10th june (wednesday),2015 daily exclusive oryza rice e newsletter by riceplus magazine

1 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine |

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June 10 ,2015




Oryza U.S. Rough Rice Recap - Prices Seen

Stable ahead of USDA WASDE Report

Jun 09, 2015

The U.S. cash market was unchanged today ahead of the USDA’s World Agriculture Supply and

Demand Estimate report due out Wednesday morning.Analysts note that most market

participants believe there will be little to no changes made to the U.S. balance sheet; however,

some contend that the price direction will likely be guided by the report’s impact on the grain

complex.

Thailand, Vietnam, Pakistan Rice Sellers

Lower Some of Their Quotes Today

Jun 09, 2015

Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to around $360 -

$370 per ton today. Vietnam rice sellers lowered their quotes for Jasmine rice by about $5 per

ton to around $475- $485 per ton. Pakistan rice sellers lowered their quotes for 5% broken rice

by about $5 per ton to around $390 - $400 per ton. India rice sellers kept their quotes unchanged

today.

5% Broken Rice

Thailand 5% rice is indicated at around $355 - $365 per ton, about a $5 per ton premium on

Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $375

- $385 per ton, about a $15 per ton discount to Pakistan 5% rice shown at around $390 - $400 per

ton, down about a $5 per ton from yesterday.

25% Broken Rice

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 $10 per ton premium on Pakistan 25% rice shown at around $350 - $360 per

ton.




Parboiled Rice

Thailand parboiled rice is indicated at around $360 - $370 per ton, down about a $5 per ton from

yesterday. India parboiled rice is indicated at around $355 - $365 per ton, about a $55 per ton

discount to Pakistan parboiled rice shown at around $410 - $420 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, on par with Vietnam

100% broken rice shown at around $315 - $325 per ton. India's 100% broken rice is shown at

around $280 - $290 per ton, about a $15 per ton discount to Pakistan broken sortexed rice shown

at around $295 - $305 per ton.

Vietnam Rice Exports to African Destinations

More than Double in April 2015

Jun 09, 2015

Vietnam exported around 71,993 tons of rice to Africa (about 11% of total April 2015 exports),

over two times more from around 34,545 tons exported in March 2015, and down about 29%

from around 101,779 tons exported in April 2014, according to USDA. The increase is attributed

to export promotion strategies implemented by the Ministry of Industry and Trade (MOIT) in the

African countries.Vietnam has exported around 668,177 tons of rice in April 2015, about 9%

more from around 613,164 tons exported in March 2015, and up about 24% from around

538,623 tons exported in April 2014. While share of Vietnam's rice exports to Asia declined in

April 2015, its share of exports to Africa, Americas, Europe and Australia increased during the

month.

Asia accounted for around 520,386 tons (about 78% of total rice exports by Vietnam in April

2015) in April 2015. Month-on-month, Vietnam's rice exports to Asian destinations declined

about 3% from around 536,838 tons exported in March 2015. Year-on-year, they increased about

47.5% from around 352,778 tons exported in April 2014.Vietnam exported around 67,757 tons

of rice to American destinations (about 10% of April 2015 exports), up about 82% from around

37,255 tons exported in March 2015, and down about 5.5% from around 71,693 tons exported in

April 2014.

http://www.oryza.com/22623/vietnams-rice-exports-africa-may-recover-2015-says-moit




Vietnam's exports to Australia (about 0.7% of April 2015 exports) increased about 3 times to

around 4,729 tons in April 2015 from around 1,618 tons exported in March 2015 and declined

about 2.8 times from around 1,713 tons exported in April 2014.

Vietnam's exports to Europe and CIS countries (about 0.5% of total April 2015 exports)

accounted for around 3,312 tons, about 14% more from around 2,908 tons exported in March

2015 and about 69% below from around 10,660 tons exported in April 2014.In terms of grade,

5% broken rice exports accounted for around 196,338 tons (or, about 29% of total April 2015

exports); Jasmine rice exports accounted for around 132,322 tons (or, about 20% of total April

2015 exports); 15% broken rice exports accounted for around 94,750 tons (or, about 14% of total

exports in April 2015); 25% broken rice exports accounted for around 92,878 tons (or, about

14% of total exports in April 2015); glutinous rice exports accounted for around 48,484 tons (or,

about 7% of total April 2015 exports); and 10%, 100% and other varieties accounted for around

103,405 tons (or, about 15% of total exports in April 2015).




