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Daily Exclusive ORYZA Rice E-Newsletter

April 05,2016
Vol 7,Issue III

Daily Exclusive ORYZA Rice E-Newsletter

Italy Milled Rice Exports Decline 18% y/y to

67,654 Tons in September 1, 2014 - March 29,
Apr 04, 2016

Italy has exported around 67,654 tons of milled rice in September 1, 2014 - March 29, 2015,
down about 18% from around 82,829 tons exported during the same period last year.
Turkey is the largest buyer of Italian rice during the period with 17,358 tons, followed by
Lebanon (10,780 tons), Switzerland (10,109 tons), Syria (4,454), Brazil (2,649 tons) and the U.S.
(4,833 tons).
Italy also exported rice to Jordan, Serbia, Bosnia-Herzegovina, Albania, Norway, Canada,
Australia, Kosovo and Russia.
Italy exported around 53,376 tons of Long-A variety, down about 16.5% from around 63,923
tons exported last year. Italy's round varieties exports declined about 47% to around 6,630 tons
from around 12,509 tons last year; and Italy's medium varieties exports declined about 20% to
around 2,155 tons from around 2,694 tons last year. However, export of Long B varieties
increased about 21% to around 5,493 tons during the period from around 4,540 tons last year.

Global Rice Quotes

April 5th, 2016
Long grain white rice - high quality
Thailand 100% B grade 380-390

Vietnam 5% broken


India 5% broken


Pakistan 5% broken


Myanmar 5% broken


Cambodia 5% broken


U.S. 4% broken 440-450

Uruguay 5% broken


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Argentina 5% broken


Long grain white rice - low quality

Thailand 25% broken


Vietnam 25% broken


Pakistan 25% broken


Cambodia 25% broken 430-440

India 25% broken


U.S. 15% broken (sacked)



Long grain parboiled rice

Thailand parboiled 100% stxd

Pakistan parboiled 5% broken stxd


India parboiled 5% broken stxd 345-355

U.S. parboiled 4% broken


Brazil parboiled 5% broken


Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92% 665-675

Vietnam Jasmine


India basmati 2% broken


Pakistan basmati 2% broken


Cambodia Phka Mails



Thailand A1 Super

Vietnam 100% broken 340-350

Pakistan 100% broken stxd


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Cambodia A1 Super


India 100% broken stxd 270-280

Egypt medium grain brokens


U.S. pet food


Brazil half grain NQ

All prices USD per ton, FOB vessel,

European Organic Congress 2016 Begins in

Apr 04, 2016

The tenth edition of the European Organic Congress has begun today in Amsterdam, the
Netherlands, according to a news release on the IFOAN EU website.
The Congress is organized by the IFOAM EU, whose core activity is to represent organic
interests in Europe.
The theme of this years Congress is transforming food and farming through organics. It will also
look at how organic and agro-ecological approaches can really lead future agri-food systems and
contribute to the development of EU policies that fundamentally address political, environmental
and societal challenges.
Together with diverse food and farming stakeholders, the congress will develop practical
strategies to develop organics in the long term and shape the EU market and policy
developments so critical to transforming food and farming in the short to medium-term.

EC Decision on Whether New Plant Breeding

Techniques Can be Considered GMOs
Apr 04, 2016
The European Commission (EC) has postponed the much awaited legal analysis on whether new
plant breeding techniques (NBTs) should be considered as genetically modified organisms
(GMOs), according to

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NBTs focus on developing new seed traits within a given species through genetic engineering.
The EC is reportedly working on a legal analysis to give guidance on how to interpret the
definition of GMOs in relation to organisms produced by new plant breeding technique.
The EC was supposed to give its opinion by the end of 2015, but the procedure was delayed. In
January this year, an EC spokesperson noted that the legal analysis would be completed by the
first quarter of 2016, but so far nothing is clear, according to the website.
The EC decision is, however, not final. The European Court of Justice has the sole authority to
provide a final and binding opinion on the EU law, say experts.
Meanwhile, in a joint position paper published this month, the environmentalist NGOs such as
Greenpeace, Friends of the Earth Europe, IFOAM EU and other campaigning organisations, said
that the EU GMO law should be fully applied to the so-called new plant breeding techniques.
The Commission should leave no doubt that all products of genetic engineering are subject to
EU GMO law which requires rigorous risk assessment, detectability and labelling, they said.
On the other hand, the European Seed Association adfirms that most of the new techniques
should not be classified as GMOs. Generally speaking, where no foreign DNA is introduced
and present in the final plant and where plants cannot be distinguished from others obtained
through well-established mutation breeding techniques, ESA is of the opinion that a GM
classification is inappropriate. This view is shared not only by the Member States experts report
but also supported by the vast majority of scientific as well as legal analysis published up to
today," it said.

