16 June (Tuesday), 2015 Daily Exclusive ORYZA E-Rice Newsletter by Riceplus Magazine

June 16 ,2015
Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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European Farmers' Union Opposes Changes

in EU CAP
Jun 15, 2015
European farmers of the confederation of farmers' unions COPA are opposing a mid-term review
of the current EU Common Agricultural Policy (CAP), which was approved in 2014 and is valid
till 2020, according to local sources.The EU officials are understood to propose changes to the
current CAP in mid-term review in order to simply certain rules. Recently, the EU Farm
Commissioner Phil Hogan announced about plans to simply certain CAP rules.However, the
European farm unions are against any changes to the CAP. They say the new CAP is not even in
force in many of the EU countries and in countries where it has been introduced, farmers are
trying to understand its terms. So they opine that farmers need stability to enable them to plan
until 2020 under the current CAP rules.
Addressing a group of farm leaders in Riga, the COPA President said: "We are against having a
mid-term review of the CAP as many farmers are still struggling to get to grips with the current
reform package agreed only last year. We need to make the CAP work. We nevertheless
welcome Commissioner Hogans CAP simplification plans which the Latvian Presidency made a
lot of progress on. We hope the Luxembourg Presidency will continue this action."He also urged
the EU Commission and Council to extend the June 15 deadline to receive CAP application from
farmers as farmers in some member states are facing difficulties in completing the application
forms.Copa-Cogeca Secretary-General appreciated the efforts by the Latvian Presidency to get
workable rules on the EU organic farming review to enable the sector to grow well.
FAO Estimates Philippines 2015 Rice

Imports to Decline
Jun 15, 2015


The UN's Food and Agricultural Organization (FAO) has forecasted the Philippines 2015 rice
imports to decline to around 1.7 million tons from an estimated 1.9 million tons last year.The
FAO forecasts Philippines 2015 paddy rice production at around 18.4 million tons (around 12
million tons, basis milled), down about 2% from an estimated 18.854 million tons (around 11.88
million tons, basis milled). Planting of the 2015 main season rice crop, accounting for about 55%
of annual production, is nearing completion. Lower-than average rainfall in April and May has
most likely delayed planting operations and reduced sowings particularly for the rain fed rice
crop. The current dry weather is attributed to the onset of a weak El Nino event this year.
Though, reports from the main meteorological and oceanic institutions conformed the onset of a
weak to moderate El Nino event, uncertainty about the intensity and duration as well as its
impact on crops still persists. Rainfall performance in the following weeks will be crucial for
avoiding reductions in plantings and yield potential of the 2015 main season rice crop, says the
3


FAO.According to the FAO, the average retail prices of regular and well-milled rice varieties
continued to decline in May 2015 for the eighth consecutive month after continuously increasing
since last October, due to increased supplies from the 2015 secondary season harvest. Overall,
rice prices were slightly below their high levels of a year earlier.
USDA estimates the Philippines to import around 1.7 million tons of milled rice in 2015, up
about 42% from an estimated 1.2 million tons in 2014. USDA estimates the South-East Asian
nation to produce around 19.365 million tons of paddy (around 12.2 million tons, basis milled) in
MY 2014-15 (July - June), up about 3% from an estimated 18.82 million tons (around 11.86
million tons, basis milled) in MY 2013-14.
FAO to Support Zambia Rice Sector with

$484,000 Project
Jun 15, 2015
The UN's Food and Agriculture Organization (FAO) has agreed to support the Zambian rice
sector under its technical cooperation program (TCP), according to local sources.Responding to
the government of Zambia's request to provide support to boost the country's rice production
4


over the next two years, the FAO has reportedly launched a rice project costing about
$484,000.The project aims at strengthening rice seed production, and enhancing extension
services to increase rice production in Zambia, according to the FAO representative to Zambia.
"The TCP allows for the implementation of a demand-driven technical assistance that responds
to governments priority needs, catalyse change, foster capacity development, and assist member
countries in mobilising resources," he said.
He also noted that the Zambian Ministry of Agriculture and Livestock has already invested in
improving the rice value chain in the country and the project would provide a push in taking
forward the governments plans. The project, therefore, draws upon the successes that have
been achieved so far, and it incorporates the lessons learned from past experiences," he added.
He expressed confidence that the project would contribute positively to the economic and food
security of Zambia."The project is aimed at increasing rice production in Zambia by addressing
some of the key constraints being faced by rice producers who are mainly small-scale farmers.
These constraints will be addressed through interventions such as the purification of existing rice
varieties, and the development of improved varieties, supporting multiplication and supply of
quality seed of rice, added the Ministry of Agriculture and Livestock permanent
secretary.According to USDA, Zambia produced around 30,000 tons of milled rice in MY 201314 (July - June) from around 30,000 hectares of rice land, and imported around 10,000 tons to
meet consumption needs of around 40,000 tons.
Global Rice Quotes

June 16th, 2015
Long grain white rice - high quality
Thailand 100% B grade 365-375
Vietnam 5% broken
345-355
India 5% broken
365-375
Pakistan 5% broken
380-390
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
340-350
Vietnam 25% broken
330-340
Pakistan 25% broken
335-345
Cambodia 25% broken 410-420
India 25% broken
350-360
U.S. 15% broken
455-465
Long grain parboiled rice

Thailand parboiled 100% stxd
360-370
Pakistan parboiled 5% broken stxd
400-410
India parboiled 5% broken stxd 355-365
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% 840-850
Vietnam Jasmine
475-485


India basmati 2% broken
NQ
Pakistan basmati 2% broken
NQ
Cambodia Phka Mails
820-830
315-325
Vietnam 100% broken 310-320
Brokens
Thailand A1 Super
Pakistan 100% broken stxd

Cambodia A1 Super
295-305
350-360
India 100% broken stxd 280-290
Egypt medium grain brokens
NQ
U.S. pet food
365-375
Brazil half grain NQ
All prices USD per ton, FOB vessel, oryza.com
Oryza Afternoon Recap - Chicago Rough

Rice Futures Make Afternoon Recovery to
Close Higher on the Day
Jun 15, 2015
Chicago rough rice futures for Jul delivery settled 9.5 cents per cwt (about $2 per ton) higher at
$9.775 per cwt (about $215 per ton). The other grains traded lower; Soybeans closed about 0.2%
lower at $9.3775 per bushel; wheat finished about 2.9% lower at $4.8925 per bushel, and corn
finished the day about 1.3% lower at $3.4825 per bushel.U.S. stocks pared losses on Monday
after opening sharply lower, following a decline in European equities on the collapse of weekend
talks between Greece and its creditors. The Dow Jones industrial average fell back into the red
7


for 2015. The index traded about 90 points lower after earlier falling nearly 200 points.
Information technology was among the greatest decliners in the S&P 500 as all 10 sectors fell.
The German DAX closed 1.89% lower, while the Greek ATHEX Composite briefly fell more
than 5% as regional bank stocks sold off. Greek 10-year bond yields gained about 4% after
earlier spiking more than 7%.Athens and its creditors failed to come to a deal over the weekend
because Athens did not accept demands for deeper reforms of pensions, value-added tax (VAT)
and of its administration, labor markets and industry, Reuters said. The European Commission
said on Monday that Greece's creditors have made substantial concessions, and Germany's EU
commissioner said the time had come to prepare for a "state of emergency".
European Central Bank President Mario Draghi also said on Monday that the ECB would
continue approving emergency funding for Greek banks as long as they have enough cash and
collateral to operate. He added "the ball lies squarely in the camp of the Greek government to
take the necessary steps." Outside of developments in the Greece debt talks, the key event for the
week is the Federal Open Market Committee's two-day meeting, which begins on Tuesday and
concludes Wednesday afternoon with a statement and press conference. Investors will scrutinize
the release for indications on the timing of a short-term interest rate hike, for which consensus is
September. Economic reports on Monday were mixed.
However, the second-tier data follows recent improvement in retail sales and the labor market.
The Dow Jones Industrial Average traded down 90 points, or 0.50%, at 17,808. The S&P 500
traded down 9 points, or 0.39%, at 2,085, with industrials leading all sectors except health care
lower. The Nasdaq traded down 18 points, or 0.36%, at 5,032. Gold is trading about 0.6% higher,
crude oil is seen trading about 0.7% lower, and the U.S. dollar is seen trading about 0.2% lower
at about 2:00pm Chicago time.Friday, there were 979 contracts traded, up from 964 contracts
traded on Thursday. Open interest the number of contracts outstanding on Friday decreased
by 210 contracts to 11,688.
Oryza U.S. Rough Rice Recap - Prices Hold

