March 18,2015

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Volume 5, Issue I
Daily Exclusive

ORYZA Rice
Newsletter

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Oryza U.S. Rough Rice Recap - Offers Firm

while Buyer's Stay Sidelined
Mar 17, 2015

The U.S. cash market was slightly firmer today with offers increasing in tandem with the futures
market however most buyers were reluctant to increase their bids.
Most buyers are still purchasing hand to mouth as they have been all marketing year which has
served them well however some analysts expect buyers to look for coverage ahead of the March
31st USDA prospective planting report.

Pakistan Rice Sellers Lower Some of Their

Quotes Today; Other Asia Rice Quotes
Unchanged
Mar 17, 2015

Pakistan rice sellers lowered their quotes for parboiled rice by about $5 per ton to around $380 $390 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $385 - $395 per ton, about a $20 per ton premium on
Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $390
- $400 per ton, about a $45 per ton premium on Pakistan 5% rice shown at around $345 - $355
per ton.
25% Broken Rice
Thailand 25% rice is shown at around $370 - $380 per ton, about a $30 per ton premium on
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around
$360 - $370, about a $50 per ton premium on Pakistan 25% rice shown at around $310 - $320
per ton.
Parboiled Rice

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Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is
indicated at around $380 - $390 per ton, on par with Pakistan parboiled rice shown at around
$380 - $390 per ton, down about $5 per ton from yesterday.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about a $15 per ton
premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100%
broken rice is shown at around $275 - $285 per ton, about a $5 per ton discount to Pakistan
broken sortexed rice shown at around $280 - $290 per ton.

Morocco Tenders to Purchase Short Grain

Rice
Mar 17, 2015

The government of Morocco is seeking to purchase small short and round rice in tender,
according to a notice on its government website.
The tender documents can be sent to the concerned authority in accordance with Article 19 of
Decree No. 2.12.349 of 08 Jumada I 1434 released on March 20, 2013. They can also be handed
over to the President of the tender commission at the beginning of the session and before opening
of bids.
Closing date for tender is April 17, 2015. Bidding will take place at the Office of the Regional
Director of Sale, Government of Morocco.
The provisional bond should be worth 3,564 Dirham (around $353.34), according to the notice.

Thailand Attorney General Files Criminal

Charges Against Former Commerce Minister
Mar 17, 2015

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Thailand's Office of Attorney General (OAG) filed criminal charges against the former
Commerce Minister and 20 state officials and employees of private firms for alleged corruption
in government-to-government (G2G) deals with two Chinese firms, according to Reuters.The
OAG submitted charges against the 21 individuals, including the former Commerce Minister, in
the Supreme Court's Criminal Division for Political Office Holders, the Deputy Spokesman of
the OAG was quoted as saying. The court will reprotedly decide on April 20, 2015 whether to
accept the case. If found guilty, the former Commerce Minister could face maximum sentence of
life prison and a fine of around 3.52 billion baht (around $106.96 million).
The move comes after the National Anti-Corruption Commission (NACC) recommended
prosecution of the 21 individuals in court after finding that they falsified G2G deals for about 1.2
million tons of rice with two Chinese companies. The NACC reportedly stated that the deal
never happened and the rice was sold locally to Thai companies.Thailand's National Legislative
Assembly (NLA) impeached the former PM on January 23, 2015 for encouraging corruption in
the controversial rice pledging scheme introduced by her government in October 2011. She is
also facing criminal charges for alleged negligence in overseeing the rice pledging scheme,
which brought losses to the extent of 600 billion baht (around $18 billion) to the government.
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The Supreme Court is to decide on March 19, 2015 whether to pursue the criminal case against
the former PM.aa

Oryza Afternoon Recap - Chicago Rough

Rice Futures Turn Higher despite Bearish
Day for Other U.S. Grains
Mar 17, 2015

Chicago rough rice futures for May delivery settled 10 cents per cwt (about $2 per ton) higher at
$10.625 per cwt (about $234 per ton). The other grains closed sharply lower, with wheat
retracing the majority of yesterdays gains is it was weighed down by spillover selling pressure
from neighboring trading pits; Soybeans closed about 1.5% lower at $9.5450 per bushel; wheat
finished about 2% lower at $5.0350 per bushel, and corn finished the day about 2.1% lower at
$3.7100 per bushel.
U.S. stocks traded mostly lower on Tuesday as investors focused on the Federal Open Market
Committee's two-day meeting, which could shed light on the timing of an interest rate hike. The
FOMC meeting kicks off Tuesday, with its highly anticipated statement and press conference
expected on Wednesday afternoon. Investors are looking at whether or not "patient" remains in
the statement as an indication of when short-term interest rates might go up. U.S. stocks jumped
more than 1% on Monday, following three weeks of decline in the Dow and S&P 500, as
investors positioned themselves ahead of the Fed meeting and options expirations.
The Dow Jones industrial average briefly slumped more than 180 points before trading about 114
points lower, or 0.64%, at 17,862. The S&P 500 fell 8 points, or 0.36%, at 2,073, with materials
leading nine sectors lower and information technology the only sector in the green. Analysts are
watching to see if the index holds above the 2050-2055 range, slightly below the 50-day moving
average. The Nasdaq fell 0.33 points, or 0.01%, at 4,929. Gold is trading about 0.5% lower,
crude oil is seen trading unchanged, and the U.S. dollar is seen trading marginally lower at
about 1:00pm Chicago time.Monday, there were 458 contracts traded, up from 270 contracts
traded on Friday. Open interest the number of contracts outstanding on Monday decreased by
88 contracts to 8,890.

Jhumka Basmati - India's New Rain and Pest

Tolerant Basmati Rice Variety
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Mar 17, 2015

A farmer in India's northern state Uttar Pradesh has developed a new variety of basmati rice
through organic farming using seeds brought by his ancestors from Pakistan, according to local
sources.The new variety 'Jhumka Basmati' can withstand heavy rain as its roots are strong and do
not bend to the gusts of strong winds that accompany rain, the farmer told local sources. He also
noted that since it is grown through organic methods using organic green manure, its stem and
roots are stronger. The seeds thus produced are rich in nutrition, he said. It is also pest-free said
the farmer.He added that chemicals used for growing rice usually remain in the upper layer of
the soil and does not allow roots to penetrate deep into the soil. He noted that chemical fertilizers
increase the yield but weakens the root inside the soil.
The new variety matures in 110 days and produces an yield of about 14 quintal per acre (around
3.5 tons per hectare).

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The Krishi Vigyan Kendra (KVK) of Indian Veterinary Research Institute (IVRI) has applied for
the patent of 'Jhumka Basmati'. rice. The variety will be introduced to other famers in the region
once the patent formalities are completed, said the farmer.

Global Rice Quotes

March 18th, 2015
Long grain white rice - high quality
Thailand 100% B grade 400-410

Vietnam 5% broken

365-375

India 5% broken

390-400

Pakistan 5% broken

345-355

Myanmar 5% broken

415-425

Cambodia 5% broken

425-435

U.S. 4% broken

480-490

Uruguay 5% broken

580-590

Argentina 5% broken

570-580

Long grain white rice - low quality

Thailand 25% broken

370-380

Vietnam 25% broken

340-350

Pakistan 25% broken

310-320

Cambodia 25% broken 410-420

India 25% broken

360-370

U.S. 15% broken

470-480

Long grain parboiled rice

Thailand parboiled 100% stxd

385-395

Pakistan parboiled 5% broken stxd

380-390

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India parboiled 5% broken stxd 380-390

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%
Vietnam Jasmine

890-900
455-465

India basmati 2% broken

NQ

Pakistan basmati 2% broken

NQ

Cambodia Phka Mails 790-800

Brokens
Thailand A1 Super

320-330

Vietnam 100% broken 315-325

Pakistan 100% broken stxd
Cambodia A1 Super

280-290

345-355

India 100% broken stxd

275-285

Egypt medium grain brokens

NQ

U.S. pet food

380-390

Brazil half grain

NQ

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

Oryza Overnight Recap Chicago Rough

Rice Futures Little Changed Overnight as

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Market Continues to Trade in Sideways

