ORYZA Rice E-Newsletter

2015
Daily Exclusive ORYZA Rice E-Newsletter
www.ricepluss.com

www.riceplusmagazine.blogspot.com
May 21 ,2015
Vol 5,Issue V

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Contact: Mujahid Ali mujahid.riceplus@gmail.com

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Daily Exclusive ORYZA Rice E-Newsletter 2015

Asia Rice Quotes Unchanged Today

May 20, 2015

Asia rice sellers kept their quotes mostly unchanged today.

5% Broken Rice
Thailand 5% rice is indicated at around $370 - $380 per ton, about a $20 per ton premium on
Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $370
- $380 per ton, about a $25 per ton discount to Pakistan 5% rice shown at around $395 - $405 per
ton.
25% Broken Rice
Thailand 25% rice is shown at around $350 - $360 per ton, about a $20 per ton premium on
Vietnam 25% rice shown at around $330- $340 per ton. India 25% rice is indicated at around
$345 - $355, about a $10 per ton discount to Pakistan 25% rice shown at around $355 - $365 per
ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is
indicated at around $360 - $370 per ton, about a $45 per ton discount to Pakistan parboiled rice
shown at around $405 - $415 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about a $10 per ton
premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100%
broken rice is shown at around $270 - $280 per ton, about a $30 per ton discount to Pakistan
broken sortexed rice shown at around $300 - $310 per ton.

Global Rice Quotes

May 21st, 2015
Long grain white rice - high quality

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Daily Exclusive ORYZA Rice E-Newsletter 2015

Thailand 100% B grade 380-390

Vietnam 5% broken

350-360

India 5% broken

370-380

Pakistan 5% broken

405-415

Myanmar 5% broken

415-425

Cambodia 5% broken

430-440

U.S. 4% broken 465-475

Uruguay 5% broken

565-575

Argentina 5% broken

555-565

Long grain white rice - low quality

Thailand 25% broken

350-360

Vietnam 25% broken

330-340

Pakistan 25% broken

360-370

Cambodia 25% broken 410-420

India 25% broken

345-355

U.S. 15% broken

455-465

Long grain parboiled rice

Thailand parboiled 100% stxd

370-380

Pakistan parboiled 5% broken stxd

405-415

India parboiled 5% broken stxd 360-370

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% 865-875

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Daily Exclusive ORYZA Rice E-Newsletter 2015

Vietnam Jasmine

480-490

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails

815-825

315-325

Vietnam 100% broken 305-315

Brokens
Thailand A1 Super

Pakistan 100% broken stxd

Cambodia A1 Super

305-315

350-360

India 100% broken stxd 270-280

Egypt medium grain brokens

NQ

U.S. pet food

365-375

Brazil half grain NQ

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

FAO Estimates Indonesia Rice Imports to

Decline Sharply in 2015-16
May 20, 2015

The UN's Food and Agriculture Organization (FAO) estimates Indonesia to import around
900,000 tons of rice in 2015-16 (April - March), down about 25% from around 1.2 million tons
last year due to a favorable outlook for 2015 aggregate rice production. It estimates Indonesia's
total cereal imports in 2015-16 at around 11.5 million tons, down about 3% from around 11.15
million tons last year.

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Daily Exclusive ORYZA Rice E-Newsletter 2015

The FAO estimates Indonesia's 2015 aggregate paddy rice production at around 73 million tons
(around 46.72 million tons of rice, basis milled), up about 3% from an estimated 70.61 million
tons (around 45.2 million tons of rice, basis milled) in 2014.Harvesting of the 2015 main season
paddy crop (mid-October to mid-May) is ongoing and will continue till mid-July. Favourable
weather conditions, coupled with diverse initiatives launched by the government to support
production, including the rehabilitation of irrigation channels, distribution of subsidized seeds
and fertilizers, are expected to increase the yields of the main season, says the FAO. It also
expects a slight expansion in area planted for the 2015 secondary season rice crop (June to midDecember).The government has been aiming to achieve self-sufficiency in rice production this
year and accordingly has been providing support to the sector.
Average rice prices have been increasing since September 2014 and have reached record levels
in March 2015. However, since April, prices reversed direction due to the government
intervention as well as increased supplies from the 2015 main season rice crop. Currently, prices
stand at around 9.875 million Rupiah (around $751) per ton, down about 1.25% from around 10
million Rupiah (around $770) per ton in April 2015.USDA estimates Indonesia to produce
around 36.3 million tons of rice, basis milled (around 57.17 million tons, basis paddy), and
import around 1.25 million tons of rice in MY 2014-15 (October - September).