Steady amid Limited Buy-Sell Interest; Crop
Improves Slightly
Jun 15, 2015


The U.S. cash market was unchanged today as both buyers and sellers remain on the sidelines
waiting for prices to improve and neither see much of a reason to change their strategy as of
yet.Analysts note that there are still ample supplies of rice available especially in North East
Arkansas and many are concerned that there is not enough demand at these levels to make a
sufficient dent in the supply before new crop is available.
In the meantime, the USDA estimates that as of June 14th, 69% percent of the crop in good to
excellent condition, which was up 1% from last week and on par with this time last year. As of
now, the USDA estimates that 65% of the crop in Arkansas is in good to excellent condition
compared to, 85% in California, 68% in Louisiana, 75% in Mississippi, 53% in Missouri, and
52% in Texas.
Philippines Re-invites Bids for 100,000 Tons

of Rice Import
Jun 15, 2015
The National Food Authority (NFA) of the Philippines has re-invited bids for the remaining
100,000 tons from the June 5 tender, BusinessworldOnline quoted Reuters.The NFA has
reportedly invited governments of Thailand, Vietnam and Cambodia, with which the Philippines
9


has bilateral agreements, to send their bids in sealed covers. The NFA will reportedly open the
sealed bids on June 16.NFA invited tenders from Vietnam and Thailand to supply 250,000 ton of
25% broken long-grain white rice for delivery between July and August, to replenish stocks
during the lean season (July - September) as well as prevent commercial rice price hikes.
However, it imported only 150,000 tons from Vietnam at $410.12 per ton as Thailand backed out
from the tender considering the price offered by the NFA as too low. Cambodia did not
participate in the bid.The NFA is authorized to import another 250,000 tons in case El Nino
weather pattern intensifies. Last week, the NFA Public Affairs Director told reporters that the
agency is planning to purchase 250,000 tons of rice through negotiated procurement. He noted
that Thailand, Vietnam and Cambodia have been invited for Government-to-government (G2G)
negotiations this week.The agency is also considering to import 805,200 tons of rice this month
through private traders under the WTO minimum access volume (MAV), including 755,000 tons
in the country-specific- quota (CSQ) and 50,000 tons in the omnibus quota. Imports under MAV
attract 35% duty and imports over and above MAV attract 50% duty.
The Philippines already imported 500,000 tons of rice from Vietnam and Thailand this year to
curb price increases and boost buffer stocks. Last year, the South-east Asian nation imported
more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons
of 2013 residual imports) to replenish rice stocks and control price hikes.Last week, the Bureau
of Agricultural Statistics (BAS) reportedly told that that the Philippines' rice stocks as of May 1,
2015 are enough to last for 93 days (household stocks are enough for 44 days, commercial
warehouses stocks are enough for 31 days and stocks with NFA are enough for 18 days).
Thai PWO Declares 650,000 Tons of

Stockpiled Rice as Rotten
Jun 15, 2015
Thailand's Public Warehouse Organization (PWO) has declared about 650,000 tons of rice as
rotten, which is not fit for human and animal consumption or for ethanol production, according
to local sources. The PWO noted that the stated amount of rice could be used as fuel in
electricity generation.The PWO Chairman told reporters that about one million tons of rice,
including 650,000 tons that is unfit for human and animal consumption, is known to be of
inferior quality. Of the remaining 350,000 tons, about 300,000 tons are an 80:20 mix of good
quality rice and C grade rice and about 54,000 tons are white rice mislabelled as jasmine and
10


sticky
rice.
The PWO is reportedly working with the police to know the exact amount of rice that is in good
condition and rice that is missing or is in bad/deteriorating condition. The government is
planning to sell the low quality rice stocks to the industrial sector once the police investigation is
complete.The government currently has 16-17 million tons of rice in stocks and is keen on
selling about 10 million tons of rice this year and about 7 million tons next year. It sold about
1.28 million tons of rice raising 15.85 billion baht (around $471 million) in two auctions this
year.
Thai Rice Farmers Advised to Delay Main

