5th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

8/18/2019 5th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

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Daily Exclusive ORYZA Rice E-Newsletter

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www.ricepluss.com www.riceplusmagazine.blogspot.com

April 05,2016

Vol 7,Issu


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Italy Milled Rice Exports Decline 18% y/y to

67,654 Tons in September 1, 2014 - March 29,

2015Apr 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 byLebanon (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 63,923tons exported last year. Italy's round varieties exports declined about 47% to around 6,630 tonsfrom around 12,509 tons last year; and Italy's medium varieties exports declined about 20% toaround 2,155 tons from around 2,694 tons last year. However, export of Long B varietiesincreased 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 370-380 ↔

India 5% broken 370-380 ↔

Pakistan 5% broken 340-350 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 450-460 ↔

U.S. 4% broken 440-450 ↔

Uruguay 5% broken 435-445 ↔


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Argentina 5% broken 425-435 ↔

Long grain white rice - low quality

Thailand 25% broken 355-365 ↔

Vietnam 25% broken 355-365 ↔

Pakistan 25% broken 310-320 ↔

Cambodia 25% broken 430-440 ↔

India 25% broken 335-345 ↔

U.S. 15% broken (sacked) 470-480 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 370-380 ↔

Pakistan parboiled 5% broken stxd NQ ↔

India parboiled 5% broken stxd 345-355 ↓

U.S. parboiled 4% broken 480-490 ↔

Brazil parboiled 5% broken 490-510 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 665-675 ↔

Vietnam Jasmine 465-475 ↔

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 760-770 ↔

Brokens

Thailand A1 Super 330-340 ↔

Vietnam 100% broken 340-350 ↓

Pakistan 100% broken stxd 285-295 ↔


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Cambodia A1 Super 345-355 ↔

India 100% broken stxd 270-280 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 315-325 ↔

Brazil half grain NQ ↔

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

European Organic Congress 2016 Begins in

Amsterdam

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 organicinterests in Europe.

The theme of this year‟s Congress is transforming food and farming through organics. It will alsolook 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, environmentaland societal challenges.

Together with diverse food and farming stakeholders, the congress will develop practicalstrategies to develop organics in the long term and shape the EU market and policydevelopments 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

Pending

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 www.EurActiv.com.

http://www.euractiv.com/http://www.euractiv.com/http://www.euractiv.com/http://www.euractiv.com/


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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 thedefinition 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 thefirst 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 asGreenpeace, Friends of the Earth Europe, IFOAM EU and other campaigning organisations, saidthat 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 techniquesshould 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 obtainedthrough well-established mutation breeding techniques, ESA is of the opinion that a GMclassification 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 totoday," it said.

Indonesia Plans to Export 100,000 Tons of Ricein 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 increasefarm commodity exports, according to Tempo.Co citing Antara news agency.

The Director General of Agricultural Infrastructure and Facilities of the Agriculture Ministryreportedly noted that to meet the export target as well as the local demand, the governmentwould 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 alsonoted that the state logistics agency Bulog will be responsible to control prices at the farmer levelthrough 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 therice soon to maintain the rice prices," he added.

In early March, the Director of procurement at Bulog said that the country may not import ricethis 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 in2016, up about 1.1% from an estimated 75.36 million tons in 2015, according to the DirectorGeneral 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 WeighLast Week's USDA Reports

Apr 05, 2016

Chicago rough rice futures for May delivery settled 4.5 cents were cwt (about $1 per ton) higherat $9.800 per cwt (about $216 per ton). The other grains finished the day mostly lower; Soybeansclosed 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 eyedoil prices and the week's Fed speakers. The major averages mostly held a touch lower inafternoon trade, with consumer discretionary, industrials and utilities among the greatestdecliners in the S&P 500. Federal Open Market Committee voting member Boston Fed PresidentEric Rosengren said he believed it will likely be appropriate to resume the path of gradualtightening sooner than is implied by financial market futures. He added the "U.S. has weatheredforeign shocks quite well" and that risks from abroad are easing. In economic news, factoryorders 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 wereclosed 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 consumerdiscretionary leading eight sectors lower, with health care and telecommunications the onlyadvancers. The Nasdaq composite declined 6 points, or 0.13%, to 4,908. Gold is seen tradingabout 0.3% lower, crude oil is seen trading about 2.3% lower, and the U.S. dollar is seen tradingabout 0.2% lower at about 1:15pm Chicago time.

Friday, there were 2,293 contracts traded, up from 2,902 contracts traded on Thursday. Openinterest – 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 overthe 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 tothe country's Central Plains hold about 2.4 billion cubic feet of water, les than half the volume ayear ago and far below the normal level of 10 billion cubic feet. He noted that the water levelwould 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 beaffected. However, it will not be able to supply water to farmers until the wet season starts inMay. Farmers in the Central Plains mostly plant secondary rice crop, which is highly dependenton irrigation. The government has encouraged rice farmers to switch from rice to other cropsneeding 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, mostlyrice plantations, between October 2015 and March 2016.