IRRI Promotes Stress-Tolerant Rice Varieties

in Cambodia and Nepal

Jun 09, 2015

The Philippines-based International Rice Research Institute (IRRI) is promoting the use of stress-

tolerant rice varieties in Cambodia and Nepal under a USAID-financed project as part of efforts

to help farmers to adapt to climate change challenges, according to Cambodia news sources.The

project will last three years and about $3 million is allocated to each of the two countries.

It will basically support both the countries to adapt to drought and flooding problems by training

farmers, seed companies and farmers' associations to use better quality seeds for their crops.The




IRRI representative in Cambodia launched the project in the country's capital on June 8, 2015.

Around one thousand farmers will be selected across the country and provided with sample

seeds. The IRRI representative told local sources that presently most of the farmers use their own

seeds from previous crop or import from Thailand or Vietnam. The project will encourage for

production of quality seeds within the country as well as create awareness among farmers to use

quality seeds to increase yields.

Nearly one million hectares of farmland in Cambodia is reportedly damaged by the drought and

floods between 2011 and 2013, according to the Secretary of State at the Ministry of Agriculture,

Forestry, and Fisheries.USDA estimates Cambodia MY 2014-15 (January 2015 - December

2015) paddy rice production at around 7.344 million tons (around 4.7 million tons, milled basis),

slightly down from around 7.383 million tons (around 4.725 million tons, milled basis) in MY

2013-14. It estimates Cambodia to export around 1.1 million tons of rice in 2015, up about 10%

from an estimated 1 million tons in 2014

Oryza Afternoon Recap - Chicago Rough

Rice Futures Continue to Trek Higher but

Now Face Overhead Resistance at $10.000

per cwt

Jun 09, 2015

rice futures for Jul delivery settled 3.5 cents per cwt (about $1 per ton) higher at $9.980 per cwt

(about $220 per ton). The other grains finished the day mostly higher with only corn dipping

slightly by the ringing of the closing bell; Soybeans closed about 0.8% higher at $9.5150 per

bushel; wheat finished about 0.8% higher at $5.3225 per bushel, and corn finished the day about

0.1% lower at $3.6500 per bushel.U.S. stocks traded mixed as investors eyed recovery in bond

yields and growing support for a rate hike in September. Gains were muted, with the Dow Jones

industrial average remaining in negative territory for the year. It fell into the red on Monday.

The Job Openings and Labor Turnover Survey showed 5.376 million job openings in April, the

highest since December 2000. Wholesale inventories showed an increase of 0.4% in April, above

expectations of a 0.2% rise. U.S. small business confidence increased to a five-month high in

May of 98.3, the highest since December, according to the National Federation of Independent




Business. In the absence of major economic reports this week, analyst focus remains on

Thursday's retail sales report. The Dow Jones Industrial Average traded up 16 points, or 0.09%,

at 17,782. The S&P 500 traded up 2 points, or 0.09%, at 2,081, with consumer staples leading six

sectors higher and information technology the greatest decliner.

The Nasdaq traded down 16 points, or 0.32%, at 5,002. The index has not closed below 5,000

since May 13. Gold is trading about 0.3% higher, crude oil is seen trading about 3.4% higher,

and the U.S. dollar is seen trading about 0.1% lower at about 1:00pm Chicago time.Monday,

there were 506 contracts traded, down from 720 contracts traded on Friday. Open interest – the

number of contracts outstanding – on Monday decreased by 15 contracts to 11,762.

Thailand Considers to Sell Stockpiled Rice to

Consumers Directly

Jun 09, 2015

The government of Thailand is considering to sell stockpiled rice directly to consumers as part of

efforts to reduce rice stocks in the country as soon as possible, according to local sources.The

Prime Minister reportedly instructed the Ministry of Commerce to urgently sell rice via various




channels in order to reduce storage costs as well as reduce losses associated with deterioration of

the stocks.The Commerce Minister told local sources that the Ministry is planning to set a

working team to consider selling stockpiled rice directly to consumers in small packs. He noted

that the Ministry will discuss the plan with the Public Warehouse Organisation, Marketing

Organisation for Farmers, Foreign Trade Department and Internal Trade Department and

estimate the appropriate amount of rice that can be sold to consumers.

The Minister also stated that of the 16-17 million tons of stockpiled rice, only 2 million tons are

of good quality and the government may consider selling that to consumers directly as packaged

rice. He added that the remaining rice would be sent for upgradation before selling to

consumers.Some experts have warned the government to ensure that the decision would not

distort the market mechanism and hurt existing traders as the supply of packaged rice increases

in the market. They also suggested that the price should be close to the market price in order to

ensure that farmers and traders are not disadvantaged.

The Ministry will auction 1.06 million tons of rice on June 15. It sold It had sold about 1.88

million tons of rice from six auctions raising around 25.58 billion baht (around $785.2 million)

since it seized power in May 2014. It also reportedly sold one million tons of rice under

government-to-government contracts. It aims to sell about 10 million tons of stockpiled rice this

year and about 7 million tons next year.Separately, the Rice Department is planning to

restructure the rice production system in order to reduce costs and increase yields. The

Department has collaborated with the local governments to improve the rice production system,

according the Director-General of the Rice Department.

Pakistan Basmati Rice Export Prices Decline

for Third Consecutive Month in May 2015

Jun 09, 2015

Pakistan basmati rice prices have declined for third consecutive month in May 2015 after

increasing continuously for two months, according to the UN's Food and Agriculture

Organization (FAO).Though the decline has not been so much pronounced in March and April

this year, it can be attributed to better rice growing prospects due to adequate availability of

irrigation water in major rice growing areas, increased distribution of certified seeds and

increased allocation of institutional credit over last year.




According to a recent report by the country's Federal Committee on Agriculture (FCA), the

government has fixed a target of 7 million tons, basis milled, (around 10.35 million tons, basis

paddy) from an area of around 2.8 million hectares. In May 2015, Pakistan's basmati rice export

prices have declined by about 9% to around $895 per ton from around $980 per ton in April

2015, and down about 34% from their year-ago levels of around $1,350 per ton.

In terms of local currency, average Pakistan basmati rice prices in May 2015 declined by about

9% to around PKR 90,887 per ton (using historical exchange rates) from around PKR 99,617 per

ton in April 2015, and down about 31% from around PKR 131,328 per ton in May 2014.Average

Pakistan basmati rice prices stood at around $943 per ton in the first five months of 2015

(January - May), down about 31% from around $1,361 per ton recorded during the same period

last year.




Average basmati rice prices increased between August and September 2014 and peaked to

around $1,450 per ton in September 2014 due to fears of a fall in production as floods affected

large area of basmati rice acreage in Punjab. However, the overall production of basmati rice has

not been significantly affected by floods.Currently, Pakistan basmati growers have been urging

the government to provide adequate support to increase competitiveness of Pakistan's basmati

rice in the global market.

Global Rice Quotes

June 10th, 2015

Long grain white rice - high quality

Thailand 100% B grade 365-375 ↔

Vietnam 5% broken 350-360 ↔

India 5% broken 375-385 ↔

Pakistan 5% broken 385-395 ↓

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 ↔





Pakistan 25% broken 350-360 ↔

Cambodia 25% broken 410-420 ↔

India 25% broken 360-370 ↔

U.S. 15% broken 455-465 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 360-370 ↔

Pakistan parboiled 5% broken stxd 410-420 ↔

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 ↔

Brokens

Thailand A1 Super 315-325 ↔





Pakistan 100% broken stxd 295-305 ↔

Cambodia A1 Super 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 Overnight Recap – Chicago Rough

Rice Futures Continue Noted Slightly Higher

as Market Approaches Overhead Resistance

at $10.000

Jun 09, 2015

Chicago rough rice futures for Jul delivery are currently seen trading 1.5 cents per cwt (about

$0.33 per ton) higher at $9.960 per cwt (about $220 per ton) during early floor trading in

Chicago. The other grains are seen trading higher; soybeans are currently seen trading about

0.8% higher, wheat is listed about 0.9% higher and corn is currently noted about 0.7%

higher.U.S. stocks traded in a narrow range on Tuesday as investors sought further insight on the

timing of a rate hike from economic data.