Indonesia Plans to Export 100,000 Tons of Rice

in 2016, Says Government Official
Apr 04, 2016
The government of Indonesia is keen on exporting around 100,000 tons of rice to ten countries,
including Malaysia, Singapore and Brunei Darussalam, this year as part of its efforts to increase
farm commodity exports, according to Tempo.Co citing Antara news agency.
The Director General of Agricultural Infrastructure and Facilities of the Agriculture Ministry
reportedly noted that to meet the export target as well as the local demand, the government
would focus on procuring as much as rice possible this year. '
"We have not set any target for procuring rice. What is important is that we must be able to
procure as much rice as possible so that we can export the surplus," he said. The official also
noted that the state logistics agency Bulog will be responsible to control prices at the farmer level
through the procurement activity.

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"If the price of unhusked rice at the farmer level falls, the government will be obliged to buy the
rice soon to maintain the rice prices," he added.
In early March, the Director of procurement at Bulog said that the country may not import rice
this year due to adequate stocks. He noted agency is planning to buy about 3 million tons of rice
from farmers between March to May this year.
The government of Indonesia is targeting to produce around 76.22 million tons of paddy rice in
2016, up about 1.1% from an estimated 75.36 million tons in 2015, according to the Director
General of Food Crops at the Agriculture Ministry.

Oryza CBOT Rough Rice Futures Recap Chicago Rough Rice Futures Begin the Week
Slightly Higher as Traders Continue to Weigh
Last Week's USDA Reports
Apr 05, 2016

Chicago rough rice futures for May delivery settled 4.5 cents were cwt (about $1 per ton) higher
at $9.800 per cwt (about $216 per ton). The other grains finished the day mostly lower; Soybeans
closed about 0.5% lower at $9.1350 per bushel; wheat finished about 0.2% lower at $4.7475 per
bushel, and corn finished the day about 0.1% higher at $3.5450 per bushel.
U.S. stocks traded in a range Monday, with health care stocks outperforming, as investors eyed
oil prices and the week's Fed speakers. The major averages mostly held a touch lower in
afternoon trade, with consumer discretionary, industrials and utilities among the greatest
decliners in the S&P 500. Federal Open Market Committee voting member Boston Fed President
Eric Rosengren said he believed it will likely be appropriate to resume the path of gradual
tightening sooner than is implied by financial market futures. He added the "U.S. has weathered
foreign shocks quite well" and that risks from abroad are easing. In economic news, factory
orders declined 1.7% in February. European stocks held off session highs.
In Asia, the Nikkei 225 closed 0.25% lower. Markets in mainland China and Hong Kong were
closed for a holiday. In afternoon trade, the Dow Jones industrial average declined 29 points, or
0.17%, to 17,763. The S&P 500 traded down 2 points, or 0.17%, to 2,069, with consumer
discretionary leading eight sectors lower, with health care and telecommunications the only
advancers. The Nasdaq composite declined 6 points, or 0.13%, to 4,908. Gold is seen trading
about 0.3% lower, crude oil is seen trading about 2.3% lower, and the U.S. dollar is seen trading
about 0.2% lower at about 1:15pm Chicago time.
Friday, there were 2,293 contracts traded, up from 2,902 contracts traded on Thursday. Open
interest the number of contracts outstanding on Friday increased by 132 contracts to 13,281.

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Thai Agriculture Ministry Expects Water

Crisis to Ease Over Next Few Months
Apr 04, 2016

Thailand's Agriculture Ministry is expecting the water crisis due to drought is likely to ease over
the next few months as water levels in the country's dams would be sufficient until seasonal rains
begin in April and May, according to Bloomberg.
The Permanent Secretary of the Ministry told a seminar last week that dams that supply water to
the country's Central Plains hold about 2.4 billion cubic feet of water, les than half the volume a
year ago and far below the normal level of 10 billion cubic feet. He noted that the water level
would be enough to last until the end of July.
He noted that the government is ensuring that supplies to domestic and industrial users won't be
affected. However, it will not be able to supply water to farmers until the wet season starts in
May. Farmers in the Central Plains mostly plant secondary rice crop, which is highly dependent
on irrigation. The government has encouraged rice farmers to switch from rice to other crops
needing less water. It has also provided them with funds to help offset production costs.
Drought damaged about 2.86 million rai (around 457,600 hectares) of agricultural land, mostly
rice plantations, between October 2015 and March 2016.
Last month, the Minister for Agriculture and Cooperatives noted that Thailand's 2015-16
secondary rice crop (January - June) acreage declined by about half to around 800,000 hectares
due to extending drought conditions. He noted that plans for the countrys 2015-16 main rice
crop (May - December) will be complete by around April 2016.
In a recent report, the USDA Post forecast Thailand's MY 2015-16 (January - December 2016)
paddy rice production at around 24 million tons, down from last year's 29.4 million tons. It
forecast Thai off-season paddy production to decline about 57% y/y to around 3.1 million tons.

Oryza U.S. Rough Rice Recap - Prices Hold

Steady as Pace of Planting Picks Up
Apr 05, 2016

The U.S. cash market was unchanged today with little to no trading to report.
Analysts note that many farmers are busy getting their crops in the ground waiting for prices to
improve; however, buyers insist that there is not enough demand to justify paying the levels

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farmers are hoping to net especially given how much rice needs to move to make room for the
potentially large new crop.
Meanwhile, there are reports that the Iraqi Grain Board canceled a tender that had been expected
and will now seek to buy rice by directly negotiating with companies instead of issuing tenders
which may complicate things for U.S. exporters hoping to do business with Iraq.

Private Report Forecasts Revival of Indian

Basmati Rice Sector in Second Half of FY
Apr 04, 2016

A report by a private Indian research agency forecasts revival of the country's basmati rice sector
in the second half of FY 2016-17 (April - March), according to the Press Trust of India.
Domestic basmati rice farmers and exporters have been facing excess supplies, lower demand
and lower prices during the last two financial years.
"The basmati rice industry faced headwinds - weak demand and oversupply in FY16. The current
scenario of excess supply and weak demand is expected to continue in the near term and
exporters are likely to continue facing financial stress in the near term. Any improvement in the
situation is likely only from the next basmati paddy harvest season in the second half of 2016-17
due to improvement in demand," said the report.
The report predicts that the supply of basmati paddy might witness some moderation as farmers
may shift away from basmati in the coming kharif season (July - December) due to nonremunerative prices in the last two seasons. It also predicts improvement of demand from Iran
following its removal of the ban on rice imports.
Regarding prices, the report noted that basmati paddy is vulnerable to cyclical price fluctuations.
Higher prices encourage higher basmati cultivation leading to higher supplies and lower prices.
Basmati paddy prices increase from around Rs.18,000 (around $273) per ton in 2011-12 to
around Rs.37,000 (around $560) per ton in 2013-14 due to a strong demand in the international
market. This encouraged farmers to increase basmati rice acreage significantly in 2014-15, but
prices reversed causing severe losses to farmers and exporters.
India exported around 3.07 million tons of basmati rice in April-December 2015 period, up about
19% from around 2.57 million tons exported during the same period last year. However, earnings
from basmati rice exports have declined about 19% to around $2.72 billion in nine-month period
from around $3.37 billion during the same period last year due to a sharp decline in prices.
Average basmati rice export prices declined by about 32.5% to around $885 per ton during the
nine-month period from around $1,312 per ton last year.

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Exporters are expecting India's basmati rice exports in FY 2015-16 at around 4 million tons as
against 3.7 million tons in FY 2014-15 due to strong demand from the Middle East and lower
Iran, Iraq, the United Arab Emirates and Saudi Arabia are the major importers of Indian basmati

Vietnam Exports 1.426 Million Tons of Rice

in First Three Months of 2016; Up 58% from
Previous Year
Apr 04, 2016

Vietnam exported 1.426 million tons of rice in first three months of 2016 (January March), up
about 58% from 901,692 tons of rice exported during same period in last year, according to data
from the Vietnam Food Association (VFA). The average rice export price so far in this year

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stands at around $405 per ton (FOB), down about 7% per ton from around $434 per ton recorded
during same last year.
In March, 2016, Vietnam exported 570,055 tons of rice, up about 18% from 480,490 tons rice exported
in March 2015, and up about 30% from 439,449 tons rice exported in February 2016. The average export
price in March stands at around $402 per ton, up about 1% per ton from a year ago and down about
0.6% per ton from a month ago.

Thailand Shortlists Bids for Over 500,000

Tons of Stockpiled Rice in Second Auction
Apr 04, 2016

The government of Thailand has shortlisted bids from fourteen companies for about 418,000 tons
of food- grade rice and bids from six companies for about 98,273 tons of industrial-grade rice in
the second auction of this year, Bloomberg quoted an e-mailed statement from the Department of
Foreign Trade.
The Thai government auctioned 418,000 tons of food-grade rice fit for human consumption on
March 30 and 223,000 tons of non-food grade rice on March 31, 2016.
Total bidding value of the rice auction on two days is about 4.64 billion baht (around $132.5
million), according to the statement. Rice Policy and Management Committee will reportedly
consider results and select the winning bidders.
The government reportedly sold 152,377 tons of rice worth 1.78 billion baht (around $50
million) in the first auction on February 16 for human consumption, lower than the targeted
204,000 tons. It sold around 245,262 tons of stockpiled rice worth 1.53 billion baht (around $43
million) for industrial use on February 17, as part of the first auction.
It is reportedly planning to sell about to sell more than 100,000 tons of food-grade rice in the
second half of April.
The government still holds about 12 million tons of rice in its stockpiles and is keen on selling
about 5 million tons this year.