Last month, the Minister for Agriculture and Cooperatives noted that Thailand's 2015-16secondary 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 country‟s 2015-16 main ricecrop (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. Itforecast 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 toimprove; 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 expectedand 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

2016-17

Apr 04, 2016

A report by a private Indian research agency forecasts revival of the country's basmati rice sectorin 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 demandand lower prices during the last two financial years.

"The basmati rice industry faced headwinds - weak demand and oversupply in FY16. The currentscenario of excess supply and weak demand is expected to continue in the near term andexporters are likely to continue facing financial stress in the near term. Any improvement in thesituation is likely only from the next basmati paddy harvest season in the second half of 2016-17due to improvement in demand," said the report.

The report predicts that the supply of basmati paddy might witness some moderation as farmersmay shift away from basmati in the coming kharif season (July - December) due to non-remunerative prices in the last two seasons. It also predicts improvement of demand from Iranfollowing 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 toaround Rs.37,000 (around $560) per ton in 2013-14 due to a strong demand in the internationalmarket. 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 about19% from around 2.57 million tons exported during the same period last year. However, earningsfrom basmati rice exports have declined about 19% to around $2.72 billion in nine-month periodfrom 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 thenine-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 asagainst 3.7 million tons in FY 2014-15 due to strong demand from the Middle East and lower prices.

Iran, Iraq, the United Arab Emirates and Saudi Arabia are the major importers of Indian basmati

rice.

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), upabout 58% from 901,692 tons of rice exported during same period in last year, according to datafrom 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 recordedduring 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 about0.6% 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 inthe second auction of this year, Bloomberg quoted an e-mailed statement from the Department ofForeign Trade.

The Thai government auctioned 418,000 tons of food-grade rice fit for human consumption onMarch 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 $132.5million), according to the statement. Rice Policy and Management Committee will reportedlyconsider results and select the winning bidders.

The government reportedly sold 152,377 tons of rice worth 1.78 billion baht (around $50million) in the first auction on February 16 for human consumption, lower than the targeted204,000 tons. It sold around 245,262 tons of stockpiled rice worth 1.53 billion baht (around $43million) 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 thesecond half of April.

The government still holds about 12 million tons of rice in its stockpiles and is keen on sellingabout 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 and100% 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 theirquotes unchanged today.

5% Broken Rice

Thailand 5% rice is indicated at around $365 - $375 per ton, about $5 per ton discount toVietnam 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 perton.

25% Broken Rice

Thailand 25% rice is indicated at around $355 - $365 per ton, on par with Vietnam 25% riceshown 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 isindicated at around $355 - $365 per ton, about $50 per ton discount to Pakistan parboiled ricelast 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

Supplies

Apr 04, 2016

Domestic paddy prices in Vietnam's Mekong Delta are continuing to increase due strong demandand likely short supplies, according to local sources.

Prices of IR50404 paddy in some provinces has reportedly increased to around VND 5,000 perkilogram (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 perton).

A renowned rice expert noted that a higher demand from China is the main reason for anincrease 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 havesigned 2.248 million tons by the end of February, including the 1.12 million tons carried forwardfrom 2015. He noted that Vietnamese exporters have delivered 856,000 tons, and still have todeliver 1.392 million tons from March 2016.

Meanwhile, extending drought conditions and salt water intrusion in the Mekong Delta are likelyto significantly impact this year's winter-spring crop output. While some officials from theAgriculture 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 about30% 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 tonrespectively, 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), theEuropean Parliament, and the EUmember states are currently

discussing on means to regulate theorganic farming sector as demand fororganic products has been increasingin recent years, according to localsources.In the EU, the use of organicagricultural land has almost doubledin recent years. Austria, Sweden andEstonia have the highest proportionof organically farmed land inEurope. In Italy, about 8,405hectares, or about 4% of total rice

growing area, were farmed withorganic methods in 2014.Demandwise, Europe is the second largestmarket in the world for organic products, worth 22.7 billion euros(about $25.8 billion). Germans,French and British are the biggestconsumers of organic products.Thewebsite www.euractiv.com definesorganic farming as a solution tofeeding a growing global population

and reducing the environmentalimpact of agriculture.However,yields with organic farming arelower by about 20 to 25% comparedwith the conventional farming.Yields for rice are still lower, sayexperts. Therefore, more land isneeded with organic farming for producing the same quantity of foodwith traditional methods.In Italy, the National Strategic Plan for Organicfarming has been approved at the endof March. It is the result of work

carried out by Ministry of Agriculture together with the entire supply chain. It provides a set ofgoals targeted for the growth of the sector, both in terms of market and the area devoted toorganic agriculture, to be achieved by 2020 through a set of ten specific actions.

Exclusive News have been shared with written permission of ORYZA.com with thanks
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5th April,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine