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November 27,2014

Exclusive ORYZA E-Newsletter

DAILYCompiled
EXCLUSIVE
ORYZA E-NEWSLETTER
& Edited by Riceplus Magazine
November 27, 2014

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November 27,2014

DAILY EXCLUSIVE ORYZA E-NEWSLETTER

News Headlines

Italy Paddy Production Fell 4% in 2014 Due to

Adverse Weather
Bangladesh Rice Farmers Give Up High-Yielding
Hybrid Varieties for Climate Smart Ones
Global Rice Quotes
Oryza Afternoon Recap Chicago Rough Rice
Futures Continue to Drift Lower on Reduced Trade
Volume and Silent Cash Market
Oryza Afternoon Recap - Chicago Rough Rice
Futures Fail to Maintain Early Session Gains as
Selling Pressure Picks up During Afternoon Trading
Oryza U.S. Rough Rice Recap - Muted Market as
Participants Get Head Start on Thanksgiving
Holiday
Oryza Overnight Recap - Chicago Rough Rice
Futures Shed a Couple Cents Overnight ahead of
Mid-week Holiday Break
Thai Government Issues $1.5 Billion Worth Bonds
to Cover Losses from Rice Pledging Schemes
Vietnam Collaborates with IRRI to Redefine Rice
Strategy
Unique Branding Key to Boost Cambodian Rice
Exports

News Detail

Italy Paddy Production Fell 4% in 2014 Due

to Adverse Weather
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DAILY EXCLUSIVE ORYZA E-NEWSLETTER

Nov 26, 2014

More rice paddy acreage and reduced paddy yield, due to cold and damp weather; this is the final
result of Italian crop year 2014. Ente Nazionale Risi, the National Agency for Rice, in its annual
report on Italian production reports that the total 2014 paddy harvest reached 1,372,878 tons,
down about -4% from 1,426,789 tons one year ago. In 2014, total planted area was 219,534
hectares, up +1.3% compared to 216,019 hectares in 2013.
The cold and very rainy summer deeply influenced the yields, varying from 6.8 tons per hectare
for round varieties to 4.7 tons per hectare for medium ones with an average yield of about 6.3
tons per hectare.Medium grain paddy production totaled 33,183 tons (+27% y/y) despite low
yields; Long A for parboiling and for risotto reached 616,594 tons (yield at 5.9 tons per hectare),
up +19% from 2013 production. There was a big decrease for Indica varieties: Long B dropped
to 364,968 tons, down -26% from 2013 (yield at 6.6 tons per hectare). Round grain paddy fell to
358,132 tons, down -7% y/y (yield at 6.8 tons per hectare).
As for Italian rice exports to EU countries, they reached 524,000 tons in September 2014, down
5.6% y/y. Meanwhile Italian rice exports outside EU almost doubled at 28,933 tons in September
(up +83%). Rice imports into Italy were firm at 9,505 tons in September (down -7.3% y/y).
Tags: weather, Italy, italy rice production, italy paddy production

Bangladesh Rice Farmers Give Up HighYielding Hybrid Varieties for Climate Smart
Ones
Nov 26, 2014

Bangladesh rice farmers are abandoning high-yielding

hybrid rice varieties and are adopting old traditional rice
varieties, which are more resilient to climate changes
such as floods and drought, according to
Reuters. According to the Director General of the
Bangladesh Rice Research Institute (BRRI), nearly 20%
of rice fields in the southern part of the country are
replaced with indigenous rice varieties that can withstand
drought, flooding and other stresses.

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DAILY EXCLUSIVE ORYZA E-NEWSLETTER

Since 1960s, when the Bangladesh government introduced high-yielding hybrid rice varieties,
farmers have adopted them with an intention to increase yields and income. However, these
high-yielding varieties are not able to withstand extreme climatic conditions like irregular
rainfall, floods and droughts, and farmers have been facing decline in incomes.
In this backdrop, they again started using old traditional varieties, which they say are more
adaptable to climatic vagaries. Some of them are using both side by side. Several nongovernmental organizations encouraged farmers to readopt old traditional varieties to cope with
adverse climate conditions as well as o protect "heritage" species. Such an initiation by farmers
has helped the return of some varieties, which had almost vanished. 'Saika' and 'Sashi Mohon' are
two such varieties.
The government, which had previously encouraged the use of high-yielding hybrid varieties is
now promoting the use of old traditional varieties to help farmers cope with climate changes.
Farmers also feel these varieties are more easy to grow as they need lesser amounts of fertilizers
and pesticides and produce decent yields in unpredictable conditions as well. They see them as
minimum guarantee varieties.
Tags: Bangladesh rice varieties, Bangladesh climate changes

Global Rice Quotes

November 26th, 2014
Long grain white rice - high quality
Thailand 100% B grade
420-430
Vietnam 5% broken 385-395

India 5% broken
390-400

Pakistan 5% broken 380-390

Cambodia 5% broken 455-465

U.S. 4% broken
540-550

Uruguay 5% broken 595-605

Argentina 5% broken 595-605

Long grain white rice - low quality

Thailand 25% broken NQ

Vietnam 25% broken 350-360

Pakistan 25% broken 335-345

Cambodia 25% broken

NQ

India 25% broken

355-365

U.S. 15% broken

515-525

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DAILY EXCLUSIVE ORYZA E-NEWSLETTER

Long grain parboiled rice

Thailand parboiled 100% stxd
405-415
Pakistan parboiled 5% broken stxd 420-430
India parboiled 5% broken stxd
375-385
U.S. parboiled 4% broken
580-590

Brazil parboiled 5% broken 570-580

Uruguay parboiled 5% broken

NQ

Long grain fragrant rice

Thailand Hommali 92%
865-875

Vietnam Jasmine
525-535

India basmati 2% broken

NQ

Pakistan basmati 2% broken NQ

Cambodia Phka Malis

835-845

Brokens
Thailand A1 Super 330-340

Vietnam 100% broken

325-335
Pakistan 100% broken stxd 305-315
Cambodia A1 Super NQ

India 100% Broken stxd

300-310
Egypt medium grain brokens NQ

U.S. pet food 445-455

Brazil half grain

NQ

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

Oryza Afternoon Recap Chicago Rough

Rice Futures Continue to Drift Lower on
Reduced Trade Volume and Silent Cash
Market
Nov 25, 2014

Chicago rough rice futures for Jan delivery settled 7.5 cents per cwt (about $2 per ton) lower at
$12.370 per cwt (about $273 per ton). Rough rice futures traded lower again today, as the market
continues to suffer from a lack of interest likely due to the shortened holiday week. Little is
expected in the way of trade volume over the rest of the week, a fact that could trigger price
swings in either direction but will likely provide little in the way of technical or fundamental

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November 27,2014

DAILY EXCLUSIVE ORYZA E-NEWSLETTER

significance for future trading direction.

The other grains rallied today; Soybeans closed about 1.7% higher at $10.5100 per bushel; wheat
finished about 1.7% higher at $5.5150 per bushel, and corn finished the day about 1.8% higher at
$3.7425 per bushel. U.S. stocks rose on Tuesday, with the S&P 500 hitting another peak, as data
had the economy growing more than previously forecast in the third quarter, mostly offsetting an
unexpected drop in consumer confidence in November. The energy sector weighed on the broad
market, with oil prices on the decline two days ahead of an OPEC meeting that has investors
considering prospects for the first reduction in production quotas since 2008. Crude erased initial
Tuesday gains after the head of Russia's state oil producer said a drop below $60 a barrel would
not mean Russia would have to ease its output. Crude-oil futures were lately down $1.01, or
1.3%, at $74.77 a barrel on the New York Mercantile Exchange.
Already modestly higher, stock futures furthered their gains after the Commerce Department
reported gross domestic product climbed at a 3.9 percent annualized rate, up from an initial 3.5%
estimate. Separately, a gauge of home prices in 20 cities climbed at a reduced pace in September.
After fluctuating on either side of neutral, the Dow Jones Industrial Average was up 24.53
points, or 0.1%, at 17,842.43. After setting another intraday record, the S&P 500 was lately up
1.01 point at 2,070.42, with industrials the best performing and energy hardest hit among its 10
major sectors. The Nasdaq.added 3.15 points, or 0.1%, to 4,758.05. Gold is trading about 0.1%
higher, crude oil is seen trading about 2% lower, and the U.S. dollar is seen trading about 0.3%
lower at about 1:00pm Chicago time.Monday, there were 413 contracts traded, up from 253
contracts traded on Friday. Open interest the number of contracts outstanding on Monday
decreased by 29 contracts to 9,654.
Tags: Rice Prices, global rice news

Oryza Afternoon Recap - Chicago Rough

Rice Futures Fail to Maintain Early Session
Gains as Selling Pressure Picks up During
Afternoon Trading
Nov 26, 2014

Chicago rough rice futures for Jan delivery settled 9 cents per cwt (about $2 per ton) lower at
$12.280 per cwt (about $271 per ton). The other grains closed mostly higher today; Soybeans
closed about 0.4% lower at $10.4700 per bushel; wheat finished about 1.9% higher at $5.6200
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November 27,2014

DAILY EXCLUSIVE ORYZA E-NEWSLETTER

per bushel, and corn finished the day about 1.1% higher at $3.7825 per bushel.U.S. stocks
fluctuated on Wednesday, with benchmarks not far from record highs, as investors considered
reports on manufacturing and housing in assessing the strength of the U.S. economy. With the
price of oil trading at four-year lows, the energy sector continued its recent downward trend. The
government reported orders for durable goods rose in October, while a separate report had
applications for unemployment benefits rising by 21,000 to 313,000 last week.
Consumer spending rose 0.2% last month after holding steady in September, while a gauge of
business activity in the Chicago area came in below expectations. The Dow Jones Industrial
Average shed 9.14 points, or 0.1%, to 17,805.77. The S&P 500 added 3.27 points, or 0.2%, to
2,070.30, with telecommunications the strongest performer and energy hardest hit among its 10
major sectors. The Nasdaq gained 21.99 points, or 0.5%, to 4,780.24. The U.S. market is closed
Thursday for the Thanksgiving holiday. Gold is trading about 0.1% lower, crude oil is seen
trading about 0.5% lower, and the U.S. dollar is seen trading about 0.3% lower at about 1:00pm
Chicago time.Tuesday, there were 429 contracts traded, up from 413 contracts traded on
Monday. Open interest the number of contracts outstanding on Tuesday deceased by 32
contracts to 9,622.
Tags: chicago rough rice futures, U.S. rice market, U.S. rice prices

Oryza U.S. Rough Rice Recap - Muted

Market as Participants Get Head Start on
Thanksgiving Holiday
Nov 26, 2014

The U.S. cash market was muted today as many in the industry took off early to get a head start
on the holiday weekend. Cash prices were slightly weaker falling again in sympathy with the
futures market; however, the trade was extremely limited.
In other news, it was reported that the U.S. did not offer on the latest Iraqi tender; however, the
IGB did receive offers from Thailand, Vietnam, Uruguay, and India.Analysts contend that the
tender required shipment within 21 days of opening a letter of credit and that the U.S. would not
have been able to ship the rice in the time frame required.
Tags: U.S. rice prices, U.S. rice market

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DAILY EXCLUSIVE ORYZA E-NEWSLETTER

Oryza Overnight Recap - Chicago Rough

Rice Futures Shed a Couple Cents Overnight
ahead of Mid-week Holiday Break
Nov 26, 2014

Chicago rough rice futures for Jan delivery are currently paused 2 cents per cwt (about $0.44 per
ton) lower at $12.350 per cwt (about $272 per ton) ahead of floor trading in Chicago. The other
grains are seen mixed: soybeans are currently seen about 0.2% lower, wheat is listed about 0.9%
higher and corn is noted about 0.5% higher. U.S. stocks looked set to open flat to slightly lower
on Wednesday as futures digested higher jobless claims and other weak economic data.
Market sentiment has been boosted by the upgrade to third-quarter GDP growth published on
Tuesday. The figure was revised up to an annualized 3.9% from 3.5% and offset a separate
report showing an unexpected drop in consumer confidence in November. Durable goods orders
fell for the second straight month in October as expected from a further decline in aircraft orders
at Boeing. Initial jobless claims rose back above 300,000 last week. There will be two housing
indicators out on Wednesday.
The weekly MBA Mortgage Index showed a drop in application numbers. Later in the morning
home sales for October will be reported. In addition, there will be the Chicago purchasing
managers' index (PMI) and the final Michigan sentiment survey. U.S. stock-index futures are
currently seen about 0.1% lower. Gold is currently trading a touch lower, crude oil is seen
trading about 0.6% lower, and the U.S. dollar is currently trading about 0.2% lower at 8:10am
Chicago time.
Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market

Thai Government Issues $1.5 Billion Worth

Bonds to Cover Losses from Rice Pledging
Schemes
Nov 26, 2014

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DAILY EXCLUSIVE ORYZA E-NEWSLETTER

The Thai government has issued bonds

worth 50 billion baht (around $1.5
billion) to financial institutions to help it
pay back debts associated with the rice
pledging schemes introduced by various
governments, according to local sources.
The government floated the bonds
through the Bank of Agriculture and
Agricultural Cooperatives (BAAC)
today. The Deputy Finance Minister was
quoted as saying that the government is
bent upon clearing rice debts as early as
possible. He added that the bond issue was well-received by most of the non-banking
institutions. The bonds issued by the BAAC are fully guaranteed by the government.
The BAAC will issue bonds in two tranches. In the first tranche, it will issue bonds worth 42
billion baht (around $1.28 billion) with a maturity period of three years and ten months, with an
interest rate of 2.75% per annum. In the second tranche, it will issue bonds worth 8 billion baht
(around $244 million) with a maturity period of seven years, with an interest rate of 3.01% per
annum.
The Director-General of the Public Debt Management Office told local sources that the current
bond issue is the largest single bond issue by a government-owned institution.Earlier this month,
the Finance Permanent Secretary was quoted as saying that the Thailand government has
incurred losses of around 680 billion baht (around $21 billion) from 11 rice pledging programs
covering 15 harvests since 2004. He noted that losses from the rice pledging scheme launched by
the Yingluck-led government alone accounted for about 518 billion baht (around $15.8 billion),
or 82% of the total losses from rice subsidy schemes.
The National Anti-Corruption Commission (NACC) is investigating the level of corruption in the
rice pledging scheme. It ruled that the former Prime Minister ignored warnings against
misdealing in the controversial rice pledging scheme.
Tags: Thai rice pledging scheme, NACC, Thai PDMO, Thai rice losses

Vietnam Collaborates with IRRI to Redefine

Rice Strategy
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DAILY EXCLUSIVE ORYZA E-NEWSLETTER

Nov 26, 2014

Vietnam's Ministry of Agriculture and

Rural Development (MARD) will sign a
new contract with the Philippines-based
International Rice Research Institute
(IRRI) to work towards redefining and
reforming the existing rice strategy for
the country, according to a news release
on the IRRI website.The new strategy
will aim at reforming key elements of
the
current
strategy,
including
developing newer rice varieties with
high export value, branding of Vietnam
rice, adopting advanced crop management techniques, enhancing the use of technology in rice
farming, reducing pre- and post-harvest losses, adapting to climate changes, reducing carbon
emissions from rice production and supporting small farmers by providing them relevant
advices. In short, the agreement aims at enhancing Vietnam's rice sector to match global
standards.
The collaboration is in line with the government's approval of the "Project on Agricultural
Restructuring Toward Raising Added Values and Sustainable Development" in June 2013. Other
government agencies such as the Vietnam Academy of Agriculture Sciences and the Vietnam
National University of Agriculture, as well as key industry players like Vinafood and the
Vietnam Food Association (VFA) will also play a vital role in implementing the new
strategy.The new strategy is important in the light of Vietnam being criticized for focusing on
low quality rice production and exports. Experts have been urging the government to shift focus
to producing higher quality rice with high export demand.Vietnam's partnership with the IRRI
dates back to 1963, since when the IRRI contributed significantly to the growth of the
Vietnamese rice
Tags: Vietnam rice sector, Vietnam rice production, Vietnam rice exports, Vietnam Food Association (VFA)

Unique Branding Key to Boost Cambodian

Rice Exports
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November 27,2014

DAILY EXCLUSIVE ORYZA E-NEWSLETTER

The "World's Best Rice" award
presented to the Cambodian jasmine
rice for third consecutive year at the
Sixth World Rice Conference has
boosted the confidence of the
Cambodian rice exporters, who are
keen on increasing exports to over one
million tons by 2015. They are now
planning to use the award to expand the
scope of their rice exports.Increasing
exports is also very important to raise
the standard of living of the Cambodian

rice farmers, say local rice experts.

Cambodia accounts for only 1% of world's total rice production but its fragrant rice varieties are
popular in many countries. However, inefficiencies in production and export management are
impacting the country's rice exports to a large extent. Lack of efficient seed distribution,
collection, storage, logistics and marketing are the issues that need to be primarily addressed for
promoting Cambodian rice as one of the top brands in the world, according to the President of
the Cambodian Rice Federation (CRF).
The CRF President is also keen on streamlining export procedures as huge quantities of rice is
exported unofficially to Vietnam and Thailand through Cambodias borders every year.One of
the top rice exporters noted that the Cambodian jasmine rice should be uniquely branded in order
to be differentiated from the Thai fragrant rice as customers often tend to compare between the
two fragrant rice varieties. He suggested that Cambodia's "romduol" jasmine variety has been
voted thrice as the "World's best rice" and a unique brand could be developed based on
"romduol".
Keeping aside the challenges at home, some issues on the global front are also posing challenges
to the Cambodian rice exporters, say experts. Thailand's huge rice stocks coupled with aboveexpected outputs in many rice producing countries has put a downward pressure on global rice
prices. Cambodian exporters say they cannot afford to compromise on prices to sell rice
overseas. Cambodia exported around 304,788 tons of rice in the first ten months of 2014, up
about 3% from around 295,154 tons exported during the same period in 2013, according to data
from the Secretariat of One Window Service for Rice export Formality (SOWS-REF). Cambodia
exported 379,856 tons of rice in 2013.USDA estimates Cambodia to export 1 million tons of rice
(including official and unofficial exports to Vietnam and Thailand through borders) in 2014,
down about 7% from around 1.075 million tons in 2013.
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