Vietnam Rice Quotes Lower Today; Other

Asia Rice Quotes Unchanged
Apr 04, 2016


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Vietnam rice sellers lowered their quotes for 5% broken rice, 25% broken rice, Jasmine rice and
100% broken rice by about $5 per ton each to around $370-$380 per ton, $355-$365 per ton,
$465-$475 per ton and $345-$355 per ton respectively today. Other Asia rice sellers kept their
quotes unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $365 - $375 per ton, about $5 per ton discount to
Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $370
- $380 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $340 - $350 per
25% Broken Rice
Thailand 25% rice is indicated at around $355 - $365 per ton, on par with Vietnam 25% rice
shown at around $355- $65 per ton. India 25% rice is indicated at around $335- $345 per ton,
about $25 per ton premium on Pakistan 25% rice shown at around $310 - $320 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is
indicated at around $355 - $365 per ton, about $50 per ton discount to Pakistan parboiled rice
last shown at around $405 - $415 per ton.
100% Broken Rice
Thailand broken rice, A1 Super is indicated at around $330 - $340 per ton, about $15 per ton
discount to Vietnam 100% broken rice shown at around $345 - $355 per ton. India's 100%
broken rice is shown at around $270 - $280 per ton, about $15 per ton discount to Pakistan
broken sortexed rice shown at around $285 - $295 per ton.

Vietnam Paddy, Rice Prices Continue to

Increase Amid Strong Demand and Short
Apr 04, 2016

Domestic paddy prices in Vietnam's Mekong Delta are continuing to increase due strong demand
and likely short supplies, according to local sources.
Prices of IR50404 paddy in some provinces has reportedly increased to around VND 5,000 per
kilogram (around $225 per ton) from around VND 4,650 per kilogram (around $209 per ton)last


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week. Prices of IR50404 rice has increased to around VND 7,100 per kilogram (around $320 per
A renowned rice expert noted that a higher demand from China is the main reason for an
increase in prices. They (China) know the drought is occurring in Mekong River Delta and they
have boosted purchases, he said.
Demand for both official and unofficial exports is high, according to a leading exporter. While
export companies are collecting rice to fulfil the contracts they signed, a big volume of rice is
being carried to the north (to be exported across the border gates to China), he said.
The Chairman of the Vietnam Food Association (VFA) noted that Vietnamese exporters have
signed 2.248 million tons by the end of February, including the 1.12 million tons carried forward
from 2015. He noted that Vietnamese exporters have delivered 856,000 tons, and still have to
deliver 1.392 million tons from March 2016.
Meanwhile, extending drought conditions and salt water intrusion in the Mekong Delta are likely
to significantly impact this year's winter-spring crop output. While some officials from the
Agriculture Ministry are predicting the output to decline by about 300,000 tons, some are
predicting that the decline would be up to one million tons. The Ministry has predicted that about
30% of the summer-autumn crop also cannot be sowed as scheduled due to drought.
However, another rice expert noted that rice prices are increasing due to speculation and
psychological impact created by drought and salt water intrusion.
Vietnam 5% and 25% broken rice exports are quoted at around $375 per ton and $365 per ton
respectively, above Thai quotes of around $370 per ton and $360 per ton.

EU Plans to Regulate Organic Farming as

Demand for Organic Products Increases
Apr 04, 2016


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The European Commission (EC), the

European Parliament, and the EU
discussing on means to regulate the
organic farming sector as demand for
organic products has been increasing
in recent years, according to local
sources.In the EU, the use of organic
agricultural land has almost doubled
in recent years. Austria, Sweden and
Estonia have the highest proportion
of organically farmed land in
Europe. In Italy, about 8,405
hectares, or about 4% of total rice
growing area, were farmed with
organic methods in 2014.Demand
wise, Europe is the second largest
market in the world for organic
products, worth 22.7 billion euros
(about $25.8 billion). Germans,
French and British are the biggest
consumers of organic products.The
website defines
organic farming as a solution to
feeding a growing global population
and reducing the environmental
impact of agriculture.However,
yields with organic farming are
lower by about 20 to 25% compared
with the conventional farming.
Yields for rice are still lower, say
experts. Therefore, more land is
needed with organic farming for
producing the same quantity of food
with traditional methods.In Italy, the
National Strategic Plan for Organic
farming has been approved at the end
of March. It is the result of work
carried out by Ministry of Agriculture together with the entire supply chain. It provides a set of
goals targeted for the growth of the sector, both in terms of market and the area devoted to
organic agriculture, to be achieved by 2020 through a set of ten specific actions.

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