Range
Mar 17, 2015

Chicago rough rice futures for May delivery are currently listed 1 cent per cwt (about $0.22 per
ton) higher at $10.535 per cwt (about $232 per ton) during early floor trading in Chicago. The
other grains are seen trading lower this morning: soybeans are currently seen about 0.6% lower,
wheat is listed about 1.2% lower and corn is currently noted about 1.1% lower.
U.S. stocks opened lower on Tuesday as investors eyed weak housing data ahead of the Federal
Open Market Committee's two-day meeting. The FOMC meeting kicks off Tuesday, with its
highly anticipated statement and press conference expected on Wednesday afternoon. Investors
are looking at whether or not "patient" remains in the statement as an indication of when shortterm interest rates might go up. The U.S. dollar continued to ease, falling more than 1 percent in
early trade, while the euro edged above $1.06. The U.S. 10-year Treasury yield fell to trade near
2.05%.Crude oil traded lower but held slightly above 6-year lows touched on Monday. Brent
struggled to hold above $53 a barrel. Gold is currently trading about 0.8% lower, crude oil is
seen trading about 1.2% lower, and the U.S. dollar is currently trading about 0.2% lower at
8:00am Chicago time.

Indonesia Rice Prices May Have Peaked in

February, Suggests USDA Report
Mar 17, 2015

USDA Post reports that inadequate stocks and delayed harvesting pushed up Indonesia rice
prices into February but Bulog action and anticipation for the upcoming harvest have reduced
prices in March, suggesting prices may have peaked for the near-term.Indonesian wholesale
prices increased by about 22% m/m to around Rp. 11,500 per kilogram (around $892 per ton) on
February 26, 2014 from around Rp.9,400 per kilogram (around $729 per ton) on February 1,
2015; and retail prices increased by about 6% m/m to around Rp.11,400 per kilogram (around
$885 per ton) during the same period.
The Post attributes the price hike to inadequate stocks caused due to delayed harvests. Harvest of
2015 first main crop was delayed from February to mid-March or April 2015, due to delayed
plantings. The daily inflow of rice stocks to Cipinang wholesale market declined to around 2,000
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tons in February from around 2,500 - 3,000 tons in September 2014 - January 2015 due to
delayed harvests, says the Post.
The government also delayed the distribution of Raskin rice to February and March 2015 from
November and December 2014 due to flooding, which caused widespread losses in parts of Java.
Raskin consumers had to buy rice in the open market in November and December 2014. Prices
have been impacted due to this as well.
Now, Bulog has decided to distribute a total of 300,000 tons of rice in key markets to control
price hikes. It has decided to sell Bulog rice at around Rp.7,400 per kilogram (around $574 per
ton) in Java and at around Rp.7,500 per kilogram (around $582 per ton) outside Java. Bulog also
distributed 174,000 of Raskin rice from January 1 to February 24, 2015.
Bulog's operations seem to have effect on prices, says USDA. March price data shows that the
price of medium quality rice has declined to around Rp.10,450 per kilogram (around $811 per
ton). The Post expects prices to come down further with the arrival of March crop.

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India Hybrid Rice Acreage Reaches 2.5

Million Hectares in 2014, Says Junior
Agriculture Minister

Mar 17, 2015

India's hybrid rice acreage has reached around 2.5 million hectares in 2014, about 250 times
from a mere 10,000 hectares in 1995, local sources quoted the Minister of State for Agriculture
Minister as saying. Currently, the hybrid rice acreage accounts for about 5.6% of the total rice
area of about 45 million hectares in the country.The Minister apprised the Parliament today that
last nine years have seen a tremendous growth in hybrid rice plantings especially due to
increasing popularity of hybrid rice in Eastern Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand
and Chhattisgarh.