Analysts are watching a support level of 2,070 on the S&P 500 after the index closed below its

100-day moving average on Monday. The S&P and Dow Jones industrial average attempted

gains in early trade. Energy rose 0.6%, boosted by gains in oil, to lead sector advancers in the

S&P. The Job Openings and Labor Turnover Survey is expected at 10:00 a.m. ET and should

show continued strength in the labor market, which would further solidify the case for a

September short-term interest rate hike. U.S. small business confidence increased to a five-




month high in May of 98.3, the highest since December, according to the National Federation of

Independent Business.

However, analysts are more focused on Thursday's retail sales report in the absence of major

economic reports this week. The Dow Jones Industrial Average traded up 24 points, or 0.13%, at

17,789. The S&P 500 traded up 2 points, or 0.10%, at 2,081, with energy leading eight sectors

higher and information technology and consumer discretionary the only laggards. The Nasdaq

traded down 4 points, or 0.08%, at 5,017. Gold is currently trading about 0.5% higher, crude oil

is seen trading about 2.8% higher, and the U.S. dollar is currently trading about 0.1% higher

at 8:45am Chicago time.

Government Sales and Subsidies Under G2G

Contracts May Push Up Thai Rice Exports in

Second Half of 2015, Says USDA Post

Jun 09, 2015




USDA Post forecasts Thailand to export around 11 million tons of rice in 2015. It is expecting

Thai rice exports to accelerate in the second half of the year due to an increase in the sales of

government rice stocks and government-to-government (G2G) contracts as the government has

decided to resume public tenders for 2 million tons of stockpiled rice in June and July. It

reportedly suspended sales of rice stocks during the seasonal harvest of off-season rice in April

and May.

The Post also reports that on May 6, 2015, the Thai government has finalized another G2G deal

to export 2 million tons of white rice from the new crop for delivery in 2015 an 2016. This will

consist of 1 million metric tons of new-crop white rice and 1 million metric tons from

government stocks, according to the Post. The government is expected to complete the shipping

of about one million tons to China by August 2015 under a memorandum of understanding

(MOU) signed in April 2014.

Major part of the shipments under the G2G contracts were subcontracted to rice exporters as the

government had only old-crop in its rice stocks. Eligible exporters have been offered subsidies of

around $10-20 per ton which was paid in form of rice from the government stocks.The Post

reports that rice will not be traded in the Agricultural Futures Exchange of Thailand (AFET)

after it is merged with the Thailand Futures Exchange PLC (TFEX), a subsidiary of the Stock

Exchange of Thailand (SET), reports the Post.

According to a field survey conducted by the Post in May 2015, total planted area of the second

off-season crop in the central plains and the lower northern regions stood at around 2.2 million

rai (around 380,000 hectares), including around 1.7 million rai (around 300,000 hectares) in the

central plains and around 0.5 million rai (around 80,000 hectares) in the northern region.

The Post forecasts MY 2014-15 (January - December 2015) milled rice production at around

19.4 million metric tons, slightly down from an estimated 20.46 million tons in MY 2013-14 due

to minimal drought damage so far in the second off-season rice crop. The Post reports that as of

May 22, drought damaged areas of the off-season rice crop remains stood at around 1.2 million

rai (200,000 million hectares).According to the Thai Meteorological Department (TMD), the

rainy season officially began on May 22, 2015 and will end by mid October. It expects normal

precipitation in major rice growing areas during June to August.

Documents

10th june (wednesday),2015 daily exclusive oryza rice e newsletter by riceplus magazine