Crop Planting Due to Drought
Jun 15, 2015
11


The Thai Agriculture Ministry has advised the rice farmers to delay their main (wet) rice crop
planting in the main rice growing area of Chao Phraya River Basin area due to drought
conditions prevailing in most of the provinces thereby affecting the water supplies, according to
Reuters. The basin area represents 30% of the country's land area, according to the UN.The
Agriculture Minister was quoted as saying that nearly 22 out of 76 provinces are affected by
drought conditions impacting about 7.45 million hectares of rice land (or nearly 80% of the
country's total rice crop acreage of around 10.3 million hectares). He noted that farmers began
rice planting in May in over 3.44 million hectares of land in the basin and the Ministry has urged
the farmers to suspend planting in the remaining 4 million hectares.
He said the government is planning to organize the water that is being used. The government
said it is planning to invest $7.5 billion in urgent water management projects over the next two
years.The Deputy government spokesman also urged the households to use water conservatively
as the government is expecting the water shortage this year to be severe compared to last year.
12


According to the Royal Irrigation Department, as of today, medium and large reservoirs held
only 46% of their total capacity.Meanwhile, farmers suffering from drought are urging the
government to increase compensation from 1,000 baht per rai ($186 per hectare), with a limit of
15 rai (2.4 hectares), to around 2,000 - 3,000 baht per rai (around $371 - $557 per hectare), with
a limit of 20 rai (3.2 hectares) as it is not sufficient for them in the present conditions.USDA
estimates Thailand to produce 28.409 million tons of paddy rice (around 18.75 million tons,
milled basis) in MY 2014-15 (January - December 2015), down about 8% from around 31,000
million tons (around 2.46 million tons, milled basis) in MY 2013-14. It estimates Thailand to
export around 11 million tons of rice in 2015, slightly up from around 10.969 tons in 2014.
USDA Forecasts 2015-16 Global Milled Rice

Production to Reach Record High Due to
Higher Acreage
Jun 15, 2015
In its June Rice Outlook report, USDA forecasts 2015-16 global milled rice production at
around 481.7 million tons, up about 1.2% from an estimated 476.1 million tons in 2014-15 due to
an expected increase in rice acreage.According to USDA, 2014-15 global rice production is
slightly lower than that in 2013-14 due to expected decline in production in India and
Thailand.USDA forecasts 2015-16 global rice acreage at a record 161.8 million hectares, up
about 1% from an estimated 160.3 million hectares in 2014-15 and most of the increase in
acreage is expected in Bangladesh, India and Thailand. USDA forecasts the average global yield
at 4.44 tons per hectare (on rough rice basis), fractionally above 2014-15.
The U.S. Agency forecasts East Asia and Southeast Asia to harvest record crops in 2015-16. It
forecasts South Asia to harvest a larger crop in 2015-16 while South Americas 2015-16
production is projected to decline slightly. These four regions account for about 95 percent of
global rice production.
13


In June, USDA lowered production prospects for Brazil and North America in 2015-16 due to
drop in paddy rice acreage, while it increased production prospects for Guyana based on
government data reporting a record 2015-16 first crop harvest.USDA estimates 2015-16 global
rice consumption and residual use at around 489 million tons, up about 1% from last year's
484 million tons. China accounts for the bulk of the projected increase in global consumption,
according to USDA. Rice consumption is expected to reach record-high in Bangladesh,
Myanmar, Cambodia, India, Indonesia, the Philippines, Thailand, and Vietnam. It also expects
14


U.S. Consumption to increase about 1% y/y. Consumption is estimated to exceed production by

7.2 million tons.
The U.S. agency estimates 2015-16 global rice ending stocks to decline by about 7% y/y to
around 91.4 million tons. USDA estimates lower ending stocks in India, Indonesia and Thailand
but higher stocks in the U.S. It estimates 2014-15 global stocks-to-use ratio at 18.7%, down from
last year's 20.4%.
USDA Forecasts Global Rice Trade to Decline

in 2016
Jun 15, 2015
15


In its June Rice Outlook report, USDA has forecasted 2016 global rice trade at around 42.4
million tons, down about 2% from an estimated 43.26 million tons in 2015. USDA says the
decline in global trade in 2016 can be attributed to weaker shipments from India, Pakistan and
Australia as well as weaker purchases by Southeast Asia and Sub-Saharan Africa.On the exports
side, USDA expects Thailand to remain the number one rice exporter in 2016 with 11 million
tons followed by India with 8.5 million tons. It expects Vietnam with 6.7 million tons and
Pakistan with 3.8 million tons to be third and fourth largest exporters. USDA expects increased
exports from Cambodia (increase 9% y/y to 1.2 million tons) and Myanmar (increase 8% y/y to 2
million tons).
On the imports side, USDA expects China to remain top importer in 2016 with a record 4.7
million tons, up 7% from 2015, despite a record crop. It expects Nigeria to follow with 3 million
tons. USDA estimates The European Union, Iran, Iraq, Indonesia, Malaysia, the Philippines,
Saudi Arabia, Senegal, and South Africa to import 1-2 million tons of rice in 2016.For 2015,
USDA raised its import estimates for Bangladesh, the Philippines Tanzania and Nepal.
Vietnam Exports About 2.123 Million Tons of

Rice During January 1 June 11, 2015
16


Jun 15, 2015
Vietnam exported about 2.123 million tons of rice in January 1 - June 11, 2015, down about
29.6% from about 3.015 million tons of rice exported in first half of 2014, according to data from
the Vietnam Food Association (VFA). Average rice export price so far in this year stands at
about $421 per ton (FOB), down about 2.3% per ton from about $431 per ton recorded during
same last year.
During June 1-11, 2015, Vietnam exported about 41,842 tons of rice, down about 94% from
about 671,174 tons rice exported in full month of June 2014, and down about 92% from about
525,742 tons rice exported in full month of May 2015. Average export prices in so far in June
stands at about $432 per ton, up about 2% per ton from a year and a month ago.
Vietnam, Pakistan Rice Sellers Lower Their

Quotes Today; Other Asia Rice Quotes
Unchanged
Jun 15, 2015
Vietnam rice sellers lowered their quotes for 5% broken rice and 100% broken rice by about $5
per ton each to around $345-$355 per ton and $310-$320 per ton respectively. Pakistan rice
sellers lowered most of their quotes by around $5-$10 per ton today. Other Asia rice sellers kept
their quotes mostly unchanged.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton, about a $10 per ton premium on
Vietnam 5% rice shown at around $345 - $355 per ton, down about a $5 per ton from Friday.
India 5% rice is indicated at around $375 - $385 per ton, on par with Pakistan 5% rice shown at
around $375 - $385 per ton, down about a $5 per ton from Friday.
25% Broken Rice
17


Thailand 25% rice is shown at around $340 - $350 per ton, about a $10 per ton premium on
Vietnam 25% rice shown at around $330- $340 per ton.
India 25% rice is indicated at around $360 - $370, about $25 per ton premium on Pakistan 25%
rice shown at around $335 - $345per ton, down about a $10 per ton from Friday.
Parboiled Rice
Thailand parboiled rice is indicated at around $360 - $370 per ton. India parboiled rice is
indicated at around $355 - $365 per ton, about a $45 per ton discount to Pakistan parboiled rice
shown at around $400 - $410 per ton, down about a $10 per ton from Friday.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about $5 per ton
premium on Vietnam 100% broken rice shown at around $310 - $320 per ton, down about a $5
per ton from Friday. India's 100% broken rice is shown at around $280 - $290 per ton, about a
$10 per ton discount to Pakistan broken sortexed rice shown at around $290 - $300 per ton,
down about a $5 per ton from Friday.
18



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June 16 ,2015

Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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European Farmers' Union Opposes Changes

FAO Estimates Philippines 2015 Rice

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FAO to Support Zambia Rice Sector with

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Global Rice Quotes

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U.S. 4% broken 465-475

Long grain white rice - low quality

Vietnam 25% broken

Pakistan 25% broken

Cambodia 25% broken 410-420

India 25% broken

U.S. 15% broken

Long grain parboiled rice

Pakistan parboiled 5% broken stxd

India parboiled 5% broken stxd 355-365

U.S. parboiled 4% broken

Brazil parboiled 5% broken

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

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India basmati 2% broken

Pakistan basmati 2% broken

Cambodia Phka Mails

Vietnam 100% broken 310-320

Pakistan 100% broken stxd

India 100% broken stxd 280-290

Egypt medium grain brokens

U.S. pet food

Brazil half grain NQ

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

Oryza Afternoon Recap - Chicago Rough

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Oryza U.S. Rough Rice Recap - Prices Hold

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Philippines Re-invites Bids for 100,000 Tons

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Thai PWO Declares 650,000 Tons of

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Thai Rice Farmers Advised to Delay Main

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USDA Forecasts 2015-16 Global Milled Rice

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