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He also informed the Parliament members that the bacterial blight resistant variety 'Improved
Samba Mahsuri' developed by the Centre for Cellular and Molecular Biology (CCMB) and
Directorate of Rice Research (DRR) has was received well and the area under the variety is
currently about 90,000 hectares in Southern Indian states of Tamil Nadu, Karnataka, Telangana
and Andhra Pradesh.
The Minister also noted that the government has not fixed any target for increasing acreage of
hybrid rice in the country. However, he said the government would continue with various crop
development programs such as National Food Security Mission (NFSM), Bringing Green
Revolution to Eastern India (BGREI) and Rashtriya Krishi Vikas Yojana (RKVY).
The government of India, in its second advance estimates for major crops, has estimated India's
rice production for 2014-15 marketing year (October 2014 - September 2015) at around 103.04
million tons, down about 3% from an estimated 106.65 million tons in 2013-14. It estimates
around 88.02 million tons from kharif rice crop and around 15.02 million tons for rabi rice crop.
EU Rice Exports Increase Sharply YTD in 2014-15
Mar 17, 2015

Rice exports from the European Union (EU) nations have increased sharply during September 1,
2014 - March 10, 2015, according to the data provided by the EU. Most of the increase has been
in the Japonica rice exports so far in the crop year 2014-15 (September - August), according to
the EU data.
The EU has exported around 145,713 tons (milled equivalent) of rice in September 1, 2014 March 10, 2015, up about 40% from around 104,384 tons exported during the same period last
crop year. While Japonica milled equivalent varieties constituted about 125,303 tons, Indica
milled equivalent varieties accounted for about 20,140 tons.
The EU nations exported around 119,274 tons of milled Japonica varieties in September 1, 2014
- March 10, 2015, up about 37% from around 87,273 tons exported last year. The EU exported
around 19,609 tons of Indica varieties during September 1, 2014 - March 10, 2015 period, up
about 14% from around 17,131 tons exported last year.
However, increase in the exports of half milled rice have been very less during the stated period,
according to the EU data. The EU nations exported around 341 tons of half milled Japonica rice
varieties in September 1, 2014 - March 10, 2015, slightly up from around 338 tons exported
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during the same period last year. Exports of half-milled Indica rice varieties declined about 34%
to around 53 tons during the stated period from around 80 tons exported last year.

Husked rice exports have almost doubled to around 8185 tons during September 1, 2014 - March
10, 2015 from around 4,045 tons during the same period last year.
Italy remained the largest rice exporter so far in the crop year 2014-15 followed by Spain,
Greece, Bulgaria, Portugal, Romania, France and the U.K.

Costa Rica to Maintain Fixed Prices for Rice,

Says USDA
Mar 17, 2015

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The government of Costa Rica has decided to continue with its longstanding policy of fixing
producer and consumer prices for rice for increasing rice production in the country as well as to
ensure that the government does not violate WTO commitments, according to USDA Post.
The Post reports that the government of Costa Rica has published an Executive Decree #38884MEIC on February 27, 2015, according to which it has set the producer price of dry and clean
paddy rice at around colones 22,130 per 73.6 kilograms bag (around $557 per ton), down about
2% from around colones 22,582 per 73.6 kilograms bag (around $576 per ton) last year.
The decree also set the minimum and maximum price for different types of rice, either locally
produced or imported. The minimum and maximum prices of the highest selling variety 80/20
(80% whole grain and 20% broken grain) rice at around $1.168 per kilogram and around $1.174
per kilogram respectively. The prices are effective from June 8, 2015, and trader or miller is not
expected to violate the decree and according to the Post.
The regulation is in line with the government's intention to bring down prices of rice to
consumer, increase local paddy rice production by about 25% to around 5 million tons over the
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next four years, as well as to narrow the gap between the locally produced rice and imported rice.
However, the decree does not stipulate a time frame for the continuation of the fixed price
policy. The government has also recently increased the import duty on milled rice from 35% to
62.06% to encourage local production.
The decree is also aimed that ensuring that the government does not violate its minimum market
access (MMA) import commitments with the WTO.
USDA estimates Costa Rica to produce around 223,000 tons of paddy rice (around 145,000 tons,
basis milled) and import around 100,000 tons in MY 2014-15 (October - September).

Brazil Paddy Rice Index Declines about 1%

from Last Week
Mar 17, 2015

The Brazilian paddy rice index maintained by CEPEA reached around 35.75 real per 50
kilograms as of March 16, 2015, down about 0.75% from around 36.02 real per 50 kilograms
recorded on March 09, 2015.In terms of USD per ton, the index reached around $222 per ton on
March 16, 2015, down about 5% from around $232 per ton recorded on March 9, 2015.

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