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Daily Exclusive ORYZA Rice E-Newsletter 2015

MRF Expects Myanmar to Export 2 Million

Tons of Rice in FY 2015-16; Up 18% from
Last Year

May 20, 2015

The Myanmar Rice Federation (MRF) has expressed confidence that the country would export
about 2 million tons of rice in the fiscal year 2015-16 (April - March) due to increasing demand
from China, Africa and Europe, according to local sources.Cross border rice exports to China,
which slowed down between August 2014 to February 2015 due to lack of a proper trade
agreement between the two countries have reportedly resumed again following the signing of a
Memorandum of Understanding (MOU) between the MRF and China's COFCO to export
100,000 tons this year. Traders told local sources that around 4,000 tons of rice is being exported
to China currently through borders every day.Myanmar's rice exports have been increasing
consistently for the last three years, according to the Ministry of Commerce. Myanmar exported
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Daily Exclusive ORYZA Rice E-Newsletter 2015

about 1.7 million tons of rice in FY 2014-15, about 1.2 million tons of rice in FY 2013-14 and
about 1.4 million tons of rice in FY 2012-13. The government is keen on increasing rice exports
to around 3 million tons over the next few years and has prioritized rice in its National Export
Strategy (NES).
The NES will focus on seven main sectors - rice, peas and pulses, fisheries productions, textiles,
timber and forest products, rubber, and tourism - over the next five years to enhance the
country's export reach as well as to the trade deficit, which is stood at around $5 billion in 201415, according to the Commerce Ministry. Sources at the Ministry noted that the NES
implementation would cost the government about $900 million over the next five years.USDA
estimates Myanmar to produce 19.688 million tons of paddy rice (around 12.6 million tons,
milled basis) and export around 1.85 million tons of rice in MY 2014-15 (January - December
2015).

Limited Financing Options Hamper Export

Opportunities for Cambodian Rice Millers,
Say Experts

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Daily Exclusive ORYZA Rice E-Newsletter 2015

May 20, 2015

Limited access to finance, warehousing and logistical support are hampering export potential of
Cambodian rice millers, local sources quoted some experts as saying.A recent report by the UN
Economic and Social Commission for Asia and the Pacific (UNESCAP) noted that Cambodian
rice millers need to invest hugely in increasing their milling capacity and irrigation facilities to
scale up exports. However, an official from the Cambodia Rice Federation (CRF) told local
sources that Cambodian rice millers are facing acute financing problem and the government has
not taken enough measures to address this issue. Due to this they are not in a position to scale up
their milling and warehousing capacities.
He noted that Cambodian rice millers most of the time end up selling their stocks to Vietnam and
Thai traders. They get attracted to huge amounts paid by them he says. Vietnam and Thai
governments provide subsidies and warehouse facilities during the harvest season Cambodia lags
behind such facilities.The official also noted that while the country currently has the potential to
export around 1.5 million tons of rice, mills are currently working at only 30-40% of their
capacities due to low stocks available. Millers need a huge working capital to buy paddy, stock
and mill it and export it. However lack of access to working capital has been forcing millers to
keep their mills idle most of the time. Though some private banks have been providing loans to
millers, their conditions for collateral are tough to meet, he says. Moreover, private banks always
retain the authority whether or not to sanction the loan, he adds.
The government has targeted to export around 1 million tons of rice in 2015, but it is far away
from the target due to these inherent problems, he says.Cambodia exported around 201,183 tons
of rice in the first four months of 2015, up about 67% from around 120,291 tons exported during
the same period in 2014. Cambodia exported around 387,061 tons of rice in 2014.USDA
estimates Cambodia to produce around 4.7 million tons of milled rice and export around 1.1
million tons (including official exports and unofficial exports to Vietnam and Thailand) in MY
2014-15 (January - December 2015).

Oryza Afternoon Recap - Chicago Rough

Rice Futures Close Lower as Sellers Face
Lack of Demand
May 20, 2015

Chicago rough rice futures for Jul delivery settled 8 cents per cwt (about $2 per ton) lower at
$9.570 per cwt (about $211 per ton). The other grains finished the day mostly lower; Soybeans
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Daily Exclusive ORYZA Rice E-Newsletter 2015

closed about 0.5% lower at $9.4125 per bushel; wheat finished about 0.5% higher at $5.1300 per
bushel, and corn finished the day about 0.6% lower at $3.6000 per bushel.U.S. stocks traded
sideways on Wednesday following a record close on the Dow as investors awaited the afternoon
release of the Fed meeting minutes.
The major averages attempted to hold slight gains after fluctuating around the flatline. The Dow
transports fell more than 1.5% as airline stocks declined. The Federal Reserve Open Market
Committee releases the minutes from its April meeting at 2 p.m. The statement from that month
removed all calendar references to the timing of a short-term interest rate hike. Chicago Fed
President Charles Evans said in Munich on Wednesday that a rate hike is not likely to be
appropriate until early 2016, Reuters reported. Investors are also looking ahead to a Friday
speech from Fed chief Janet Yellen for possible new clues on when the central bank may start
raising interest rates.
The Dow Jones Industrial Average traded down 16 points, or 0.09%, at 18,296. The S&P 500
traded down 3 points, or 0.13%, at 2,125, with telecommunications leading four sectors higher
and industrials the greatest laggard. The Nasdaq traded down 6 points, or 0.13%, at 5,063. Gold
is trading about 0.2% higher, crude oil is seen trading about 1.6% higher, and the U.S. dollar is
seen trading about 0.4% higher at about 1:00pm Chicago time.Tuesday, there were 266
contracts traded, down from 398 contracts traded on Monday. Open interest the number of
contracts outstanding on Tuesday decreased by 13 contracts to 11,169.

Oryza U.S. Rough Rice Recap - Sideways

Market as Buyers and Sellers Wait for Better
Prices
May 20, 2015

The U.S. cash market was sideways today with little to no trading to report as most sellers
remain on the sidelines hoping for prices to improve while buyers do the same.Analysts continue
to note that without an increase in export demand prices will likely trend lower however some
are hopeful that demand from either the Venezuela or Iraq will show up and support the
market.

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Daily Exclusive ORYZA Rice E-Newsletter 2015

Oryza Overnight Recap Chicago Rough

Rice Futures Seen Continued to be Dragged
Lower by Bearish Grains and Lack of
Fundamental Support
May 20, 2015

Chicago rough rice futures for Jul delivery are currently seen paused 3 cents per cwt (about $1
per ton) lower at $9.620 per cwt (about $212 per ton) ahead of floor trading in Chicago. The
other grains are seen trading lower; soybeans are currently seen about 0.7% lower, wheat is listed
about 0.7% lower and corn is currently noted about 0.3% lower.U.S. stock index futures
indicated a flat to higher open for Wall Street shares Wednesday ahead of the release of the
minutes of April's Federal Reserve meeting, following another record close for the Dow Jones
the previous session.
On an otherwise quiet day for U.S. economic data, attention is expected to turn to the Fed
minutes at 2:00 p.m. ET. The Fed's last meeting was a relatively uneventful one and preceded the
release of several softer-than-expected economic figures. Markets are also already looking ahead
to a speech Fridayfrom Fed chief Janet Yellen for possible new clues on when the central bank
may start raising interest rates. Yellen is scheduled to speak Friday at the Greater Providence
Chamber of Commerce Economic Outlook Luncheon at 1 p.m. She is not expected to take
questions.
The Dow Jones industrial average closed at a record for the second day in a row on Tuesday,
ending below and intraday high of 18,351.36 set earlier that session. Gold is currently trading
about 0.3% higher, crude oil is seen trading about 1.2% higher, and the U.S. dollar is currently
trading slightly higher at 8:15am Chicago time.

U.S. Southern States Look to Compensate for

Tighter Rice Supplies from California
May 20, 2015

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Daily Exclusive ORYZA Rice E-Newsletter 2015

The U.S. southern states such as Arkansas and Louisiana, which typically grow long-grain rice,
are looking to increase medium-grain production, in which California tops, in order to
compensate for tighter supplies from the western state, according to AgAlert.While California
rice growers are forced to reduce their acreage this year due to water restrictions and drought, the
two states have reportedly increased the medium-grain acreage in expectation of higher returns.
While the U.S. long-grain rice prices declined about 8% to around $475 per ton from around
$515 per ton in the beginning of this year, the U.S. medium grain rice prices declined about 7%
to around $850 per ton from around $915 in the beginning of this year.According to USDA,
while California's total rice acreage (mostly of medium grain) had declined about 30% to around
434,000 acres (around 175,634 ha) in 2014 from around 567,000 acres (around 229,457 ha) in
2013, medium grain acreage in southern states more than doubled in 2014 to around 301,000
acres (around 121,810 ha). Surprisingly, the U.S. medium grain acreage increased 6% y/y in
2014.
USDA reports that this year, southern states are planning to plant medium grain rice in about
311,000 acres (around 125,857 ha) while California total rice acreage is expected to further
decline to around 408,000 acres (around 165,112 ha), including 375,000 acres (around 151,757
ha) of medium grain.Keeping aside the acreage issue, most of the traditional customers of
California medium-grain rice such as Turkey, Taiwan, Turkey, Jordan, Israel and Saudi Arabia
have been buying medium-grain rice from the southern states. Normally, California rice is
known to be highly priced but the southern states have been offering medium grain rice at
competitive prices.Due to this, California rice growers are left with huge quantities of last year's
stocks. Some rice growers told reporters that California medium-grain rice is also facing a stiff
competition from Australia as well, especially in the Middle East markets. The recent port
closures have also disrupted rice exports from California, they said. However, they are convinced
that if the drought continues this year also, prices may impacted significantly.

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